Broadcom Forecast and US Data Weigh on Global Stocks

Global stocks opened lower on Thursday following a disappointing forecast from chip giant Broadcom, which raised concerns about the AI trade. According to RTHK, stronger-than-expected US economic data further fueled speculation that the Federal Reserve might increase interest rates. Fresh Iranian attacks and stalled peace talks with the United States added to the negative sentiment, although oil prices fell on news of a ceasefire between Israel and Lebanon. Regional equity markets mirrored Wall Street's decline, where tech firms suffered after Broadcom's third-quarter chip revenue forecast fell short of expectations. In Hong Kong, the Hang Seng Index dropped 167 points, or 0.66 percent, to 25,465 at the open. Other markets, including Shanghai, Sydney, Singapore, Wellington, and Taipei, also saw declines. Jakarta experienced a more than one percent drop, reaching its lowest level since 2021, as the Indonesian rupiah hit a record low amid economic concerns. Traders were unsettled by data showing US companies added the most jobs since early last year, despite rising energy prices. This comes ahead of a closely watched non-farm payrolls report due Friday, which could intensify pressure on the Fed to raise rates if it shows strong job growth.