Asian stocks have been overvalued amid concerns that the valuations of technology companies have been overvalued after the ongoing rally they have seen. The MSCI Asia -Pacific index fell by 0.8%, with a decrease in semiconductor shares weighing in the Japanese market. Taiwanese company TSMC’s shares dropped after reports that brokerage firms have reduced the margin financing ratio for the share to zero, indicating an increase in its valuations. The Hong Kong Technology Stock Index is also on its way to recording its worst weekly performance since the beginning of August. On the other hand, South Korean stocks rose after returning from a week-long holiday, with Samsung Electronics shares by 6%. Warning dominates the markets after sharply rising. The dollar has dropped slightly to a four -day increase that has brought it to its strongest levels since the beginning of August. The Bloomberg US Currency Index is on its way to its best weekly profits since mid -November 2024. Gold has risen slightly after also scoring the biggest decline since August, but it still traded below the $ 4,000 per gram level. In terms of oil, it maintained its biggest weekly decline amid cautious optimism over the decrease in tension in the Middle East. US stocks dropped on Thursday, as investors took breathing after a strong rise in the S&P 500 index since the lowest levels in April, when the fear of rates caused unrest in the markets. The profits were driven by major technological stocks related to artificial intelligence, which some analysts asked to warn of a bubble forming in the market. Keith Lerner of Trust Advisory Services Inc., “A long period without any significant correction, the market said more sensitive to negative surprises.” Hedge funds hold despite the record heights. Even after the series records, JPMorgan Chase & Co. -Data that some investors, including hedge funds, are still careful. A team led by Nikolaos Pangirtzoglou explained that the ‘shares -beta coefficient’ of monthly reporting of macro hedging funds, an indication of their exposure to the market, remains moderately negative, despite the fact that they have fallen slightly in recent months. Daniel Skelly, head of market research and strategy at Morgan Stanley Wealth Management, said one of the main reasons why an AI bubble is inaccurate is that leading spending companies still have growing earnings. He added: “It’s not the Dot-com bubble businesses of a quarter century ago that didn’t have profits or even viable business models. However, that does not mean that the market will not have setbacks. Investors may want to look at stocks of high quality companies, growing dividends.” The US Census Bureau resumes work elsewhere, the US Bureau of Labor Statistics has called on its staff to compile an important inflation report needed to calculate the size of next year’s social security controls, according to an official of the Department of Labor who is familiar with the case. The office has suspended all its operations, including the collection of data and the issuance of economic statistics, due to government closure. In other markets, US Treasury bonds dropped across all their conditions on Thursday. The yen was also on its way to its biggest weekly loss in a year, even after Sanaae Takaishi, the new ruling party leader and supporter of Japan economic stimulus, said she did not support excessive currencies. Also read: Is Sanaee Takaichi Thatcher of Japan or will she become Lizzie? US support for Buenos Aires and the rise of the dollar that rose the Argentine peso after the United States rushed to support the stability of the country’s economy, providing $ 20 billion with financing, and carrying out a rare intervention in the currency market after weeks of a sharp fall in the currency. Investors also focus on the recent dollar strength, as the most important global reserve currency remains near its highest level in two months, despite the continued strike of the US government. Traders in Asia and Europe say that hedge funds have added bets via option contracts that they expect the dollar to recover until the end of the year against most major currencies. “Although a further dollar can be limited, unless we see a significant increase in real returns, a new increase in US Treasury yields can cause a broader redress in risk assets,” said Dylan Wu, a strategist at Pepperstone Group.
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