Asian markets dip as investors weigh tech earnings, Gulf tensions

Asian markets experienced a dip on Thursday, with investors grappling with the consequences of mixed tech earnings and geopolitical tensions in the Gulf. The MSCI's index of Asia-Pacific shares outside Japan fell by 0.2%, continuing a trend of four consecutive weekly declines. Japan's Nikkei stock index saw a slight dip of 0.4%, while South Korean shares declined by more than 1%. US stock futures, the S&P 500 e-minis, experienced a marginal drop of 0.4% as well.

The tech sector led Wall Street higher, buoyed by strong earnings reports from industry giants. SpaceX reported its first profit as a public company, while Meta reported better-than-expected third-quarter revenue. Super Micro, an AI server maker, forecasted revenue and profit margins that exceeded estimates. However, Meta's decision to issue non-voting Class C common stock raised concerns about its AI spending.

Investors are still grappling with the aftermath of the earnings results and are awaiting important decisions from the Federal Reserve, geopolitical risks, and the upcoming US mid-term elections. The yield on 10-year Treasury notes decreased by 4.2 basis points to 5.1065%, and the yield on 30-year notes reached a one-week low of 5.3968%.

Oil prices rose as US officials ordered diplomats to leave Saudi Arabia following Houthi strikes, and the New York Times reported plans for potential attacks on Iran after the mid-term elections.

In the currency markets, the dollar index fell to 102.2, with the euro and yen remaining relatively stable. The Korean won showed muted movement, with the Bank of Korea maintaining its benchmark interest rate at 3.00%. Gold prices dipped slightly, while Bitcoin and Ethereum experienced minor declines.