Asian equities might exhibit a choppy and tight range price action, mirroring the recent trade in global markets. Investors should closely monitor semiconductor stocks in Asia, as their U.S. counterparts faced a significant decline after reports emerged that Apple is developing its own AI chips for data centre servers, which could reduce its reliance on existing chip suppliers. Furthermore, headwinds arose from reports indicating that the Biden administration revoked export licenses that permitted Intel and Qualcomm to supply semiconductors to Huawei. This move, part of Washington’s broader efforts to increase pressure on the Chinese telecommunications company, disrupts the chip supply for Huawei’s laptops and mobile phones.
Meanwhile, the U.S. dollar could continue to serve as a key risk indicator, gaining strength within narrow ranges during an otherwise quiet day in macroeconomic developments and U.S. data. Traders are keenly awaiting further direction following the dovish Federal Reserve meeting and softer U.S. payrolls data ahead of next week’s U.S. Consumer Price Index release. Later in the session, traders will pay close attention to remarks from Fed members Jefferson, Collins, and Cook in the absence of significant data releases.
