Markets in Asia felt the ripple effects of a narrow earnings miss at Broadcom on Friday, as investors reassessed expectations for chipmakers and related AI-focused equities. Broadcom reported second-quarter revenue of $22.19 billion, slightly beneath the $22.27 billion consensus, and reiterated guidance for $100 billion in revenue next year. The stock reaction was pronounced, with shares falling 12.6%, and the move underscored an increasingly cautious tone after a period of steady upgrades.
The sell-off in technology names accelerated declines across regional indices, tipping South Korea toward just its seventh weekly loss of 2026. South Korea's KOSPI was tracking a weekly drop of about 3%, led by steep falls in major chip-related names including Samsung and SK Hynix. The Korean won weakened to levels last seen in 2009, pressured by what market participants described as a wave of foreign selling.
Market strategists noted the strain on the AI-driven equity advance. "The AI-led equity rally is showing signs of fatigue," said Bob Savage, head of markets macro strategy at BNY. The comment captured a broader nervousness around the sustainability of recent gains in chip and AI-linked shares, after better-than-expected results had become an assumed baseline for investors.
Commodities were less volatile on the session. Brent crude held near $95 a barrel and was on course for a weekly gain of more than 3% after earlier flare-ups in the Middle East raised concerns about a longer-lasting supply shock. Traders remained cautious ahead of clarity on U.S.-Iran talks, which were cited as a key development that could influence oil markets further.
Currency markets also reflected the risk-off tone. The dollar index was positioned for a weekly gain, and the dollar briefly traded around 160 yen in Asian trade. That move elicited verbal pushback from Japanese authorities, who had intervened near that level in the prior month, signaling continued sensitivity around the exchange rate.
Investors were looking ahead to U.S. jobs data on Friday as another potential market mover. Consensus forecasts called for a modest rise of 85,000 in May payrolls; analysts warned that an upside surprise could strengthen the dollar and affect asset prices.
Key factors to watch for the session are developments in U.S.-Iran talks and the U.S. employment release. Both pieces of information were expected to shape risk sentiment across equities, commodities, and currencies as trading moved into the close of the week.