Broadcom, Persian Gulf Tensions Blunt Wall Street Pre-Bell; Asia, Europe Off

Persian Gulf Gloom Darkens Asian Stock Markets

Asian stock markets fell back Thursday on overnight Wall Street cues and after media reports of fresh hostilities between US and Iranian forces, including a fresh barrage unleashed by Tehran upon the Kuwait International Airport.Hong Kong, Shanghai and Tokyo finished in the red, as did most other regional exchanges, on the dimming outlook for a settlement that could re-open the Strait of Hormuz, the sea passageway vital to Asian Pacific crude supplies.In Japan, the Nikkei 225 opened lower and could not recover, finishing off 1.3% as traders weighed Middle East war reports against rich tech-sector valuations.The benchmark Nikkei 225 fell 931.44 to 67,470.69, as losing issues outnumbered gainers 166 to 56.Leading the upside was semiconductor manufacturing equipment maker Disco, up 5.1%, while tech financier SoftBank declined 11.3%.In Hong Kong, the Hang Seng Index opened lower and drifted south, closing off 1.5%.The broad gauge Hang Seng fell 379.81 to 25,253.40 as losing issues outnumbered gainers 75 to 12. The Hang Seng TECH Index lost 1.6% on the day, while the Mainland Properties Index fell 0.9%.Leading the upside was toolmaker Techtronic, gaining 1.7%, while Contemporary Amperex Technology declined 7%.On the mainland, the Shanghai Composite fell 0.6% to 4,057.78.On the other regional exchanges, the South Korean KOSPI fell 1.8%; the Taiwan TWSE declined 1.7%; the Australian ASX 200 declined 1.1%; the Singapore Straits Times Index fell 1.4%, but the Thai Set advanced 0.4%. In late trading in Mumbai, the Sensex was steady.The MSCI All Country Asia Pacific Index fell 1.7% on the day.

Challenger US May Layoff Intentions Jump to Highest for Month Since 2020 on AI-Related Cuts

Outplacement firm Challenger, Gray & Christmas said Thursday that companies planned to cut 97,006 jobs in May, up from 83,387 in April and 93,816 a year ago.The May total was the highest for the month since May 2020 at the start of the pandemic and was driven by 38,242 layoff intentions in the technology industry. The transportation sector had the second highest layoff intentions with 6,909.The most cited reason for layoffs was artificial intelligence, which accounted for 38,579 of the monthly total, followed by market and economic conditions with 16,587 of the total."On top of the headline AI story, we're seeing a sharp rise in cuts tied to acquisitions and mergers and a jump in bankruptcy-related losses, which tells me companies are restructuring aggressively as they reposition for an AI-driven economy," said Andy Challenger, the company's chief revenue officer.There were 19,536 hiring plans announced in May, up from the 10,049 hiring plans in April and 9,683 plans in May 2025. Interestingly, the technology sector was also the largest hiring sector, with 11,250 intentions.

Challenger US May Layoff Intentions 97,006 Vs. Prior 83,387; 93,816 Year-Ago