A look at the day ahead in European and global markets
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By Tom Westbrook, Chief Asia Markets Correspondent
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The drawdown in tech stocks that has followed a narrow earnings miss at U.S. chipmaker Broadcom deepened in Asia on Friday, tipping South Korean stocks toward just their seventh weekly loss of 2026.
Broadcom's (AVGO.O) second-quarter revenue of $22.19 billion missed expectations for $22.27 billion, but it also stuck with guidance for $100 billion in revenue next year, sending shares down 12.6%.
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A Broadcom logo and a computer motherboard appear in this illustration created on August 25, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
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The result jarred with markets conditioned to expect relentless upgrades, and the fallout in Asia underscored the skittish mood around chips and the AI boom that fuelled them.
"The AI-led equity rally is showing signs of fatigue," said BNY's head of markets macro strategy, Bob Savage.
South Korea's KOSPI (.KS11) headed for a weekly drop of 3%, with heavy falls for Samsung (005930.KS) and SK Hynix (000660.KS) shares. The won was also trading at its lowest since 2009 under pressure from a wave of foreign selling.
Oil prices held steady on Friday as traders waited for clarity on U.S.–Iran talks, but the week still points higher after earlier flare-ups stoked fears of a lasting supply shock.
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Graphics are produced by Reuters
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Brent crude hovered around $95 a barrel, eyeing a weekly gain of more than 3%.
U.S. jobs data will headline the session on Friday. Expectations call for a modest 85,000 rise in May payrolls, but an upside surprise could give a boost to the dollar.
The dollar index is set for a weekly gain, and the currency briefly touched 160 yen in Asia trading, drawing some verbal pushback from Japanese authorities who last month intervened around that level.
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Key developments that could influence markets on Friday: |
- U.S.-Iran developments
- U.S. employment data
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Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.
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