Asian shares slipped on Friday as a warning on smartphone demand from the world`s largest contract chipmaker slugged the tech sector, while lofty oil prices stirred inflation fears and undermined sovereign bonds.
"The big story for the APAC region today will be fallout from TSMC’s miss, which will weigh heavily on the tech sector, with first order impacts on the Semis and Samsung Electronics/ Galaxy supply chain," analysts at JPMorgan said in a note to clients.
"The miss appears largely to have been due to Apple iPhones, and so may also weigh on the Apple supply chain."
Stocks in South Korea <.ks11> took an early 0.4 percent dip with the tech sector losing 1.6 percent. Japan`s Nikkei <.n225> fell 0.5 percent with tech down 0.9 percent.
MSCI`s broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> shed 0.4 percent, again led by a 0.7 percent drop in technology.
Wall Street had also been hit by weak result from tobacco company Philip Morris
The Dow <.dji> ended down 0.34 percent, while the S&P 500 <.spx> lost 0.57 percent and the Nasdaq <.ixic> 0.78 percent.
Oil prices edged back a touch after hitting their highest since late 2014 on drawdowns in global supply and as Saudi Arabia looks to push prices higher. [O/R]
Brent crude futures
A global oil glut has been virtually eliminated, according to a joint OPEC and non-OPEC technical panel, two sources familiar with the matter said, thanks in part to an OPEC-led supply cut deal in place since January 2017.
Analysts at CBA noted market measures of inflation expectations had spiked higher this week as oil prices surged, with some hitting highs not seen since mid-2014.
That in turn pressured fixed-income debt with yields on 10-year Treasuries
In currency markets, the main mover was sterling which dived late Thursday when Bank of England Governor Mark Carney cooled expectations for an interest rate hike in May, pointing out there were "other meetings" this year.
Sterling dropped more than a cent to $1.4085
The sudden retreat in sterling helped support the U.S. dollar more broadly and the dollar index <.dxy> was steady at 89.940.
The euro also eased back a touch to $1.2346
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)