Chip Stocks Tumble: ASML's Earnings Ripple Worldwide

Asian equities fell following disappointing earnings from Europe's largest tech firm ASML. Global chip stocks suffered, and LVMH's lackluster performance indicated weakening demand in China. The Federal Reserve's potential rate path bolstered the U.S. dollar, with varying global market effects.

Asian shares slid on Wednesday following ASML's discouraging earnings, impacting chip stocks globally. Europe's foremost tech firm, ASML, anticipated lower sales for 2025, despite the boom in AI markets, leaving investors wary. This gloom further contributed to LVMH's unimpressive financial report, highlighting softer luxury demand in China.

Market analysts have noted increased investor caution due to forthcoming economic events, including the U.S. elections. Meanwhile, expectations of a modest rate cut trajectory from the Federal Reserve boosted the dollar, causing ripples across world markets.

China's stocks also dipped, awaiting specifics on potential stimulus efforts aimed at revitalizing the property sector. The broader market mood is tempered, with attention now fixated on central bank decisions and geopolitical tensions impacting oil prices.

(With inputs from agencies.)