Asian Stocks Dive on Chip-Sector Slump and Political Turbulence

Asian stocks fell as chip-sector shares mirrored Wall Street losses. Yen struggles amid Japanese political instability. U.S. dollar remains steady with investor caution over upcoming U.S. election and Federal Reserve decision. Regional geopolitical tensions rise following North Korea's missile launch.

Asian stocks took a hit on Thursday, following significant overnight declines in chip-sector shares on Wall Street. This downturn was exacerbated by Facebook owner Meta Platforms' forecast of rising AI costs.

Political instability in Japan, after the ruling coalition's electoral defeat, has contributed to the yen's weakness, hovering near a three-month low against the dollar.

Investors are leveraging caution in awaiting U.S. non-farm payroll data, the approaching presidential election, and a forthcoming Federal Reserve decision.

(With inputs from agencies.)