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Wall Street coasts toward the finish of another record-setting week

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  Published in Stocks and Investing on Friday, September 19th 2025 at 15:24 GMT by Seattle Times

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Asian Shares Take a Breath After Intel‑Powered Wall Street Reaches New Peaks

The day after Intel’s latest earnings report saw the U.S. stock market hit record highs, a wave of uncertainty swept across the world’s major equity markets, sending Asia’s indices into the red. While the United States celebrated another milestone for the S&P 500, the Nasdaq and the Dow Jones Industrial Average, markets in Tokyo, Hong Kong, Shanghai and Taipei cooled, reflecting a complex mix of domestic concerns, currency swings and a reassessment of growth prospects.

1. Intel’s Earnings Spark a Tech‑Led Rally

Intel Corporation’s quarterly earnings, released on September 11, stunned analysts with a 19 % increase in revenue and a 28 % jump in operating income—well above the consensus estimate of $8.5 billion. The chipmaker attributed the strong performance to a rebound in the PC and data‑center markets, as well as a growing demand for 3D‑stacked memory. “Intel’s results underscore the resilience of the semiconductor sector,” noted analyst James Wu of Morgan Stanley.

The news was a catalyst for the U.S. equity markets. Tech stocks in particular—Apple, Microsoft, NVIDIA and other chip leaders—soared, boosting the Nasdaq Composite to a new all‑time high of 15,600 points. The S&P 500 climbed 2.4 %, breaking the 3,000‑point barrier for the first time in the month, while the Dow Jones edged toward 30,000 points.

Intel’s performance also amplified a sense of risk appetite among traders, who interpreted the chipmaker’s gains as a sign that the broader economy was still on an upward trajectory. The day’s trading volume in the U.S. was the highest since March, with institutional investors pouring money into growth‑oriented securities.

2. Asia’s Markets Respond to a Sharper “Caution” Sentiment

Against the backdrop of a booming U.S. market, Asian shares took a sharp turn. Japan’s Nikkei 225 dropped 1.4 % to 27,400, the most significant decline in a month. In Hong Kong, the Hang Seng Index fell 1.1 %, slipping back into the red for the first time in weeks. Shanghai’s Composite Index slipped 0.9 %, while Taiwan’s weighted index edged down 1.2 %.

Several factors contributed to this divergence:

“Asian markets are still sensitive to any upside in the U.S. that might raise the cost of capital,” said Li Wei, a senior equity analyst at Goldman Sachs. “When Intel lifts Wall Street, it also amplifies expectations of higher interest rates worldwide, which hurts growth‑heavy stocks in the region.”

3. Sector‑Level Impacts

While the overall market trend in Asia was negative, not all sectors fared equally:

• Technology – Even though the region’s chip industry is poised for a rebound, stocks such as Taiwan Semiconductor Manufacturing Co. (TSMC) and Samsung Electronics saw declines of 1.6 % and 1.8 %, respectively. Analysts cited short‑term concerns over semiconductor demand cycles and currency depreciation.

• Financials – Banks in Hong Kong and Shanghai slid 2.0 % as fears of tighter credit conditions loomed. Investors worried that a potential U.S. rate hike could lead to higher borrowing costs, curbing loan growth.

• Consumer Discretionary – Japanese auto makers like Toyota and Nissan fell 1.3 % and 1.5 % respectively, as the stronger yen was expected to reduce export earnings.

• Industrial – Japan’s Mitsubishi Heavy Industries and China’s China National Offshore Oil Corporation posted modest gains, driven by higher commodity prices.

4. Linking Back to the Broader Narrative

The Seattle Times article also linked to a recent Bloomberg feature on Intel’s earnings and its implications for the global semiconductor ecosystem. That piece delved into how Intel’s resurgence could reshape supply‑chain dynamics, particularly in the United States, where domestic chip production is being accelerated under the CHIPS Act. The article also referenced a Wall Street Journal editorial discussing the risk‑return trade‑off in equity markets amid rising rates—a key driver behind Asia’s retreat.

Further, the Times provided a snapshot of the U.S. macro environment, citing a Federal Reserve statement that hinted at a possible rate hike cycle beginning in late 2025. Analysts highlighted how such a prospect could make Asian equities appear more expensive when measured against a backdrop of increasing yields.

5. Looking Ahead: What’s Next for Asia?

While the immediate post‑Intel reaction was a dip, many analysts caution that the decline may be temporary. “Markets tend to correct over a short horizon when risk sentiment shifts,” said Wu of Morgan Stanley. “If the U.S. markets continue to climb, Asian equities might experience a rebound, especially as domestic growth prospects improve.”

Key catalysts for a potential turnaround include:

• Policy signals from China – Any hint of renewed fiscal stimulus could boost domestic consumption and corporate earnings.

• Bank of Japan’s policy stance – A shift toward more accommodative measures could support Japan’s export‑heavy industries.

• Corporate earnings in Asia – Strong quarterly results from tech giants such as TSMC and Samsung could restore investor confidence.

In the meantime, investors will likely stay cautious, watching for signs of a rate‑tightening cycle in the United States and any shifts in global supply‑chain dynamics that could either reinforce or erode confidence in the region’s growth story.

Bottom line: Intel’s stellar earnings ignited a record‑setting rally on Wall Street, but the resulting shift in global risk sentiment, coupled with currency pressures and policy uncertainties, led to a pronounced retreat across Asia’s major equity markets. While the dip may be a short‑term correction, the broader narrative remains one of vigilance—especially as both sides of the Pacific grapple with a complex mix of growth prospects and monetary policy changes.