Asian financial markets stepped back from record territory on Friday after Apple unveiled steep price increases for its iPad and MacBook product lines, casting a shadow over recent optimism surrounding the global chip industry.
Apple’s stock tumbled 6.1% after the company said it was raising prices to offset soaring costs for memory and storage chips. The sell-off wiped approximately $250 billion from Apple’s total market value. Meanwhile, Microsoft announced it would be increasing prices for its Xbox gaming consoles by as much as $150 in markets around the world.
Nasdaq futures dropped 0.6% during Asian trading hours, following a volatile overnight session on Wall Street.
The Apple news overshadowed an otherwise strong week for chipmakers. Micron reported a blowout earnings result, sending its shares soaring nearly 16% overnight to reach a record high. But the enthusiasm was short-lived once investors absorbed the implications of Apple’s pricing move.
Nigel Green, CEO of financial advisory firm deVere Group, put it bluntly: “Micron tells us where the profits are. Apple tells us where the inflation is.”
Green added that the surge in artificial intelligence development is fueling intense demand for advanced memory chips. “The race to build AI infrastructure has become so intense that demand for advanced memory is outstripping supply,” he said. “Apple’s decision to raise prices is an early warning that inflation is finding a new route into the economy.”
Market analysts noted that end-of-month and end-of-quarter portfolio adjustments may have also contributed to the choppy trading in large technology stocks, many of which have posted strong gains throughout the second quarter.
MSCI’s broadest measure of Asia-Pacific stocks outside Japan fell 1.7% on Friday, bringing its weekly decline to 3.4% — a sharp reversal after hitting an all-time high just four days earlier. The index was down 1.6% for the month but remained up 24% for the quarter.
Japan’s Nikkei index dropped 3% and was on track for a weekly loss of 1.3%, though it has gained 6% for the month and surged 38% over the quarter. South Korea’s KOSPI fell 3.5% and was down 5% for the week, despite a massive 70% gain during the second quarter. Chinese blue-chip stocks declined 1%, and Hong Kong’s Hang Seng index dropped 1.3%.
In oil markets, Brent crude futures slipped 0.5% to $74.89 per barrel. Prices had bounced 2% from four-month lows overnight after reports emerged that a vessel was attacked while leaving the Strait of Hormuz. Tehran has warned ships against using routes it has not sanctioned, though more oil tankers have since passed through the critical waterway under military escort, easing some concerns about supply disruptions.
On the currency front, Japan’s yen remained under pressure, hovering near 161.82 against the U.S. dollar — close to its weakest point in four decades. The 160 level is widely viewed as a threshold that Japanese authorities would not want to see breached. The yen found little support even as a U.S. inflation reading came in line with expectations and traders scaled back bets on a Federal Reserve rate hike in September.
Separate economic data revealed that the U.S. economy expanded faster than initially reported in the first quarter, aided by a downward revision to import figures. However, consumer spending nearly stalled during that period, raising questions about economic momentum heading into the second quarter.
The U.S. dollar index, which tracks the greenback against six major currencies, held steady at 101.46, near its strongest level since May 2025, and has risen 2.6% this month.
Treasury yields were relatively stable on Friday. Two-year yields held at 4.1250% after easing slightly the previous day, while ten-year yields were little changed at 4.4020%, having touched a nearly two-month low of 4.3627% in the prior session.
Precious metals continued to struggle. Spot gold fell 11% for the month to $4,020 per ounce, while spot silver dropped 24% to $57.30 per ounce.
