Stocks Stumble Amid Chipmaker Woes and Rising Oil Tensions

Asian shares slid as chipmakers faced challenges ahead of TSMC's expected strong earnings. Rising tensions in the Middle East drove oil prices up, affecting global markets. The U.S. Federal Reserve's rate hike risks eased with benign inflation data. South Korea raised rates to stabilize the won amid lingering inflation pressures.

On Thursday, Asian shares took a hit as chipmakers faced setbacks before the anticipated earnings release from Taiwan Semiconductor Manufacturing Co. (TSMC). The world's leading manufacturer of advanced AI chips is expected to report record-setting earnings for the fifth consecutive quarter.

Amid the tumult in tech, oil prices climbed due to intensifying hostilities in the Middle East. Washington's actions against Iran, including a naval blockade and threats of expansion by President Trump, have led to significant economic repercussions. As a result, Brent crude futures rose to $85.45 a barrel.

South Korea's central bank raised interest rates for the first time in over three years, aiming to stabilize the won and handle ongoing inflation challenges. Meanwhile, bond markets were buoyed by unexpectedly soft U.S. inflation data, which lowered the probability of an immediate Federal Reserve rate hike.