Market Volatility: Asian Equities Slide Amid Trade Tensions and Yen Intervention

Asian equities experienced a significant drop on Thursday, spurred by declining chip stocks and escalating trade tensions between the U.S. and China. Additionally, the yen strengthened following suspected interventions by Tokyo. Investors continue to monitor potential Federal Reserve rate cuts and the European Central Bank's policy decisions.

Asian equities witnessed a notable decline on Thursday, primarily led by chip stocks as investors grew increasingly concerned about escalating trade tensions between the U.S. and China. Concurrently, the yen firmed up after reaching a six-week high, attributed to suspected interventions by Tokyo.

The U.S. dollar hovered near its weakest point in four months against a basket of currencies. This follows comments from Federal Reserve officials that bolstered the likelihood of a rate cut in September, subsequently keeping gold prices near record highs.

Broader risk sentiment also took a hit when Republican presidential candidate Donald Trump stated that Taiwan, which he claims took about 100% of the U.S. chip business, should compensate the U.S. For further updates, investor attention remains on the European Central Bank's policy decisions. (Editing by Jacqueline Wong)

(With inputs from agencies.)