Asian stocks stumbled after four consecutive days of gains as uncertainty over Federal Reserve interest-rate cuts and stretched technology valuations weighed on sentiment. Cryptocurrencies retreated.
The MSCI Asia Pacific Index dropped 1.5%, with tech firms such as SK Hynix Inc. leading declines, after comments from Fed officials damped expectations for a December rate cut.
The pullback capped a week in which stocks had rallied on hopes that the end of the US government shutdown would revive key economic data releases. Contracts for the S&P 500 and the Nasdaq 100 indexes edged lower after the underlying gauges sank Thursday.
European shares were also poised to decline at the open. Brent crude jumped as much as 3% on mounting risks to Russian flows from Ukrainian military strikes and US sanctions.
The pound slid against all Group-of-10 currencies, as the UK Chancellor Rachel Reeves considers dropping plans to raise the headline rates of income tax at the coming budget.
The moves dealt a fresh blow to risk sentiment, highlighted by heavy selling in high-flying tech giants amid mounting valuation concerns.
