Asian markets dip tracking Wall Street; Gold prices fall below $4,000

Asian equities retreated at the open after a rally in US stocks stalled amid concern valuations may have become stretched following their relentless surge.

Stocks in Japan and Australia fell while South Korea rose with Samsung Electronics Co. jumping 6% to trade above its record-high closing level. A gauge of US-listed Chinese companies slid 2% Thursday, a sign the recent gains in Chinese shares were also due for a pause. The dollar edged lower after a four-day rally took it to its strongest level since July. Gold edged up after falling the most since August, still trading below the $4,000 mark.

US stocks slipped Thursday as investors took a breather following a strong rally in the S&P 500 from its April lows, when tariff concerns rattled markets. Gains in stocks have been spurred on by large tech stocks linked to artificial intelligence, leading some analysts to suggest a bubble has been forming.

In other corners of the market, Treasuries fell across the curve Thursday, while silver hit the highest since 1980 as demand for precious metals spread beyond gold. Oil steadied after dropping in the prior session.

The yen headed for its biggest weekly loss in a year even as Japan’s new ruling-party leader Sanae Takaichi, a pro-stimulus lawmaker, said she wasn’t in favor of an excessively weak currency.

Even after a series of records to all-time highs, stock positioning data from JPMorgan Chase & Co. suggests some investors including hedge funds are holding back.

The equity beta of monthly reporting macro hedge funds — an indicator of their exposure — remains modestly negative despite becoming slightly less so in recent months, the team led by Nikolaos Panigirtzoglou said.