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## Asian Equity Markets Dropping After Meta Platforms Inc.’s Disappointing Outlook

(Bloomberg) — Asian equity markets dropped after Meta Platforms Inc.’s disappointing outlook raised concern about whether the bull market has run too far.

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Equity benchmarks slid in South Korea and Japan, while contracts for US stocks also declined. Australian financial markets are shut for a holiday. The yen extended declines after weakening beyond 155 per dollar for the first time in more than three decades on Wednesday, heightening the chances of intervention ahead of Bank of Japan’s decision meeting Friday.

Facebook parent Meta tumbled 15% in US after-hours trading as it projected second-quarter sales below analyst expectations and increased spending estimates for the year.

“Meta’s not-so-upbeat outlook sent markets running for cover after-hours, which also imminently has caution spilling over for Asia markets that are already hobbled by a ‘higher for longer’ Federal Reserve and China jitters,” said Vishnu Varathan, chief economist for Asia ex-Japan at Mizuho Bank in Singapore.

### Japan’s Response to Currency Plunge

In Japan, the yen depreciated to as low as 155.45 per dollar on Thursday, a new 34-year low versus the dollar. The Bank of Japan is forecast to keep its interest rate settings unchanged Friday, while the currency’s plunge makes it more likely the bank will tone down its stance on keeping policy easy. The nation’s Finance Minister Shunichi Suzuki said he’s watching foreign exchange market moves closely.

Japan’s weak currency is a “big problem,” Japan Airlines Co. Chief Executive Officer Mitsuko Tottori said in a group interview, adding that a stronger rate than the current level of around ¥155 to the dollar would be better.

### SK Hynix Inc.’s Market Performance

In the corporate world, shares of South Korea’s SK Hynix Inc. plunged even after the company said it expects a full recovery in the memory market as AI demand spurred the chipmaker to log its fastest pace of revenue expansion since at least 2010.

SK Hynix’s stock was sold “on the news after its big gain on Wednesday — and Meta’s 15% fall is also denting investor sentiment,” said Marcello Seongsoo Ahn, a portfolio manager at Quad Investment Management Co. in Seoul.

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### BHP Group Ltd.’s Takeover Offer

BHP Group Ltd. has made a takeover offer for Anglo American Plc in a move that may spark the biggest shakeup of the global mining industry in over a decade.

Elsewhere, oil held a modest decline, with a risk-off tone in broader markets countering a drawdown in US stockpiles. Gold was steady after a three-day drop as traders turned their attention toward the release of US inflation data.

Treasuries opened little changed in Asia after yields rose on Wednesday. Stocks in Hong Kong rose as southbound investors may be using nation’s-listed equities to diversify their currency exposure, given increased yuan depreciation pressure due to US-China interest rate differentials, according to BNP Paribas.

Mainland traders have snapped up $20 billion on Hong Kong stocks on a net basis since March, heading for the biggest two-month purchase since 2021, BNP strategists including Jason Lui said in a note.

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