AI Selloff Deepens & Treasuries Rally - Asia Market Wrap

Global stocks extended losses on Tuesday as renewed concerns over the AI trade weighed on investor sentiment, driving demand for safe-haven assets. MSCI's Asia Pacific Index fell 1.7%, heading for its weakest close since August, while US and European equity futures declined following a Wall Street selloff that pushed the Nasdaq 100 to its lowest level this month. South Korea's Kospi plunged 6.5% as concerns over Chinese competition prompted investors to rotate out of tech stocks. SK Hynix and Samsung both fell around 8%, while tech shares also declined in Japan and Taiwan. Tencent began marketing a bond offering that could raise approximately $5 billion to support its expanding AI investments. Treasuries rallied across the curve as falling equities and oil prices boosted demand for government debt. The US 10-year yield declined 4 bps to 5.26%, while Australian and New Zealand bonds also advanced. Brent crude fell 1% to approximately $105.60 a barrel, adding to pressure on global markets. India's Rupee extended Monday's gains after the central bank announced additional measures to support the currency amid pressure from elevated oil prices and foreign capital outflows. Meanwhile, a