Tech Stocks Slide & Dollar Weakens - Asia Market Wrap
Tech stocks came under renewed pressure as sentiment toward the AI trade remained fragile ahead of key earnings this week, which will test the strength of gains in chipmakers. South Korea's Kospi Index, a bellwether for AI investment, dropped 4.2%, with SK Hynix leading losses as the index headed for its lowest close since April. MSCI's Asia Pacific Index fell 1.2%, diverging from Monday's tech-led gains on Wall Street. Nasdaq futures slipped 0.2%, while European shares were set to open 0.6% lower. Adding to pressure on the AI trade, data-centre infrastructure company Elie plunged as much as 33% in Seoul trading. Meanwhile, SoftBank's credit risk, measured by credit-default swaps, climbed to its highest level in nearly four years as concerns intensified over AI-related financing and a potential major acquisition. The developments added to investor uncertainty over the sustainability of AI investment and the sector's recent gains. Gold was little changed at around $4,145 an ounce, while global crude benchmark Brent traded near a five-month high. Oil markets weighed the risk of further Iranian attacks in the Strait of Hormuz against robust crude flows from the Persian Gulf, with Bren
Tech stocks came under renewed pressure as sentiment toward the AI trade remained fragile ahead of key earnings this week, which will test the strength of gains in chipmakers. South Korea's Kospi Index, a bellwether for AI investment, dropped 4.2%, with SK Hynix leading losses as the index headed for its lowest close since April. MSCI's Asia Pacific Index fell 1.2%, diverging from Monday's tech-led gains on Wall Street. Nasdaq futures slipped 0.2%, while European shares were set to open 0.6% lower.
Adding to pressure on the AI trade, data-centre infrastructure company Elie plunged as much as 33% in Seoul trading. Meanwhile, SoftBank's credit risk, measured by credit-default swaps, climbed to its highest level in nearly four years as concerns intensified over AI-related financing and a potential major acquisition. The developments added to investor uncertainty over the sustainability of AI investment and the sector's recent gains. Gold was little changed at around $4,145 an ounce, while global crude benchmark Brent traded near a five-month high.
Oil markets weighed the risk of further Iranian attacks in the Strait of Hormuz against robust crude flows from the Persian Gulf, with Brent holding around $109.80 a barrel. The Dollar weakened against all its G10 peers as investors reassessed risk amid renewed pressure on tech stocks. Currency markets reflected broader caution ahead of major earnings reports, with investors watching whether results from leading AI companies can restore confidence in the sector following the recent selloff.