Tech Sell-Off Hits Asia-Pacific Markets as Oil and Gold React
Vexoda Newsroom
A sharp rotation out of AI infrastructure names led to heavy losses in regional equities, with South Korea's KOSPI and tech-heavy markets feeling the brunt. Meanwhile, oil prices continued their downw
A significant sell-off in technology stocks across Asia-Pacific markets was triggered by Wall Street’s concerns over AI capacity overbuilding. This led to a sharp decline in the KOSPI index, with South Korea's tech giants like Samsung Electronics and SK Hynix experiencing losses of more than 7%. Japan's Nikkei also fell but remained relatively contained at around 1%, influenced by similar selling pressures.
The broader impact was most pronounced in Greater China. The mainland market conformed to the risk-off sentiment, while Hong Kong saw a slight rebound supported by local tech and auto sectors following its holiday closure. US equity futures showed mild recovery as trading hours neared their end.
Oil prices continued to drift lower amid ongoing indirect talks between the United States and Iran in Doha. The Qatar Foreign Ministry reported positive progress on issues related to an Islamabad Memorandum of Understanding, though no significant breakthrough was indicated yet.
Gold saw a bid from softer-than-expected US job data and a retreat in oil prices, pushing spot gold back above $4,000 per ounce for the first time since June 23. A recent OMFIF survey suggested that central banks anticipate gold trading between $5,000 to $6,000 per ounce within the next year.
In commodities markets, iron ore futures briefly surpassed $100 a ton following China's state-backed buyer’s decision to restrict inventories at mainland ports. The Australian dollar weakened as a result of this development in commodity trading.
On the corporate front, Apple is reportedly exploring sourcing memory chips from companies on the Pentagon’s Section 1260H blacklist—ChangXin Memory Technologies and Yangtze Memory Technologies—for use primarily in China's market. Additionally, Nikkei reported that Apple plans to release a five-model iPhone lineup for H2 2026 and H1 2027, with more folding handsets than previously anticipated.
Traders should monitor the ongoing US-Iran talks as they continue to influence oil prices. Furthermore, gold's performance will depend on upcoming Fed policy decisions following today’s jobs report. The tech sector remains under scrutiny due to AI capacity concerns and potential regulatory shifts.
Source: InvestingLive. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.