Tech Sell-Off Pushes Asia Into the Red Column

AI-heavy Asian equities get hit hard, with the soaring long bond as the depressing backdrop.

Key Takeaways

• Tech-led Correction Slams Asian Equities Overnight: There’s a risk-off undertow to markets this morning. Asian markets faced heavy selling pressure — save for Hong Kong (+0.1%) — with declines led by Tech losses in the most heavily AI- and Tech-exposed markets: South Korea (-5.8%), Japan’s Nikkei 225 (-3.2%), China’s Shanghai Composite (-2.4%), and Taiwan (-1.3%) were all down. Shares in South Korean chipmaker SK Hynix fell some -10% overnight, prompting the firm to announce a massive share buyback scheme as suppliers on both sides of the Pacific face increasing pressure to return cash to shareholders.