Tech stocks, once the engine behind the region’s rally, are now under scrutiny as investors question the long‑term viability of AI‑driven earnings. The shift is evident in the MSCI Asia ex Japan index, which slid for a second straight day, bringing its valuation close to July levels.
The KOSPI’s 3.5% dip snapped a seven‑month rally, pushing it to the lowest closing level since April. The Nikkei fell 1.5% and Nasdaq 100 futures slipped 0.1%, marking the most challenging U.S. tech session since late June.
Capital is moving into safer assets. The U.S. 10‑year Treasury yield fell 17 basis points to 4.96%, with Japan and Australia’s benchmarks following suit. The yen, a traditional safe‑haven, strengthened 0.4% to 156.20 per dollar, outperforming other G‑10 currencies.
Oil and metals also felt the pressure. Brent crude, after a 4% rally earlier, sits just below $113 per barrel, while gold remains in decline, down 2.8% after last week’s slide.
With the Fed’s rate‑hike probabilities easing this year, risk appetite has cooled. Traders now weigh potential tech corrections against rising commodity prices and a resilient dollar, looking ahead to next quarter’s earnings and Fed policy cues.