Oil Edges Lower, Stocks Fall on Tech Selloff – Asia Market Wrap
Global equities declined as investors rotated out of technology shares and reduced risk exposure while awaiting further progress in negotiations aimed at securing a lasting peace agreement between the US and Iran.
MSCI’s All Country World Index fell 0.5%, while an Asian equity gauge dropped more than 2% after recently reaching a record high. Regional technology stocks led the decline, with an Asian tech index snapping an eight-day winning streak. In South Korea, the Kospi plunged more than 6% as investors questioned whether gains in heavyweight semiconductor names had become stretched following months of strong performance.
US equity futures pointed lower, with S&P 500 futures down 0.8% and Nasdaq 100 futures falling 1.3%. The weakness followed Monday’s selloff in US megacap technology stocks, which combined with rising bond yields to pressure broader equity markets.
Oil prices continued to ease as geopolitical risk premiums faded. Brent crude traded below $78/bbl after falling more than 3% in the previous session, with both Washington and Tehran citing progress during the first round of negotiations toward a permanent peace agreement. Gold also declined as demand for traditional safe-haven assets softened.
The Dollar strengthened against most major currencies, while the Yen remained near its weakest level since 1986. Currency markets stayed alert to the possibility of intervention after a discussion between Japanese Finance Minister Katayama and US Treasury Secretary Bessent, underscoring growing concern over the pace of the Yen’s depreciation.
The combination of rising global bond yields, profit-taking in technology stocks and uncertainty over the durability of recent diplomatic progress weighed on sentiment, leaving investors searching for fresh catalysts after the AI-driven rally pushed several equity benchmarks to record highs.
