As Tech Losses Resume Before Micron, Stocks Fall – Asia Market Wrap

Global equities struggled to stabilize after Tuesday’s AI-driven selloff, with investors remaining cautious ahead of earnings from Micron Technology, a key gauge of demand for AI-related memory chips.

The MSCI All Country World Index slipped 0.1%, while Asia’s benchmark equity gauge fell 0.4%, reversing an earlier gain of almost 1%. Shares of Taiwan Semiconductor Manufacturing Company dropped more than 3%, extending pressure on the semiconductor sector after largely avoiding the previous session’s rout. US equity futures edged modestly higher, suggesting some stabilization following sharp declines on Wall Street.

In South Korea, the KOSPI recovered from deeper losses after Samsung Electronics gained on reports the company may announce a share buyback. Nevertheless, sentiment remained fragile after Tuesday’s selloff, one of the steepest declines in the index’s history, triggered by a rapid unwinding of leveraged positions tied to chipmakers and AI-related stocks.

Currency markets reflected the more defensive mood, with the Dollar climbing to a seven-month high as investors sought haven assets amid equity market volatility. Treasury demand also remained supported as traders continued reassessing the outlook for risk assets and growth.

Oil prices extended their decline, with Brent crude approaching $76 per barrel. The market continued to unwind geopolitical risk premium as tanker movements through the Strait of Hormuz normalized following the interim US-Iran peace agreement, easing concerns over disruptions to global energy supplies.

Elsewhere, Indonesian equities fell around 1.6% after MSCI delayed its review of the country’s market accessibility reforms. The decision renewed concerns over Indonesia’s status within global equity indices after MSCI previously warned that investability issues could eventually lead to a downgrade to frontier-market classification.