As Chip Selloff Intensifies, Stocks Fall Along With Futures – Asia Market Wrap

Stocks fell for a second day as investors rotated out of tech shares, deepening a selloff in chipmakers after the sector’s blistering rally earlier this year. Equity-index futures pointed to further losses. MSCI’s Asia Pacific equities gauge slid 2.7%, heading for its lowest close in two months, while Japan’s Nikkei 225 slumped 5.2%, set for its worst day since March. Chip bellwethers tumbled with TSMC set for its biggest one-day decline since April 2025, and Japan’s Kioxia sank as much as 16%.

Netflix also weighed on sentiment, with shares falling 9% in extended trading after the company forecast a second straight quarter of slowing sales growth. Nasdaq 100 futures dropped 1.4%, while European stocks were set to decline more than 1% at the open.

Brent rebounded from Thursday’s losses as hostilities across the Middle East continued to escalate and shipping traffic slumped in the Strait of Hormuz, trading at about $85/bbl and up 12% for the week — on track for its biggest weekly gain since April, rekindling inflation concerns.

Government bonds edged lower in Australia and Japan, while Treasuries were little changed, with the 10Y yield holding at 4.55%. The Yen traded around 162.45 per Dollar even as Japan’s Finance Minister Katayama renewed her warning of possible intervention in the market, with the currency continuing to hover near its lowest level in four decades.