25/08/2026
Asian equities traded lower following a sharp selloff in U.S. tech stocks, while gold extended its upward streak, rising for five consecutive trading sessions. Turning cautious ahead of a wave of corporate earnings releases, investors have reduced their tech holdings, as the upcoming results are set to test market confidence in the artificial intelligence sector.
On the index front, the MSCI Asia Pacific Index fell 0.4%, with benchmark indices in Japan and South Korea also sliding. The regional downturn tracked weak Wall Street performance on Monday, where a semiconductor selloff dragged the Nasdaq 100 down nearly 1%. Chip giant NVIDIA continued its losing streak, closing lower for seven straight sessions — its longest losing run since 2022. U.S. equity futures edged slightly lower in early Asian trading.
Meanwhile, markets are closely monitoring policy signals from the Federal Reserve’s annual flagship conference. Fed Chair Kevin Walsh is set to speak at the Jackson Hole Economic Symposium in Wyoming, with investors eager to decipher the central bank’s approach to persistent inflation. Sustained high inflation and worries over U.S. fiscal deficits have kept Treasury yields elevated, and traders are looking for clear guidance from Walsh on the Fed’s policy outlook for the remainder of the year.
U.S. bonds previously garnered supportive news from a CNBC report, which suggested the U.S. Treasury may use its cash reserves to repurchase higher-yielding legacy securities to curb borrowing costs. However, Secretary Bessent ruled out imminent changes to U.S. debt management in remarks on Monday. When asked about potential upcoming bond buybacks during a press conference, Bessent stated explicitly that no bond purchases have been conducted so far.
On the trade and currency front, Canadian authorities announced retaliatory measures against U.S. tariffs on Tuesday, while the Canadian dollar saw muted price movements with no notable volatility.
In the tech sector, NVIDIA’s stock plunged 2.9% on Monday. The decline stemmed from the company’s notification to clients that it will raise prices for AI-related systems scheduled for delivery in early next year. As a bellwether for the global AI industry, NVIDIA’s performance shapes market sentiment across the entire AI sector. In recent months, the industry has faced mounting pressure, as investors question whether massive capital investments in AI technology can translate into tangible profits, leading to ongoing valuation adjustments across AI stocks.
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