20/10/2026
Asian equities declined, halting Wall Street’s chip-fueled rebound. The Nasdaq 100 had just recovered from its worst week since the tariff turmoil in April 2025.
The MSCI Asia Pacific Index fell 0.6%, with 8 out of its 11 sub-sectors in negative territory. The number of declining stocks was three times that of gainers.
South Korea’s KOSPI, a bellwether for AI investment, led the regional selloff with a drop of over 2%. Chip giant SK Hynix Inc. traded near its lowest closing level since April. Data center infrastructure firm Elice Inc. plunged 32% on its Seoul debut.
The downturn in Asia contrasted sharply with Monday’s tech-driven rally on Wall Street. The Philadelphia Semiconductor Index rose 1.6%, ending an eight-session losing streak. As sentiment weakened, Nasdaq 100 futures erased early gains and edged down 0.1%.
US Treasury bonds extended losses from the previous session, as fading safe-haven demand pushed yields higher. The benchmark 10-year US Treasury yield stood at 5.14%, after climbing 7 basis points on Monday. French bonds also fell amid violent riots over the weekend.
The artificial intelligence sector faces a fresh test this week, as investors await earnings releases from tech giants including Meta Platforms Inc. The segment has been volatile amid worries over heavy capital spending and elevated interest rates. Results from firms such as Tesla will offer clues on whether the AI-fueled rally still has room to run.
Elsewhere in Asia, China’s central bank signaled that the overnight reverse repo rate may replace the current seven-day rate as its policy benchmark. It marks another step for China to align its monetary framework with global peers and may help lower borrowing costs.
In commodities, gold dropped 0.2% to around $4,130 per ounce. Global crude benchmark Brent crude was nearly flat at $109.40 a barrel. Renewed supply risks stemming from the Middle East conflict were capped by technical resistance, keeping oil prices choppy.
The euro remained in focus as traders assessed geopolitical risks in France. Over the weekend, French protests over rising living costs turned violent, with vandalism and looting reported. French authorities have since tightened security and pledged aid for businesses. However, heavy debt and the eurozone’s largest budget deficit leave the government with limited room to soothe public anger by simply boosting spending.
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