06/08/2026
Asian equity markets retreated and the rally in chip stocks stalled, following the recent fade of Wall Street’s tech-led gains.
The MSCI Asia Pacific Index fell 0.8% amid broad market divergence, with advancing stocks outnumbering decliners across the region. Market performances varied sharply: Japanese and South Korean benchmarks slid, while Australian equities rallied to hit a fresh all-time high.
Chip sectors remained the focal point of market volatility. Samsung Electronics and SK Hynix both lost ground in Seoul trading. Storage chip maker SanDisk tumbled 8%, while its peer Western Digital plunged 12% in after-hours trading after releasing its latest financial results, dragging the entire memory semiconductor sector lower.
Investors are awaiting key market updates due on Thursday, when SoftBank Group is set to release its earnings report, which will unveil the latest developments regarding its artificial intelligence investment portfolio. Meanwhile, SpaceX shares valued at approximately $101 billion will commence trading, introducing new variables to the tech investment landscape.
Commodity markets saw notable fluctuations. Iran announced a deal with Oman on a proposed shipping route through the Strait of Hormuz, a pivotal global oil waterway, which is expected to resume operations along the key passage. Brent crude oscillated around $79.50 per barrel following the announcement.
In foreign exchange and precious metal markets, the U.S. dollar extended losses from the previous trading session. Gold prices continued their upward momentum, climbing to around $4,300 per ounce after notching its largest single-day gain since February.
The halt in the tech rally stems from investors’ reassessment of AI stock valuations. Artificial intelligence-related equities staged a strong rebound after plummeting sharply last month, driving valuations higher before the latest pullback. The previous month’s tech sell-off has dealt heavy blows to multiple hedge funds. Traders are also closely tracking Middle Eastern geopolitical developments for cues on oil price movements, which carry ripple effects on global inflation and central bank interest rate policies.
Global bond and currency investors are reconsidering whether to revive last year’s “sell America” trading strategy, following a string of U.S. economic policy decisions over the past two weeks. Mounting fiscal concerns, trade frictions and ongoing Middle East conflicts pose persistent inflationary risks. Market participants are re-evaluating U.S. bond and dollar exposures amid heightened uncertainty over U.S. policy outlook.
Latest U.S. economic data showed mixed fundamentals. The country’s service sector maintained steady expansion in July, despite sustained pressure on businesses from rising labor and raw material costs. Hiring momentum cooled notably, with corporate new payroll additions falling short of market expectations.
Market attention is now centered on Friday’s monthly nonfarm payroll report. Further signs of cooling in the labor market could keep the Federal Reserve focused on stubborn inflation rather than employment conditions. Nevertheless, several Fed policymakers have reiterated readiness to tighten monetary policy further if inflationary pressures persist.
[Disclaimer] Forex trading involves risk; please invest with caution. This content is for informational purposes and objective analysis only, and does not constitute any investment advice, basis for buying/selling, or guarantee of returns. Investors should make independent decisions based on their own financial situation and risk tolerance, and bear their own investment risks.
