Asian stocks fall as tech retreat hits Nikkei, Kospi

Asian equities fell on Friday as heavyweight technology and chip stocks reversed part of their recent rally, with the broader regional gauge down about 0.6% and South Korea’s Kospi and Japan’s Nikkei leading losses after a volatile US tech session.

Market overview

Index	[26 Jun] Close	Move & % Change	Comments
Asian equity gauge	approx.	-0.6%	Regional benchmark slipped as chip stocks surrendered prior gains.
Kospi (South Korea)	approx.	-1.8%	Tech heavy index fell as chip names tracked weaker sentiment.
Nikkei 225 (Japan)	approx.	-2.79%	Decline outpaced region, broader Topix also weaker.
Topix (Japan)	approx.	-0.7%	Broader market softer, but losses milder than Nikkei.
Nasdaq 100	prior close	+0.8%	Closed off intraday highs after early tech driven surge faded.
S&P 500	prior close	flat	Gave up Micron led gains as broader tech weakness emerged.

Note: figures are approximate; final exchange data not available at time of publication.

• Asian stocks slipped in early trade as heavyweight chip shares gave back Thursday’s rally.
• US stock futures were little changed in early Asian hours.
• Regional sentiment tracked a choppy Wall Street session dominated by large cap tech moves.

Key tech and chip movers

• Heavyweight chip stocks in Asia reversed part of Thursday’s sharp gains.
• SK Hynix, Samsung Electronics, Kioxia Holdings were cited among major regional drags.
• Micron Technology had earlier fuelled optimism with strong revenue guidance.
• Qualcomm projected annual data center AI component sales above USD 15 billion by fiscal 2029.
• Apple shares fell 6.1% after price hikes on Macs, iPads and home devices.
• The Magnificent Seven cohort was led lower by Apple’s decline.
• Nasdaq 100 rose 0.8%, but intraday gain had reached 2.1% before fading.
• Investors questioned sustainability of elevated AI related valuations in tech.
• Concerns over AI spending continued to drive volatility in chip stocks.
• “A few cracks have developed in the tech sector recently” Matt Maley, Miller Tabak.

Sectoral and valuation backdrop

Sector / Theme	Direction (approx.)	Key Drivers
Technology & chips	down	Profit taking after prior rally, valuation concerns, mixed US tech cues.
US mega cap tech	mixed	Micron and Qualcomm upbeat, Apple weakness offset gains.

• Recent gains in tech had powered much of the equity rally over two years.
• Market swings highlighted unease about whether tech can justify high expectations.
• Investors assessed if AI linked earnings can support current price multiples.

Fed outlook and macro data

Statistic	Value / Change	Context
US PCE price index (May, m/m)	+0.4%	Came in below 0.5% forecast, eased hike fears.
US PCE inflation (annual)	4.1%	Above 2% target, keeps Fed cautious on policy.
US Q1 GDP (annualised)	2.1%	Revised higher, signals resilient US growth.
Implied Fed tightening by Dec	34 bps	Down from 36 bps a day earlier.

• The PCE index is the Federal Reserve’s preferred inflation gauge.
• Softer than expected PCE led traders to trim rate hike bets.
• Odds of a near term Fed hike at the next meeting declined.
• Interest rate swaps showed reduced pricing of additional tightening in 2026.
• New York Fed President John Williams said rates are well positioned for disinflation.
• “The worst of inflation and consumer angst may be mostly behind us” Brian Jacobsen, Annex Wealth Management.

Oil, commodities and global cues

Market / Asset	Movement	Notes
Brent crude	mixed	Spiked after Hormuz incident, then edged lower in Asia.
Gold	steady	Held firm after rebounding above USD 4,000 per ounce.

Note: figures are approximate; final exchange data not available at time of publication.

• Brent crude rose Thursday after a projectile strike on a vessel in the Strait of Hormuz.
• The move ended a three day losing streak in oil prices.
• Crude prices then eased during early Asian trading on Friday.
• Traders watched Middle East supply risks alongside macro demand signals.
• Gold stabilised as markets tempered expectations for further Fed hikes.
• Lower perceived hike risk supported non yielding assets like gold.

Technical and volatility backdrop

• Regional equity volatility stayed elevated after recent sharp tech moves.
• Swings in chip stocks underscored sensitivity to incremental AI news.
• Market focus remained on large US and Asian hyperscaler performance.
• Analysts flagged that continued declines in hyperscalers could cap broader indices.

Corporate and capital markets developments

• OpenAI is inclined to delay any initial public offering until 2027.
• The company is reportedly still deliberating its long term capital structure.
• The decision reflects ongoing evaluation of funding needs and market conditions.

FAQs

Q: Why did Asian markets fall today?

• Asian indices declined as heavyweight technology and chip stocks reversed prior gains, tracking a volatile US tech session and renewed concerns over elevated AI related valuations.

Q: How did US inflation data affect rate expectations?

• The US PCE index rose 0.4% in May versus a 0.5% forecast, leading traders to trim expectations of additional Federal Reserve rate hikes, with implied tightening by December easing to about 34 basis points.

Q: What is happening with oil prices after the Hormuz incident?

• Brent crude rose on Thursday after a projectile strike on a vessel in the Strait of Hormuz, snapping a three day losing streak, but prices edged lower again during early Asian trading as markets reassessed supply risks and demand conditions.

Frequently Asked Questions

Why did Asian markets fall today?

Asian indices declined as heavyweight technology and chip stocks reversed prior gains, tracking a volatile US tech session and renewed concerns over elevated AI related valuations.

How did US inflation data affect Federal Reserve rate expectations?

The US PCE index rose 0.4% in May versus a 0.5% forecast, so traders trimmed expectations of additional Fed rate hikes, with implied tightening by December easing to about 34 basis points.

What is driving recent moves in Brent crude prices?

Brent crude rose after a projectile strike on a vessel in the Strait of Hormuz ended a three day losing streak, but prices then edged lower in early Asian trading as markets reassessed supply risks and demand conditions.