Asian Stocks Dragged by Tech Selloff, Oil Rises and Dollar Strengthens
Asian stocks fell for a third straight day on Monday (June 8), triggered by a continued sell-off in technology stocks after a sharp decline on Wall Street and strong US jobs data fueled expectations of prolonged high interest rates. MSCI's Asia-Pacific index fell 1.6%, with South Korea experiencing the heaviest pressure.
The Kospi index plunged more than 8%, triggering a trading halt, with major chip stocks like Samsung Electronics and SK Hynix also under pressure. In Japan, stocks fell more than 2%, reinforcing signs that the market is beginning to de-risk after a prolonged AI-driven rally.
Although sentiment stabilized when Nasdaq 100 futures rebounded by around 0.3%, the market remains gripped by the effects of Friday's heavy sell-off. The Nasdaq 100 had previously fallen 4.8%—its worst decline since April 2025—while the S&P 500 fell 2.6% and the chip index plunged about 10%, fueling concerns that the AI rally had gone too far, too fast.
In commodities, Brent rose about 2.6% to US$95.60/barrel after Iran fired a missile at Israel, adding to geopolitical risks and a supply premium. Gains eased after reports that Trump believed the attack would not derail efforts to reach a peace deal, but markets remained sensitive as the Strait of Hormuz remains a key energy chokepoint.
In the forex and bond markets, the US dollar strengthened against all G10 currencies as a defensive asset, while yields remained high after US jobs data reinforced expectations of tightening. Job growth in May beat expectations, and unemployment held at 4.3%, further strengthening the market's confidence that the Fed has room to focus on inflation. The 2-year Treasury yield—the most policy-sensitive—surged to around 4.15%, and the swap market is indicating a Fed rate hike in October and a 25-bps hike as early as December.
In South Korea, the government is also preparing steps to contain pressure on the won after its currency weakened to its weakest level since 2009. Investor focus now shifts to the Fed's June 16-17 meeting under new Chairman Kevin Warsh, with the market weighing whether this technology correction is just a healthy pause. (asd)
Source: Newsmaker.id
