Asian Stocks Rebound After Tech Selloff
Asian stock markets rallied at the start of trading after being dragged down by a major selloff in the global technology sector the previous day. The MSCI Asia Pacific Index rose 0.8% after plunging 3.6% on Tuesday, its deepest decline since early March. South Korea's Kospi Index, heavily dominated by chip stocks, also rebounded more than 3% after previously falling around 10%. This gain occurred as investors began to look for buying opportunities, although concerns about the rally in artificial intelligence (AI)-based stocks remained.
The main market pressure still came from the semiconductor and memory chip sectors. The Nasdaq 100 previously fell 3.3%, while the S&P 500 fell 1.4% due to a selloff in major technology stocks. Investors are now awaiting Micron Technology's earnings report, which will provide key clues as to whether demand for AI infrastructure remains strong enough to sustain this year's rally. Micron's shares plunged 13% on Tuesday, although they still recorded gains of more than 250% for 2026.
Market participants are beginning to question whether tech companies' massive spending on AI infrastructure will actually generate the expected returns. These concerns have intensified following reports that SK Hynix is shifting its focus to cheaper chip products. BTIG analyst Jonathan Krinsky believes technology and AI stocks still face medium-term downside risk, with the potential for an additional correction of around 10% to 15% in the semiconductor sector.
Outside the technology sector, Brent oil prices moved below US$77 per barrel after tanker traffic in the Strait of Hormuz began to improve following the interim peace agreement between the US and Iran. The US dollar also tended to stabilize after two days of gains, while US government bonds rose as weaker stocks and falling oil prices were seen as reducing pressure on the Fed to raise interest rates. In Southeast Asia, Indonesian assets also came under scrutiny after MSCI again postponed its review of the Indonesian stock market to assess the effectiveness of recently announced transparency reforms. (asd)*
Source: Newsmaker.id
