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- Tech-heavy TAIEX and Shenzhen rallied over 2% yesterday while Hong Kong and Australia slipped — today's open hinges on whether the US tech selloff spills over
- Nasdaq dropped 0.66% overnight with Technology (XLK) down 2.57% as Meta's cloud push hammered AI infrastructure names — HKEX and TAIEX tech will feel the pressure
- Oil fell 2% and copper slid 0.53%, weighing on ASX energy and materials names, while gold's 0.8% gain signals defensive positioning into the Asia session
Asia’s tech winners from Monday — TAIEX up 2.5%, Shenzhen up 2.48% — now walk into a US session that punished the sector hard, with Technology stocks dropping 2.57% overnight and the Nasdaq giving back 0.66%.
Where Asia Closed Yesterday
The split across Asia on Monday was clean: semiconductor and growth-heavy markets rallied while commodity-linked and financial centres pulled back.
Taiwan’s TAIEX led the region, surging 2.50% to 46,125 as chipmaker sentiment carried over from last week’s AI spending momentum. Shenzhen’s Component index followed closely at +2.48%, with the Shanghai Composite adding 0.50% to 4,094 — a quieter session for mainland blue chips but still positive. South Korea’s KOSPI gained 0.97% to 8,476, riding the same semiconductor tailwind that lifted Taipei.
Japan’s Nikkei 225 rose 0.86% to 70,062, with export names benefiting from yen weakness as USD/JPY held near 163.
On the other side, Hong Kong’s Hang Seng fell 0.63% to 22,881 — a notable divergence from mainland gains that suggests offshore investors remain cautious on China property and consumption plays. Australia’s ASX 200 dropped 0.51% to 8,778, weighed down by materials and energy. Singapore’s Straits Times slid 0.73%, and India’s Nifty 50 eased 0.34% to 23,865.
US Overnight Snapshot
Wall Street closed mixed with a clear rotation theme. The S&P 500 slipped 0.22% while the Nasdaq Composite fell 0.66%, dragged lower by a 2.57% drop in the Technology sector (XLK). CoreWeave and Nebius tumbled after reports that Meta is positioning to compete directly in AI cloud infrastructure — a story that has direct read-through to Asian semiconductor and data centre supply chain names.
Financials stood out as the session’s winner, with XLF up 2.18%. The VIX ticked up modestly to 16.6, still well below stress levels but reflecting a slight shift in hedging demand. The Russell 2000 dipped 0.38%, suggesting the rotation wasn’t broad enough to lift small caps either.
For Asia, the overnight tech weakness is the headline. TAIEX names like TSMC and HKEX-listed Tencent and Alibaba will likely face selling pressure at the open after Monday’s strong gains.
Commodity + FX Watch
WTI crude dropped 2.09% to $68.10, a meaningful move that will weigh on ASX energy names like Woodside and Santos at the open. Iran-related volatility continues to drive two-way risk in oil, with headlines referencing both war fears and supply disruption scenarios.
Gold climbed 0.80% to around $4,060, reinforcing the defensive bid that’s been building through Q2. ASX gold miners (Newmont, Northern Star) should open firm.
Copper fell 0.53% to $6.16, a modest headwind for ASX and HKEX-listed base metals plays. AUD/USD slipped 0.27% to 0.689, reflecting the commodity softness. USD/JPY held steady near 163, keeping the yen weak — a continued tailwind for Japanese exporters but a signal that BoJ intervention chatter may resurface if the pair pushes higher.
What to Watch Today
- TAIEX and Shenzhen give-back risk: Both rallied over 2% on Monday and now face a US tech selloff overnight. Watch whether TSMC and Hon Hai hold their gains or gap down at the open — that sets the regional tone.
- Hang Seng divergence from mainland: Shanghai was up while Hong Kong was down on Monday. If that pattern continues, it points to offshore capital staying cautious on China — worth tracking property developer and consumer discretionary names for confirmation.
- ASX energy under pressure: Oil down 2% plus AUD weakness creates a double headwind. Energy is the ASX sector most likely to drag at the open, while gold miners could provide an offset.
- Japan’s yen watch: USD/JPY near 163 puts the pair in the zone where verbal intervention from Japanese officials has historically escalated. Any BoJ-related headlines could trigger sharp moves in the Nikkei.
Bottom Line
The overnight setup leans defensive for Asia’s Thursday session. Tech-heavy markets that rallied hard on Monday — Taiwan and Shenzhen in particular — face a reality check from the US tech selloff, while commodity weakness adds pressure on Australia and Singapore. At Luna3, we’re watching whether Monday’s Asia tech gains hold or whether this turns into a classic give-back session. The bias is mildly risk-off, with gold miners and Japanese exporters the likely relative outperformers.
Read next: Asia Pacific Markets · What Is an ETF? · What Is HBM Memory?
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