South Korea’s memory-chip rally and a broad US selloff are pulling Asia in opposite directions this morning — and the commodity complex is adding a third headwind for resource-heavy markets like Australia.

Where Asia Closed Last Session

The standout was Seoul. The KOSPI jumped 2.11% to 8,726.60, its strongest session in weeks, as memory-chip names caught a bid on rising AI infrastructure spending expectations. Taiwan’s TAIEX rode the same semiconductor wave, climbing 0.91% to 45,809.19. Shenzhen’s Component Index added 0.93% to 15,675.25, with mainland buyers rotating into tech and growth names.

Japan was the outlier among the gainers — the Nikkei 225 barely moved, edging up just 0.13% to 69,404.50. Exporters were caught between a weakening yen (which normally helps) and fading risk appetite, and neither force won out.

Hong Kong was the clear laggard. The Hang Seng dropped 1.40% to 24,493.95, with property and consumer discretionary names leading the selloff. That weakness now looks prescient given the overnight US risk-off move.

Elsewhere, Singapore’s Straits Times Index gained 0.78% and India’s Nifty 50 added 0.57% to 23,989.15. New Zealand’s NZX 50 slipped 0.50% to 13,359.51.

US Overnight Snapshot

Wall Street sold off across the board. The S&P 500 fell 1.21% to 7,420 and the Nasdaq Composite dropped 1.34% — a sharp reversal after the recent stretch higher. The Russell 2000 lost 0.75%, confirming this wasn’t just a mega-cap story. The VIX spiked 12.37% to 18.4, not yet in panic territory but firmly above the complacency zone that had defined the past few weeks.

The Fed’s latest messaging rattled sentiment. Kevin Warsh’s push to change how the central bank operates added uncertainty, and markets responded by repricing rate expectations. Materials (-1.33%) and Energy (-1.25%) led the selling. Technology held up marginally better at -0.34%, partly because Micron surged after hours on explosive high-bandwidth memory demand — a direct read-through for SK Hynix and Samsung in today’s Asia session.

Commodity + FX Watch

Copper fell 1.76%, the sharpest move in the commodity complex and a direct headwind for ASX-listed miners like BHP and Rio Tinto at the open. WTI crude dropped 0.97% to $75.30, which will weigh on energy names across the region — particularly in Australia and India where oil importers and producers sit on opposite sides of the trade.

Gold slipped 1.11% to $4,280, retreating as the dollar firmed slightly. The move suggests haven demand hasn’t yet kicked in despite the equity selloff — worth watching if Asia extends the risk-off tone.

In FX, AUD/USD dipped 0.11% to 0.707, a modest move but one that keeps the Aussie below the 0.71 level that bulls have been watching. USD/JPY ticked up to 161, maintaining pressure on the Bank of Japan intervention watch. A weaker yen should help Japanese exporters, but last session’s flat Nikkei suggests the market is already discounting that tailwind.

What to Watch Today

• Memory chip momentum vs. broad risk-off: Micron’s HBM-driven surge overnight is the strongest single catalyst for KOSPI and TAIEX today. SK Hynix and TSMC suppliers will test whether the semiconductor bid can override the wider US selloff.
• Hang Seng follow-through: Hong Kong was already weak last session before the US sold off. Watch whether the Hang Seng breaks below 24,400 — property and consumer names are the pressure point, while Alibaba and Tencent will take their cue from Nasdaq futures.
• VIX at 18.4 and rising: If US futures stay soft through the Asia morning, expect hedging activity to pick up in Nikkei and Hang Seng options. The VIX isn’t screaming, but the direction matters more than the level right now.
• ASX resource stocks under pressure: Copper -1.76% and oil -0.97% set up a tough open for BHP, Rio Tinto, and Woodside. Watch whether the materials sector can find a floor early or if selling accelerates into the afternoon.

Bottom Line

The overnight US selloff tilts the Asia-Pacific session toward caution, but this isn’t a uniform risk-off setup. Memory-chip names in Korea and Taiwan have a genuine catalyst in Micron’s HBM demand story, and that sector-specific bid could decouple them from the broader weakness. For resource-heavy markets like Australia and commodity-sensitive names across the region, the combination of falling copper, oil, and a firming dollar makes for a harder morning. Luna3 sees a split session — tech versus everything else — with the Hang Seng as the market most vulnerable to follow-through selling.

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