Where Asia Closed Yesterday

South Korea stole the session. The KOSPI exploded 6.24% higher — a move that demands attention regardless of what happened anywhere else. That kind of single-session surge in a major index typically reflects either a policy catalyst or a massive short squeeze, and Korean chip heavyweight SK Hynix likely rode the wave given the Direxion 2X SK Hynix ETF launch making US headlines overnight.

Taiwan followed the semiconductor momentum with the TAIEX climbing 2.00%, while Japan’s Nikkei 225 added 1.49% to close at 68,751. The Hang Seng gained 1.40%, and Singapore’s Straits Times Index rose 1.17% — a broad risk-on tone across export-heavy Northeast Asia.

The split came at the mainland border. The Shanghai Composite slipped 0.29% and the Shenzhen Component dropped a sharper 0.97%, suggesting domestic Chinese equities remain stuck in their own cycle while the rest of the region runs. India’s Nifty 50 was essentially flat at +0.11%. Australia’s ASX 200 edged up 0.37%, a modest gain that tracked the region’s positive bias without the chip-driven fireworks. New Zealand’s NZX 50 dipped 0.36%.

US Overnight Snapshot

Wall Street handed Asia a problem. The Nasdaq Composite dropped 1.47% and the tech-heavy XLK sector fell 2.24% — the sharpest sectoral decline of the session. Semiconductor stocks were at the centre of the selling, with headlines flagging the chip trade as “on the verge of a bear market.” Alphabet fell on Gemini AI delays, AMD faces cautious earnings expectations, and IBM is nursing a 25% tumble.

The S&P 500 lost 0.51%. The VIX jumped 6.76% to 16.7 — not panic territory, but the fastest single-session spike in weeks. The Russell 2000 was flat at -0.06%, showing the selling was concentrated in large-cap growth, not broad risk aversion.

For Asia, the message is pointed: the KOSPI’s 6.24% surge was built on semiconductor optimism, and overnight US action just punched a hole in that thesis. Korean and Taiwanese chip names face a direct headwind at the open. HKEX-listed tech will feel the Nasdaq drag.

Commodity + FX Watch

Gold dropped 1.64% toward $3,980 — a notable pullback that removes one safe-haven bid from the mix. Oil slipped 0.75% to $79, which takes mild pressure off import-heavy Asian economies but won’t move the needle for ASX energy names in isolation. Copper was barely changed at -0.13%, leaving the base metals complex neutral for Australian miners.

The more interesting signal is in FX. The AUD/USD firmed 0.45% to 0.701, pushing back above the 70-cent handle. That’s a mild headwind for ASX-listed exporters whose revenues are USD-denominated. USD/JPY ticked up 0.17% to 162 — yen weakness persists, which continues to support Japanese exporter earnings and keeps the Nikkei’s structural bid intact. Watch for any BoJ commentary that could disrupt that equilibrium.

What to Watch Today

• KOSPI follow-through vs. US chip pushback. Yesterday’s 6.24% KOSPI surge collides with overnight US semiconductor weakness. Whether Samsung, SK Hynix, and their supply chain can hold gains or give back ground is the single most important question for today’s Asia session.
• HKEX tech at the open. Hang Seng tech names will price in Nasdaq’s 1.47% drop and Alphabet’s AI-delay selloff. Alibaba, Tencent, and Meituan ADR equivalents are the first read on whether Hong Kong absorbs or amplifies the US tech weakness.
• Mainland divergence. Shanghai and Shenzhen bucked the regional rally yesterday, falling while everything else gained. If mainland indices extend losses today while the rest of Asia digests the US tech selloff, the A-share disconnect becomes a positioning signal worth tracking.
• ASX resource sector. Copper flat, oil down modestly, AUD firmer — the net effect on BHP, Rio Tinto, and Woodside is roughly neutral, but any pre-market moves in iron ore futures could tip the balance.

Bottom Line

Yesterday’s Asia session was strong, led by an outsized KOSPI rally and broad gains across Japan, Hong Kong, and Taiwan. The overnight US session complicates the picture — tech sold off hard, and the semiconductor names that drove Korea’s surge are exactly the stocks under pressure in New York. The setup for Friday favours a mixed open: Japan and Australia can likely absorb the mild US weakness, but Korean and Taiwanese chip plays face a real test of conviction. Luna3 sees the risk tilted toward profit-taking in yesterday’s biggest winners rather than a broad regional selloff.

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