Asian Stocks Dip After US Tech Rally, Yen Steadies: Markets Wrap

(Bloomberg) — Asian stocks failed to follow Wall Street’s tech-led rally as doubts about the artificial intelligence trade resurfaced after a volatile month. The yen steadied after its intervention-led gains.

South Korea’s Kospi Index dropped as much as 1.9%, with chipmakers SK Hynix Inc. and Samsung Electronics Co. among the losers. The broader MSCI Asia Pacific Index fell 0.6%, although advancers narrowly outnumbered decliners. Earlier, the S&P 500 Index climbed 1.5% on Monday, finishing within striking distance of a record.

Equity-index futures for the Nasdaq 100 Index erased earlier gains to trade little changed, losing momentum after a Wall Street rally that saw a gauge of megacaps post its best day since March. Palantir Technologies Inc. jumped 14% in extended trading after raising revenue and income forecasts. However, Amazon.com shares fell as much as 1.9% in post-market trading after Chair Jeff Bezos filed to sell shares.

The yen steadied following a sharp advance on Monday that fueled speculation authorities may have intervened to support the currency again, building on last week’s coordinated action by the US and Japan. The currency traded at 157.40 per dollar.

Monday’s revival in US technology shares offered investors some relief, even as uncertainty in the Middle East and lofty AI valuations kept caution elevated. The next test comes with another busy week of corporate earnings, as investors look for evidence that heavy spending on AI is translating into stronger growth and profits.

“Earnings will remain the primary focus, with roughly 15% of the S&P 500 by market capitalization scheduled to report,” said Matt Orton, chief market strategist at Raymond James Investment Management.

Elsewhere, oil was steady after its biggest drop in a week, as President Donald Trump said his latest offer of talks is Tehran’s “last chance” and that he expects a full reopening of the Strait of Hormuz. Brent edged up 0.5% to about $84.10 a barrel after a slump on Monday.

Treasuries held their gains from the previous session, when declining oil eased inflation concerns. The yield on the 10-year bond was little changed at 4.68%. Gold edged up to about $4,060 an ounce.

In the US, of the 307 S&P 500 companies that have reported so far this season through Friday, 86% beat analysts’ forecasts for EPS. On sales, 68% of companies have positively surprised, while 15% missed.

SpaceX’s inaugural report as a public company is due on Tuesday. It’s also set the stage for one of the largest share unlocks in capital markets history, with as much as $116 billion worth of stock becoming eligible for sale for the first time next month. Elon Musk’s company has fallen below its IPO price, closing on Monday at $114.46.

Still, the on-again, off-again nature of US-Iran diplomacy may mean earnings and jobs data will have to do the heavy lifting for the bulls this week, according to Chris Larkin at E*Trade from Morgan Stanley.

In the countdown to a slew of jobs figures, data showed US manufacturing activity expanded in July at the fastest pace in more than four years as demand remained strong, production surged and firms added workers.

Forces that propelled US stocks to record highs this year remain “firmly intact” after a reset in retail investors’ speculative trading, according to Citadel Securities’s Scott Rubner.

“Markets are transitioning from a flow-driven environment back to one increasingly dictated by earnings, corporate demand, and the macroeconomic backdrop,” he wrote.

Corporate Highlights:

Marriott International Inc. said that room growth for 2026 would likely come in at the lower end of earlier guidance, driven by construction delays in the Middle East. Grab Holdings Ltd. raised its annual earnings and sales forecasts. Some of the main moves in markets:

Stocks

S&P 500 futures were little changed as of 9:46 a.m. Tokyo time Hang Seng futures were little changed Japan’s Topix fell 0.3% Australia’s S&P/ASX 200 rose 0.4% Euro Stoxx 50 futures rose 0.2% Currencies

The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1512 The Japanese yen fell 0.1% to 157.40 per dollar The offshore yuan was little changed at 6.7570 per dollar The Australian dollar was little changed at $0.7005 Cryptocurrencies

Bitcoin fell 0.7% to $63,316.23 Ether fell 0.9% to $1,849.76 Bonds

The yield on 10-year Treasuries was little changed at 4.68% Japan’s 10-year yield declined two basis points to 2.800% Australia’s 10-year yield advanced one basis point to 4.94% Commodities

West Texas Intermediate crude rose 0.5% to $80.71 a barrel Spot gold was little changed This story was produced with the assistance of Bloomberg Automation.

–With assistance from Toby Alder.

©2026 Bloomberg L.P.