Stocks Slip as Tech Weakness Weighs, Samsung Falls: Markets Wrap
(Bloomberg) — Asian equities dropped as technology shares came under renewed selling pressure due to investors rotating into other corners of the market. Chip bellwether Samsung Electronics Co. fell after its results.
The MSCI Asia Pacific Index lost 0.7%, with about two shares falling for every one that declined. Samsung, whose shares have more than doubled this year, slipped 6.9% even after its quarterly profit surged 19-fold. That weighed on the Kospi index, which retreated 5.3%. The chip sector remained in focus with SK Hynix Inc. shares dropping 6.3% after kicking off the formal marketing process for its US listing.
US equity-index futures also edged lower in early Asian trading. Contracts for the tech-heavy Nasdaq 100 Index declined 0.7%, indicating Monday’s rebound on Wall Street may be brief.
Elsewhere, Brent crude rose 0.4% to about $72.25 a barrel after reports that a tanker was struck in the Strait of Hormuz underscored the risks to shipping through the vital waterway.
Investors are increasingly rotating out of tech stocks and into other sectors as they reassess the next phase of the AI trade. While enthusiasm for the AI technology remains intact after US semiconductor shares posted a record quarter, attention has shifted to whether rising capital spending, intensifying competition and expanding capacity will generate the earnings growth needed to support elevated valuations.
“The market is in the process of leveling the valuation playing field,” said Tim Waterer, chief market analyst at KCM Trade. “After semiconductors stole the show for months, investors are now spreading their bets into other areas offering better value, which is tempering the earlier euphoria in high-beta tech names.”
This rotation may continue for some time until we see more parity in valuations between the high-flying semiconductor names and the rest of the market, Waterer said.
Elsewhere, the yen was a touch weaker around 162.15 per dollar as positioning data showed hedge funds turned the most negative on the Japanese currency since 2007.
Treasuries were little changed after gaining Monday following less hawkish wagers for the Federal Reserve. Japan bond futures rose ahead of a 30-year auction, which will be a test of investor appetite.
What Bloomberg Strategists Say…
“The Kospi index is adjacent to its 50-day moving average, which was a buying zone for retail investors in late March. However, this time around there isn’t the same one-sided view that everything touching AI themes is a sure win.”
— Mark Cranfield, MLIV strategist. For full analysis, click here.
In Asia, early attention was on Samsung’s earnings. The company’s quarterly profit soared past elevated expectations due to rocketing demand for memory chips needed in AI data centers.
The world’s largest memory maker reported preliminary operating income of 89.4 trillion won ($58 billion) in the three months through June, dwarfing its performance for all of 2025. Analysts on average had projected 84.2 trillion won.
The stock’s decline indicates “investors might have already priced in solid results and are increasingly focused on the longer-term trajectory of the memory cycle,” said Albert Yong, managing partner at hedge fund Petra Capital Management.
Corporate News:
Rivian Automotive Inc. is offering to sell 75 million shares as the electric vehicle company seeks to fund equity contributions related to a US Department of Energy loan. Vale SA Chairman Daniel Stieler is stepping down after one of the company’s largest investors agitated to reshape the leadership of the world’s top iron ore producer. Microsoft Corp.’s Xbox plans to eliminate 3,200 jobs, or around 20% of its staff over the next year. Some of the main moves in markets:
Stocks
S&P 500 futures were little changed as of 10:44 a.m. Tokyo time Nikkei 225 futures (OSE) fell 1% Japan’s Topix was little changed Australia’s S&P/ASX 200 was little changed Hong Kong’s Hang Seng was little changed The Shanghai Composite fell 0.4% Euro Stoxx 50 futures fell 0.2% Currencies
The Bloomberg Dollar Spot Index was unchanged The euro was little changed at $1.1440 The Japanese yen was little changed at 161.98 per dollar The offshore yuan was little changed at 6.7929 per dollar Cryptocurrencies
Bitcoin rose 0.2% to $63,900.14 Ether rose 0.1% to $1,794.33 Bonds
The yield on 10-year Treasuries advanced one basis point to 4.48% Japan’s 10-year yield declined one basis point to 2.820% Australia’s 10-year yield advanced two basis points to 4.80% Commodities
West Texas Intermediate crude rose 0.5% to $68.90 a barrel Spot gold fell 0.6% to $4,141.63 an ounce This story was produced with the assistance of Bloomberg Automation.
–With assistance from Sangmi Cha and Winnie Hsu.
©2026 Bloomberg L.P.
