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June 24, 2026 - 03:47

6 minutes

(Bloomberg) — A cautious early rebound in Asian stocks following Tuesday’s global tech-led selloff faded as losses in bellwether chipmaker Taiwan Semiconductor Manufacturing Co. weighed on the market.The MSCI Asia Pacific Index was up just 0.1% after rising nearly 1%. Shares of TSMC, which accounts for more than 10% of the regional gauge, lost 2.8% after largely weathering yesterday’s broader rout. The chip-heavy Kospi, which tumbled 10% in the previous session, also pared an early advance to under 4%. Samsung Electronics Co. climbed, bolstered by a report that it may announce a buyback.The moves come after renewed concerns that the artificial intelligence-driven rally may have run too far, too fast triggered a global equity rout Tuesday that saw the Asian benchmark slump 3.6%, the most since early March. US equity futures rose on Wednesday after the Nasdaq 100 plunged 3.3% and the S&P 500 fell 1.4%. A closely watched US semiconductor gauge — which had more than doubled from its war-driven lows — lost about 8%.The volatile backdrop has sharpened the focus on memory chipmaker Micron Technology Inc.’s results Wednesday, which are expected to provide crucial cues on whether demand for AI infrastructure remains strong enough to sustain this year’s rally. Veteran strategist Louis Navellier said the report will be the grand finale to a “stunning” earnings season. Micron’s shares dropped 13% Tuesday but are still up more than 250% in 2026.“The AI bubble is by far the biggest stock-market bubble that mankind has ever seen — both in scale and scope, in terms of the leverage that’s in there and in terms of the sheer excessive exuberance that’s driven valuations,” Paul Gambles, co-founder and managing partner at MBMG Group, said on Bloomberg Television. “But, we don’t think the markets have actually thrown in the towel yet. It’s got a lot lot further to go down before it gets to chip-wreck. At some point, we think that’s inevitable.”Shares of Cerebras Systems Inc. dropped about 10% in late trading after the newly public chipmaker gave an annual sales forecast that disappointed investors looking for the company to take a bigger slice of the AI data center market.Tuesday’s global equity selloff came as markets prepare to close out the first half of 2026 with some blockbuster gains driven by easing geopolitical tensions, solid earnings and an AI trade revival. That’s despite growing concern over whether the massive spending commitments by technology firms will generate sufficient returns. Those worries, coupled with elevated valuations and crowded positioning, have triggered sharp pullbacks in the sector from time to time.The MSCI All Country World Index is up about 13% since the end of March, on course for its best quarter since the period ended Dec. 31, 2020. For the Kospi, the rout was one of its steepest plunges in history as sentiment suddenly soured on the global AI buildout, sparking a rapid unwind of leveraged positions in the world’s best-performing equity index.Elsewhere in markets, Brent edged lower to trade below $77 a barrel as tanker traffic through the Strait of Hormuz became more visible following an interim peace agreement between the US and Iran. The Bloomberg Dollar Spot Index steadied after a two-day advance.Indonesian assets will be in focus after MSCI Inc. again delayed its review of the nation’s equities, saying it needs more time to assess whether recently announced transparency reforms are working. MSCI had in January warned of a possible downgrade to frontier status due to investability concerns.The New York-based index provider also retained South Korea in its emerging-markets basket.In fixed income, Treasuries advanced on Tuesday as the equity selloff and falling oil prices were seen as easing pressure on the Federal Reserve to raise interest rates to contain inflation. Yields fell roughly one to three basis points, led by shorter maturities that are most sensitive to changes in Fed policy. The two-year yield dropped around three basis points to about 4.20%.An auction of two-year Treasury notes drew strong demand about a week after Kevin Warsh’s first press conference as Fed chair spurred a sharp increase in yields as traders priced in more tightening in response to rising inflation. Focus now turns to this week’s personal spending data for more cues.“The market is pretty well priced for a more hawkish Fed outlook at this point,” with inflation-adjusted two-year yields the highest since the Fed began cutting interest rates in September 2024, said Izaac Brook, an interest-rate strategist at RBC Capital Markets.Corporate Highlights:FedEx Corp. posted quarterly earnings that topped Wall Street expectations and said profit would grow this year, a boost for the courier’s effort to simplify its business. SpaceX has drawn about $89 billion of demand for its debut US bond sale, according to people with knowledge of the matter, setting the stage for one of the biggest deals in the investment-grade market this year. Goldman Sachs Group Inc. equity traders are on the cusp of setting another record in the second quarter, with that business on track to generate more than $5 billion of revenue, according to people familiar with the matter. Apollo Global Management Inc. is once again limiting withdrawal requests from its largest non-traded private credit fund for retail investors, as broader concerns about the asset class persist. Some of the main moves on markets:StocksS&P 500 futures rose 0.2% as of 10:42 a.m. Tokyo time Japan’s Topix fell 0.1% Australia’s S&P/ASX 200 rose 0.3% Hong Kong’s Hang Seng rose 0.7% The Shanghai Composite fell 0.2% Euro Stoxx 50 futures were little changed CurrenciesThe Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1374 The Japanese yen was little changed at 161.57 per dollar The offshore yuan was little changed at 6.7915 per dollar The Australian dollar was little changed at $0.6920 CryptocurrenciesBitcoin rose 0.8% to $62,872.55 Ether rose 0.6% to $1,672.69 BondsThe yield on 10-year Treasuries was little changed at 4.49% Japan’s 10-year yield was unchanged at 2.665% Australia’s 10-year yield was little changed at 4.77% CommoditiesWest Texas Intermediate crude fell 0.5% to $72.87 a barrel Spot gold fell 0.5% to $4,095.08 an ounce This story was produced with the assistance of Bloomberg Automation.©2026 Bloomberg L.P.