Asian Stocks Decline Led by Tech, Oil Holds Steady: Markets Wrap

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June 26, 2026 - 02:36

6 minutes

(Bloomberg) — Stocks in Asia slipped in early trading as heavyweight chip shares gave back some of the gains from Thursday’s blistering rally.A gauge of Asian equities was down 1.1%, while South Korea’s tech-heavy Kospi dropped over 3%. US futures were little changed. The moves followed a choppy session on Wall Street, marked by heightened volatility in the tech sector. The S&P 500 ended flat, failing to sustain an early rally fueled by Micron Technology Inc., as Apple Inc.’s shares slid 6.1%. The iPhone maker led the Magnificent Seven lower after it raised prices on Macs, iPads and home devices.Oil was in focus again after a projectile strike on a vessel in the Strait of Hormuz saw Brent crude climb on Thursday, snapping a three-day decline. Prices edged lower in early Asia trading. Meanwhile, bond traders priced in slightly lower expectations for a Federal Reserve interest-rate hike in the months ahead after the central bank’s favored inflation gauge rose less than estimated.The equity market’s recent swings highlight investors’ growing unease over whether the tech giants that have powered the rally for much of the past two years can continue to justify the high expectations embedded in share prices. Concerns over AI spending have driven sharp moves in chip stocks this week, and while those worries eased after Micron’s results, volatility in the sector remains high.“A few cracks have developed in the tech sector recently,” said Matt Maley at Miller Tabak. “Therefore, we believe it will be extremely important to watch how these hyperscalers trade going forward because if they continue to decline, it’s going to make it very tough for the rest of the market to advance.”The Nasdaq 100 Index finished up 0.8% on Thursday, after having climbed as much as 2.1%. Besides Micron’s rally following its blockbuster results and outlook, Qualcomm Inc. shares also jumped after it forecast annual sales of more than $15 billion from artificial intelligence components in data centers by fiscal 2029.That optimism was missing in early Asian trading, with shares of SK Hynix Inc., Samsung Electronics Co. and Kioxia Holdings Corp. among the biggest drags on the regional benchmark. Elsewhere, OpenAI is leaning toward holding off on an initial public offering until 2027, the New York Times reported, citing three people involved in the company’s deliberations.Meanwhile, the Fed’s preferred inflation gauge, the personal consumption expenditures price index, rose 0.4% in May, below economists’ median estimate for a 0.5% increase. The annual rate accelerated to 4.1%, well above the Fed’s 2% target. A separate report showed the US economy grew at an annualized 2.1% pace in the first quarter, faster than previously estimated.Interest-rate swaps linked to future Fed rate decisions showed a drop in wagers on a hike this year, pricing in about 34 basis points of tightening by the December policy meeting versus some 36 basis points at Wednesday’s close. The chance of a rate increase next month dwindled to about one-in-three.Federal Reserve Bank of New York President John Williams said interest rates are well positioned to bring inflation back toward the central bank’s target.“The worst of inflation and consumer angst may be mostly behind us,” said Brian Jacobsen at Annex Wealth Management. “As long as gasoline prices trend lower, inflation expectations will likely follow suit.”In commodities, gold was steady after rebounding above $4,000 an ounce in the previous session as traders tempered expectations for interest-rate hikes.Corporate Highlights:JPMorgan Chase & Co.’s latest management revamp is elevating two Wall Street veterans at the bank — one who cut his teeth trading bonds and currencies and the other who spent years inside boardrooms advising CEOs — placing them in pole position to succeed Chief Executive Officer Jamie Dimon. The US Army struck deals with several companies to build critical minerals processing plants on military bases around the country, a first-of-its-kind initiative by the Trump administration to boost domestic production of key materials. Microsoft Corp. announced a third substantial price increase for the company’s current-generation Xbox video-game consoles in a glaring example of the component shortage crisis that has universally driven up the cost of consumer tech products. Jefferies Financial Group Inc. posted second-quarter earnings that missed analysts’ estimates as fees declined from a business overseen by its asset-management unit, which bet on the embattled auto-parts supplier First Brands Group. The surge in SK Hynix Inc. shares hasn’t only boosted South Korean billionaire Chey Tae-won’s wealth. It’s also expected to protect his control of the company from an upcoming divorce settlement that will likely be the nation’s largest ever. China’s DeepSeek, fresh off agreements for a blockbuster fundraising, said it is working to at least double the size of all departments, as it steps up efforts to compete with domestic rivals and global leaders such as OpenAI and Anthropic PBC. Darden Restaurants Inc. posted a cautious overall profit outlook as same-store sales at Olive Garden trailed expectations, raising questions about demand that overshadowed better-than-expected earnings Spices and seasonings maker McCormick & Co. reported second-quarter profit that beat estimates, buoyed by higher prices and a tariff refund, and reaffirmed its full-year guidance. Some of the main moves in markets:StocksS&P 500 futures were little changed as of 9:34 a.m. Tokyo time Hang Seng futures fell 0.3% Japan’s Topix fell 0.7% Australia’s S&P/ASX 200 rose 0.1% Euro Stoxx 50 futures were little changed CurrenciesThe Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1365 The Japanese yen was little changed at 161.83 per dollar The offshore yuan was little changed at 6.8025 per dollar The Australian dollar fell 0.2% to $0.6899 CryptocurrenciesBitcoin rose 0.6% to $59,702.94 Ether rose 0.5% to $1,566.34 BondsThe yield on 10-year Treasuries was little changed at 4.40% Japan’s 10-year yield declined four basis points to 2.620% Australia’s 10-year yield was little changed at 4.73% CommoditiesWest Texas Intermediate crude fell 0.3% to $71.70 a barrel Spot gold fell 0.3% to $4,016 an ounce This story was produced with the assistance of Bloomberg Automation.©2026 Bloomberg L.P.