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August 25, 2026 - 04:17
6 minutes
(Bloomberg) — Asian equities declined as investors cut exposure to technology shares ahead of earnings this week that will test confidence in the artificial intelligence trade.The MSCI Asia Pacific equities gauge slipped 0.5%, with South Korean chip bellwethers SK Hynix Inc. and Samsung Electronics Co. contributing most to the decline. The losses followed a selloff in semiconductor giants on Wall Street that dragged the Nasdaq 100 Index down nearly 1% on Monday, while Nvidia Corp. posted its longest losing streak since 2022.Elsewhere, global oil benchmark Brent recouped some of Monday’s losses, rising 0.6% to about $92.70 a barrel after US Treasury Secretary Scott Bessent threatened economic punishment against countries doing business with Iran. Oil fell more than 2% on Monday, snapping a six-day rally.Gold erased earlier gains and slipped 0.2% to about $4,640 an ounce. The commodity had climbed to levels last seen in May as the US Treasury’s intervention in the bond market revived concern about widening US deficits and their impact on the dollar. Treasuries steadied with the 10-year yield at 4.71% after dropping four basis points in US trading.Investors are weighing mounting geopolitical risks against a packed week of economic data and corporate earnings, with the outlook for technology shares emerging as a key test for broader risk sentiment. Nvidia’s results due on Wednesday will be closely watched for signs that the recent weakness in chipmakers has further to run.“Details about US economic sanctions on Iran, the Treasury’s attempts to lower long-term yields, and economic data may shape much of the sentiment backdrop,” said Chris Larkin at E*Trade from Morgan Stanley. “But Nvidia and other tech earnings are positioned to be a major weight on the market’s momentum scale.”Nvidia’s results have become an important gauge of the AI trade, which has come under pressure in recent months as investors question whether massive spending on the technology will translate into commensurate profits.What Bloomberg Strategists Say…“Gold is enjoying a buoyant month as investors build hedges against the risk of a long-term decline in the US dollar. The revival in cryptocurrencies points to the same concern over the greenback’s outlook.”— Mark Cranfield, MLive. For full analysis, click here.In other corners of the market, a Bloomberg gauge of the dollar held its gains from Monday. The greenback had strengthened after Bessent said the US will cut Iran off from the global financial system, underscoring the US currency’s central role in trade and boosting its haven appeal.Bitcoin rose for a third day, climbing above $79.500. The Canadian dollar was little changed after Canadian ministers were set to announce a response to US tariffs on Tuesday.Investors will be looking for clues on how the US central bank will respond to stubborn inflation when Federal Reserve Chair Kevin Warsh speaks on Friday at its annual gathering in Jackson Hole, Wyoming.With Treasury yields still elevated by sticky inflation and concerns over fiscal deficits, traders are watching for any clear guidance from Warsh on how the Fed might respond over the rest of the year.“This is a key week for markets with Nvidia’s earnings and the annual Jackson Hole speech,” said Richard Reyle, chief investment officer at Questar Capital Partners. The two events “normally wouldn’t have a link, but Nvidia needs to impress in order to keep one leg of the stock market stable, and Warsh needs to provide clarity on interest rates in order to keep the other leg of the stock market stable.”Earlier, Treasuries were supported by a CNBC report that the Treasury Department could tap its cash pile to fund buybacks of higher-yielding older securities in an effort to curb borrowing costs.Bessent, however, stopped short of signaling any changes to US debt management in a speech Monday following the report.“We haven’t bought a single bond yet,” Bessent said when asked in a press conference whether he’s going to soon increase the buybacks.Corporate Highlights:The US Securities and Exchange Commission has sent subpoenas to major Wall Street banks regarding the hedge fund Situational Awareness, according to people familiar with the matter. Elon Musk says SpaceX’s first AI satellites, powered by Nvidia chips, will initially launch in the fourth quarter of next year and hit “significant scale” in 2028. Oura Health Oy, a maker of smart rings that track health, fitness and sleep, and some of its backers are seeking to raise as much as $3 billion in a US IPO, according to people familiar with the matter. Porsche AG partnered with Tata Consultancy Services Ltd. for deploying artificial intelligence in a 1.25 billion euro ($1.5 billion) deal, while agreeing to sell its consulting unit to the Indian software services company. Some of the main moves in markets:StocksS&P 500 futures were unchanged as of 11:10 a.m. Tokyo time Japan’s Topix was little changed Australia’s S&P/ASX 200 rose 0.6% Hong Kong’s Hang Seng fell 0.3% 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 $1.1663 The Japanese yen fell 0.1% to 159.29 per dollar The offshore yuan was little changed at 6.7239 per dollar CryptocurrenciesBitcoin rose 1.2% to $79,908.06 Ether rose 0.9% to $2,497.2 BondsThe yield on 10-year Treasuries advanced two basis points to 4.71% Japan’s 10-year yield was unchanged at 2.885% Australia’s 10-year yield advanced one basis point to 5.03% CommoditiesWest Texas Intermediate crude rose 0.8% to $85.67 a barrel Spot gold fell 0.2% to $4,645.16 an ounce This story was produced with the assistance of Bloomberg Automation.–With assistance from Mark Cranfield.©2026 Bloomberg L.P.
