Asian stocks decline at open, tech leads drop

Published Fri, Jun 26, 2026 · 09:35 AM

STOCKS in Asia slipped after a volatile session on Wall Street, where renewed selling in megacap technology shares offset gains fuelled by bullish reports from chipmakers.

A gauge of Asian equities was down 0.6 per cent, while South Korea’s tech heavy Kospi dropped 1.8 per cent.

US futures were little changed. The S&P 500 ended flat on Thursday (Jun 25), failing to sustain an early rally fuelled by Micron Technology’s sales forecast. Apple’s shares slid 6.1 per cent, leading the Magnificent Seven lower, after the firm raised prices on Macs, iPads and home devices.

The Nasdaq 100 Index finished up 0.8 per cent after having climbed as much as 2.1 per cent.

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 favoured inflation gauge rose less than estimated.

The market’s recent swings highlight investors’ growing unease over whether the technology giants that have powered the equity 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 tech sector remains elevated.

“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.”

Besides Micron’s rally following blockbuster results and outlook, Qualcomm shares also jumped after it forecast annual sales of more than US$15 billion from artificial intelligence components in data centres by fiscal 2029. That optimism was missing in early Asian trading, with shares of SK Hynix and Samsung Electronics the biggest drags on the regional benchmark.

Elsewhere, OpenAI is leaning towards holding off on an initial public offering until 2027, The New York Times reported, citing three sources involved in the company’s deliberations.

Meanwhile, the Fed’s preferred inflation gauge, the personal consumption expenditures price index, rose 0.4 per cent in May, below economists’ median estimate for a 0.5 per cent increase. The annual rate accelerated to 4.1 per cent, well above the Fed’s 2 per cent target.

A separate report showed the US economy grew at an annualised 2.1 per cent 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 towards 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 petrol prices trend lower, inflation expectations will likely follow suit.”

In commodities, gold was steady after rebounding above US$4,000 an ounce in the previous session as traders tempered expectations for interest-rate hikes. BLOOMBERG