Tech selloff slows in Asia, oil hits five-month high
SPY•The global tech selloff eased in Asia after the Nasdaq fell more than 2% overnight, while Brent crude rose 0.9% to $114.10 a barrel. Treasury yields plunged, and markets pared bets on Federal Reserve rate hikes.
1. Asian shares steady
Asia's tech selloff lost momentum on Friday after concerns about AI funding needs hit Wall Street and sparked a rally in Treasuries. MSCI's Asia-Pacific index excluding Japan was flat after falling as much as 0.8%, while Japan's Nikkei dropped 0.5% and South Korea's KOSPI gained 0.1%. The index was set for a 2.4% weekly loss, its fourth consecutive weekly decline.
2. Oil reaches new high
Brent crude rose 0.9% to $114.10 a barrel, its highest in five months, amid concerns that the Middle East conflict could escalate. The benchmark was set for a 3.9% weekly gain after Houthi attacks in Saudi Arabia raised concerns about further energy supply disruption.
3. Treasuries rally
The 10-year U.S. Treasury yield fell more than 19 basis points overnight, its biggest drop since March 2023, before settling at 4.9676%. Markets pared back expectations for Federal Reserve tightening: a December rate rise was no longer fully priced, with its implied probability falling to 85%. On Wall Street, Meta shares fell nearly 8% after the company posted its first cash outflow in more than a decade, while Tesla shares dropped 3.1% after it cut its 2026 capital spending plans.
