Lianting Tu explains the tech selloff as a combination of high expectations not met by Broadcom's guidance, strong US jobs data raising rate hike fears, and geopolitical tensions boosting oil. She highlights the Korean market's vulnerability due to record retail margin debt and leveraged ETFs, which could exacerbate moves. The yen's weakness near 160 complicates BOJ policy, and the SpaceX IPO is drawing funds away from Korea.
Yields
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Metals
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Bloomberg
5.5
Financial Media
Lianting Tu 4.0
Financial Media
Lianting Tu 4.0
6/8/2026 6:24:18 AM
dxy
The yen is weak near 160, and the Fed is expected to hike in September, keeping the interest rate differential unfavorable for the yen, implying USD strength.
ndx
The selloff in tech shares led the decline, with the NASDAQ 100 down 4.7%.
rut
The selloff in tech is dragging down broader markets, with Korea's KOSPI down over 7%, and leverage concerns suggest further downside.
wti
Crude oil prices pushing higher due to geopolitical tensions in the Middle East.
Sean Taylor views the selloff as a technical correction, not a bubble burst, due to strong earnings and order books in AI supply chain. He advises diversification across financials, industrials, and commodities to hedge, and sees opportunities in Singapore and Vietnam while being cautious on India, Indonesia, and Philippines. He warns that EM is now a narrow leverage trade on AI, making balance crucial.
Yields
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implicit
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Matthews Asia
1.0
Other
Sean Taylor 8.5
Other
Sean Taylor 8.5
6/8/2026 6:24:18 AM
dxy
If rates in the US remain high and oil rises, the dollar could strengthen, but the focus is on EM currencies being under pressure.
metals
Commodities like copper and aluminum have a demand-supply gap and will go up a lot; stocks are cheap with 9% yields.
ndx
It's a technical correction, not a bubble burst. People will buy back AI supply chain stocks because that's where growth is.
rut
The selloff is technical and could extend depending on retail leverage in Korea, implying near-term volatility and potential further downside.
wti
Oil price going up is a factor that could extend the correction and become growth-sensitive, implying upward pressure.