Asia's tech complex got hit overnight, the yen ripped higher on hawkish BOJ signaling, and US index futures are trying to stabilize into today's ADP print and Broadcom earnings after three straight down sessions on Wall Street.
The KOSPI took the worst of it, sliding toward 4% as chip heavyweights gave back recent gains and dragged sentiment across the region; Nikkei followed the tech complex lower while Hang Seng and the CSI 300 held up better, roughly flat to modestly softer, as mainland stimulus hopes partly offset the regional tech drag. USD/JPY buckled back toward the 159 handle as traders priced a faster BOJ hiking path, unwinding pockets of carry-trade length that had been funding risk assets broadly; USD/CNH stayed contained in the mid-7.10s to 7.20 zone, still trading as a beta play on yen direction rather than an independent mover.
Stateside, the S&P and Nasdaq closed lower for a third straight session Tuesday with the 10-year holding near 4.79%, but futures are ticking green this morning as oil eases back and yields cool. The docket is thin on top-tier data but loaded with swing factors: the August ADP employment report at 8:15, factory orders and final durable goods at 10, the Fed's Beige Book at 2pm, and Broadcom earnings after the close — a direct read-through on the same chip names that just got hammered in Seoul.
The risk: a hot ADP or a hawkish Beige Book pushes yields back above 4.80% just as the yen carry unwind is still working through positioning, forcing a second leg down in the same semiconductor complex that led both the KOSPI rout and Tuesday's Nasdaq slide, with Friday's payrolls now the bigger landmine.