Asian markets face a mixed open on Tuesday after Wall Street staged a partial recovery on Monday, with semiconductor stocks bouncing back from last week's sharp technology-led sell-off that rattled global risk appetite.
The S&P 500 closed at 7,405.73 (+0.30%) and the Nasdaq Composite gained 0.86% to 25,929.66, while the Dow Jones Industrial Average dipped 0.16% to 50,786.01. The CBOE Volatility Index (VIX) retreated from Friday's spike high of 21.51 to 18.92, though it remains well above the 15.40 level recorded before the sell-off began.
Overnight US Close
Chip stocks led Monday's recovery after leading Friday's decline, with semiconductor names attracting dip-buyers following the sharp drawdown in AI-linked valuations. Meanwhile, blue-chip defensive names lagged, keeping the Dow under pressure relative to the tech-heavy Nasdaq.
Geopolitical easing also supported sentiment after Iran announced it would halt military strikes on Israel, and US officials indicated progress in peace negotiations between Washington and Tehran. The de-escalation helped crude oil ease from intra-session highs, reducing the inflation premium that had weighed on risk assets.
US Futures This Morning
S&P 500 E-mini futures (ES) traded at 7,411.75 in early Asian hours, marginally above Monday's cash close of 7,405.73, suggesting a modestly positive tone heading into Tuesday's session. Nasdaq futures pointed to a firmer start, consistent with the chip sector momentum from Monday's regular session.
Europe Close
European markets closed mixed on Monday. Germany's DAX fell 0.58% to 24,616.22 after a gap-down open reflecting Friday's US losses, while London's FTSE 100 edged 0.05% higher to 10,373.20, supported by energy and commodity-linked names. European defence stocks rallied after Ukraine ratified a US$105 billion EU loan deal.
Asia Pre-Market Sentiment
Monday's Asian session was punishing. South Korea's KOSPI crashed approximately 8.3% as technology heavyweights tracked Wall Street's AI-linked rout. Japan's Nikkei 225 dropped 3.85% to 64,024.60. The Straits Times Index fell 1.71% to 4,963.67, Hong Kong's Hang Seng shed 1.22% to 24,657.06, and Malaysia's FBM KLCI declined 0.82% to 1,679.52.
Tuesday's open will likely reflect the mixed US close. The chip comeback may support technology-heavy indices in Japan and South Korea, while the Dow's underperformance could weigh on blue-chip-heavy benchmarks. Stabilisation in semiconductor names would be the primary signal for a sustained Asian recovery.
Currencies
The US Dollar Index (DXY) held steady at 100.017, largely flat from Friday's close. The ringgit traded at USD/MYR 4.03, while USD/HKD remained at 7.83 and USD/CNY at 6.79. The yen remained under pressure at USD/JPY 160.26. The euro was quoted at EUR/USD 1.1534.
Commodities
Gold held above US$4,300, trading at US$4,351.10 per ounce (+0.32%), recovering modestly from Friday's sharp decline. Brent crude rose 1.26% to US$94.26 per barrel, while WTI crude gained 0.86% to US$91.32. Oil prices have been volatile on shifting Iran-US diplomatic signals, with de-escalation reducing the geopolitical risk premium.
Crypto
Bitcoin traded near US$63,459, recovering from Friday's plunge below US$60,000 — its lowest level since October 2024. The bounce reflects improved risk sentiment following Monday's equity stabilisation, though the cryptocurrency remains under significant technical pressure after breaking below key support levels last week.
Today's Catalysts
Apple's WWDC 2026 keynote is underway, featuring a major Siri AI overhaul announcement that could influence global technology sentiment if investors react positively to the company's artificial intelligence strategy. Market participants are also watching for further Iran-Israel diplomatic developments and Wednesday's US Consumer Price Index release, which will be critical for Federal Reserve rate expectations. A stronger-than-expected inflation print could re-ignite pressure on growth stocks, while a softer reading would ease concerns about tighter monetary policy.
ATVN View
Monday's partial recovery may suggest the acute phase of the sell-off is passing, but the elevated VIX at 18.92 — nearly 23% above pre-sell-off levels — indicates markets have not fully absorbed the risk repricing. The chip sector's comeback could encourage cautious dip-buying in Asian technology names today, but the recovery remains selective rather than broad-based. With Wednesday's CPI potentially decisive for Fed policy expectations, traders may position defensively until inflation data provides clarity. The key risk for Asian markets is whether Monday's stabilisation proves durable or merely a relief bounce before further repositioning. — ATVN Markets Desk analysis; not investment advice.
