Asia closed in the red across the board: Hong Kong's Hang Seng -3%, Japan's Nikkei 225 -3%, South Korea's Kospi -3.5%, Taiwan's index -2%.
Chinese tech companies trading in Hong Kong fell the hardest: this is their worst session since April 2025, when Donald Trump announced tariffs. The Hong Kong tech index is more than 40% below its peak and has given back almost all of its gains since Beijing's stimulus package on September 24. The sector's forward valuation is around 13 earnings.
There are two reasons: mixed reports from US companies and oil. Brent rose above $112 a barrel, a high since May, and WTI climbed above $100. Tesla was down about 5% in premarket: according to Deutsche Bank, the company cut its 2026 capital expenditure plan from $25 billion to $20 billion.
US futures (index contracts) are following suit: Nasdaq 100 -1.69% around 29,500, S&P 500 -0.97% around 7,720, Dow Jones -0.58% around 52,750. The previous day the market closed higher: Dow +0.69%, S&P 500 +0.58%, Nasdaq Composite +1.05%.
The VIX fear index gained 10% to ~18, which is 30% above its September low. Gold fell below $4,100, silver -3.5% to $55, Bitcoin lost $84,000 and pulled back to $82,000. The yield on 10-year US Treasuries is 5.077% versus the recent 5.4%, but that didn't help stocks. Coming up: reports from Procter & Gamble, Western Digital and Lockheed Martin today and the Fed meeting on October 27-28.
Did you watch Asia tumble from the open?
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