Global Market Today: Asian stocks decline in break from US chip rally - The

Data-center infrastructure company Elice Inc. plunged as much as 32% in its trading debut in Seoul.Asia’s decline contrasted with Monday’s tech-led rally on Wall Street, where the Philadelphia Semiconductor Index climbed 1.6%, snapping an eight-day losing streak. As sentiment weakened, Nasdaq 100 futures erased earlier gains and fell 0.1%.Read more: Oil eases as markets assess potential waiver on Russian energy, Middle East supply risksTreasuries held their losses from the previous session, when reduced haven demand pushed yields higher.

The yield on the benchmark 10-year US note was at 5.14%, after rising seven basis points Monday. French bonds also declined following violent unrest over the weekend.The AI trade faces a fresh test this week as investors await earnings from major technology companies such as Meta Platforms Inc. after concerns over heavy spending and higher interest rates rattled the sector. Earnings from companies including Tesla Inc. will offer clues on whether the AI-driven rally has further room to run.“Results will show whether strong profit growth can restore confidence in the equity rally,” said Mark Haefele at UBS Chief Investment Office.

“We continue to expect resilient growth and earnings to support equities, and see attractive opportunities in quality bonds.”Elsewhere in Asia, China’s central bank signaled its overnight reverse repurchase rate will replace the current seven-day rate as its policy benchmark, another step toward aligning its framework with global peers that may help lower borrowing costs.In other corners of the market, gold slipped 0.2% to about $4,130 an ounce.

Global crude oil benchmark Brent was little changed at $109.40 a barrel. Oil fluctuated as technical resistance tempered gains driven by renewed supply risks from the Middle East conflict.The euro is also on traders’ radars as they continue weighing geopolitical risks in France.Officials rolled out tougher security measures and pledged aid for businesses after cost-of-living protests this weekend degenerated into violence, vandalism and looting.

But a debt mountain and a budget deficit among the largest in the euro area mean the French government cannot simply increase spending to appease the public.“Euro bulls are scarce these days,” wrote Thomas Hempell, head of macro and market research at Generali Investments. “With the war in Iran dragging on and French politics unresolved, a near-term euro rebound looks unlikely.”