Japanese Bank Stocks Surge as Bond Yields Fuel Rate Hike Bets 
U.S. Dollar Hits Two-Month High as Oil, Treasury Yields Surge 
US 10-Year Treasury Yield at 6% Emerges as New Market Risk Threshold 
European Stocks Fall as Bond Yields and Geopolitical Risks Weigh 
Oil Prices Jump 3% as Houthi Attack Revives Supply Fears 
Fed Unveils Stablecoin Rules Under GENIUS Act 
US Stock Futures Fall as Treasury Yields Surge Ahead of Trump-Xi Summit 
Fed’s Hammack Says Bond Yield Surge Is Not Driven by Inflation Fears 
Mexico-US Trade Talks Delayed to October as Tariff Negotiations Continue 
Germany’s 2026 Growth Outlook Strengthens on Fiscal Spending 
Asian Currencies Mixed as Dollar Holds Near Two-Month High 
Asian Stocks Fall as Surging Bond Yields Rattle Markets 
Oil Prices Fall on U.S.-Iran Hormuz Deal Hopes 
Trump, Xi Focus on Trade and AI at White House Summit 
Dollar Holds Near Two-Month High as Yen Approaches 160 
Gold Prices Fall as Treasury Yields Rise on Fed Rate Hike Bets 
Canadian Dollar Faces Pressure as Fed-BoC Policy Gap Widens 
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Asian stocks traded flat-to-lower on Tuesday, led by a sharp decline in Japanese markets as chipmaking stocks took a hit. Concerns emerged over DeepSeek’s new AI model, which rivals advanced AI technologies like ChatGPT but operates on older hardware, raising doubts about the demand for expensive AI chips and infrastructure.
Japan’s Nikkei 225 index dropped nearly 1%, with major chipmakers Advantest Corp. and Tokyo Electron Ltd. sliding up to 10% and 4%, respectively. Tech giant SoftBank Group also fell 4.7%, while the TOPIX index showed minor gains.
China and South Korea markets remained closed for the Lunar New Year, leaving trading volumes muted. Hong Kong’s Hang Seng index edged up 0.2%, supported by gains in tech heavyweights like Baidu, Tencent, and Alibaba, which rose between 1% and 5%, reflecting optimism about China’s growing AI capabilities.
The sell-off in chip stocks followed a weak lead from Wall Street, where the NASDAQ Composite slumped over 3%, fueled by a $600 billion market value loss in NVIDIA. However, U.S. futures stabilized during Asian trading.
Australia’s ASX 200 remained steady ahead of inflation data expected on Wednesday. The report could shape expectations for potential interest rate cuts by the Reserve Bank of Australia. Still, persistently high inflation raises doubts about imminent rate adjustments.
Meanwhile, Indian stock futures pointed to a recovery after the Nifty 50 index hit a seven-month low on Monday. Investors also await key U.S. tech earnings and the Federal Reserve's interest rate decision this week.
The market sentiment remains cautious, influenced by global trends and regional holidays, as investors assess the impact of AI advancements on chip demand and inflation data on monetary policies.
