Mid-East Tensions and AI Concerns Trigger Historic Asia Volatility Ahead of FOMC
Asian markets experienced historic volatility on Tuesday, driven by renewed AI funding fears and SK Hynix's earnings, while Middle East tensions simmered and traders positioned for a possible 25bp Fed rate move.
Asian equities tumbled, with the Hang Seng and Kospi leading losses, as AI investment jitters and a downbeat report from SK Hynix soured sentiment. The sell-off pushed benchmarks to multi-month lows, mirroring a broader retreat from risk assets.
Geopolitical tensions in the Middle East added to the risk-off mood, with safe-haven currencies strengthening against emerging-market peers. Escalating rhetoric kept oil prices bid, further pressuring growth-sensitive currencies.
Attention now pivots to the Federal Reserve’s policy announcement. Markets price a slim chance of a 25-basis-point adjustment, adding an extra layer of uncertainty to an already volatile session.
Source: FXStreet Forex News