🚨 Everything is going wrong in Asia right now.
Japan's Nikkei plunged 3.2%. China's CSI 300 crashed almost 3%. South Korea's KOSPI collapsed more than 6%, triggering emergency trading curbs.
And the reason is bigger than Asia.
Global bond yields have exploded toward multi-decade highs while oil is back above $90.
That's the nightmare combination: higher inflation plus higher borrowing costs.
It immediately destroys the valuation case for the most expensive growth stocks.
And Asia happens to be sitting directly on top of the AI trade.
• Samsung fell nearly 8%
• SK Hynix fell nearly 10%
• Kioxia fell 13%
• SoftBank fell 10%
This isn't some random China problem.
The world's most crowded tech trade is unwinding while the cost of money explodes.
And if oil and global yields refuse to come down, Asia may simply be the first place where the pressure finally broke through.
What do you think?
Japan's Nikkei plunged 3.2%. China's CSI 300 crashed almost 3%. South Korea's KOSPI collapsed more than 6%, triggering emergency trading curbs.
And the reason is bigger than Asia.
Global bond yields have exploded toward multi-decade highs while oil is back above $90.
That's the nightmare combination: higher inflation plus higher borrowing costs.
It immediately destroys the valuation case for the most expensive growth stocks.
And Asia happens to be sitting directly on top of the AI trade.
• Samsung fell nearly 8%
• SK Hynix fell nearly 10%
• Kioxia fell 13%
• SoftBank fell 10%
This isn't some random China problem.
The world's most crowded tech trade is unwinding while the cost of money explodes.
And if oil and global yields refuse to come down, Asia may simply be the first place where the pressure finally broke through.
What do you think?
