{"id":64153,"date":"2026-07-02T20:38:10","date_gmt":"2026-07-03T00:38:10","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/asian-markets-mixed-as-tech-sell-off-offsets-positive-economic-data-jgb-yields-rise\/64153\/"},"modified":"2026-07-02T20:38:10","modified_gmt":"2026-07-03T00:38:10","slug":"asian-markets-mixed-as-tech-sell-off-offsets-positive-economic-data-jgb-yields-rise","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/asian-markets-mixed-as-tech-sell-off-offsets-positive-economic-data-jgb-yields-rise\/64153\/","title":{"rendered":"Asian Markets Mixed as Tech Sell-Off Offsets Positive Economic Data; JGB Yields Rise"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Asian markets traded mixed on Friday<\/strong> as a significant sell-off in semiconductor and technology stocks countered positive services sector data from Japan.<\/li>\n<li><strong>South Korea&#39;s KOSPI index tumbled 2.7%<\/strong> while Japan&#39;s <strong>Nikkei 225 fell 1.03%<\/strong> to 68,024.75, driven by concerns that the AI-driven rally has outpaced fundamental valuations.<\/li>\n<li><strong>Japan&#39;s S&amp;P Global June Final Composite PMI rose to 52.8<\/strong>, indicating resilient economic activity despite equity market volatility and a steepening JGB yield curve.<\/li>\n<li><strong><a href=\"https:\/\/stockmarketwatch.com\/metal\/gold\" data-internallinksmanager029f6b8e52c=\"4\" title=\"gold price today\">Gold prices<\/a> held firm<\/strong> following weak U.S. jobs data, which has significantly reduced market expectations for further Federal Reserve interest rate hikes in 2024.<\/li>\n<li><strong>Geopolitical tensions remain high<\/strong> as reports surface of shifted U.S. troop posture plans in Europe and a diplomatic focus shift toward Iran over the Ukraine conflict.<\/li>\n<\/ul>\n<h2>Tech Slump Drags Major Asian Indices<\/h2>\n<p>Equity markets across the Asia-Pacific region faced downward pressure on Friday, primarily led by a retreat in the technology sector. The <strong>Nikkei 225<\/strong> (<a href=\"\/stock\/%5EN225\">^N225<\/a>) dropped over 1%, weighed down heavily by electronics and chip-related stocks following a similar cooling trend in U.S. tech giants.<\/p>\n<p>In Seoul, the <strong>KOSPI<\/strong> (<a href=\"\/stock\/%5EKS11\">^KS11<\/a>) saw an even sharper decline of <strong>2.7%<\/strong> as selling pressure intensified. Investors appear to be locking in profits from the recent artificial intelligence boom, amid fears that stock prices have become detached from near-term earnings potential.<\/p>\n<p>In contrast, Australia\u2019s <strong>S&amp;P\/ASX 200<\/strong> (<a href=\"\/stock\/%5EAXJO\">^AXJO<\/a>) managed to buck the trend, advancing <strong>0.4% to 8,759.60 points<\/strong> during early trading. The gains in Sydney were supported by a rise in commodity-linked stocks and a general rotation away from high-growth tech into more defensive sectors.<\/p>\n<h2>Japanese Economic Resilience and Bond Market Shifts<\/h2>\n<p>Despite the equity slump, Japan&#39;s domestic economic data showed signs of strength. The <strong>S&amp;P Global June Final Composite PMI<\/strong> landed at <strong>52.8<\/strong>, up from the previous 52.5, while the <strong>Services PMI<\/strong> climbed to <strong>52.2<\/strong>. These figures suggest that the Japanese service sector remains a pillar of growth for the economy.<\/p>\n<p>In the fixed-income market, the <strong>Japanese Government Bond (JGB) yield curve steepened<\/strong>. The yield on the <strong>20-year JGB rose 1.5 basis points to 3.780%<\/strong>, reflecting market adjustments to shifting monetary expectations. Foreign exchange traders remain on high alert as the <strong>Ministry of Finance (MOF)<\/strong> reportedly considers surprise intervention tactics to manage yen volatility.<\/p>\n<h2>Commodities and Global Macro Outlook<\/h2>\n<p><strong>Gold<\/strong> prices maintained their recent gains, supported by a softening U.S. labor market. Recent <strong>U.S. jobs data<\/strong> came in weaker than expected, leading many analysts to believe the <strong>Federal Reserve<\/strong> will pause rate hikes for the remainder of the year. This sentiment has pressured the U.S. Dollar and provided a floor for bullion prices.<\/p>\n<p>In the corporate sector, <strong>Shenzhen Xunce Technology<\/strong> made waves by placing 7.3 million H shares at <strong>HK$107.70 per share<\/strong>. The company also proposed <strong>RMB 1.36 billion<\/strong> in U.S. dollar-settled zero-coupon convertible bonds due in 2027, signaling active capital raising despite the broader market uncertainty.<\/p>\n<h2>Geopolitical Developments<\/h2>\n<p>On the diplomatic front, New Zealand Prime Minister <strong>Christopher Luxon<\/strong> announced that Indian Prime Minister <strong>Narendra Modi<\/strong> will make his first official visit to New Zealand next week. This comes as Japan\u2019s <strong>Sanae Takaichi<\/strong> reportedly looks toward India as a key partner to counter regional influence in the Indo-Pacific.<\/p>\n<p>Meanwhile, reports from the <em>Wall Street Journal<\/em> and <em>New York Times<\/em> indicate internal friction within the U.S. administration. A plan by Defense Secretary <strong>Pete Hegseth<\/strong> to cut U.S. troop levels in Europe was reportedly shelved after opposition from Senator <strong>Marco Rubio<\/strong>. Additionally, concerns are rising in Kyiv as U.S. diplomatic focus appears to be prioritizing Iran talks over the ongoing Russia-Ukraine conflict.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Asian markets traded mixed on Friday as a significant sell-off in semiconductor and technology stocks countered positive services 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