The shift in sentiment centers on reports that Meta is launching a cloud business to lease excess computing power, forcing analysts to confront the possibility that industry giants are building more infrastructure than they can profitably utilize. Saxo Markets strategist Charu Chanana noted that hyperscalers appear to be transitioning from unchecked expansion to a focus on monetizing existing capacity. This pivot directly threatens the revenue outlook for Asia’s semiconductor sector, which relies heavily on massive, consistent capital expenditure from global tech leaders.

Market reactions were sharpest in Korea and Japan. The Kospi index shed 2.6%, driven by a 4.85% drop in Samsung Electronics and a 5.9% slide for SK Hynix. In Tokyo, the Nikkei 225 fell 1.05%, with chip-maker Kioxia Holdings tumbling 10% and Tokyo Electron losing 4.15%. Bucking the trend, Hong Kong’s Hang Seng Index rose 1.0% as investors pivoted back into oversold Chinese internet stocks like Tencent and Alibaba following the regional holiday.

Energy markets mirrored the instability in tech, with oil prices sliding as shipping traffic through the Strait of Hormuz returned to normal levels. OCBC slashed its third-quarter 2026 Brent forecast to $75 from $85 per barrel, while UBS lowered its full-year expectation by $9. WTI futures slipped 1.2% to $67.80, and Brent futures dipped 1.0% to $70.86, as the market moved to price in renewed fears of global oversupply.