The tech selloff, which began on Wall Street, hit Asian chipmakers with particular force. Despite robust earnings reports from TSMC and ASML, shareholders remained skittish, opting to lock in profits after a massive year-to-date rally. Market strategist James Ooi at Tiger Brokers noted that the current climate suggests a shift in sentiment, with capital flowing out of semiconductor names like Advantest, which fell 11%, and SoftBank Group, down 9.7%. In Taiwan, the Taiex index shed 4.3% even as TSMC announced a $100 billion expansion of its U.S. manufacturing footprint.

Simultaneously, the regional outlook darkened as U.S. strikes against Iranian infrastructure in the Strait of Hormuz reignited fears of a broader conflict. While analysts at OCBC Group Research warned of the instability, the volatility spilled directly into commodity markets. Crude oil futures climbed 0.9% to $79.67 for West Texas Intermediate, pushing weekly gains for both WTI and Brent to 12%. Gold maintained a slight edge at $4,000 an ounce, though gains were capped as bond yields recovered, tempering the relief previously felt from softer U.S. inflation data.