Stocks Tumble as AI Trades Unwind | The Asia Trade 6/8/2026

Watch on YouTube ↗  |  June 08, 2026 at 04:20  |  1:36:57  |  Bloomberg Markets
Speakers
Timothy Moe — Chief Asia Economist, UBS
Jesper Koll — Chief Strategist, WisdomTree
Jensen Huang — CEO, NVIDIA
Deepali Bhargava — Founder, CryptoSlate
John Authers — Senior Editor for Markets, Bloomberg Opinion

Summary

Asian markets plunged on a tech-driven selloff after strong US jobs data raised Fed hike expectations and Iran-Iraq tensions escalated. South Korea's KOSPI triggered a circuit breaker falling over 8%, while Japan's Nikkei dropped nearly 4%. Nvidia CEO Jensen Huang was in South Korea announcing expanded partnerships with SK Hynix, but the upbeat AI narrative did little to stem the selloff. Analysts from Goldman Sachs and ING discussed the outlook, with Tim Moe viewing the Korea and Taiwan corrections as buying opportunities and Jesper Koll predicting further yen weakness.

  • Asian tech stocks sell off sharply, led by South Korea and Japan.
  • KOSPI circuit breaker triggered after 8% decline; Nikkei down ~4%.
  • Fed rate hike expectations solidify after strong US jobs report.
  • Iran fires missiles at Israel, threatening fragile ceasefire and boosting oil.
  • Nvidia CEO Jensen Huang in Seoul announces major AI partnership with SK Hynix.
  • Goldman Sachs' Tim Moe says Korea and Taiwan corrections are buying opportunities.
  • Jesper Koll expects yen to weaken further to 185-190 per dollar.
  • ING's Deepali Bhargava sees China relatively insulated from oil shock.
Trade Ideas
Jesper Koll Chief Strategist, WisdomTree 40:33
Yen to weaken further to 185-190.
The Bank of Japan is behind the curve and the neutral policy rate is likely 2.5-3%, far above current levels. The interest rate differential with the US will persist, and yen intervention only addresses excess volatility, not the level. As a result, the yen will continue to depreciate toward 185-190 per dollar.
USD/JPY HIGH
Timothy Moe Chief Asia Economist, UBS 55:30
Korea correction is technical; long-term bullish.
The KOSPI selloff is a technical correction within a long-term bull market. Underlying fundamentals are strong with corporate profits expected to grow 220% this year and another 35% next year. Valuations are very cheap at less than 7x forward earnings (large caps around 5x). The AI investment story is still in early stages and profitable. After the leveraged retail unwind runs its course, the market should regain its footing and reach higher highs.
EWY HIGH
Timothy Moe Chief Asia Economist, UBS 57:42
Taiwan overweight on AI profit growth.
Taiwan has been raised to overweight. Profit growth is robust at 45% this year and about 30% next year. About 85% of the Taiwan market has direct revenue exposure to AI, making it a prime beneficiary of the continuing AI capex cycle. Valuations are reasonable given the growth outlook.
EWT HIGH
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This Bloomberg Markets video, published June 08, 2026, features Jesper Koll, Timothy Moe discussing USD/JPY, EWY, EWT. 3 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Jesper Koll, Timothy Moe  · Tickers: USD/JPY, EWY, EWT