Chip Selloff Extends to Asia Amid Bond-Market Angst | The Asia Trade 8/19/2026

Watch on YouTube ↗  |  August 19, 2026 at 04:43  |  1:35:13  |  Bloomberg Markets
Speakers
Gabriela Santos — Head of Research, BTIG
Mark Cranfield — Cross Asset Strategist, Bloomberg
Thu Ha Chow — Head of Content, The Block
Brandon Craig — CEO, BHP
Balázs Penz — Bloomberg Reporter
Hebe Chen — Head of Research, The Block
Min Min Low — China Correspondent, Bloomberg
Sungkyue Shin — CFO, Rebellions

Summary

Asian markets face downward pressure following a tech-led selloff on Wall Street, driven by concerns over AI concentration risk and elevated bond yields. The bond market is grappling with intense competition for long-term debt as hyperscalers and massive government issuance push yields higher. Meanwhile, geopolitical tensions in the Middle East continue to support elevated oil prices, adding to inflation fears.

  • US and Asian equities slide amid a broader tech and semiconductor selloff.
  • Investors are increasingly concerned about AI concentration risk spreading across asset classes.
  • Long-term bond yields surge due to heavy government issuance and corporate debt raising.
  • Oil prices advance for a fourth day as the US-Iran stalemate continues.
  • Chinese tech giants like Baidu and Xiaomi report weak earnings amid fierce competition.
  • Unitree Robotics prepares for a highly anticipated IPO in Shanghai with expectations of a massive pop.
Ideas
Mark Cranfield Cross Asset Strategist, Bloomberg 3:06
NASDAQ will underperform the S&P 500.
The outlook for AI companies is getting cloudy as they may have to cut prices to compete, leading to thinner profit margins despite massive investments. This will cause NASDAQ contracts to underperform against the S&P 500.
SPY MED
Mark Cranfield Cross Asset Strategist, Bloomberg 3:06
NASDAQ will underperform the S&P 500.
The outlook for AI companies is getting cloudy as they may have to cut prices to compete, leading to thinner profit margins despite massive investments. This will cause NASDAQ contracts to underperform against the S&P 500.
QQQ MED
Thu Ha Chow Head of Content, The Block 12:31
Avoid credit markets due to tight spreads.
Tight credit spreads and expected volatility heading into Jackson Hole and the US elections make credit markets an uncompelling place to be, especially with hyperscalers sucking demand away by offering high spreads.
Credit markets MED
Thu Ha Chow Head of Content, The Block 16:03
Long-term bond term premiums must steepen.
Structural inflation driven by geopolitics and supply chain reshoring means the term premium on the longer part of the yield curve needs to be much steeper than in the past across global bond markets, including JGBs and US Treasuries.
Long-term JGBs MED
Gabriela Santos Head of Research, BTIG 25:24
Diversify away from AI into other assets.
AI concentration risk is everywhere and growth rates will eventually decelerate, leading to a correction or fatigue. Investors should actively build diversification away from the AI factor by allocating to Treasuries, gold, real estate, European equities, emerging markets, and Japanese equities.
TLT EWJ EEM VGK XLRE GLD HIGH
Brandon Craig CEO, BHP 40:49
Organic copper growth is highly attractive.
BHP is choosing an organic growth pathway for copper that will lift production by 55% over the next five years, which is highly attractive and cost-effective compared to acquiring assets on the market at a significant premium.
BHP MED
Balázs Penz Bloomberg Reporter 78:21
Unitree IPO will see a massive pop.
Unitree Robotics is expected to have a very strong first-day performance and a massive pop upon its IPO, driven by exponential demand expectations for robots and the current trend of massive first-day pops for Chinese tech IPOs.
688836.SS HIGH
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This Bloomberg Markets video, published August 19, 2026, features Mark Cranfield, Thu Ha Chow, Gabriela Santos, Brandon Craig, Balázs Penz discussing SPY, QQQ, Credit markets, Long-term JGBs, TLT, EWJ, EEM, VGK, XLRE, GLD, BHP, 688836.SS. 7 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Mark Cranfield, Thu Ha Chow, Gabriela Santos, Brandon Craig, Balázs Penz  · Tickers: SPY, QQQ, Credit markets, Long-term JGBs, TLT, EWJ, EEM, VGK, XLRE, GLD, BHP, 688836.SS