Bracing for Yen Swings; US Jobs Ease Fed-Hike Concerns | The Asia Trade 7/3/2026

Summary

The July 3, 2026 Asia Trade program covers the aftermath of a softer US jobs report that reduced Fed hike urgency, triggering a mixed session where tech and semiconductor stocks sold off sharply while the soft-landing narrative gained traction. The panel discusses the ongoing AI-driven chip rout in Korea, the weak yen and intervention risks around the four-decade low, and the divergence between onshore and offshore China equities. Notable investment views include Goldman Sachs calling the KOSPI undervalued after the pullback, TECHnalysis Research seeing NVIDIA as still having upside, and multiple strategists expecting continued yen weakness. The launch of 24-hour Korean won trading and the role of Hong Kong as a semiconductor middleman are also in focus.

• US June payrolls undershoot, easing Fed rate-hike bets and reinforcing the soft-landing narrative.
• AI and semiconductor names sell off globally, with Samsung and SK hynix losing $290 billion in market cap.
• Japanese yen hovers near a 40-year low as a dovish BOJ and weak JGB auctions keep pressure on the currency.
• Goldman Sachs strategist says Korean equities at 6.6x forward earnings are deeply undervalued and compelling post-selloff.
• TECHnalysis Research analyst argues NVIDIA still has plenty of growth runway despite custom-chip competition.
• Onshore China A-shares outperform offshore internet stocks as earnings delivery diverges.
• South Korea launches 24-hour won trading amid a 17-year low for the currency, raising volatility concerns.
• Oil prices remain steady as tanker traffic through the Strait of Hormuz resumes, though geopolitical risks linger.