Tuesday Morning Coffee - Markets Update - 24 Feb 2026 - Asia Stocks Steady After Wall Street AI Rout Sours Mood

The Trade Academy Team
18 hours ago
3 min read

Global Markets Roundup: 24 Feb 2026

Asian equities found their footing after an unsteady open on Tuesday, as investors digested a fresh AI-driven selloff in the U.S. and growing unease over President Donald Trump’s shifting tariff stance and wider geopolitical strains.

Key points

Japan and China reopened after holidays, adding liquidity to regional trading
Wall Street slid on AI-related worries and uncertainty around U.S. trade policy
Bernstein flagged “crowding” risk in top-performing U.S. and Asian stocks as return-chasing intensifies

Asia Holds Up, Led by Japan and China Catch-Up

MSCI’s broadest Asia-Pacific index excluding Japan (.MIAPJ0000PUS) was headed toward fresh highs after a seven-day rally, up 0.3%, with Taiwan and South Korea both printing record highs.

Markets reopening after holidays helped drive moves in the region:

Nikkei 225 (NI225): +0.9%
China CSI 300 (3399300): +1.2%
S&P 500 e-mini futures (ES1!): +0.3%

Wall Street Slide: AI Disruption Fears Take a Toll

Overnight, the S&P 500 (SPX) fell 1.0%, wiping out the previous week’s gains, while the Nasdaq Composite (IXIC) dropped 1.1%. Traders pointed to concerns about AI’s displacement effects on software and other industries, compounded by a bearish note from Citrini Research warning about potential risks to the global economy.

Bernstein: Return-Chasing Leaves Rally Leaders Vulnerable

The biggest winners over the past year in both Asia and the U.S. may be increasingly exposed to reversals, warned Rupal Agarwal, Asia quant strategist at Bernstein in Singapore. “Stocks that have done the best over the last 12 months in Asia and the U.S. have seen too many investors chasing these names, to an extent not seen outside of the 2000 or 2020 cycle,” she said. “With valuations at a record high and earnings revisions showing signs of peaking, the risk of reversal in these stocks is high.”

Tariff Confusion Deepens After Supreme Court Ruling

Trade worries also weighed on sentiment after Trump warned countries not to back away from recently negotiated deals with the U.S. following the Supreme Court’s decision to strike down his emergency tariffs. Trump said he would impose much higher duties under other trade laws.

The new tariff approach is based on Section 122 of the Trade Act of 1974, adding to uncertainty for investors already grappling with U.S. protectionist policy direction.

Japan’s trade minister Ryosei Akazawa has asked that Japan’s treatment under a new U.S. tariff regime be as favourable as an agreement struck between the two sides last year. In Taiwan, the government said it would seek assurances from Washington that beneficial terms already agreed will not change.

Volatility Up; China-Japan Trade Friction Adds a New Layer

The CBOE Volatility Index (VIX)—often called Wall Street’s “fear gauge”—rose 1.9 percentage points to 21.01.

While the return of Japan and China boosted regional liquidity, a new flashpoint emerged between two of Asia’s biggest economies. China’s commerce ministry said Tuesday it had banned exports of dual-use items to 20 Japanese entities it claims have military links, describing the move as aimed at curbing Tokyo’s “remilitarisation” and nuclear ambitions.

FX, Rates, and Central Bank Watch

In currency markets:

USD/JPY: +0.4% to 155.21 yen, after the Nikkei newspaper reported U.S. authorities initiated January “rate checks” to support the Japanese currency and were prepared for joint intervention if Tokyo requested it.
Offshore yuan (USD/CNH): steady at 6.8912, even as Beijing set the daily fixing at its strongest level in nearly three years and kept its benchmark lending rate unchanged for a ninth straight month.

In U.S. rates, Fed funds futures implied a 95.5% probability of the Fed holding rates at its March 18 meeting, little changed from the prior day, per CME Group’s FedWatch tool. The 10-year Treasury yield was last up 1.9 basis points at 4.0443%, as investors assessed the Supreme Court ruling’s implications for U.S. tax receipts.

Commodities and Crypto: Oil Up, Metals and Coins Slide

Brent crude (BRN1!): +0.5% to $71.83 on continued U.S.-Iran tensions.
A senior State Department official said Monday the U.S. is pulling out non-essential personnel and eligible family members from the U.S. embassy in Lebanon, citing rising concern about the risk of military conflict.

Despite the risk backdrop, safe havens stayed volatile:

Gold (GOLD): -1.1% to $5,173.29
Silver (XAGUSD1!): -1.2% to $87.19

Crypto also weakened:

Bitcoin (BTCUSD): -1.6% to $63,509.61
Ether (ETHUSD): -1.3% to $1,838.96

General news - Information source from multiple newswires.

The article and the data is for general information use only, not advice!

The Trade Academy Team