Asian Markets Shaken After AI Selloff on Wall Street

NVDA has already fallen 12% in 24 hours and is in oversold territory with an RSI of 17.7; such levels could trigger short-term bargain hunting. However, the news points to an AI-driven selloff spreading across Asian markets, indicating continued fragility in risk appetite. The price is well below the SMA20 and SMA50, and the MACD is negative and below its signal line; trend indicators still point to downward pressure. Due to the oversold condition, part of the sharp decline may already be priced in, so I am cautious in calling a direction. Although downside risk persists in the short term, the confidence level is moderately low due to the possibility of bargain hunting.

AMD fell sharply by more than 16% in 24 hours, dropping to 402.5, with its RSI at 23, placing it in oversold territory. The MACD is clearly below its signal line, and the price is well below the SMA20 and SMA50, indicating a weak trend. News of an AI selloff in Asian markets could dampen risk appetite in the short term and set the stage for continued selling. However, oversold conditions also leave room for rebound buying; therefore, although the direction is downward, confidence is moderate. Volatility may remain high over the next 1-3 days, and volume and support levels should be monitored for confirmation.

AVGO has already fallen 11.5% in 24 hours, pushing its RSI14 down to 20 and into oversold territory. The MACD is clearly below its signal line, and the price is trading well below the SMA20/SMA50, confirming that the short-term trend is downward. News of an AI selloff in Asian markets suggests that selling pressure could continue in AI-sensitive semiconductor stocks such as AVGO. However, oversold conditions also increase the likelihood of short-term bargain hunting, so my bearish view is limited to moderate confidence. Over a 1-3 day window, I expect choppy but slightly downward-biased trading.

A general bearish sentiment prevails across Asian markets following the artificial intelligence-driven selloff on Wall Street. Despite a 5% gain, 0700.HK remains below its MACD signal line with RSI at a mid-level, indicating potential for a near-term correction. Although the stock is holding above its 20- and 50-day moving averages, a mild pullback may be expected within 1-3 days due to news impact. Investors could see further selling pressure if the price falls below the 416 level. As a result, a slight downward bias is anticipated in the near term.