[MARKET ANALYSIS] Asia-Pac stocks rebound from the tech bloodbath

A recovery session following a concentrated, tech-led selloff sits in a well-worn pattern: violent single-day drawdowns in crowded semiconductor and AI-linked names have historically been followed by partial retracements once the selling exhausts, with the KOSPI's outsized bounce relative to the prior day's plunge the classic signature of a positioning flush rather than a regime break. The distinction that has mattered in past episodes is whether the rebound is broad or merely mechanical short-covering in the names that fell hardest, since only the former has tended to hold into the following sessions. The Indonesian underperformance is idiosyncratic and mechanical rather than macro: an MSCI consultation on reclassification to Standalone status forces a forced-flow question, and past index reviews of this kind have produced sustained underperformance in the affected market while the consultation runs and the effective date approaches, as benchmarked funds pre-position. On the policy side, PBoC reiteration of a moderately loose stance is consistent with a long-running pattern of verbal support that has historically stabilised sentiment in Chinese assets without, on its own, changing the trend. The Fed Chair commentary flagged as the day's catalyst sets the sequence for the global session: Asia has taken its cue from the prior US close, and the tell for whether the recovery extends is how US and European futures behave once the Fed rhetoric is on the tape.