WS #10735

The dominant signal in this window is a broad tech-led selloff in Asian markets, with South Korea's KOSPI slumping 6% as chipmakers are hit by renewed selling, and China's CSI 300 falling over 3%. This is corroborated by multiple Bloomberg headlines and a Reuters flash. The selloff is linked to fading AI sentiment and Apple's strategic shift to skip high-end M6 chips in favor of AI-focused M7, which raises questions about near-term demand for premium silicon. Separately, the Pentagon is moving to quadruple THAAD output with a Lockheed Martin contract up to $35B over 7 years, a bullish signal for defense contractors. On the geopolitical front, Ukraine continues to strike Russian energy infrastructure, hitting a gas processing facility after a refinery attack, escalating the energy war. The Hong Kong dollar hit a 10-month low as Fed rate hike expectations strengthen the greenback, pressuring Asian currencies. Iron ore is headed for a seventh weekly loss, the worst run since 2022, signaling weak demand from China. A California billionaire tax will appear on the November ballot after negotiations to remove it failed. Sherritt International warned of going-concern risk after Trump Cuba sanctions. The Strait of Hormuz crisis narrative is stable with no new escalation in this window. The Venezuela earthquake humanitarian crisis continues but is not directly market-moving for US equities. Crypto markets remain weak with BTC at $58,957 and ETH at $1,539, with Polymarket trades showing continued bearish bets.