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AI spending hits Asian tech markets

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2026-07-28 09:11 UTC → 2026-07-28 11:34 UTC · added removed

In late July 2026, global equity markets began to retreat pulled back as investors reacted to massive AI‑related capital expenditures by major US leading U.S. tech firms. The initial slide, reported slide began on July 22, was broad‑based: U.S. indices saw mixed moves while 22 with modest declines across Asian benchmarks such as South Korea’s KOSPI, Japan’s Nikkei and China’s Shanghai Composite fell modestly amid concerns over rising oil prices and renewed U.S.–Iran tension. A week later, By July 27 the focus sharpened sell‑off focused on Asian technology stocks. On July 27, the The debut of China’s ChangXin Memory Technologies triggered sparked fears of fierce competition in the memory‑chip sector. South Korea’s KOSPI plunged more than 10%, prompting a temporary trading halt, 10% and was temporarily halted, while Japan, Taiwan Japan’s Nikkei and Chinese markets Taiwan’s index each slipped 2‑4%. fell 3‑4%. Major chip makers like Samsung chipmakers such as Samsung, SK Hynix, Nvidia and Kioxia suffered ASML recorded double‑digit losses, and European chip firms and US tech giants were also dragged lower. Analysts added that Japan’s 30‑year bond government‑bond yield was nearing 4%, raising worries about broader financial‑system risks. Together, approached a record near 4%. Further details from the same day showed ChangXin’s stock soaring nearly 500% on its IPO before retreating, and reports that China had begun producing deep‑ultraviolet lithography machines previously dominated by Dutch firm ASML. Alphabet dropped 10% after announcing higher AI capex, and the yen slipped to a 40‑year low. Economist Peter Schiff warned that Japan’s large Treasury holdings could face selling pressure, adding to market unease. Together, these snapshots trace the evolution a progression from an early, generalized initial, broad market pullback tied linked to AI spending and geopolitical factors geopolitics to a more acute, sharp, sector‑specific selloff rout driven by competitive pressures in AI‑related semiconductor manufacturing and heightened tightening bond‑market stress conditions in Japan.

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  1. 2026-07-28 11:34 UTC AI spending hits Asian tech markets
  2. 2026-07-28 09:11 UTC AI spending hits Asian tech markets

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