financetom
World
financetom
/
World
/
AI anxiety sparks tech rout, broad selloff in Asian markets
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
AI anxiety sparks tech rout, broad selloff in Asian markets
Jul 27, 2026 8:02 PM

SINGAPORE, July 28 (Reuters) - Asian markets fell on Tuesday led by chipmakers on unease about the massive funding demands of the AI boom, while a slide in oil prices did relatively little to lift bonds and left traders nervous about U.S. rate hikes, maybe as soon as this week.

South Korea's KOSPI dived more than 8% to a three-month low, triggering a circuit breaker, and Japan's Nikkei slid 4%, following a 2.2% drop for the Philadelphia Semiconductor index.

Nvidia shares shed 5% overnight after the Wall Street Journal reported the company is in talks to provide roughly $250 billion in financing guarantees for OpenAI as part of a massive data centre project.

And the stellar 466% debut-day surge in CXMT Corp shares in Shanghai highlighted growing investor enthusiasm for China's semiconductor sector and the rising competitive threat from Chinese rivals.

"There is clearly a growing sense of optimism within mainland markets about China's ability to build a globally competitive AI ecosystem," said Chris Weston, head of research at Pepperstone.

China has also begun manufacturing domestically developed immersion deep ultraviolet lithography machines, a chipmaking tool long dominated by Dutch supplier ASML, The Information reported on Monday, sending ASML shares down 8.5%.

South Korea's SK Hynix fell nearly 11% and Samsung Electronics shares shed more than 9%, while in Tokyo some of the heaviest losers were Kioxia, down 18%, and Tokyo Electron, down 9.8%.

Chinese stocks also beat a retreat, with CXMT down 7% in early trade and chipmaking indexes lower.

OIL SLIDES, US YIELDS DIP

Brent crude futures extended Monday's nearly 9% plunge, falling to $87.55 a barrel, as a lull in hostilities between the U.S. and Iran followed Washington's abrupt suspension of air strikes on Saturday.

President Donald Trump said on Monday the United States was having "good talks" with Iran and there was a chance of a deal.

The break in fighting pushed down benchmark 10-year U.S. Treasury yields by about four basis points to 4.64%, but hardly budged shorter-term rates.

Traders have priced about a 38% chance that the Federal Reserve hikes by 25 basis points on Wednesday.

"The U.S.-Iran War, by propelling the price of crude oil, remains the most important determinant of what will happen to the global economy in the next few months, and, by extension, what informs central bank policy outlooks, at the margin," said Thierry Wizman, currency and rates strategist at Macquarie Group.

"We expect that the (Fed) this week will wish to adopt a tightening bias."

Expectations for hikes sooner or later kept the dollar supported, holding the euro below $1.14 at $1.1370 and the Australian dollar just below 70 cents.

The yen traded at 163.78 to the dollar, barely above a four-decade low, with markets on edge about Japan intervening in the currency pair - particularly if the Bank of Japan leaves rates on hold this week and sets off another yen slide.

"If BoJ communication is not hawkish enough and USD/JPY heads higher, traders should anticipate an official response, including verbal intervention, rate checks, or even direct FX market intervention, perhaps on Friday," said Wizman.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Asian Equities Traded in the US as American Depositary Receipts Flat in Wednesday Trading
Asian Equities Traded in the US as American Depositary Receipts Flat in Wednesday Trading
Apr 29, 2026
10:37 AM EDT, 04/29/2026 (MT Newswires) -- Asian equities traded in the US as American depositary receipts were little changed Wednesday morning, edging 0.03% lower to 2,762.13 on the S&P Asia 50 ADR Index. From North Asia, the gainers were led by semiconductor company Silicon Motion Technology ( SIMO ) and video streaming service iQIYI (IQ), which climbed 30.4% and...
Bank of Canada Is in No Hurry to React to Higher Oil Prices, Says Desjardins
Bank of Canada Is in No Hurry to React to Higher Oil Prices, Says Desjardins
Apr 29, 2026
10:46 AM EDT, 04/29/2026 (MT Newswires) -- The Bank of Canada's Governing Council left rates unchanged at 2.25% on Wednesday and signaled that elevated oil prices won't do much to boost gross domestic product or underlying inflationary pressures, said Desjardins. For its projections, the BoC assumed that Brent oil prices will fall to around US$75/barrel by mid-2027, roughly in line...
Euro zone yields hit fresh multi-week highs amid persistent inflation fears
Euro zone yields hit fresh multi-week highs amid persistent inflation fears
Apr 29, 2026
(Updates with afternoon trading) By Sophie Kiderlin LONDON, April 29 (Reuters) - Euro zone bond yields rose to new multi-week highs on Wednesday as efforts to end the Iran war appeared to be in a stalemate,driving up oil prices again andspurring worries about persistent inflation. Euro zone inflation data for April due on Thursday will reinforce or assuage such worries...
European Equities Traded in the US as American Depositary Receipts Lower in Wednesday Trading
European Equities Traded in the US as American Depositary Receipts Lower in Wednesday Trading
Apr 29, 2026
11:05 AM EDT, 04/29/2026 (MT Newswires) -- European equities traded in the US as American depositary receipts were lower late Wednesday morning, declining 0.45% to 1,779.46 on the S&P Europe Select ADR Index. From continental Europe, the gainers were led by telecommunications firm Nokia ( NOK ) and medical device maker EDAP (EDAP), which rose 6.1% and 3.8% respectively. They...
Copyright 2023-2026 - www.financetom.com All Rights Reserved