July 25 (Reuters) - A look at the day ahead in Asian

markets by Alden Bentley in New York

Brace for fallout from a megacap-led wipe out. A rethink of

the earnings picture for hyped up AI and Magnificent seven

stocks turned a run on Alphabet and Tesla into a Wall Street

rout.

Combine that with concerns about Chinese and global growth

that heaped pressure on commodity linked currencies and you have

the makings for the risk-off mood in China's markets, and

Japan's, to continue.

However the November U.S. election plays out there are risks

for Chinese companies. Vice President Kamala Harris has emerged

as the Democratic presidential candidate after President Joe

Biden, 81, ended his re-election bid on Sunday. It is not clear

how what kind of China policy she will favor but she and rival

Republican Donald Trump are expected to take tough stands on

tariffs and Taiwan, as Biden has.

The Democratic National Committee's rules committee agreed

on Wednesday on a plan to formally nominate Harris as soon as

Aug. 1 -- before the party's Aug. 19-22 convention in Chicago --

with Harris picking a running mate by Aug. 7

The S&P 500 and Nasdaq skidded to multi-week lows on

Wednesday after Tesla and Alphabet

disappointed with lackluster earnings and their shares tumbling

12% and 5%, respectively.

The tech-heavy Nasdaq ended 3.6% lower and the S&P

500 fell 2.3%. Other megacaps, Apple (AAPL.O), Microsoft

(MSFT.O), Amazon.com (AMZN.O), Meta Platforms (META.O) and

Nvidia (NVDA.O), took it on the chin, as did small caps,

which enjoyed a brief moment in the sun in recent weeks.

The dollar fell to its lowest in more than two months

against the yen as short-yen carry trades were unwound ahead of

next week's Bank of Japan meeting. That coincides with the July

30-31 FOMC meeting. While the Fed is unlikely to pull the

trigger on easing this month, a scenario in which yield

differentials soon narrow from both sides is being built in.

Until then, the main macro headlines to trade on come on

Thursday, when the first estimate of second quarter U.S. GDP

comes out, and Friday with the release of the Personal

Consumption Expenditure Price Index which the Fed relies on to

gauge inflation.

The Australian and New Zealand dollars

were noted losers because of the economic tie to raw materials.

Oil prices, while up on Wednesday, are near their lowest in a

month and a half and industrial metals like iron ore and copper

hit 3-1/2-month lows on a gloomy outlook for Chinese demand.

Here are key developments that could provide more direction

to markets on Thursday:

- South Korea GDP (Q2 advance)

- Japan service PPI (June)

- U.S. GDP (Q2, advance)