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Last updated: July 28, 2026, 2:30 AM ET

Asian Equities Tumble on AI Spending Doubts and Chip Rout

Asian stocks slid 10% from their June peak, heading for a technical correction as a selloff in chipmakers deepened. South Korean markets led the losses amid concerns over artificial intelligence spending, with SK Hynix and Samsung shares sliding on Tuesday. Trading halts were triggered on South Korea's Kospi index as the chip rout intensified, impacting multiple sectors. The broader Asian equity market fell 2.6%, dragged down by chip and metals stocks, following overnight drops in U.S. technology shares. Concerns over China's progress in advanced chipmaking and mounting fears regarding AI spending fueled the global semiconductor stock selloff deepening on Tuesday. Taiwan's five-year bond yield, driven by a disappointing 20-year sale and expectations of a central bank rate hike.

European Markets Face Headwinds Amid Tariff Fears and Sector Consolidation

The FTSE 100 was rattled by a chip selloff as earnings season unfolded. In the automotive sector, Mercedes-Benz due to a worsening Chinese market, expecting both unit sales and group revenue to come in below last year. Chinese electric vehicle maker BYD with a new tiny EV, aiming to become the world's largest carmaker. Europe's wind turbine makers are to create stronger entities capable of competing with Chinese manufacturers, especially under updated EU guidelines. Additionally, DCC's board, as its price-to-earnings ratio has significantly declined since 2016.

US Markets and Corporate Deals Show Shifting Investment Trends

Gold declined ahead, as elevated global yields and volatile oil prices created headwinds. A pause in U.S.-Iran hostilities. In the technology sector, Nvidia is reportedly for a Texas data center that will utilize its chips, and is also in talks to provide a $250 billion financial backstop for a massive OpenAI data center project reported by the New York Times. Software stocks in India are over global chipmakers, signaling a shift away from the AI trade into beaten-down information technology stocks. Buzzfeed laid off, with its new owner implementing cuts to reduce financial losses. Ares Management has Leonard Green & Partners in a private equity megadeal that would significantly expand Ares' business.

Global Economic Watch: Inflation, Rates, and Critical Mineral Supply Chains

The Reserve Bank of Australia's chief, Bullock, indicated the economy is, though uncertainties remain regarding whether recent interest rate hikes are sufficient to bring inflation back to target. The Singapore dollar remained steady, supported by tighter policy from the Monetary Authority of Singapore. The Philippine central bank to defend the peso as it weakened to a record low. Western powers are, with governments increasing spending to reshore manufacturing. Concerns over funding gaps are hobbling Western critical mineral objectives, with a report suggesting government-backed financing is needed to attract private investment and break China's grip on production cited by the New York Times. Hungary's thawing relations with the EU are for foreign funds, though global bond sell-offs due to high energy prices are prompting questions about yield sustainability.

China's Chip Ambitions and Market Reactions

Hefei's local government funds from the CXMT listing, marking unexpected winners from China's blockbuster chip IPO. The listing of CXMT created a $192 billion windfall for a Chinese province. However, fresh signs of China's progress in advanced chipmaking are contributing to a global selloff in semiconductor stocks deepening on Tuesday. Zhongji Innolight Co. raised HK$53.4 in its Hong Kong listing, pricing it below the maximum offered. Chinese start-up Moonshot has, with some users requiring licenses to access its Kimi K3 model.

Other Developments

• Johnson & Johnson with a $5.5 billion payout to approximately 76,000 plaintiffs. Investors are as housebuilders offer discounts, while cautious consumers remain on the sidelines.
• Mundane trade, specifically betting on companies entering or exiting indices, has this year.
• UK restaurants are to cope with rising temperatures, facing lengthy planning applications.
• A Scottish data center boom is spurring backlash as communities fear strain on electricity and water resources, and limited local job creation.
• The UAE has, rebuilding economic and diplomatic ties while deepening defense links with Israel and the US.
• The EU is accused of supplying Russia's war industry, fearing disruptions to the bloc's aluminum supply chain.
• The business of explosives is as governments boost spending to bring production home.