Chinese technology shares experienced a significant decline, putting mainland stocks on track for their worst month in a decade. The CSI 300 index fell 8.6% in July, its largest drop since January 2016, following a global tech sell-off that impacted "picks and shovels" suppliers to the AI boom.

This downturn is linked to US tech earnings and broader declines in tech-heavy Asian markets, such as South Korea's Kospi index. Zhongji Innolight, a supplier of AI data centre equipment, fell on its Hong Kong debut. Meanwhile, Microsoft shares surged on strong earnings, defying the AI gloom.

In other news, European nations may boycott the World Cup if Fifa proceeds with selling a stake in a new commercial entity valued at about $20bn. The Japanese yen saw a significant one-day gain against the dollar. Apple reported stronger-than-expected iPhone and MacBook sales, with revenue from China rebounding 22%.