Asian markets open lower following Wall Street chip selloff

July 17, 2026 (MLN): Asia equity markets traded lower on Friday, following a technology-led decline on Wall Street as renewed weakness in semiconductor stocks dampened investor sentiment.

Japan's Nikkei 225 fell 0.6%, while the broader Topix index slipped 0.3%. Australia's S&P/ASX 200 eased 0.2%, whereas South Korean markets remained closed for a public holiday.

Hong Kong futures also pointed to a weaker start, indicating further cautious trading across the region, according to CNBC.

The subdued mood came after U.S. markets retreated on Thursday, with semiconductor shares leading the decline.

The S&P 500 lost 0.5%, the Nasdaq Composite dropped 1.5%, and the Dow Jones Industrial Average slipped 0.2%, shedding 105.67 points.

The VanEck Semiconductor ETF (SMH) fell nearly 4%, extending its weekly decline to almost 7%.

The weakness followed mixed quarterly results from Taiwan Semiconductor Manufacturing Co. (TSMC), whose shares declined more than 2% despite strong year-on-year earnings growth and an increase in its full-year capital spending outlook.

Other chipmakers, including Marvell Technology, STMicroelectronics, and Micron Technology, also closed lower.

Streaming giant Netflix added to the cautious tone after its shares fell more than 8% despite reporting second-quarter results that broadly matched analysts' expectations.

For the week so far, the S&P 500 has declined 0.6%, while the Dow is down 0.2% and the Nasdaq has lost 1.5%.

Even with the recent pullback in artificial intelligence-linked technology stocks, the S&P 500 remains around 1% below the record high it reached in early June.

Meanwhile, geopolitical risks remained in focus after tensions in the Middle East intensified. Iran warned it would "crush" key regional targets if U.S. President Donald Trump orders strikes on Iranian infrastructure.

The warning followed Trump's remarks in a Fox News interview that U.S. forces could target key Iranian infrastructure next week if diplomatic efforts fail.

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