Asian markets tumble; chip stocks lead tech sell-off

July 29, 2026 (MLN): Asian markets tumbled on Wednesday, led by a sharp sell-off in semiconductor stocks, as weak U.S. technology shares, disappointing chip earnings and renewed geopolitical tensions weighed on investor sentiment.

South Korea’s Kospi plunged more than 8%, triggering a trading halt, while the small-cap Kosdaq also fell over 8%.

Chipmakers led the decline, with SK Hynix sliding more than 10% after quarterly results missed market expectations despite record profit and revenue.

Samsung Electronics dropped more than 4%, while LG Innotek fell 9% and Seoul Semiconductor declined over 6%.

Japan’s Nikkei 225 lost 2.2%, while the Topix fell 0.61%. Kioxia dropped 10%, Tokyo Electron declined 8.5% and SoftBank Group shed more than 7%. Taiwan Semiconductor Manufacturing Company (TSMC) slipped 1.32%, according to APP.

Mainland China’s CSI 300 declined 0.73%, while the tech-heavy ChiNext 300 index fell 1.83%. The Hang Seng China Semiconductor Chips Index dropped more than 5%.

Hong Kong bucked the regional weakness, with the Hang Seng Index gaining 1.4%. Tencent rose 3.6%, Meituan added 2.7%, while Alibaba, Baidu and Kuaishou also traded higher.

The sell-off followed another weak session for U.S. semiconductor stocks, where Intel fell nearly 6%, AMD dropped 8%, Micron and Seagate declined more than 8%, Western Digital lost nearly 7% and Sandisk plunged 14%. Nvidia initially fell but ended the session flat.

The recent weakness reflects a broader pullback in AI-related technology stocks, with investors reassessing elevated valuations, financing concerns and growing competition in the semiconductor industry.

U.S. stock futures were also lower, with Nasdaq 100 futures down 0.49% and S&P 500 futures declining 0.12%, while Dow futures slipped around 60 points.

Oil prices added to market pressure after Iran launched missiles toward U.S. forces in the Middle East. West Texas Intermediate crude futures climbed about 4% to around $82 a barrel after U.S. Central Command said the missiles were intercepted.

Investors are also awaiting the Federal Reserve’s interest rate decision and subsequent comments from Chairman Kevin Warsh. Markets are pricing in a nearly 70% probability that the central bank will keep rates unchanged at 3.5%-3.75%.

The Dow Jones Industrial Average gained more than 500 points in the previous session, marking its third consecutive advance, while the Nasdaq Composite fell for a fifth straight session.

The VanEck Semiconductor ETF dropped 3.5%, extending its losing streak to four sessions and taking its one-week decline beyond 9%.

Investors will also monitor earnings from Microsoft, Meta Platforms and Qualcomm later Wednesday, while Procter & Gamble and Humana are scheduled to report before the opening bell.

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