Market Overview

On 28 July 2026 Asian equities fell sharply, with South Korea and Japan leading the declines. Concerns that AI‑related financing commitments by NVIDIA Corporation have exceeded $750 billion ignited a fresh wave of selling in global chipmakers, pressuring equity markets across the region.

Equity Index Performance

  • The KOSPI plunged over 9 %, reaching its lowest level since mid‑April and activating side‑car and circuit‑breaker mechanisms early in the session.
  • Japan’s Nikkei 225 fell as much as 4 %, its weakest point since 22 May, while the broader TOPIX slipped 3 %.
  • Other regional indices moved lower: Australia’s S&P/ASX 200 edged down 0.3 %, Singapore’s Straits Times Index fell 0.5 %, and India’s Nifty 50 Futures were little changed.
  • In contrast, Hong Kong’s Hang Seng rose 0.3 %, while mainland China’s Shanghai Composite and CSI 300 fell 0.6 % and 1.2 %, respectively.

Chipmaker Decline

  • SK Hynix Inc (000660) tumbled up to 13.41 %.
  • Samsung Electronics Co Ltd (005930) dropped up to 12.50 %.
  • In Japan, Kioxia Holdings Corp (285A) slumped 17.86 %, and Tokyo Electron Ltd (8035), Disco Corp (6146), Nikon Corp (7731) and Murata Manufacturing Co (6981) each slid more than 9 %.
  • The rout was amplified by reports that NVIDIA’s AI‑related financing commitments have surpassed $750 billion, raising concerns about rising leverage and whether demand for AI infrastructure can keep pace with the unprecedented investment.

Competitive Pressures from China

The Information reported that a Chinese state‑backed firm has begun mass‑producing immersion deep‑ultraviolet (DUV) lithography machines, heightening competition for Japanese semiconductor‑equipment makers and for European leader ASML Holding NV (ASML), which fell 8.52 %.

Chinese Tech Resilience

Chinese and Hong Kong technology stocks showed relative strength. CXMT Corp’s blockbuster Shanghai debut reinforced optimism about Beijing’s push for semiconductor self‑sufficiency, and reports of domestic immersion DUV lithography capabilities further boosted confidence.

> "The global DRAM market has long been dominated by Samsung, SK Hynix and Micron, with CXMT accounting for only about 10 % of capacity. But fresh capital from its listing could allow it to capture a larger share of the market," said Charlie Pullan, Global Markets Analyst at Finimize.

Among individual movers, JD.com (9618) rose nearly 3 %, Meituan (3690) gained about 1.6 %, and Alibaba Group Holding Ltd (9988) added roughly 1.4 %.

Commodity and Macro Context

Oil prices continued their sharp decline after former President Donald Trump indicated a "good chance" of reaching a deal with Iran, prompting Washington to pause daily strikes and continue diplomatic efforts. The retreat in crude eased inflation concerns ahead of the upcoming Federal Reserve meeting, though it did little to offset the technology‑led sell‑off across Asian equities.

Upcoming Catalysts

Investors now look ahead to a packed week of policy decisions from the Federal Reserve, Bank of Japan, and Bank of England, as well as quarterly earnings from major U.S. tech giants Microsoft, Meta Platforms, Apple, and Amazon.