South Korea bore the brunt of the sell-off, with the Kospi tumbling 3.71%. Japan’s Nikkei dropped 1.68%, while the Topix eased a more modest 0.22%. The broader MSCI Asia Pacific Index slipped 0.2%, and Hang Seng futures pointed 0.9% lower, signalling that caution was spreading across the region rather than being confined to a single market.
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The regional weakness followed a subdued session on Wall Street, where the S&P 500 retreated from a record close. Chipmakers bore the brunt of the selling, with a semiconductor-focused index shedding more than 1%, even as Nvidia bucked the trend to move higher.
SpaceX shares plunged 14% despite posting robust earnings, as investors braced for roughly $101 billion worth of stock to become tradeable on Thursday. Adding to the gloom around chip-related names, data-storage firms Sandisk and Western Digital sank 7.5% and 11% respectively in after-hours trade following their results.
There were, however, signs of optimism heading into the Asian session, with S&P 500 futures edging up 0.2% by mid-morning in Tokyo, suggesting investors were not entirely retreating from riskier assets.
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Oil offered a rare bright spot for sentiment amid the geopolitical backdrop. Brent crude traded at $79.28 a barrel, while West Texas Intermediate eased 0.3–0.4% to below $75, after Iran announced an agreement with Oman on a proposed shipping corridor through the Strait of Hormuz, raising hopes that the vital waterway could eventually reopen more freely.
The Japanese yen held near 157.65 to the dollar and the offshore yuan was steady around 6.7470. Investors were watching developments in West Asia for signals on where oil prices head next, given the implications for inflation and interest-rate decisions worldwide.Also Read: S&P 500 is experiencing violent surge often seen at major market tops. One chart analyst is worried
Separately, Google’s DeepMind confirmed a major leadership shake-up, with several senior artificial intelligence figures departing as chief executive Demis Hassabis shifts into a chair role which stirred uncertainty about the company’s AI strategy at a time of intensifying competition.
In the US, Treasury yields barely moved after data showed services-sector activity held a steady pace in July, even as elevated labour and material costs squeezed businesses and hiring slowed more than economists had anticipated.
