Asian Markets Hammered
Japan’s Nikkei 225 bore the brunt of the global rout, plunging approximately 2,694 points — around 4% — to close near 64,141, its lowest level in a month. Memory chip maker Kioxia hit its daily limit low, while Tokyo Electron and other AI-related stocks fell sharply as the selloff in semiconductor names that began on Wall Street rippled through Asian trading. Singapore’s Straits Times Index also opened lower, falling 0.65%. South Korea’s Kospi had tumbled more than 6% on Wednesday as SK Hynix and Samsung Electronics dragged the index lower. Yyoutube
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Geopolitical Escalation
The market turbulence coincides with U.S. Central Command’s expanded military campaign inside Iran. On Thursday, American forces struck command centers, air defense sites, and missile capabilities in multiple locations including Bandar Abbas, Iran’s largest port city, according to Reuters. Iran’s top negotiator Mohammed Bagher Ghalibaf declared the country was fighting an “existential war with America” and said the June 17 memorandum of understanding was voided. The Islamic Revolutionary Guard Corps said it targeted the U.S. Fifth Fleet in Bahrain as part of a “crushing response”. Aaljazeera
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Semiconductor Sector Under Pressure
The chip selloff has erased more than $1.3 trillion in market value since early July, according to Reuters, with Intel, Micron, AMD, and Samsung facing sustained pressure amid doubts over the sustainability of AI-related capital spending. Taiwan Semiconductor Manufacturing reported its fifth consecutive quarter of record profits on Thursday, but the results failed to lift sentiment. The Wall Street Journal reported that traders’ focus has shifted from earnings to geopolitical risk, with Brent crude trading around $84.20 per barrel amid fears of further disruption in the Strait of Hormuz. Fforbes
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Morgan Stanley has characterized the semiconductor decline as a “mid-cycle adjustment rather than a peak,” while Wall Street’s 12-month price forecasts still project recoveries for major chipmakers. But with fighting between Washington and Tehran showing no signs of abating and Iran declaring peace talks dead, investors appear unwilling to test that thesis. Fforbes
