Asian stock markets opened broadly lower on July 28, with technology and semiconductor shares under pressure across the region. South Korea’s KOSPI dropped more than 7% and triggered a circuit breaker again. Japan’s Nikkei 225 fell more than 4%, while Japanese memory company KIOXIA slid 17%.
In Taiwan, the Taiex lost more than 1,800 points within 16 minutes of the open and fell to 41,815.78 at its low, briefly breaking below 42,000. TSMC shares dropped NT$80 to NT$2,270.
South Korea trips a circuit breaker again as Taiwan stocks tumble at the open
ABMedia said the region’s main equity benchmarks moved lower shortly after the opening bell. South Korea’s KOSPI fell more than 7%, enough to trigger a trading curb. Japan’s Nikkei 225 also moved down by more than 4%, and KIOXIA, a major memory maker, fell 17%.
Taiwan’s market saw a fast sell-off. The Taiex dropped more than 1,800 points in the first 16 minutes of trading and hit 41,815.78, marking the sixth-largest intraday point decline on record and briefly losing the 42,000 level. TSMC, the market’s heavyweight stock, opened down NT$80 at NT$2,270.
The report said the moves reflected capital reallocation pressure now weighing on Asian technology and semiconductor names.
Crowded positioning and AI spending questions are in focus
Part of the recent volatility in global semiconductor stocks has been tied to concern over crowded market positioning, according to the report. After Nvidia recently reached a deal valued at more than $750 billion, investors have started to reassess how durable AI-related hardware demand may be.
Asset managers cited in the report said the current selling reflected a shift in portfolio allocation rather than an immediate change in corporate fundamentals. Investors are also questioning the real return on the large sums that technology giants continue to commit to AI infrastructure. With no fresh data yet to settle that debate, buying momentum has slowed.
China’s capacity buildout and equipment localization add another layer
Changes in the global memory and semiconductor equipment supply chain are also shaping sentiment. ABMedia said Chinese memory producer CXMT recently completed an initial public offering in Shanghai and plans to use the proceeds to expand capacity, drawing attention to how future pricing power could shift.
The report also said Chinese state-backed companies have begun mass production of immersion deep ultraviolet lithography equipment. That development has raised concern over the future market share of traditional equipment suppliers and added pressure to related stocks.
Markets now wait for Big Tech earnings and capex plans
This week is a concentrated earnings period for major global technology companies. Capital expenditure plans from companies including Meta and Amazon are being watched as a key gauge for the next stage of AI industry momentum.
Analysts cited in the report said investors are looking for clearer financial data as end-market competition and a broader valuation reset weigh on the sector at the same time. Before those earnings arrive, the market may remain volatile.
The original report added that its discussion of market moves and financial data was for reference only and did not constitute investment advice.