AI-chip selloff sweeps Asia as Japan and Taiwan stocks tumble
Asian shares sold off sharply Friday as investors cut exposure to AI-linked chipmakers in Japan and Taiwan. The move spread across global equities while oil’s rise added to the risk-off mood.

Asian stocks took a sharp leg lower Friday as the selloff in semiconductor and other AI-linked shares spread from Wall Street into the region’s biggest tech-heavy benchmarks. Reuters said Japan and Taiwan equity gauges fell as much as 6% intraday, while a broader global-markets report described the move as another wave in a deepening chip rout rather than a one-market shock.yahoo
The pressure was concentrated where the AI trade had been most crowded. The Straits Times reported Japan’s Nikkei fell 4.5%, Taiwan’s Taiex dropped 6.5%, TSMC slid 7.3% and Kioxia lost 16.1%.disruptionbanking Nikkei Asia also singled out Kioxia, saying the memory maker’s plunge came as investors unwound leverage built up during the tech rally.reuters
The retreat landed despite company news that might normally have steadied the sector. The Edge Malaysia, citing the global selloff, noted that TSMC had beaten second-quarter profit forecasts and ASML had raised its 2026 sales outlook, but investors were instead focused on whether AI spending could keep supporting valuations.reuters The Business Times reported that MSCI’s Asia-Pacific equities gauge fell 2.1%, Nasdaq 100 futures slipped nearly 1% and TSMC’s outlook was overshadowed by higher spending plans.exchangerates
The move also widened beyond chips. Hong Kong, Shanghai, Singapore and European shares were lower, while oil prices rose as Middle East hostilities kept inflation risks in view.reuters +1 Brent traded just below $85 a barrel and was on track for a roughly 12% weekly gain, adding another reason for investors to cut risk rather than buy the dip.exchangerates
The market question now is whether Friday’s selling is a fast reset after a crowded rally or the start of a broader repricing. For now, the stress points are clear: leveraged AI exposure, rich semiconductor valuations and a macro backdrop where higher oil prices can quickly complicate the rate outlook.reuters +2
18 sources
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