Market Wrap MENA and Asia 28 July: Kospi Sinks Almost 11 Percent as Chip Rout Deepens While the Gulf Holds Firmer

By The Edge Research Team

Asian equities suffered a heavy session on Tuesday as a deepening sell-off in semiconductor and artificial-intelligence-linked shares swept the region, with South Korea leading the losses, while Gulf markets proved comparatively resilient and Egypt and Jordan edged higher, per CNBC and exchange data.

South Korea led the region’s losses. The Kospi closed down 10.84 percent at 6,023.66 and the tech-heavy Kosdaq dropped 7.72 percent to 705.85. The rout was concentrated in memory-chip and AI-supply names: SK Hynix fell 14.65 percent and Samsung Electronics lost more than 13 percent at the close, with Samsung SDI, LG Innotek and Seoul Semiconductor all sharply lower, per CNBC. The declines followed reports highlighting China’s advances in memory chips and lithography equipment, together with broker commentary pointing to a possible peak in memory prices in 2027, per CNBC.

Japan and Taiwan followed. The Nikkei 225 fell 3.95 percent to 62,364.92 and the Topix eased 2.52 percent to 3,963.59, weighed by chip-equipment makers Tokyo Electron and Advantest and by a more than 18 percent slide in memory manufacturer Kioxia, per CNBC. Taiwan’s Taiex dropped 4.65 percent to 41,603.36 as TSMC closed near 3 percent lower. In mainland China the Shanghai Composite slipped 1.16 percent to 3,813.32 and the Shenzhen Component fell 4.52 percent to 13,509.68 as the tech-focused segment bore the brunt of selling, per CNBC.

Not every market fell. Hong Kong’s Hang Seng added 0.41 percent to 25,310.85, Australia’s S&P/ASX 200 rose 0.60 percent to 8,947.80, and India’s Nifty 50 was little changed, down 0.04 percent at 23,985.35. Singapore’s Straits Times eased 0.07 percent to 5,616.11. The divergence underscored how concentrated Tuesday’s damage was in the semiconductor complex rather than a broad regional retreat, our reading.

Gulf markets closed mostly little changed, largely avoiding the Asian sell-off, our reading. In Kuwait the Premier Market Index rose 0.45 percent to 9,225.48 and the All-Share Index gained 0.29 percent to 8,766.09, among the region’s firmer performers. Oman’s MSX 30 advanced 0.86 percent to 7,247.19 and Bahrain’s All Share Index was marginally higher, up 0.08 percent at 1,967.03. Saudi Arabia’s TASI eased 0.85 percent to 10,678.11, Dubai’s DFM General Index fell 0.93 percent to 5,789.73, Qatar’s QE Index slipped 0.62 percent to 10,022.69, and Abu Dhabi’s FADGI was little changed, down 0.10 percent at 9,834.88, per exchange data.

In North Africa and the Levant, Egypt’s EGX 30 rose 0.18 percent to 53,729.97 and Jordan’s ASE General Index added 0.07 percent to 3,957.68, per exchange data.

The moves came after a mixed Wall Street session on Monday, when the Dow Jones Industrial Average rose 0.51 percent to 52,210.08 and the Russell 2000 gained 0.66 percent, while the Nasdaq Composite slipped 0.18 percent to 24,932.08 as the Philadelphia Semiconductor Index fell 2.23 percent, per CNBC. European chip names had also weakened, with ASML down more than 8 percent on Monday, per CNBC.

In commodities, oil prices fell. Brent crude eased 1.80 percent to 86.77 dollars a barrel and West Texas Intermediate fell 1.37 percent to 81.48 dollars, per CNBC. Gold slipped 1.22 percent to 4,027.40 dollars an ounce, silver fell 1.83 percent to 57.64 dollars, copper eased 0.91 percent and natural gas declined 1.30 percent, per CNBC.

In currencies and rates, the US dollar index was steady at 101.564, the euro traded at 1.1364 and the pound at 1.3284, per CNBC. The Kuwaiti dinar was little changed against the dollar and the Egyptian pound firmed modestly. The 10-year US Treasury yield eased to 4.628 percent, while the CBOE Volatility Index rose to 18.82, per CNBC. Bitcoin traded lower, down 2.37 percent near 63,369 dollars, per CNBC.

MENA markets, 28 July close, ranked by change

Asia, 28 July close, ranked by change

US markets, 27 July close (previous session, for reference), ranked by change

Europe, 27 July close (previous session, for reference), ranked by change

Commodities, rates, FX and crypto (live intraday at roughly 3:45 pm Kuwait time, front-month futures), ranked by change

Attention now turns to the Federal Reserve’s policy decision on Wednesday, with US growth and inflation data due later in the week, per CNBC.

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