Back

Asian stocks enter correction as chip selloff deepens before Fed, megacap earnings

Regional equities fell about 10% from June highs as semiconductor weakness spread to Europe and U.S. futures, with investors also tracking Middle East tensions, oil prices and central bank decisions.

Fact Check
Multiple independent primary news sources (Reuters, WSJ, Bloomberg) confirm every element of the claim. Reuters and WSJ report the KOSPI closing down roughly 10.8-11% amid a broad Asian semiconductor selloff, with US chip names also falling in premarket trading and the Philadelphia Semiconductor Index down over 20% from its June peak — consistent with regional equities being about 10% off June highs. All sources confirm megacap/hyperscaler earnings (Microsoft, Meta, Amazon, Apple) due that week, lower oil prices tied to a US-Iran ceasefire (Middle East tensions), and a Fed meeting on Wednesday. The only mild imprecision is the '10% from June highs' figure applying more sharply to Korea's index and a single-day move, but the framing is accurate.
Summary

Asian stocks slipped into correction territory, about 10% below their June highs, as a deepening global selloff in semiconductor shares and broader technology weakness weighed on sentiment ahead of the Federal Reserve decision and earnings from Amazon, Meta, Apple and Microsoft. Japanese shares fell sharply, U.S. and European equity futures pointed lower, and investors also monitored falling oil prices, Middle East tensions, and upcoming policy decisions from the Fed and Bank of England.

Terms & Concepts
  • correction: A roughly 10% drop from a recent market peak.
  • AI infrastructure: Computing hardware and systems supporting artificial intelligence workloads.
  • Euro Stoxx 50 futures: Contracts tracking major eurozone stocks.