ASIAN equities retreated sharply, led by steep declines in South Korea, Taiwan and Japan, as investors dumped semiconductor stocks amid renewed worries over artificial intelligence (AI) spending, lofty valuations and growing competition from Chinese chipmakers.
Although oil prices eased following signs of reduced tensions between the US and Iran and optimism over potential diplomatic progress, market sentiment remained fragile.
Investors largely stayed on the sidelines ahead of the US Federal Open Market Committee (FOMC) policy decision and a series of earnings reports from major technology companies, looking for evidence that hefty AI-related investments can generate lasting returns.
On Wall Street, the Dow Jones Industrial Average advanced 1.03% and the S&P 500 gained 0.22%, supported by a shift from AI-driven technology stocks into defensive and cyclical sectors.
The Nasdaq Composite, however, slipped 0.22% as technology shares remained under pressure before the FOMC announcement and results from mega-cap tech firms.
Among individual stocks, Coca-Cola climbed 5.04% after reporting earnings that exceeded market expectations, while Boeing rose 4.74% on stronger revenue, improved cash flow, higher aircraft deliveries and a growing order backlog despite posting wider losses.
In contrast, UPS tumbled 6.57% after disappointing profitability and issuing a weaker-than-expected outlook.
In after-hours trading, Teradyne surged more than 11% following better-than-expected earnings and an upbeat forecast, whereas Visa edged down more than 1% amid concerns over its profit margins.
Seagate climbed more than 2% as AI-driven data demand lifted earnings and outlook.
Mirroring sluggish regional markets, the KLCI trimmed its intraday losses to end 0.61 points lower at 1,712.5 after falling as much as 9.3 points, with losers (16) outnumbering gainers among index constituents.
Market breadth weakened to 0.49 from 0.97 previously, while trading remained subdued at 2.94 bil shares (5-day avg: 3.10 bil) worth RM2.56 bil (5-day avg: RM2.38 bil), as investors stayed cautious ahead of the FOMC decision, ongoing US earnings season, lingering Middle East tensions and the Negeri Sembilan (NS) polls on 1 Aug.—July 29, 2026
Main image: news.broadcom.com
