Asian Chip Stocks Plummet as Trump Pauses Iran Strikes

Asian stock markets suffered a broad selloff on July 28, 2026, led by a collapse in semiconductor shares. South Korea's Kospi Index fell approximately 8%, with Samsung Electronics and SK Hynix dropping as much as 9.5% and 11.1% respectively. Japan's Nikkei 225 also declined as investors questioned the sustainability of artificial intelligence infrastructure spending and feared intensifying competition from China, specifically following reports of Chinese advancements in deep ultraviolet lithography equipment and the strong market debut of ChangXin Memory Technologies.

In the United States, Nvidia shares fell nearly 5% following reports that the company might provide a $250 billion financial backstop for an OpenAI data-center project. Meanwhile, Apple is reportedly lobbying the U.S. administration to allow Chinese-made chips in its products.

Simultaneously, global oil prices declined after Donald Trump announced a pause in daily U.S. air strikes against Iran. The U.S. president stated that the two nations are engaged in diplomatic talks to end their conflict, though he warned that fighting would resume if negotiations fail. Parallel to these talks, Iran and Oman are seeking an agreement to restart shipping through the Strait of Hormuz.