Most Asian equity markets traded flat or slipped on Thursday, with chipmaking stocks under pressure and broader sentiment rattled by uncertainty around U.S. trade policy and interest rates. While Wall Street posted modest gains overnight, few positive cues were seen in Asia as traders braced for upcoming earnings and macro triggers.
Australia’s ASX 200 emerged as a regional outlier, moving closer to record highs. The uptick was driven by weak labor market data, which bolstered expectations that the Reserve Bank of Australia may deliver rate cuts sooner than expected. Traders increasingly see dovish action from the RBA as inflation softens and employment metrics remain tepid.
Chip stocks remained under heavy scrutiny, with Taiwan Semiconductor Manufacturing Company (TSMC) set to report earnings later in the day. The broader semiconductor sector underperformed regionally, partly in anticipation of TSMC’s update and ongoing uncertainty about export restrictions and U.S. tariff policy.
Japan’s Nikkei 225 fell 0.3%, while the TOPIX index was largely unchanged. Recent Japanese trade data showed persistent softness in exports—particularly in steel and automobiles—amid growing U.S. protectionism.
China’s CSI 300 and Shanghai Composite indexes posted marginal gains, while Hong Kong’s Hang Seng remained stable after rallying in recent sessions. Focus is now shifting to NVIDIA's potential return to selling AI chips in China, following regulatory clarity from U.S. officials.
Despite marginal strength in Chinese tech stocks, overall sentiment remained cautious due to limited progress on new trade deals and the looming August 1 tariff deadline set by former President Donald Trump.
S&P 500 futures edged 0.2% lower during Asian trade. Wall Street gains were restrained as U.S. banks posted solid Q2 earnings but offered a tepid outlook, reinforcing market worries over economic resilience. Streaming giant Netflix (NASDAQ:NFLX) is among the key companies set to report earnings later today, potentially influencing near-term sentiment.
Explore real-time sector performance across Asian and global markets using the Sector Historical API, which helps monitor how macro events and earnings cycles impact specific industries like semiconductors or financials over time.
Bottom Line:
Until TSMC's earnings give more clarity on AI-driven chip demand, and until U.S. policy becomes clearer, Asian equities may continue to drift. The next leg for markets depends heavily on trade decisions, central bank actions, and whether the tech rally—particularly in AI—can sustain its current momentum.
