Global Market Today: Selling of chip shares created panic in Asian markets, Kospi fell by 8%, Nikkei slipped by more than 4%.

Business Desk – Global Market Today: Heavy pressure was seen in Asian stock markets on Tuesday, July 28. Sharp selling in American chip companies also affected the markets of Asia. South Korea’s Kospi index fell nearly 8 percent, while Japan’s Nikkei 225 also fell more than 4 percent. Investors are now eyeing the quarterly results of American tech companies and the further growth of the AI ​​sector.

South Korea’s benchmark Kospi index was seen trading with a decline of 8.70 percent. At the same time, there was a weakness of 3.63 percent in the small-cap Kosdaq index. Japan’s Nikkei 225 index fell 4.21 percent, while the Topix index was down 0.63 percent. Australia’s S&P/ASX 200 also slipped 0.38 percent in early trade.

Mixed business in US market

Wall Street trading was mixed on Monday. The Dow Jones Industrial Average rose 0.51 percent to 52,210.08. The S&P 500 index closed up a modest 0.02 percent at 7,413.18, while the Nasdaq fell 0.18 percent at 24,932.08.

The biggest reason for caution in the market is the quarterly results of Microsoft, Amazon, Meta and Apple coming this week. Investors are also assessing whether the AI-based boom will continue or whether it has started slowing down.

Selling in chip stocks for the third consecutive day

Shares of American chip companies declined for the third consecutive trading session. Shares of Nvidia and AMD fell by about 5-5 percent. Seagate shares fell 4 percent ahead of quarterly results.

Meanwhile, SK Hynix’s US-listed ADRs declined by 7.5 percent and closed below its IPO price of $149. Shares of Micron fell about 2 percent and shares of Western Digital fell about 4 percent.

America-Iran tension expected to reduce

According to Bloomberg’s report, Axios has claimed that US President Donald Trump has postponed possible military action on Iran so that diplomatic talks can be given another chance. However, it is not yet clear whether any concrete agreement has been reached between the two countries or not.

According to the report, officials of Iran and Oman are also in talks to restart shipping through the Strait of Hormuz. It is one of the most important oil supply routes in the world and under normal circumstances about one fifth of the global oil supply passes through this route.

Big fall in crude oil prices

Crude oil prices remain weak due to expectations of talks between America and Iran. West Texas Intermediate (WTI) crude has fallen below $82 per barrel. Meanwhile, Brent crude is trading around $88 per barrel after falling by more than 7 percent in the last trading session. This has reduced the concern about global inflation.

Gold prices remain at high level

Despite waning fears over inflation and interest rates, gold remains strong. After Monday’s rise, gold was seen trading at around $ 4,075 an ounce in early trade.

However, in the last five months, gold prices have fallen by more than 20 percent. Despite this, it has remained above the important level of $ 4,000 an ounce since the end of June. Market experts believe that gold is currently getting support from bargain buying at low prices.

Now what will the market keep an eye on?

In the coming days, the direction of the global market will be decided by many important events. Investors will keep an eye on the quarterly results of Microsoft, Amazon, Meta and Apple. Apart from this, signals related to the growth of AI sector, progress of US-Iran talks, crude oil prices and global inflation will also play an important role in deciding the market movement.