{"slug": "asian-stocks-slip-after-ai-valuation-fears-spark-wall-street-chip-selloff", "title": "Asian stocks slip after AI valuation fears spark Wall Street chip selloff", "summary": "Asian stocks fell on Friday after a selloff in chipmakers dragged down Wall Street, as investors questioned whether massive artificial intelligence investments can justify lofty valuations. The MSCI Asia Pacific Index slid 0.3%, with declines in Japan and Australia, while S&P 500 futures and Nasdaq 100 contracts also dropped.", "body_md": "# Asian stocks slip after AI valuation fears spark Wall Street chip selloff\n\nThe MSCI Asia Pacific Index slides 0.3%, with declines in Japan and Australia\n\nASIAN stocks edged lower on Friday (Jul 17) after a [selloff in chipmakers](https://www.businesstimes.com.sg/companies-markets/capital-markets-currencies/wall-street-ends-lower-chip-weakness-offsets-solid-earnings-upbeat-us-economic-data) dragged down Wall Street as investors questioned whether massive artificial intelligence investments can justify lofty valuations. [Oil climbed](https://www.businesstimes.com.sg/companies-markets/energy-commodities/oil-settles-lower-remains-near-one-month-high-amid-escalating-us-iran-tensions).\n\nThe MSCI Asia Pacific Index slid 0.3 per cent, with declines in Japan and Australia. South Korea is closed for a public holiday.\n\nAmong the main moves in markets, the S&P 500 futures fell 0.3 per cent as at 9.07 am Tokyo time. The Hang Seng futures fell 0.3 per cent, Japan’s Topix fell 1.3 per cent and Australia’s S&P/ASX 200 fell 0.3 per cent.\n\nContracts on the Nasdaq 100 dropped 0.5 per cent after the underlying gauge lost 1.6 per cent on Thursday. Also weighing on sentiment was Netflix, whose shares fell over 8 per cent in extended trading after forecasting a second straight quarter of slowing sales growth.\n\nIn a renewed bout of volatility Thursday, a US gauge of chip giants slumped more than 4 per cent as investors questioned whether tech stocks have grown too richly-valued amid massive capex plans.\n\nTaiwan Semiconductor Manufacturing’s American depositary receipts dropped 2 per cent as a solid outlook was overshadowed by a higher spending forecast.\n\nElsewhere, Brent recouped some of the previous session’s losses as hostilities across the Middle East continued to escalate and [shipping traffic slumped in the Strait of Hormuz](https://www.businesstimes.com.sg/international/fewer-vessels-travel-through-hormuz-after-us-resumes-blockade).\n\nThe commodity traded just under US$85 a barrel. Government bonds edged lower in Australia and New Zealand, while Treasuries were steady.\n\n“The action in the chip stocks going forward is still the most important issue for the stock market,” said Matt Maley, chief market strategist at Miller Tabak.\n\n“They are definitely showing some meaningful cracks, so they’re going to have to see a strong and sustainable rebound soon or it will raise some real warning flags.”\n\nHeightened geopolitical tension helped keep a lid on risk appetite and pushed oil prices higher this week, fuelling concerns about inflationary pressures that could prompt the Federal Reserve to raise interest rates before 2026 is over.\n\nTreasury yields edged higher Thursday and the dollar notched modest gains.\n\nFed Bank of Kansas City president Jeff Schmid said inflation is his biggest worry given the risk of a further acceleration in the months ahead.\n\nHis Dallas counterpart Lorie Logan called for higher rates, saying inflation does not appear to be heading sustainably back to the target.\n\nTraders also parsed key economic reports. [Jobless claims fell](https://www.businesstimes.com.sg/international/us-jobless-claims-decline-208000-below-forecasts) last week while retail sales rose modestly in June, dragged down by a drop in gas station receipts that masked strong gains at some merchants.\n\n“Despite challenges, consumers are still spending and the labour market shows no signs of cracking,” said Ellen Zentner at Morgan Stanley Wealth Management.\n\n“This type of data won’t move the Fed’s needle either way, but it underscores the ongoing resilience of the US economy.” BLOOMBERG\n\nDecoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.\n\nShare with us your feedback on BT's products and services\n\n[TRENDING NOW](/pulse?ref=trending-now)\n\nEarly payout from Philippines’ Maharlika Investment Fund raises eyebrows over its true nature\n\nA new kind of ‘ceasefire’ between US and Iran where talks, strikes are part of the same process\n\nPhilippines’ income upgrade hides grim reality for most Filipinos\n\nMacquarie upgrades STI 12-month target to 6,000, names its top picks", "url": "https://wpnews.pro/news/asian-stocks-slip-after-ai-valuation-fears-spark-wall-street-chip-selloff", "canonical_source": "https://www.businesstimes.com.sg/companies-markets/capital-markets-currencies/asian-stocks-slip-after-ai-valuation-fears-spark-wall-street-chip-selloff", "published_at": "2026-07-17 01:25:35+00:00", "updated_at": "2026-07-17 01:52:15.938409+00:00", "lang": "en", "topics": ["artificial-intelligence"], "entities": ["MSCI Asia Pacific Index", "S&P 500", "Nasdaq 100", "Netflix", "Taiwan Semiconductor Manufacturing", "Federal Reserve", "Jeff Schmid", "Lorie Logan"], "alternates": {"html": "https://wpnews.pro/news/asian-stocks-slip-after-ai-valuation-fears-spark-wall-street-chip-selloff", "markdown": "https://wpnews.pro/news/asian-stocks-slip-after-ai-valuation-fears-spark-wall-street-chip-selloff.md", "text": "https://wpnews.pro/news/asian-stocks-slip-after-ai-valuation-fears-spark-wall-street-chip-selloff.txt", "jsonld": "https://wpnews.pro/news/asian-stocks-slip-after-ai-valuation-fears-spark-wall-street-chip-selloff.jsonld"}}