Tech Selloff Extends, Apple Seeks Chinese Chips | The Asia Trade 7/2/2026

Summary

Asian markets extend a tech-led selloff as investors digest Fed Chair Warsh's comments that inflation risks have eased. Apple is in talks to buy memory chips from Pentagon-blacklisted Chinese firms, rattling Korean chipmakers. Analysts see continued AI investment demand, highlight value-up programs in Asia, and warn of AI bubble risks for Taiwan and South Korea. Meta plans a cloud business to monetize excess AI compute, while oil falls on Iran peace progress.

• Tech selloff deepens in Asia, led by semiconductor stocks, with South Korea's KOSPI triggering a sidecar halt.
• Fed Chair Warsh says inflation risks have come down, reiterating commitment to price stability.
• Apple reportedly in talks to buy memory chips from two Chinese firms on a Pentagon blacklist amid global shortage.
• UBS strategist stays overweight semiconductors, sees value-up reforms lifting Japan, Korea, Singapore, and Indonesia equities.
• Bloomberg Economics models AI bubble burst hitting Taiwan GDP by 4% and South Korea by 2%.
• Meta shares rise after report it will sell excess AI compute capacity, competing with AWS, Microsoft, and Google.
• Oil declines for a third day as tankers continue to transit Strait of Hormuz and indirect US-Iran talks progress.
• Japanese PM Takaichi visits India seeking to reduce supply-chain dependence on China.