The Asian stock market is down 10% above its June point or will be in a recall phase

On 28 July, the Asian stock market suffered a major setback and the regional benchmark index was moving towards a technical reversal as a result of increased chip-sales. The MSCI Asia-Pacific index had dropped by 3.5 per cent at one time, an aggregate decline of over 10 per cent over the 22 June high point. Korea's three-star electronics and SK Hercules stock prices have dropped sharply, causing a drop of over 10 per cent in Korea's KOSPI index. On Tuesday, due to market concerns about overcrowding of chip stocks, the global semiconductor plate was sold and investors were sceptical about the sustainability of AI-driven behaviour. Young Weida is pushing for a new round of AI-related transactions with a total value of over $750 billion, and this acceleration of investment raises questions – critics warn that it is artificially pushing up the market demand and valuation of the entire industry. “For AI-related semi-conductor shares, market sentiment has shifted from greed to fear.” Vey-Sern Ling, Managing Director of the Swiss Confederation Bank, stated that “investors are now inclined to interpret information in a negative light and use it as a reason for selling, rather than to analyse in depth its real impact on fundamentals.”