A bloodbath in Asia sets the stage for European morning trade today

2026年7月28日最近のFX関連情報Stocks

It's an ugly day for Asian equities to say the least as tech shares, chipmakers and semiconductors especially, are being taken to the cleaners. South Korea's benchmark KOSPI index is the standout, being down roughly 10% on the day. What a beating.

The drop there continues the fall from mid-June with the index down some 35% from the highs this year. That being said, even with the drop today we're only seeing it fall to the lowest since mid-April. And in the context of this year, the index is still well up by over 40% year-to-date. So, that speaks a lot to the breathtaking rally - mostly since March.

All that being said, there is quite a bit to digest from the chart above and the latest price action.

The drop in the past two weeks now confirms price breaking below the 100-day moving average (red line). So, that takes away the more bullish momentum already. But now, we're starting to see a potential test of the 200-day moving average (blue line) next. And that is when things can get a bit dicey.

Break below that and the momentum bias in the index turns more bearish instead. So, it will be key for dip buyers to preserve that threshold.

Besides the KOSPI, there is also heavy selling across the region with the Nikkei down nearly 4% and the TAIEX down a little over 4% currently. Meanwhile, China's Shanghai Composite is down roughly 1% with the CSI 300 index down a little over 2% at the moment.

All the AI jitters is making for a very nervous setup ahead of European trading and more so as we count down to the Wall Street open later. S&P 500 futures may be down by just 0.2% now but Nasdaq futures are down 0.7% after more selling pressures yesterday turned things around for tech shares in the US.

And as a reminder, we still have big tech earnings to work through in the days ahead. So, that will definitely be the make or break for US stocks considering the backdrop seen above. Another set of worrying outlook on AI spending might just really send the selling this week into overdrive.