Asian Stocks Dip as Chipmakers Weaken Ahead of TSMC Earnings

Asian markets traded mixed on Thursday as investor caution persisted amid ongoing uncertainty over U.S. trade tariffs and interest rate outlooks. Chipmaking stocks led losses, with attention centered on Taiwan Semiconductor Manufacturing Co. (TSMC), which is set to report second-quarter earnings later today.

Japan’s Nikkei 225 slipped 0.3%, while the TOPIX index was flat. Trade data showed continued weakness in exports due to U.S. tariffs on steel and automobiles. South Korea’s KOSPI dropped 0.4%, weighed down by a sharp 8% plunge in SK Hynix after a downgrade from Goldman Sachs. Samsung Electronics bucked the trend, rising 1.7%. Japan’s Tokyo Electron and Advantest both lost around 2%, while China’s SMIC edged slightly higher.

TSMC fell 0.9% in Taiwan trade ahead of its earnings release. Investors are focused on guidance updates amid U.S. tariff risks and currency volatility, despite expectations of strong AI-driven performance.

ASML’s cautious 2026 outlook pressured the broader chip sector, with the Dutch firm citing delayed investment decisions due to trade tensions, even as AI demand boosted Q2 bookings.

In Australia, the ASX 200 surged 0.7%, nearing record highs. Weaker-than-expected June jobs data fueled expectations of further rate cuts by the Reserve Bank of Australia, boosting tech and cyclical shares. Macquarie analysts expressed a bullish outlook on Australian equities, citing global easing trends.

China’s Shanghai Composite and CSI 300 saw modest gains, while Hong Kong’s Hang Seng remained steady after recent tech-fueled rallies. Singapore’s Straits Times Index rose 0.3% on strong June export data. Indian Nifty 50 futures were flat. U.S. S&P 500 futures edged down 0.2% in Asian trading after mixed signals from Wall Street, where bank earnings failed to offset economic concerns. Netflix is scheduled to report results later today.