Asian equities sell-off follows U.S. market concerns over AI rally

• Asian markets, including South Korea, Japan (Nikkei 225), and Taiwan (Taiex), saw significant sell-offs, with some indices entering correction territory, largely due to skepticism about the AI rally's longevity.
• US chip stocks like Micron, Marvell, and Arm experienced notable declines, though some, like Micron, remain significantly up year-to-date.
• Geopolitical tensions between the US and Iran intensified with a sixth consecutive day of US strikes and Iranian retaliation, impacting oil markets and raising broader stability concerns.
• European companies like Skanska, Volvo Cars, and Swedbank reported mixed Q2 earnings, often missing analyst forecasts, with executives highlighting challenging market conditions and inflation risks.

Asian equities experienced a sell-off, driven by persistent uncertainty regarding the sustainability and valuation of the AI rally, particularly impacting chip and memory stocks. Geopolitical tensions escalated with continued US strikes on Iran and retaliatory actions, raising concerns about stability in the Gulf. The overall market sentiment remains cautious due to these factors, alongside discussions on leverage risks.