Asian technology stocks fell sharply on 17 July 2026 as the AI-driven equity rally reversed, with the Nikkei declining 4.25% and Nasdaq futures falling 1%, according to Finnhub. The selloff extended across Asia-Pacific markets amid a confluence of pressures including geopolitical tensions across the Middle East and broad risk aversion. Trump's claims regarding China elections also introduced uncertainty ahead of a prospective Xi meeting, adding strain to trade negotiation sentiment.
The Nikkei's 4.25% decline made it among the most acute single-session moves reported in the cluster. Oil recorded its largest weekly gain since April, with WTI and Brent — the global benchmark crude contracts — rising on Middle East tensions involving strikes across Gulf states, Iraq, and Iran. Iran separately threatened to block Strait of Hormuz shipments, pushing oil up a further 2.6% to approximately $81 per barrel in European trading.
The Indian rupee approached record lows during the session, pressured by elevated oil import costs and deteriorating risk appetite, prompting intervention by the Reserve Bank of India. China's State Administration of Foreign Exchange issued reassurances on FX market stability as currency pressures broadened across the region. Emerging market equities tracked toward a second consecutive day of losses and a weekly decline, with rising crude prices compounding the technology-led selloff.
Sources: investinglive.com, Bloomberg Markets