How Asia Tech Selloff Unfolded Over DUVs, Circular Deals
Bloomberg Markets and Finance
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July 28, 2026 at 05:46 AM UTC
Bearish
95% Confidence
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Key Points
- South Korean markets, KOSPI and KOSDAQ, triggered circuit breakers with declines exceeding 8%.
- A report indicates a Chinese state-backed company is mass-producing DUV tools, posing a competitive threat to global chip equipment makers like ASML.
- Concerns are rising over Nvidia's 'circular financing' deals, where it invests in partners who then buy its chips, potentially skewing demand and raising market risk.
AI Summary
Asia tech markets are experiencing a significant sell-off, with South Korean indices (KOSPI, KOSDAQ) halting trading due to sharp declines. This rout is driven by reports of China's domestic DUV tool production, threatening ASML's dominance, and concerns over Nvidia's 'circular financing' deals with key partners like SK Group and OpenAI, raising questions about demand transparency.
Model Analysis Breakdown
| Model | Sentiment | Confidence |
|---|---|---|
| Gemini 2.5 Flash | Bearish | 95% |
| Consensus | Bearish | 95% |