Asia sheds semis while China IPOs shine in cautious tape

Asian equity markets turned cautious overnight, paced by a sell-off in semiconductor names that had led the prior rally. Reuters and AP News both noted the chip-driven declines across the region, while bond markets mirrored the risk-off tone. The yen weakened further, trading near intervention-watch levels as the Bank of Japan held policy steady.

Nike slipped after guiding sales lower and citing persistent weakness in China, a read that rippled through consumer discretionary names in the region. The athletic giant's outlook underscored slowing demand in its second-largest market, a theme that has weighed on multinational consumer brands for three consecutive quarters. Reuters reported the move held off any near-term turnaround expectations.

The IPO market told a different story. China Resources New Energy raised $3.6 billion in Asia's largest offering this year, tripling on debut amid heavy retail demand, according to the Financial Times. Two Indian tech listings are on track to raise a combined $7 billion, drawing capital that had rotated out of expensive AI plays. The FT framed the moment as a temporary reprieve for emerging-market equity issuance after a drought that stretched back to late 2023.

Elsewhere, UK house price inflation accelerated to 2.2 percent in June, up from 1.7 percent in May, as falling energy costs softened rate-cut expectations, Nationwide reported via the Financial Times. In the US, Federal Reserve Chair Warsh emphasized the central bank's political independence and signaled continued focus on inflation, AP News noted. CMBS delinquencies in retail and multifamily rose in June even as the overall rate ticked lower, per Connect CRE, a divergence that points to uneven stress across property types.