Session at a Glance

KOSPI extends brutal semiconductor rout while ASX 200 surges on Wall Street momentum and defensive rotation.

Asia-Pacific markets split sharply on Tuesday as overnight Wall Street strength (Nasdaq +2.1%, S&P +1.5%) failed to lift the region uniformly. Australia’s ASX 200 led gainers with a +1.88% rally, driven by tech rebound flows, gold miners riding $4,107/oz gold, and defensive healthcare rotation into names like CSL ahead of earnings. Taiwan’s TAIEX added +0.56% on semiconductor equipment strength.

South Korea’s KOSPI plunged another -3.59%, extending a devastating correction that has wiped more than a third off the index since its June peak. Forced margin liquidations and the ongoing AI chip valuation reset — amplified by rising Chinese competition — continue to hammer the semiconductor-heavy bourse. Japan’s Nikkei slipped -0.63% as SoftBank dragged, while Chinese markets drifted lower with state bank stocks under pressure from record-low net interest margins.

The session’s clearest cross-border theme: rotation out of pure AI/semiconductor momentum plays (KOSPI, SoftBank, BYD) and into defensive quality (CSL, TCS, Singtel) and value names with near-term earnings catalysts.

Here are the standout movers across Asia-Pacific’s major exchanges for the session of Tuesday, August 4, grouped by market.

Australia (ASX)

↑ CSL +3.64%

Mega-cap · 128.8 (local)

Why: CSL extended a 35% rally off June lows as investors rotate into defensive healthcare ahead of August 18 earnings, with the stock clearing its 50-day moving average for the first time since August 2025.

Pattern: Classic defensive rotation momentum — healthcare outperforming as AI/tech valuations wobble globally. The pre-earnings bid adds a catalyst kicker to the trend continuation setup.

↓ TCL -0.40%

Mid-cap · 14.9 (local)

Why: No clear catalyst — Transurban drifted lower on a broad risk-on session that favoured growth and cyclicals over defensive infrastructure yield plays.

Pattern: Mild underperformance on a strong ASX day suggests relative rotation away from bond-proxy names into higher-beta sectors — not a breakdown, just a sector preference signal.

Hong Kong (HKEX)

↑ 9988 +0.48%

Mega-cap · 125.8 (local)

Why: Alibaba edged higher as China’s tech giants benefit from the AI open-weight model narrative, with Alibaba’s Qwen platform positioning it as a domestic AI infrastructure winner.

Pattern: Modest gain in a weak Hang Seng session signals relative strength — Alibaba is holding up better than the broader index, consistent with selective AI re-rating in Chinese tech.

↓ 0939 -3.37%

Large-cap · 8.89 (local)

Why: China Construction Bank fell amid the ongoing net interest margin squeeze — Chinese commercial bank NIM hit a record low of 1.4% in Q1 as PBoC rate cuts compress lending spreads.

Pattern: Sector-wide de-rating in Chinese banks reflects structural margin compression, not a one-day event. The move extends a multi-month downtrend — 78% of A-share listed banks are down year-to-date.

China — Shanghai (SSE)

↓ 601398 -3.77%

Mega-cap · 7.66 (local)

Why: ICBC led the Chinese bank selloff as record-low net interest margins and decelerating loan growth (5.2% YoY vs 6.2% in December) weigh on the entire state banking sector.

Pattern: Continuation of a structural NIM compression trend across Chinese banks — this is macro-driven mean reversion, not a dip-buy setup until margin stabilisation signals emerge.

China — Shenzhen (SZSE)

↑ 002415 +1.79%

Mid-cap · 38.63 (local)

Why: No clear single-day catalyst — Hikvision likely benefited from broader China tech-sector rotation as investors shift from financials into technology names with AI-adjacent revenue streams.

Pattern: Modest +1.79% gain in a down tape for Shenzhen suggests relative strength and possible sector rotation into surveillance/AI infrastructure plays — watch for follow-through.

↓ 002594 -3.49%

Large-cap · 91.15 (local)

Why: BYD fell despite setting export records as the domestic EV price war intensifies — average discounts hit record levels and tariff barriers (US 100%, EU duties, Mexico 50%) constrain the overseas growth narrative.

Pattern: Profit-taking after a +6.26% prior-week rally combined with margin compression fears. The export record headline couldn’t offset the tariff headwinds — sector rotation out of China auto into tech names.

Japan (TSE)

↑ 8035 +3.11%

Mid-cap · 5.67e+04 (local)

Why: Tokyo Electron continued its post-earnings rally after fiscal Q1 revenue of ¥732 billion (+33% YoY) with operating margin expanding to 29%, beating consensus expectations.

Pattern: Post-earnings momentum continuation from oversold levels — TEL was caught in the global semiconductor equipment selloff and is recovering. Analyst consensus remains bullish with 32% upside to target.

↓ 9984 -3.06%

Mega-cap · 5228 (local)

Why: SoftBank extended its decline from June all-time highs as the AI valuation reckoning continues — Arm guidance disappointment and delayed OpenAI IPO reports erode the NAV thesis ahead of August 6 earnings.

Pattern: Continuation of a ~50% drawdown from June highs — this is a full-blown AI trade unwind in a concentrated NAV vehicle. Pre-earnings positioning adds selling pressure. Not a mean-reversion setup yet.

Singapore (SGX)

↑ Z74 +0.68%

Large-cap · 4.43 (local)

Why: Singtel gained as investors rotate into defensive telecom yield plays amid regional equity volatility, with recent dividend analysis highlighting its attractive payout profile.

Pattern: Defensive outperformance in a mildly negative Singapore session — classic flight-to-quality rotation into high-dividend-yield large caps during periods of elevated volatility.

↓ C6L -1.43%

Mid-cap · 7.59 (local)

Why: No clear catalyst — Singapore Airlines drifted lower in line with broader travel-sector softness as rising geopolitical tensions and weaker regional sentiment weigh on cyclical names.

Pattern: Mild pullback in a defensive market — airlines are high-beta cyclicals that underperform during risk-off rotations. The -1.43% move is noise-level for this name.

South Korea (KOSPI)

↑ 035420 +9.16%

Mid-cap · 2.265e+05 (local)

Why: NAVER surged 9.16% after announcing a $725 million treasury stock buyback and retirement, with AI-driven B2B revenue growth and an Nvidia strategic investment reinforcing the re-rating thesis.

Pattern: Massive single-day breakout driven by a concrete shareholder return catalyst — the buyback/retirement is directly EPS-accretive. NAVER is diverging from the broader KOSPI semiconductor rout, signalling stock-specific re-rating.

↓ 005380 -0.13%

Large-cap · 3.925e+05 (local)

Why: Hyundai Motor held relatively flat in a KOSPI session that dropped -3.59%, suggesting the automaker is being treated as a safe haven within the Korean market’s semiconductor-led selloff.

Pattern: Significant relative outperformance — only -0.13% vs the index at -3.59% signals defensive rotation within Korea away from semiconductors and into industrial exporters with diversified revenue.

Taiwan (TWSE)

↑ 2308 +2.53%

Mid-cap · 1620 (local)

Why: Delta Electronics gained as the Taiwanese electronics manufacturer benefits from rising demand for power management and thermal solutions across AI data centre buildouts globally.

Pattern: Momentum continuation in AI-infrastructure-adjacent hardware — Delta is a picks-and-shovels play rather than a direct chip name, which may insulate it from the semiconductor valuation reset hitting purer plays.

↓ 3711 -4.10%

Mid-cap · 585 (local)

Why: No clear catalyst — ASE Technology dropped as the semiconductor packaging sector faces increased competition from China and broader chip valuation concerns weigh on the supply chain.

Pattern: The -4.10% move fits the broader Asia-Pacific semiconductor correction theme — packaging and testing names are downstream of the same AI capex uncertainty driving KOSPI weakness.

India (NSE)

↑ TCS +3.77%

Mega-cap · 2455 (local)

Why: TCS extended a multi-day rally after strong Q1 earnings and a major AI-led network transformation deal with ABB, with the Nifty IT index jumping over 2% in a broad Indian tech rally.

Pattern: Post-earnings momentum on a 9-session winning streak — TCS is recovering from a 32% correction earlier in 2026. Indian IT services are being re-rated as AI implementation beneficiaries rather than displacement victims.

↓ HINDUNILVR -1.31%

Large-cap · 2074 (local)

Why: No clear catalyst — Hindustan Unilever drifted lower as investors rotated out of defensive FMCG staples into higher-beta IT and growth names amid broad market strength.

Pattern: Classic sector rotation — when risk appetite returns and IT rallies hard (+2% Nifty IT), consumer staples underperform as the relative trade shifts. The -1.31% is mild and orderly.

New Zealand (NZX)

↑ FPH +2.75%

Large-cap · 42.28 (local)

Why: Fisher & Paykel Healthcare rallied in line with the broader global defensive healthcare rotation, benefiting from the same flight-to-quality flows lifting CSL in Australia.

Pattern: Cross-Tasman healthcare momentum — FPH and CSL moving together suggests a regional sector bid for quality healthcare names, consistent with the broader risk-off rotation away from AI/tech.

↓ SPK -0.51%

Mid-cap · 1.97 (local)

Why: No clear catalyst — Spark New Zealand drifted fractionally lower in quiet NZX trading, with the modest -0.51% move within normal daily noise for the telecom name.

Pattern: Noise-level move with no pattern significance — Spark is a low-volatility dividend stock and the -0.51% decline doesn’t signal any directional shift or sector rotation.

Reading the Session

The exchange-by-exchange breakdown above surfaces both market-specific catalysts and cross-border themes. When multiple exchanges move together, look for a macro driver (USD move, commodity price, risk-on/off shift). Isolated single-exchange moves tend to reflect local earnings, regulatory news, or sector rotation.

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