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The benchmark closed at 61,434.19, down 930.73 points, or 1.49%, after briefly dropping to 60,448.90. The index moved through a range of almost 2,700 points, having reached a session high of 63,138.04 during early trading.

The intraday slide from the high exceeded 1,700 points, reflecting unusually volatile trading rather than a fall of that size from Tuesday’s closing level. The index had ended the previous session at 62,364.92 after losing more than 2,500 points.

Semiconductor companies led the decline as investors questioned whether the vast sums being invested in AI infrastructure would generate returns quickly enough to justify elevated technology valuations. The selling was amplified by weakness in South Korea and Taiwan, whose markets contain some of the world’s largest memory-chip and contract-manufacturing companies.

Asian chipmakers had benefited from expectations that spending on data centres, advanced processors and high-bandwidth memory would continue expanding. Those assumptions are now facing closer scrutiny as capital expenditure rises, borrowing costs remain high and earnings expectations become more difficult to exceed.

The shift was visible in South Korea, where the Kospi suffered another severe fall and chip heavyweights came under sustained pressure. Taiwan’s benchmark also declined as investors sold shares exposed to the global semiconductor supply chain.

Tokyo-listed equipment makers and chip-related companies were caught in the same retreat. Their large influence on the price-weighted Nikkei magnified the index’s movements, leaving the broader market vulnerable to concentrated selling in a small group of expensive stocks.

Investors were also awaiting quarterly results from major US technology companies, including businesses whose spending plans have become central to demand forecasts for advanced chips. Any indication that data-centre expenditure is slowing could deepen concerns about the durability of the AI investment cycle.

The Nikkei’s decline followed a powerful rally that had carried the benchmark above 70,000 earlier in July. Despite the pullback, the index remained substantially higher than a year earlier, showing how quickly valuations had expanded during the AI-driven advance.

Currency movements added another layer of uncertainty. The yen remained near its weakest level against the dollar in about four decades, despite gaining slightly during Wednesday’s trading. A weaker currency generally supports exporters by increasing the yen value of overseas earnings, but an extreme decline raises import costs and complicates monetary policy.

Japan depends heavily on imported energy and raw materials. The yen’s depreciation, combined with higher oil prices, threatens to intensify inflation and squeeze household spending. It has also increased speculation that authorities may intervene in foreign-exchange markets.

Markets are watching for any disruption to the yen carry trade, in which investors borrow cheaply in Japan and direct the funds towards assets offering higher returns elsewhere. A sudden strengthening of the yen can force traders to unwind those positions, producing rapid declines across equities, bonds and currencies.

The Bank of Japan begins a two-day policy meeting on Thursday. Traders are assessing whether persistent currency weakness and rising energy costs could push officials towards tighter policy, even as instability in equity markets increases the risks surrounding another rate move.

Oil prices climbed more than 3% as conflict in the Middle East threatened shipping and energy supplies. Higher crude prices added to inflation concerns ahead of the US Federal Reserve’s policy announcement and reduced investors’ willingness to hold high-valuation growth stocks.

The dollar remained supported near a one-month high as traders considered whether the Federal Reserve could maintain a restrictive policy stance. Higher US yields tend to pressure technology valuations by reducing the present value of expected future earnings.

Onsite solar installation to cut FCC Philippines’ energy costs by 30% compared to grid electricity prices, supporting the automotive supply chain manufacturer’s cost competitiveness and energy resilience in Laguna.

LAGUNA, PHILIPPINES – Media OutReach Newswire – 29 July 2026 – FCC (Philippines) Corp., a subsidiary of Japan’s FCC CO., LTD. and a key global supplier to leading automotive and motorcycle brands including Honda, Yamaha, Suzuki and Kawasaki, Ford, Harley-Davidson, BMW, among others, has signed a long-term solar agreement with Peak Energy to power its clutch systems facility in Laguna with onsite renewable energy.

The system is expected to generate approximately 1,500 MWh in its first year of operation from a
1 MWp onsite solar installation, delivering electricity to FCC Philippines at a price approximately 30% lower than grid tariffs. This is expected to avoid approximately 650 tons of CO₂ annually, equivalent to avoiding the consumption of almost 252,000 liters of gasoline.

Under the 15-year agreement, Peak Energy will design, finance, construct, own and operate the solar system, with FCC Philippines purchasing the electricity generated at no upfront capital cost. The structure allows FCC Philippines to access clean, competitively priced power while Peak Energy manages construction and ongoing operations and maintenance.

FCC CO., LTD. is the undisputed global leader in the motorcycle clutch market, with more than 50% global market share, and a leading supplier of automotive clutch components worldwide. The company and has manufactured in the Philippines since 1993, supplying integrated clutch systems not only to the four of the world’s four largest motorcycle OEMs, but also to other established global brands across both the two-wheel and four-wheel industries. Global automotive supply chains are under growing pressure to reduce embedded emissions, and the agreement gives FCC Philippines a concrete way to strengthen its competitiveness within that supply chain.

The agreement builds on Peak Energy’s track record with Japanese-parented manufacturers across the region, including JTEKT (Toyota Group) in Japan, AICA in Thailand and Yokogawa in Singapore. FCC Philippines’ decision to choose Peak Energy reflects the same standard of engineering excellence and delivery experience that has earned these manufacturers’ trust, technical rigor, disciplined project execution and a track record of on-time, on-budget delivery that meets the exacting quality expectations Japanese corporates apply to their partners across Asia.

As industrial demand for lower-cost, predictable power grows, the Philippine market is naturally redirecting capacity toward developers with the financial strength, engineering capability and technology to execute and operate assets credibly at scale, supported by a Department of Energy target of 35% renewable energy share by 2030.

“Industrial buyers in the Philippines are increasingly looking for power that’s cheaper than the grid and shielded from imported fuel prices,” said Gavin Adda, CEO of Peak Energy. “This project delivers both, at a 30% discount to grid tariffs. We are glad to see FCC moving toward a developer with the financial strength and engineering capability to deliver at scale.”

“This solar project represents an important milestone in FCC’s journey toward a more sustainable future,” said Tsuyoshi Nakada, President of FCC (Philippines) Corp. “As part of the FCC CO., LTD., Group’s commitment to achieve carbon neutrality by 2050, with a 50% reduction in carbon emissions by 2030, we continue to invest in initiatives that reduce our environmental footprint while strengthening the resilience of our operations. We are pleased to partner with Peak Energy in advancing these shared sustainability goals.”
Hashtag: #Japan #Automotive #Irarwar #Iran #Philippines #redalert #energy #energycosts #Scope2 #sustainability

https://www.peakenergy.asia/
https://www.linkedin.com/company/peak-energyasia

The issuer is solely responsible for the content of this announcement.

About Peak Energy

Headquartered in Singapore, Peak Energy develops, owns, and operates renewable assets across Asia Pacific (APAC). With over 300 MW of operating assets and 2 GW worth of projects in development, Peak Energy is the fastest growing renewable energy developer with a portfolio spanning Japan, Korea, Australia, Taiwan, the Philippines, Thailand, Singapore and Indonesia. With activities encompassing the full range of renewable energy business models – including utility-scale development, off-site PPAs, onsite PPAs, and energy storage applications – Peak Energy is a one-stop partner for corporates seeking to decarbonize their operations in APAC. We believe in establishing long-term partnerships with our corporate customers, to accompany them in their decarbonization journey, through cleaner, cheaper energy.

An experienced team handles the complete life cycle of our energy assets from origination and development through to operations and decommissioning, employing state-of-the art technology and the industry best practices, respectful of the environment and following world-class HSE standards.

Our business practices, technological and HSE standards are standardized across APAC, but we are implemented and operate locally, with teams in seven countries, and lasting partnerships with local customers, EPCs, vendors, channel partners.

Peak Energy is wholly owned by Stonepeak, a leading alternative investment firm specializing in infrastructure and real assets with approximatively USD 88 billion of assets under management. Our financial and technical strength coupled with our relationships in local markets allows us to optimize our capital deployment in high quality assets.

For more information, please visit https://www.peakenergy.asia.

About FCC (Philippines) Corporation

Established in 1993 at Laguna Technopark in Biñan City, Laguna, FCC (Philippines) Corp. is a subsidiary of Japan’s FCC CO., LTD., a global leader in automotive and motorcycle clutch systems. The company manufactures and assembles clutch engine components for leading global automotive and motorcycle brands and has a workforce of more than 600 personnel at its Laguna facility. As part of its commitment to sustainable growth, FCC CO., LTD., continues to strengthen its core clutch business while expanding into electrification-related technologies by leveraging its core expertise in die casting, press, and joining technologies to support the evolving mobility industry.

The Monetary Authority of Singapore said uncertainty over whether companies can sustain vast spending on data centres, advanced chips and computing infrastructure has become a significant risk to the economic outlook. The warning reflects growing scrutiny of whether revenue generated by AI services can justify the scale of capital committed by technology groups.

MAS Managing Director Chia Der Jiun said the global economy should continue to benefit from AI-related expenditure in the near term, but the longer-term impact remains difficult to assess. A sudden reduction in investment could affect manufacturing, trade and financial asset prices, particularly in economies closely linked to electronics supply chains.

The assessment carries particular significance for Singapore, where technology-related production has driven much of the economic expansion this year. The economy grew by about 6 per cent during the first half of 2026, while AI-linked electronics accounted for more than 70 per cent of export growth. Semiconductor production, data-centre equipment and related services have helped offset pressure from trade restrictions, higher energy costs and geopolitical instability.

MAS expects economic activity to remain firm during the second half of the year, supported by technology, construction and financial services. However, it cautioned that tighter global financing conditions or a reversal in AI expenditure could undermine the durability of that growth and ease inflation more rapidly than expected.

The warning comes as the world’s largest technology companies raise spending on processors, servers, power systems and data centres. Capital expenditure by major AI-linked companies is projected to rise by more than 75 per cent to around $700 billion in 2026. Large technology groups are also turning increasingly to debt markets to finance the buildout, strengthening the connection between AI investment, credit conditions and the wider economy.

Fitch Ratings has identified an AI market correction as an emerging global credit risk, citing elevated valuations, concentrated investment and uncertainty over future returns. Amazon and Alphabet are among companies whose combined bond issuance has reached about $182 billion, underlining the growing role of borrowed funds in supporting infrastructure spending.

Supporters of the investment surge argue that generative AI could raise productivity, reduce costs and create new markets comparable to earlier technological transformations. Demand for advanced chips and cloud capacity remains strong, while business investment data continue to show momentum. US orders for core capital goods rose 0.9 per cent in June, and shipments increased 1.9 per cent, their strongest gain in four and a half years, helped by spending on computers and electronic equipment.

Questions persist over how quickly that spending will generate sustainable profits. Data centres require large quantities of electricity, specialised chips and cooling infrastructure, while rapid improvements in computing equipment can shorten replacement cycles. Companies may face pressure to keep investing even before earlier projects achieve their expected returns.

Academic research indicates that the AI boom combines strong technological foundations with pockets of speculative vulnerability. Enterprise adoption, revenue growth and productivity improvements support parts of the valuation expansion, but investment has outpaced monetisation in some segments. Private-market valuations are also concentrated among a limited number of companies, increasing the risk that a reassessment of growth expectations could spread rapidly.

Global equity markets are already showing greater sensitivity to concerns about returns from AI spending. Semiconductor shares have faced selling pressure, while technology indices have retreated from earlier peaks. Investors are closely examining earnings from leading cloud and chip companies for evidence that demand remains strong enough to support infrastructure budgets.

Singapore is vulnerable to such shifts because of its position in global electronics, finance and trade networks. A decline in chip orders could affect factory output and exports, while a fall in technology valuations could weaken investment sentiment and household wealth. Financial institutions could also face losses through corporate lending, bond holdings and market exposure.

MAS has separately highlighted cybersecurity threats arising from AI and quantum-computing advances. AI tools can improve fraud detection and network monitoring, but they can also make phishing, impersonation and hacking attempts more convincing. The authority has established an industry task force to help financial institutions strengthen their defences as technology-driven risks become more sophisticated.