WS #12886

A major earthquake of magnitude 7.1 struck Kyushu, Japan, triggering tsunami warnings and emergency alerts for multiple prefectures. This natural disaster could disrupt semiconductor manufacturing in the region, potentially affecting global chip supply chains and exacerbating the ongoing AI/tech selloff. Separately, Bloomberg reported that Nvidia staff were detained by Taiwan in a China chip smuggling case, adding regulatory risk to Nvidia's operations. The global chip selloff deepens, with US tech stocks poised to slide. In corporate news, Unilever upgraded its FY2026 outlook after strong Q2 sales, while Barclays reported strong profits and increased its bonus pool. The US is probing Chinese factories in Vietnam, stoking new tariff fears. The Japan earthquake is the dominant new signal, with potential second-order effects on semiconductor stocks and Japanese equities.