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Tech Caution, Persian Gulf Outlook Damp Asian Stock Markets

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Asian stock markets fell back on Friday on overnight Wall Street cues, and as Persian Gulf hostilities continued to mount.

Hong Kong, Shanghai and Tokyo finished in the red on soft tech sectors, as did most other regional exchanges. Seoul's semiconductor-heavy KOSPI index declined 5.7%, leading the regional downside.

In Japan, the Nikkei 225 opened lower and lost ground, finishing off 2.7% as traders backed away from AI- and chip-related issues

The benchmark Nikkei 225 fell 1,811.45 to 64,611.15, as losing issues outnumbered gainers 132 to 91.

Leading the upside was software-quality tester Shift, up 8.2%, while semiconductor-manufacturing equipment maker Disco declined 12.3%.

In economic news, Japan's flash composite purchasing managers index (PMI), a combination of the nation's manufacturing and service sectors, logged at 53.1 in July, up from 52.8 in June, and striking further above the 50-mark that separates growth from contraction, reported S&P Global.

Japan's consumer price index-core (CPI-core), which strips out fresh foods, rose 1.6% in June year over year, up from a 1.4% on-year gain in May, but still notched below the Bank of Japan's 2% inflation target, according to the Statistics Bureau of Japan.

In Hong Kong, the Hang Seng Index opened lower and could not recover, closing down 1% as tech and property issues lost favor.

The broad gauge Hang Seng fell 247.58 to 24,963.23 as losing issues outnumbered gainers 74 to 16. The Hang Seng TECH Index lost 1.5% on the day, while the Mainland Properties Index fell 2.3%.

Leading the upside was Bank of China HK, gaining 6%, while Xinyi Glass declined 5.1%.

On the mainland, the Shanghai Composite fell 1.6% to 3,814.20.

On the other regional exchanges, the Taiwan TWSE declined 2.7%; the Australian ASX 200 declined 0.8%; the Singapore Straits Times Index rose 0.1%, and the Thai Set inclined 0.2%. In late trading in Mumbai, the Sensex was down 0.4%

The MSCI All Country Asia Pacific Index fell 2.1% on the day.

In other news, India's flash composite purchasing managers index (PMI), logged at 54.3 in July, down from 57.1 in June, reported S&P Global.

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Update: US Equity Indexes Slump, Crude Oil Soars as Trump Warns of Big Iran Attack

(Updates with index/price moves and company/geopolitical news from the first paragraph.)US equity indexes dropped as government bond yields jumped to the highest in a year and crude oil surged after President Donald Trump warned of a major operation in Iran.The Nasdaq Composite slumped 2.2% to 25,137.69, the S&P 500 dropped 1.2% to 7,408.30, and the Dow Jones Industrial Average declined 1% to 51,711.65 on Thursday. Consumer discretionary and communication services were the standout decliners, down more than 5% each, while technology also lagged. Industrials and health care topped the gainers.President Donald Trump is considering restarting major combat operations in Iran, including strikes bigger than the ones seen in Operation Epic Fury, according to an Axios report. "I am considering a massive attack. Bigger than ever before. I am close to making a decision. We are all set for it," the president said.Yemen's Houthi rebels said they attacked two Saudi Arabian oil tankers in the Red Sea on Thursday to disrupt Middle East exports, according to a report from the Associated Press. If Houthis attack again, "the U.S. will hold Iran responsible, in that the Houthis are a Surrogate and/or Proxy of Iran, and major military punishment will be inflicted upon Iran and, of course, the Houthis themselves," Trump said in a Truth Social post.The CBOE Volatility Index VIX, also known as the fear gauge for equities, shot up 12% to 18.70.The front-month US West Texas Intermediate soared 6.1% to $92.13 a barrel, and global benchmark North Sea Brent spiked 6.5% to $100.19 a barrel.In precious metal markets, gold futures dropped 2.4% to $4,052.20, and silver futures slumped 4% to $57.91, reflecting concerns that an extended disruption to crude oil supplies may make it more challenging for the Federal Reserve to bring inflation down to its 2% target.US Treasury yields jumped, extending gains. The 10-year marched 3.8 basis points higher to 4.70% after touching its highest intraday level in a year. The two-year surged 4.7 basis points to 4.35% after yields hit a fresh 52-week high this week.In economic news, initial jobless claims fell 22,000 to 187,000 in the week ended July 18, the lowest since 1969 and trimming the four-week moving average by 7,250 to 207,500, a fourth straight decrease.In company news, Tesla (TSLA) shares fell 14.5%, the worst performer in the S&P 500 and the Nasdaq, after the firm reported a steeper-than-expected drop in Q2 adjusted earnings.The European Commission fined Alphabet's (GOOG, GOOGL) Google 890 million euros ($1.04 billion) for violating the Digital Markets Act by self-preferencing in Google Search and anti-steering practices on Google Play. Shares slumped 7.1%, among the steepest decliners on the S&P 500, the Nasdaq, and the Dow.After the bell, Intel (INTC) reported fiscal Q2 adjusted earnings of $0.42 per share, swinging from a loss of $0.10 a year earlier. Analysts polled by FactSet expected earnings of $0.22. Revenue for the three months ended June 27 jumped to $16.13 billion from $12.86 billion a year earlier. Analysts expected $14.44 billion.

Dow JonesNasdaq CompositeS&P 500$GOOG$GOOGL$INTC$TSLA
Asia Markets

Exchange-Traded Funds Lower as US Equities Decline After Midday

Broad Market IndicatorsBroad-market exchange-traded funds IWM and IVV fell. Actively traded Invesco QQQ Trust (QQQ) eased 0.2%.US equity indexes dropped as government bond yields jumped with crude oil after Iran-aligned Houthis attacked Saudi Arabian tankers in the Red Sea and shares of mega-caps Alphabet (GOOG, GOOGL) and Tesla (TSLA) sank.EnergyIShares US Energy ETF (IYE) and the State Street Energy Select Sector SPDR (XLE) each added about 0.9%.TechnologyThe State Street Technology Select Sector SPDR ETF (XLK) fell 1%; iShares US Technology ETF (IYW) shed 1.9%, and iShares Expanded Tech Sector ETF (IGM) was down 1.6%.The State Street SPDR S&P Semiconductor (XSD) slipped 1.5%, and iShares Semiconductor (SOXX) fell 1.2%.FinancialThe State Street Financial Select Sector SPDR (XLF) shed 0.5%. Direxion Daily Financial Bull 3X Shares (FAS) declined 2%, and its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), advanced 1.9%.CommoditiesCrude oil rose 6.4%, and the United States Oil Fund (USO) added 6.9%. Natural gas gained 0.01%, and the United States Natural Gas Fund (UNG) was up 0.3%.Gold on Comex fell 2.4%, and the State Street SPDR Gold Shares (GLD) lost 2%. Silver was down 3.8%, and iShares Silver Trust (SLV) eased 3.1%.ConsumerThe State Street Consumer Staples Select Sector SPDR (XLP) fell 1.6%. The Vanguard Consumer Staples ETF (VDC) dropped 1.7%, and iShares Dow Jones US Consumer Goods (IYK) was down 1.3%.The State Street Consumer Discretionary Select Sector SPDR (XLY) slipped 4.4%. VanEck Retail ETF (RTH) lost 1.8%, and the State Street SPDR S&P Retail (XRT) was down 3%.HealthcareThe State Street Health Care Select Sector SPDR (XLV) rose 0.9% and iShares US Healthcare (IYH) added 0.9%, and Vanguard Health Care ETF (VHT) gained 0.8%. IShares Biotechnology ETF (IBB) was up 1.1%.IndustrialThe State Street Industrial Select Sector SPDR (XLI) added 1.7%. Vanguard Industrials Index Fund (VIS) and iShares US Industrials (IYJ) were higher as well.CryptocurrencyIn midday activity, bitcoin (BTC-USD) dipped 1.9%. Among cryptocurrency ETFs, ProShares Bitcoin ETF (BITO) fell 2%, ProShares Ether ETF (EETH) was down 2.1%, and ProShares Bitcoin & Ether Market Cap Weight ETF (BETH) was 1.3% lower.

Dow Jones^EEM^EXI^FAS^FAZ^GLD^IBB^IGM^IGV^IPK^IVV^IWMNasdaq Composite^IYE^IYH^IYJ^IYK^IYW^PMR^QQQ^RTH^SOXXS&P 500^SPY^UNG^USO^VDC^VHT^VIS^XLE^XLF^XLI^XLK^XLP^XLV^XRT^XSD$BETH$BITO$EETH
Asia Markets

Update: US Equity Indexes Sink as Houthis Target Saudi Tankers in Red Sea, Mag-7 Stalwarts Disappoint

(Updates with index/price moves and company/geopolitical news from the first paragraph.)US equity indexes dropped as government bond yields jumped with crude oil after Iran-aligned Houthis attacked Saudi Arabian tankers in the Red Sea and shares of mega-caps Alphabet (GOOG, GOOGL) and Tesla (TSLA) sank.The Nasdaq Composite slumped 2.1% to 25,141.3, the S&P 500 dropped 1.2% to 7,410.6, and the Dow Jones Industrial Average declined 1% to 51,709.3 after midday Thursday. Consumer discretionary and communication services were the standout decliners, down almost 5% each, while technology also lagged. Industrials and energy topped the gainers.Iran flew Islamic Revolutionary Guard Corps commanders, military advisers, and missile- and drone-related equipment into Yemen this month, according to four sources, in a move that suggests Tehran is seeking to strengthen the ability of its Houthi allies to threaten Red Sea shipping, Reuters reported.Houthi rebels said they attacked two Saudi Arabian oil tankers in the Red Sea on Thursday, according to a report from the Associated Press, widening the disruption to crude oil supplies from the Middle East. President Donald Trump warned Tehran would be held accountable for any further Houthi attacks in the Strait of Hormuz, CNN reported. Secretary of State Marco Rubio said Iran "suckered" the group into attacking shipping lanes, the news report added.The CBOE Volatility Index VIX, also known as the fear gauge for equities, catapulted 14.5% to 19.05.Meanwhile, Jordan, Bahrain and Kuwait have reported retaliatory missile and drone attacks from Iran after a 12th consecutive day of US strikes on the Islamic Republic, Al Jazeera, a Middle Eastern broadcaster, reported.The front-month US West Texas Intermediate soared 6.3% to $92.33 a barrel, and global benchmark North Sea Brent spiked 6.9% to $100.60 a barrel.US Treasury yields jumped, extending gains. The 10-year marched 3.6 basis points higher to 4.69% after touching its highest intraday level in a year. The two-year surged 4.7 basis points to 4.35% after yields hit a fresh 52-week high this week.In precious metal markets, gold futures dropped 2.4% to $4,053.70, and silver futures slumped 3.9% to $57.96.In company news, Tesla shares fell 13%, the worst performer in the S&P 500 and the Nasdaq, after the firm reported a steeper-than-expected drop in Q2 adjusted earnings. Gross and operating margins missed consensus "considerably," and "more important aspects are an increase in capital investments and operating expenses related to the AI transition," Truist Securities said in a note. Free cash flow turned negative in Q2, with an outflow of $1.1 billion.The European Commission fined Alphabet's Google 890 million euros ($1.04 billion) after the company violated the Digital Markets Act through self-preferencing in Google Search and anti-steering practices on Google Play. Shares slumped 6.6%, among the steepest decliners on the S&P 500, the Nasdaq, and the Dow.United Rentals (URI) reported Q2 adjusted earnings and revenue above market expectations and raised its full-year fiscal 2026 sales guidance. Shares soared 12%, one of the top gainers on the S&P 500.Honeywell Technologies (HON) reported Q2 adjusted earnings and sales that beat consensus, and lifted its full-year 2026 earnings guidance range. Shares advanced 5.2%, the Dow's leader.

Dow JonesNasdaq CompositeS&P 500$GOOG$GOOGL$HON$TSLA$URI