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Tech-Sector Recovery Lifts Asian Stock Markets

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Asian stock markets sustained the tech-sector recovery on Thursday, as traders shrugged off Persian Gulf hostilities and rising crude prices.

Semiconductor issues got a lift after Google-parent Alphabet (GOOG, GOOGL) on Wednesday said it may spend $205 billion on AI development this year, more than expected.

Hong Kong, Shanghai and Tokyo finished in the green, while Seoul's semiconductor-heavy KOSPI index rose 4.4%. Other regional exchanges were mixed on the high side.

Brent oil rose to $98.06 a barrel, up 4.2%, during Asian market hours.

In Japan, the Nikkei 225 opened higher and held ground, finishing up 0.5% as tech issues retained favor.

The benchmark Nikkei 225 rose 307.00 to 66,422.60, as gaining issues outnumbered losers 120 to 102.

Leading the upside was Sumitomo Metal & Manufacturing, up 5.1%, while semiconductor manufacturing equipment maker Lasertec rose 5%. Department store chain Takashimaya led the downside, off 6.1%.

In Hong Kong, the Hang Seng Index opened evenly and rose to the close, concluding up 1.3%.

The broad gauge Hang Seng rose 318.15 to 25,210.81, as gaining issues outnumbered losers 73 to 20. The Hang Seng TECH Index gained 0.7% on the day, while the Mainland Properties Index rose 1.5%.

Leading the upside was Aluminum Corporation of China, gaining 6.3%, while Nongfu Spring declined 5.7%.

On the mainland, the Shanghai Composite rose 0.2% to 3,876.78.

On the other regional exchanges, the Taiwan TWSE rose 0.1%; the Australian ASX 200 advanced 0.2%; the Singapore Straits Times Index fell 0.2%, and the Thai Set rose 0.1%. In late trading in Mumbai, the Sensex was down 0.5%.

The MSCI All Country Asia Pacific Index rose 1% on the day.

In other news, South Korea's gross domestic product (GDP) expanded by 0.6% in Q2 from Q1, and by 3.7% on the year, according to the Bank of Korea.

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Asia Markets

Update: US Equity Indexes Fall as Treasury Yields, Crude Oil Gains Reflect Concern Over Widening Disruption to Energy Supplies

(Updates with index/price moves and company/geopolitical news from the first paragraph.)US equity indexes fell on Wednesday as government bond yields followed crude oil prices higher amid concern that disruption to energy supplies is likely to both extend and expand in the Middle East.The Nasdaq Composite declined 0.6% to 25,690.90, with the S&P 500 down 0.1% to 7,498.96, while the Dow Jones Industrial Average leaned slightly lower to 52,218.58. Communication services and consumer discretionary led decliners while utilities and energy topped the gainers.Alphabet (GOOG, GOOGL) and Tesla (TSLA), both a part of the so-called Magnificent-7 group of stocks with a significant index sway, reported after the bell on Wednesday.Alphabet reported Q2 earnings of $9.11 per diluted share, up from $2.31 a year earlier. Analysts polled by FactSet expected $2.88. Revenue for the three months ended June 30 was $119.80 billion, up from $96.43 billion a year earlier. Analysts expected $117.06 billion.Tesla reported Q2 adjusted earnings of $0.33 per diluted share, versus $0.40 a year ago. Analysts polled by FactSet expected $0.53. Sales for the quarter were $28.24 billion, up from $22.50 billion a year earlier. Analysts expected $26.42 billion.In geopolitical news, the US plans to destroy an Iranian bridge or power plant, including those in and around Tehran, every time it attacks ships in the Strait of Hormuz, President Donald Trump said in a social media post on Wednesday. US Central Command has struck Iran for 11 consecutive nights to degrade the Iran Revolutionary Guards Corps' ability to attack maritime traffic in the chokepoint to about a fifth of global crude oil and gas flows.Meanwhile, seven tankers have changed course in the Red Sea to avoid the Bab el-Mandeb Strait since the Houthis' threat on Tuesday to block Saudi oil exports, Reuters reported. The Iran-aligned Houthis have reportedly completed preparations to target vessels near the Bab el-Mandeb Strait, which connects the Red Sea to the Gulf of Aden and Arabian Sea. The Bab el-Mandeb Strait is an alternative route to the Strait of Hormuz, which remains effectively closed due to tensions between the US and Iran."Any aggression against Iran, including our infrastructure, will compel a powerful and decisive response," Iran's Foreign Minister Abbas Araghchi posted on X, formerly Twitter, on Wednesday. "Those who contribute to such aggression, whatever the kind of support, will also be considered as legitimate targets."The front-month US West Texas Intermediate climbed 2.5% to $86.41 a barrel, and global benchmark North Sea Brent jumped 3% to $93.75 a barrel.US Treasury yields rose, extending gains from Tuesday. The 10-year marched 3.1 basis points higher to 4.66%, its strongest level in a month. The two-year jumped 4.3 basis points to 4.3% after yields hit the highest in 52 weeks.Markets are pricing in a more hawkish path for central banks, with yields moving higher around the world as a result, a Deutsche Bank note said, referring to the recent moves in real yields.Next week, the probability of the Federal Reserve leaving its policy unchanged for July slumped to 66% from 89% a week ago, the CME FedWatch tool showed Wednesday. The likelihood of a pause continuing across September, October, and December also declined.In precious metal markets, gold futures jumped 1.5% to $4,136.1, and silver futures advanced 1.5% to $59.98.

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

Update: US Equity Indexes Mixed as Treasury Yields Jump With Crude Oil Amid Red Sea Chokepoint Disruption

(Updates with index/price moves and company/geopolitical news from the first paragraph.)US equity indexes traded mixed as government bond yields followed crude oil prices higher amid worsening Iran geopolitics and a disruption of maritime traffic in the Red Sea chokepoint.The Nasdaq Composite slipped less than 0.1% to 25,826.1 after midday Wednesday. The S&P 500 rose 0.1% to 7,519.5, and the Dow Jones Industrial Average climbed 0.3% to 52,369.4.In geopolitical news, the US will destroy an Iranian bridge or power plant, including those in and around Tehran, every time it attacks ships in the Strait of Hormuz, President Donald Trump said in a social media post on Wednesday.Iran's Islamic Revolutionary Guard Corps said it hit Jordan's King Faisal and Prince Hassan bases with missiles and drones, claiming to target US military equipment in response to recent American strikes, CNN reported. The US Central Command said Tuesday it struck Iran for the 11th consecutive evening.Seven tankers have changed course in the Red Sea to avoid the Bab el-Mandeb Strait since the Houthis' threat on Tuesday to block Saudi oil exports, Reuters reported. The Iran-aligned Houthis have reportedly completed preparations to target vessels near the Bab el-Mandeb Strait, which connects the Red Sea to the Gulf of Aden and Arabian Sea. The Bab el-Mandeb Strait is an alternative route to the Strait of Hormuz, which remains effectively closed due to tensions between the US and Iran.The front-month US West Texas Intermediate climbed 2.4% to $86.40 a barrel, and global benchmark North Sea Brent jumped 2.8% to $93.52 a barrel.US Treasury yields rose, extending gains from Tuesday. The 10-year marched 1.8 basis points higher to 4.65%, its strongest level in a month. The two-year jumped 3.7 basis points to 4.3% after yields hit the highest in 52 weeks.Markets are pricing in a more hawkish path for central banks, with yields moving higher around the world as a result, Jim Reid, global head of macro and thematic research at Deutsche Bank, said in a note Wednesday, referring to the recent moves in real yields. The US 30-year real yield at over 1.0 basis point reached a post-2008 high on Tuesday, he added.Next week, the probability of the Federal Reserve leaving its policy unchanged for July slumped to 66% from 89% a week ago, the CME FedWatch tool showed Wednesday. The likelihood of a pause continuing across September, October, and December also declined. The possibility of a Fed rate increase had surged earlier this month following soft consumer and producer price inflation data.Alphabet (GOOG, GOOGL) and Tesla (TSLA) will report quarterly earnings after the bell on Wednesday.Shares of Super Micro Computer (SMCI) soared 24% after the company said it expects fiscal Q4 GAAP and non-GAAP gross margins in the range of 15% to 17%, significantly above its 8.2% to 8.4% forecast due to a favorable customer and product mix. The stock was the top gainer on the S&P 500.In precious metal markets, gold futures jumped 2% to $4,159.3, and silver futures advanced 2.6% to $60.64.

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

Exchange-Traded Funds, US Equities Mixed After Midday

Broad Market IndicatorsBroad-market exchange-traded fund IWM fell and IVV rose. Actively traded Invesco QQQ Trust (QQQ) eased 0.1%.US equity indexes traded mixed ahead of quarterly earnings from Alphabet (GOOG, GOOGL) and Tesla (TSLA) and as government bond yields followed crude oil prices higher amid worsening Iran geopolitics.EnergyIShares US Energy ETF (IYE) and the State Street Energy Select Sector SPDR (XLE) each added about 1.2%.TechnologyThe State Street Technology Select Sector SPDR ETF (XLK) rose fractionally; iShares US Technology ETF (IYW) shed less than 0.1%, and iShares Expanded Tech Sector ETF (IGM) was down 0.1%.The State Street SPDR S&P Semiconductor (XSD) rose 1%, and iShares Semiconductor (SOXX) advanced 1%.FinancialThe State Street Financial Select Sector SPDR (XLF) shed 0.1%. Direxion Daily Financial Bull 3X Shares (FAS) declined 0.3%, and its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), advanced 0.3%.CommoditiesCrude oil rose 2.6%, and the United States Oil Fund (USO) added 2.4%. Natural gas gained 1.9%, and the United States Natural Gas Fund (UNG) was up 2.1%.Gold on Comex added 1.8%, and the State Street SPDR Gold Shares (GLD) gained 1.4%. Silver was up 2%, and iShares Silver Trust (SLV) climbed 2%.ConsumerThe State Street Consumer Staples Select Sector SPDR (XLP) added 0.5%. The Vanguard Consumer Staples ETF (VDC) gained 0.4%, and iShares Dow Jones US Consumer Goods (IYK) was up 0.9%.The State Street Consumer Discretionary Select Sector SPDR (XLY) slipped 0.5%. VanEck Retail ETF (RTH) dipped 0.7%, and the State Street SPDR S&P Retail (XRT) was up 0.4%.HealthcareThe State Street Health Care Select Sector SPDR (XLV) shed 0.3% and iShares US Healthcare (IYH) eased 0.3%, and Vanguard Health Care ETF (VHT) fell 0.5%. IShares Biotechnology ETF (IBB) was down 0.8%.IndustrialThe State Street Industrial Select Sector SPDR (XLI) added 0.4%. Vanguard Industrials Index Fund (VIS) and iShares US Industrials (IYJ) were higher as well.CryptocurrencyIn midday activity, bitcoin (BTC-USD) dipped 0.7%. Among cryptocurrency ETFs, ProShares Bitcoin ETF (BITO) fell 0.8%, ProShares Ether ETF (EETH) was up 1%, and ProShares Bitcoin & Ether Market Cap Weight ETF (BETH) was 0.1% higher.

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