Chinese Insurance Companies and Investment Funds Step Up Purchases Under Beijing Directive

China's benchmark indexes edged higher after regulators stepped up efforts to shore up faltering market sentiment. 

The Hang Seng Index edged lower 0.5%, and the mainland-focused CSI 300 Index rebounded more than 1% after two state-controlled investment holding companies disclosed new purchases. 

China's securities regulator moved to soothe market sentiment and signaled additional steps to stabilize market operations, and about 40 listed companies announced stock repurchase plans. 

The state-controlled China Reform Holdings and China Chengtong Holdings increased their allocations to domestic Chinese corporations by 60 billion yuan and vowed to expand holdings to help stabilize markets.  

In addition, five state-controlled Chinese insurance companies, including Ping An Insurance Group and People's Insurance Group, highlighted the long-term investment potential of Chinese stocks. 

The leading exchange-traded funds tracking mainland-benchmark indexes experienced a surge in trading volume, confirming the regulatory intervention. 

AI startups are increasingly exploring stock listings, as the tech-focused companies ramp up technology development and commercialize new products. 

DeepSeek, Moonshot AI, and 01.ai are in early talks with investors while exploring public listing and other financing alternatives.  

China Indexes and Stocks 

The Hang Seng Index decreased 0.2% to 25,093.82, and the mainland-focused CSI 300 Index advanced 1.3% to 4,655.85. 

Hygon Information Technology gained 4.7% to ¥334.88, Cambricon Technologies gained 8.5% to ¥1,311.98, and Zhongji Innolight soared 9.6% to ¥1,099.87. 

U.S. Stocks Attempt to Rebound On Monday, Oil Trades Near One-Month High

Benchmark indexes in New York inched higher on Monday following steep losses in the previous week, despite escalating tensions in the Middle East. 

The S&P 500 index increased 0.2%, and the tech-focused Nasdaq Composite advanced 0.4% amid improving market sentiment. 

In Europe, benchmark indexes edged higher by 0.23% and erased morning losses of 0.2% as investors returned to increase exposure to the recently beaten-down semiconductor-related stocks. 

Across Asia, caution prevailed, and investors continued to lighten exposure to semiconductor- and AI-related stocks for the third consecutive week. 

Benchmark indexes in Seoul dropped 4.5%; in Taipei, they declined 0.3%; in Mumbai, they decreased 0.3%, and financial markets were closed in Tokyo for a public holiday. 

Last week, global equity markets navigated a volatile week as the sell-off in compute chipmakers intensified, while Indian and European markets displayed resilience. 

Market averages in Japan, South Korea, and Taiwan plunged between 6% and 9%. 

In the U.S., the S&P 500 index dropped 1.6%, and the tech-heavy Nasdaq Composite decreased 2.9% driven by double-digit losses in semiconductor-linked stocks. 

In Monday's trading in New York, crude oil declined 0.6% to $81.87 a barrel, and oil prices traded at a one-month high as escalating hostilities between the U.S. and Iran continued to disrupt energy shipments through the Strait of Hormuz. 

The yield on 10-year U.S. Treasury bonds edged higher to 4.57% as escalating tensions in the Middle East fueled concerns over inflation and potential interest rate hikes. 

The Federal Reserve is still widely expected to leave rates unchanged after a two-day policy meeting on July 29, but economists are anticipating a 25 basis point rate hike in September.  

U.S. Movers 

Ryanair Holdings decreased 4% to $60.10 after the budget airline reported a 34% plunge in after-tax profit in the fiscal first quarter ending in June. 

Net income decreased 34% to €538 million from €820 million a year ago, driven by an 11% surge in operating costs to €3.81 billion. 

Diluted earnings per share decreased to 51.21 cents from 76.59 cents a year ago.

Revenue increased 1% to €4.38 billion from €4.34 billion, driven by a 6% increase in passengers to 61.3 million from 57.9 million a year ago, respectively.

The price of its 20% unhedged jet fuel spiked, and fares fell 6%, primarily due to the impact of the Middle East and a holiday calendar shift. 

Alibaba Group Holding increased 3.5% to $119.00 following the company's preview launch of its flagship Qwen 3.8 Max model on Sunday. 

The company's latest large language model features 2.4 trillion parameters, inching further higher in the top-tier frontier AI systems. 

U.S. Stocks Attempt to Rebound On Monday, Oil Trades Near One-Month High

Benchmark indexes in New York inched higher on Monday following steep losses in the previous week, despite escalating tensions in the Middle East. 

The S&P 500 index increased 0.2%, and the tech-focused Nasdaq Composite advanced 0.4% amid improving market sentiment. 

In Europe, benchmark indexes edged higher by 0.23% and erased morning losses of 0.2% as investors returned to increase exposure to the recently beaten-down semiconductor-related stocks. 

Across Asia, caution prevailed, and investors continued to lighten exposure to semiconductor- and AI-related stocks for the third consecutive week. 

Benchmark indexes in Seoul dropped 4.5%; in Taipei, they declined 0.3%; in Mumbai, they decreased 0.3%, and financial markets were closed in Tokyo for a public holiday. 

Last week, global equity markets navigated a volatile week as the sell-off in compute chipmakers intensified, while Indian and European markets displayed resilience. 

Market averages in Japan, South Korea, and Taiwan plunged between 6% and 9%. 

In the U.S., the S&P 500 index dropped 1.6%, and the tech-heavy Nasdaq Composite decreased 2.9% driven by double-digit losses in semiconductor-linked stocks. 

In Monday's trading in New York, crude oil declined 0.6% to $81.87 a barrel, and oil prices traded at a one-month high as escalating hostilities between the U.S. and Iran continued to disrupt energy shipments through the Strait of Hormuz. 

The yield on 10-year U.S. Treasury bonds edged higher to 4.57% as escalating tensions in the Middle East fueled concerns over inflation and potential interest rate hikes. 

The Federal Reserve is still widely expected to leave rates unchanged after a two-day policy meeting on July 29, but economists are anticipating a 25 basis point rate hike in September.  

U.S. Movers 

Ryanair Holdings decreased 4% to $60.10 after the budget airline reported a 34% plunge in after-tax profit in the fiscal first quarter ending in June. 

Net income decreased 34% to €538 million from €820 million a year ago, driven by an 11% surge in operating costs to €3.81 billion. 

Revenue increased 1% to €4.38 billion from €4.34 billion, driven by a 6% increase in passengers to 61.3 million from 57.9 million a year ago, respectively.

The price of its 20% unhedged jet fuel spiked, and fares fell 6%, primarily due to the impact of the Middle East and a holiday calendar shift. 

Alibaba Group Holding increased 3.5% to $119.00 following the company's preview launch of its flagship Qwen 3.8 Max model on Sunday. 

The company's latest large language model features 2.4 trillion parameters, inching further higher in the top-tier frontier AI systems. 

Indexes In Asia Struggled to Overcome Semiconductor Sector Sell-Off

Indexes in South Korea and Taiwan retained a downward bias amid concerns over the AI trade and escalating tensions in the Middle East.

Japan's indexes plunged 4% on Friday and extended the previous week's losses to over 8% amid concerns over the AI trade and escalating tensions in the Middle East.

Japan's financial markets were closed on Monday for a public holiday, and benchmark indexes in South Korea, Taiwan, and India extended the previous week's losses amid a deepening global rout in semiconductor-related stocks. 

In Friday's trading, the Nikkei 225 Stock Average decreased 4.0%, the broader TOPIX fell 2.7%, and the Japanese yen closed at 162.38 against the U.S. dollar. 

Benchmark indexes in Tokyo extended the previous week's sharp losses between 5% and 8% amid rising concerns over the unsustainable level of elevated AI infrastructure spending and stretched valuations. 

Computer chipmakers and semiconductor equipment makers led decliners in Tokyo for the third consecutive week. 

Kioxia Holdings dropped 16% and extended its one-month loss to 50%; Tokyo Electron decreased 8% and plunged 10% in the previous one month of trading. 

The yield on 10-year Japanese government bonds held steady at 2.71% as oil prices surged for the third consecutive week. 

The Brent crude oil price rose 2.6% to $90.34 a barrel on escalating hostilities between the U.S. and Iran, and Iran declared that the ceasefire with the U.S. effectively had collapsed.  

Japan Indexes and Stocks 

The Nikkei 225 Stock Average dropped 4.0% to 64,141.12, and the broader TOPIX decreased 2.7% to 3,919.21. 

Tokyo Electron dropped 8.2% to ¥65,100.0, Advantest Corp. fell 7.2% to ¥27,505.0, and Lasertec Corp. plunged 9.7% to ¥41,890.0. 

Nippon Yusen KK advanced 3.0% to ¥5,706.0, Mitsui OSK Lines rose 1.6% to ¥5,609.0, and Kawasaki Kisen Kaisha Ltd. gained 3.3% to ¥2,723.50. 

Idemitsu Kosan Co. Ltd. decreased 1.7% to ¥1,241.0, ENEOS Holdings dropped 2.4% to ¥1,243.50, and Inpex Corp. fell 0.8% to ¥3,401.0. 

Indexes In A Struggled to Overcome Semiconductor Sector Sell-Off

Japan's benchmark indexes closed sharply lower on Friday and extended the previous week's losses amid deepening global rout in semiconductor-related stocks. 

The Nikkei 225 Stock Average decreased 4.0%, the broader TOPIX fell 2.7%, and the Japanese yen closed at 162.38 against the U.S. dollar. 

Benchmark indexes in Tokyo extended the week's sharp losses between 5% and 8% amid rising concerns over the unsustainable level of elevated AI infrastructure spending and stretched valuations. 

Computer chipmakers and semiconductor equipment makers led decliners in Tokyo for the third consecutive week. 

Kioxia Holdings dropped 16% and extended its one-month loss to 50%; Tokyo Electron decreased 8% and plunged 10% in the previous one month of trading. 

The yield on 10-year Japanese government bonds held steady at 2.71% as oil prices surged for the third consecutive week. 

In Monday's trading, the Brent crude oil price rose 2.6% to $90.34 a barrel on escalating hostilities between the U.S. and Iran, and Iran declared that the ceasefire with the U.S. effectively had collapsed.  

Benchmark indexes in South Korea dropped 3% and in Taiwan edged up 0.2%. 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average dropped 4.0% to 64,141.12, and the broader TOPIX decreased 2.7% to 3,919.21. 

Tokyo Electron dropped 8.2% to ¥65,100.0, Advantest Corp. fell 7.2% to ¥27,505.0, and Lasertec Corp. plunged 9.7% to ¥41,890.0. 

Nippon Yusen KK advanced 3.0% to ¥5,706.0, Mitsui OSK Lines rose 1.6% to ¥5,609.0, and Kawasaki Kisen Kaisha Ltd. gained 3.3% to ¥2,723.50. 

Idemitsu Kosan Co. Ltd. decreased 1.7% to ¥1,241.0, ENEOS Holdings dropped 2.4% to ¥1,243.50, and Inpex Corp. fell 0.8% to ¥3,401.0. 

China Stepped Up Regulatory Support to Revive Market Sentiment, PBoC Held LPR Rates at Record Lows

China's indexes rebounded sharply on Monday as authorities ramped up efforts to rebuild investor confidence and stabilize the country's stock market. 

The Hang Seng Index soared nearly 2%, and the mainland-focused CSI 300 Index gained 1.8% amid expectations of additional regulatory steps supporting market momentum. 

The state-controlled China Reform Holdings and China Chengtong Holdings increased their allocations to domestic Chinese corporations and vowed to expand holdings to help stabilize markets.  

The People's Bank of China held its loan prime rates steady for the 14th month in a row in July, with the one-year rate steady at 3.0% and the five-year rate at 3.5%. 

Last week, China's statistical agency confirmed that the economic growth slowed to 4.2% in the second quarter, and retail sales, property transactions, and fixed-asset investment lagged expectations. 

State-controlled media reported that securities regulators are preparing to meet with market participants to discuss measures that will support the stable development of capital markets.

Chinese policymakers have prioritized renewable energy products, electric vehicles, and artificial intelligence-linked products and services to lower dependence on imported energy and agriculture products. 

China Indexes and Stocks 

The Hang Seng Index jumped 1.9% to 25,034.97, and the mainland-focused CSI 300 Index rose 1.8% to 4,615.75. 

Benchmark indexes rebounded from last week's sharp losses amid a global rout in semiconductor- and AI-linked stocks. 

The Industrial and Commercial Bank of China rose 1.7% to HK $7.03, the Bank of China advanced 2.1% to HK $5.19, and the Agricultural Bank of China increased 2.8% to HK $5.84. 

Hong Kong Shanghai Bank Holdings plc decreased by 0.3% to HK$156.30. 

China Stepped Up Regulatory Support to Revive Market Sentiment, PBoC Held LPR Rates at Record Lows

China's indexes rebounded sharply on Monday as authorities ramped up efforts to rebuild investor confidence and stabilize the country's stock market. 

The Hang Seng Index soared nearly 2%, and the mainland-focused CSI 300 Index gained 1.8% amid expectations of additional regulatory steps supporting market momentum. 

The state-controlled China Reform Holdings and China Chengtong Holdings increased their allocations to domestic Chinese corporations and vowed to expand holdings to help stabilize markets.  

The People's Bank of China held its loan prime rates steady for the 14th month in a row in July, with the one-year rate steady at 3.0% and the five-year rate at 3.5%. 

Last week, China's statistical agency confirmed that the economic growth slowed to 4.2% in the second quarter, and retail sales, property transactions, and fixed-asset investment lagged expectations. 

State-controlled media reported that securities regulators are preparing to meet with market participants to discuss measures that will support the stable development of capital markets.

Chinese policymakers have prioritized renewable energy products, electric vehicles, and artificial intelligence-linked products and services to lower dependence on imported energy and agriculture products. 

China Indexes and Stocks 

The Hang Seng Index jumped 1.9% to 25,034.97, and the mainland-focused CSI 300 Index rose 1.8% to 4,615.75. 

Benchmark indexes rebounded from last week's sharp losses amid a global rout in semiconductor- and AI-linked stocks. 

The Industrial and Commercial Bank of China rose 1.7% to HK $7.03, the Bank of China advanced 2.1% to HK $5.19, and the Agricultural Bank of China increased 2.8% to HK $5.84. 

Hong Kong Shanghai Bank Holdings plc decreased by 0.3% to HK$156.30. 

Japan's Nikkei 225 Plunged 5% as Global Ai Trade Unwinds

Japan's benchmark indexes turned sharply lower and extended weekly losses amid deepening global sell-off in AI-related stocks. 

The Nikkei 225 Stock Average fell nearly 5%, the broader TOPIX fell more than 3%, and the yen weakened to 162.41 against the U.S. dollar. 

The yield on 10-year Japanese government bonds inched higher for the second consecutive session and increased to 2.73% amid imported-energy-driven inflation. 

The price of Brent crude oil rose 1% to $85.09 a barrel amid escalating military exchanges between the U.S. and Iran, raising fears of a prolonged shutdown of commercial shipping through the Strait of Hormuz. 

Japan's leading semiconductor equipment and electronic component makers extended weekly losses in Friday's trading as investors soured on the prospects of an AI-driven rally. 

For the week, Kioxia Holdings plunged 31%, Tokyo Electron declined 11%, Advantest Corp. fell 10%, SoftBank Group declined 17%, and Lasertec Corp. decreased 9%. 

The Japanese yen wobbled around the 162 level amid growing realization that the fiscal policy expansion and the Bank of Japan's reluctance to lift rates amid increasing inflationary pressures driven by the five-monthlong conflict in the Middle East.  

Many currency traders are preparing the yen to test the 170 mark against the U.S. dollar, as the Bank of Japan shows no urgency to revise rates higher, Japanese corporations continue to park their overseas earnings in foreign nations, and the Japanese government pursues expansionary fiscal policy.  

Japan Indexes and Stocks 

The Nikkei 225 Stock Average decreased 5.8% to 62,939.59, and the broader TOPIX dropped 4.1% to 3,866.99. 

For the week, the Nikkei 225 Stock Average plunged 8.7%, and the TOPIX dropped 5.0%, driven by sharp losses in semiconductor-related stocks. 

South Korean markets were closed on Friday, but Taiwan's benchmark index closed down 6%. 

SoftBank Group plunged 12.4% to ¥5,221.0, Tokyo Electron decreased 10.5% to ¥63,450.0, Advantest Corp. declined 12.9% to ¥26,095.0, and Kioxia Holdings dropped 16.1% to ¥52,110.0. 

Nippon Yusen KK gained 2.6% to ¥5,684.0, Mitsui OSK Lines edged up 0.9% to ¥5,571.0, and Kawasaki Kisen Kaisha Ltd. increased 2.3% to ¥2,704.0. 

Japan's Nikkei 225 Plunged 5% as Global Ai Trade Unwinds

Japan's benchmark indexes turned sharply lower and extended weekly losses amid deepening global sell-off in AI-related stocks. 

The Nikkei 225 Stock Average fell nearly 5%, the broader TOPIX fell more than 3%, and the yen weakened to 162.41 against the U.S. dollar. 

The yield on 10-year Japanese government bonds inched higher for the second consecutive session and increased to 2.73% amid imported-energy-driven inflation. 

The price of Brent crude oil rose 1% to $85.09 a barrel amid escalating military exchanges between the U.S. and Iran, raising fears of a prolonged shutdown of commercial shipping through the Strait of Hormuz. 

Japan's leading semiconductor equipment and electronic component makers extended weekly losses in Friday's trading as investors soured on the prospects of an AI-driven rally. 

For the week, Kioxia Holdings plunged 31%, Tokyo Electron declined 11%, Advantest Corp. fell 10%, SoftBank Group declined 17%, and Lasertec Corp. decreased 9%. 

The Japanese yen wobbled around the 162 level amid growing realization that the fiscal policy expansion and the Bank of Japan's reluctance to lift rates amid increasing inflationary pressures driven by the five-monthlong conflict in the Middle East.  

Many currency traders are preparing the yen to test the 170 mark against the U.S. dollar, as the Bank of Japan shows no urgency to revise rates higher, Japanese corporations continue to park their overseas earnings in foreign nations, and the Japanese government pursues expansionary fiscal policy.  

Japan Indexes and Stocks 

The Nikkei 225 Stock Average decreased 5.8% to 62,939.59, and the broader TOPIX dropped 4.1% to 3,866.99. 

For the week, the Nikkei 225 Stock Average plunged 8.7%, and the TOPIX dropped 5.0%, driven by sharp losses in semiconductor-related stocks. 

SoftBank Group plunged 12.4% to ¥5,221.0, Tokyo Electron decreased 10.5% to ¥63,450.0, Advantest Corp. declined 12.9% to ¥26,095.0, and Kioxia Holdings dropped 16.1% to ¥52,110.0. 

Nippon Yusen KK gained 2.6% to ¥5,684.0, Mitsui OSK Lines edged up 0.9% to ¥5,571.0, and Kawasaki Kisen Kaisha Ltd. increased 2.3% to ¥2,704.0. 

Stretched Valuations and AI Fatigue Deepen China and Asia-Wide Sell-Off

China's indexes turned sharply lower and extended weekly losses amid growing bearishness towards artificial intelligence trade. 

The Hang Seng Index decreased nearly 2%, and the mainland-focused CSI 300 Index fell about 2.5% as investors questioned the recent rally in AI- and semiconductor-linked stocks. 

Stocks in Shanghai and Hong Kong struggled to rise above the flatline as a global sell-off persists in semiconductor stocks. 

Investors looked ahead to the policymakers gathering later this month following the release of mixed economic data. 

China's economic growth slowed to 4.2% in the second quarter, slower than 5% in the first quarter, but industrial production accelerated following the sustained rise in exports to the ASEAN region, the European Union, and the U.S. 

Economic growth slowed to its lowest pace since late 2022 amid persistent weakness in domestic consumer demand and lingering weakness in the property sector. 

The weakness in property prices across 70 major cities and the weakening job market overshadowed the strong rise in global goods exports in the first half. 

China's economic growth in 2026 is likely to slow to 4.0% and weaken further to 3.5% in 2027. 

China Indexes and Stocks 

The Hang Seng Index decreased 1.8% to 24,556.88, and the mainland-focused declined 2.4% to 4,586.72.

For the week, the Hang Seng advanced 1.5%, the CSI 300 Index fell 3.5%, and the SSE Composite decreased 3.7%. 

Semiconductor-linked stocks led decliners in Hong Kong, Shanghai, and Shenzhen trading. 

Naura Technology declined 2.7% to ¥685.47, Eoptolink Technology fell 6.5% to ¥505.20, Zhongji Innolight plunged 10% to ¥1,001.07, and SMIC fell 6% to $70.65. 

Hygon Information Technology decreased 4.2% to ¥306.86; Cambricon Technologies fell 10.1% to ¥1,207.00.