Japan's 3-Day Rally Extended Advances as Semiconductor Equipment Makers Led Gainers

Japan's benchmark indexes extended their gains for the third consecutive session, and investors shrugged off AI valuation worries. 

The Nikkei 225 Stock Average edged up 0.8%, the broader TOPIX inched higher 0.5%, and the yen held near 161.67 against the U.S. dollar. 

AI- and semiconductor-linked stocks powered the broader market rally, reflecting technology-led rally on Wall Street overnight.  

The S&P 500 index jumped 0.8%, and the tech-heavy Nasdaq Composite advanced 1.5% in New York, as the AI-linked stocks rebounded. 

The Nikkei 225 jumped 37% in the second quarter, the best quarterly return dating back to 1965, and gained 40% at the end of the first half. 

The sharp rally in Japanese stocks was supported by a surge in semiconductor equipment makers and electronic component makers, driven by a global demand for AI-powered data centers. 

Market sentiment remained buoyant despite Iran war-driven energy and supply chain shocks and uncertainties related to the U.S. tariffs. 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average increased 0.8% to 70,642.93, and the broader TOPIX advanced 0.5% to 4,014.79. 

Tokyo Electron gained 2.4% to ¥79,130.0, extending this year's rise to over 110%, Advantest Corp. inched up 0.5% to ¥32,390.0, and Taiyo Yuden jumped 15% to ¥23,110.0. 

In the first half, SoftBank Group soared 30%, Kioxia Holdings jumped 689%, and Furukawa Electric surged 313%.

Japan's 3-Day Rally Extended Advances as Semiconductor Equipment Makers Led Gainers

Japan's benchmark indexes extended their gains for the third consecutive session, and investors shrugged off AI valuation worries. 

The Nikkei 225 Stock Average edged up 0.8%, the broader TOPIX inched higher 0.5%, and the yen held near 161.67 against the U.S. dollar. 

AI- and semiconductor-linked stocks powered the broader market rally, reflecting technology-led rally on Wall Street overnight.  

The S&P 500 index jumped 0.8%, and the tech-heavy Nasdaq Composite advanced 1.5% in New York, as the AI-linked stocks rebounded. 

The Nikkei 225 jumped 37% in the second quarter, the best quarterly return dating back to 1965, and gained 40% at the end of the first half. 

The sharp rally in Japanese stocks was supported by a surge in semiconductor equipment makers and electronic component makers, driven by a global demand for AI-powered data centers. 

Market sentiment remained buoyant despite Iran war-driven energy and supply chain shocks and uncertainties related to the U.S. tariffs. 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average increased 0.8% to 70,642.93, and the broader TOPIX advanced 0.5% to 4,014.79. 

Tokyo Electron gained 2.4% to ¥79,130.0, extending this year's rise to over 110%, Advantest Corp. inched up 0.5% to ¥32,390.0, and Taiyo Yuden jumped 15% to ¥23,110.0. 

In the first half, SoftBank Group soared 30%, Kioxia Holdings jumped 689%, and Furukawa Electric surged 313%.

China Indexes Struggled to Rise Above Flatline

China's indexes traded mixed, and investors shrugged off recent AI valuation worries. 

The Hang Seng Index decreased 0.6%, and the mainland-focused CSI 300 Index fell 0.4% as investors reviewed the private survey of business activity. 

RatingDog China Manufacturing PMI inched down to a three-month low of 51.7 in June, from 51.8 in May, according to the monthly update released by S&P Global. 

The private survey, which includes a larger sample of mid-sized companies and export-driven businesses, showed faster growth than the official data released on Tuesday. 

The NBS Manufacturing PMI increased to 50.3 from 50.0 in May, largely because of the surge in high-tech exports overcoming the persistent weakness in domestic demand.  

In overnight trading in New York, the S&P 500 Index increased 0.8%, and the tech-heavy Nasdaq Composite jumped 1.5% following a rebound in AI-related stocks. 

China Indexes and Stocks 

The Hang Seng Index decreased 0.6% to 22,881.02, and the mainland-focused CSI 300 Index added 0.4% to 5,001.54. 

Semiconductor and tech stocks advanced in the hopes of higher earnings in the current and next year. 

Eoptolink Technology decreased 3.3%, NAURA Technology Group advanced 7.5%, and Shennan Circuits declined 0.3%. 

Zhongji Innolight decreased 2.9% to ¥1,231.0, and SMIC added 5.9% to $89.40. 

China Indexes Struggled to Rise Above Flatline

China's indexes traded mixed, and investors shrugged off recent AI valuation worries. 

The Hang Seng Index decreased 0.6%, and the mainland-focused CSI 300 Index fell 0.4% as investors reviewed the private survey of business activity. 

RatingDog China Manufacturing PMI inched down to a three-month low of 51.7 in June, from 51.8 in May, according to the monthly update released by S&P Global. 

The private survey, which includes a larger sample of mid-sized companies and export-driven businesses, showed faster growth than the official data released on Tuesday. 

The NBS Manufacturing PMI increased to 50.3 from 50.0 in May, largely because of the surge in high-tech exports overcoming the persistent weakness in domestic demand.  

In overnight trading in New York, the S&P 500 Index increased 0.8%, and the tech-heavy Nasdaq Composite jumped 1.5% following a rebound in AI-related stocks. 

China Indexes and Stocks 

The Hang Seng Index decreased 0.6% to 22,881.02, and the mainland-focused CSI 300 Index added 0.4% to 5,001.54. 

Semiconductor and tech stocks advanced in the hopes of higher earnings in the current and next year. 

Eoptolink Technology decreased 3.3%, NAURA Technology Group advanced 7.5%, and Shennan Circuits declined 0.3%. 

Zhongji Innolight decreased 2.9% to ¥1,231.0, and SMIC added 5.9% to $89.40. 

AI Wild Swings and Tech Rally Lifts Major Averages to Best First Half Returns In Five Years

Stocks in New York advanced on Tuesday, and benchmark indexes are set to close out the solid first half and second quarter amid lingering uncertainty in the energy markets. 

The S&P 500 Index increased 0.1%, and the tech-heavy Nasdaq Composite advanced 0.2% as investors reassessed the need for an elevated level of investment in AI infrastructure. 

In the first half, the S&P 500 Index advanced 8%, and the tech-heavy Nasdaq Composite jumped 11%, and major averages created new highs despite the ongoing war in the Middle East and uncertainty over AI infrastructure spending. 

However, market indexes rebounded in the second quarter as fears over the prolonged closure of the Strait of Hormuz eased and investor jitters subsided over the elevated level of AI spending.

Caution still prevailed, and hyperscalers like Alphabet, Meta Platforms, Microsoft, and Oracle dropped as much as 20% from the highs reached in early June. 

Moreover, memory makers continued to scale new highs, and SanDisk, Micron Technology, Marvell Technology, and Seagate booked triple-digit returns in the first half. 

U.S. Movers 

Digital Realty Trust dropped 4.5% to $181.99, and the company agreed to acquire a stake in three data centers from Blackstone for $3.5 billion. 

The company agreed to pay $1.2 billion in cash and $2.3 billion in stock for data centers in Northern Virginia. 

Digital Realty will acquire Blackstone's 80% stake in two 96-megawatt data centers in Manassas, Virginia, and a 50% stake in a similar-sized facility in Sterling, Virginia. 

Kering SA decreased 6.5% to €249.50 after the luxury group reiterated its annual outlook in a call with analysts ahead of its quarterly results on July 28. 

However, the recently appointed CEO Luca de Meo highlighted a challenging macro environment, and disruptions in the Middle East and persistent weakness in China continue to drag on its overall revenues. 

AI Wild Swings and Tech Rally Lifts Major Averages to Best First Half Returns In Five Years

Stocks in New York advanced on Tuesday, and benchmark indexes are set to close out the solid first half and second quarter amid lingering uncertainty in the energy markets. 

The S&P 500 Index increased 0.1%, and the tech-heavy Nasdaq Composite advanced 0.2% as investors reassessed the need for an elevated level of investment in AI infrastructure. 

In the first half, the S&P 500 Index advanced 8%, and the tech-heavy Nasdaq Composite jumped 11%, and major averages created new highs despite the ongoing war in the Middle East and uncertainty over AI infrastructure spending. 

However, market indexes rebounded in the second quarter as fears over the prolonged closure of the Strait of Hormuz eased and investor jitters subsided over the elevated level of AI spending.

Caution still prevailed, and hyperscalers like Alphabet, Meta Platforms, Microsoft, and Oracle dropped as much as 20% from the highs reached in early June. 

Moreover, memory makers continued to scale new highs, and SanDisk, Micron Technology, Marvell Technology, and Seagate booked triple-digit returns in the first half. 

U.S. Movers 

Digital Realty Trust dropped 4.5% to $181.99, and the company agreed to acquire a stake in three data centers from Blackstone for $3.5 billion. 

The company agreed to pay $1.2 billion in cash and $2.3 billion in stock for data centers in Northern Virginia. 

Digital Realty will acquire Blackstone's 80% stake in two 96-megawatt data centers in Manassas, Virginia, and a 50% stake in a similar-sized facility in Sterling, Virginia. 

Kering SA decreased 6.5% to €249.50 after the luxury group reiterated its annual outlook in a call with analysts ahead of its quarterly results on July 28. 

However, the recently appointed CEO Luca de Meo highlighted a challenging macro environment, and disruptions in the Middle East and persistent weakness in China continue to drag on its overall revenues. 

Japan's Jobless Rate Held Steady and Industrial Production Logged Modest Gain In May

Japan's benchmark indexes advanced for the second consecutive session even as the yen hovered at a four-decade low amid growing speculation of regulatory interventions. 

The Nikkei 225 Stock Average increased nearly 1.5%, the broader TOPIX gained 0.8%, and the yen hovered at 161.57 against the U.S. dollar. 

The weaker yen is likely to boost profits at export-driven Japanese corporations but also fuel household inflation because of higher prices for imported commodities. 

Japan's industrial production declined in May, as the Middle East conflict continued to pose risks to supply chains and energy costs. 

Industrial output declined at an annual pace of 1.7%, reversing a 2.0% increase in April, according to a report released by the Ministry of Economy, Trade & Industry. 

On a monthly basis, output rose for the second consecutive month and expanded 0.5% from the previous month, driven by production increases in transportation equipment and chemicals. 

Japan's jobless rate was 2.5% in May, unchanged from the previous month according to a separate report released by the ministry. 

The number of employed in May edged up 0.1% to 68.8 million as fewer people changed jobs at the conclusion of the hiring season for the start of the new business year. 

The job availability ratio edged down a fraction to 1.17, meaning there were 117 jobs available for every 100 job seekers, according to a separate report. 

New job openings declined across all 11 sectors, led by a 16.9% decrease in personal services and amusement services; a 16.8% fall in retail and wholesale trade; a 14.4% decline in accommodation, eating, and drinking services; and a 10.3% weakness in construction. 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average increased 1.4% to 70,508.02, and the broader TOPIX advanced 0.8% to 70,508.02. 

Semiconductor-linked stocks traded mixed as investors reassessed the sustainability of the AI infrastructure investment. 

Tokyo Electron jumped 5%, Advantest Corp. gained 2.9%, SoftBank Group increased 2.5%, and Kioxia Holdings advanced 6.6%. 

Japan's Jobless Rate Held Steady and Industrial Production Logged Modest Gain In May

Japan's benchmark indexes advanced for the second consecutive session even as the yen hovered at a four-decade low amid growing speculation of regulatory interventions. 

The Nikkei 225 Stock Average increased nearly 1.5%, the broader TOPIX gained 0.8%, and the yen hovered at 161.57 against the U.S. dollar. 

The weaker yen is likely to boost profits at export-driven Japanese corporations but also fuel household inflation because of higher prices for imported commodities. 

Japan's industrial production declined in May, as the Middle East conflict continued to pose risks to supply chains and energy costs. 

Industrial output declined at an annual pace of 1.7%, reversing a 2.0% increase in April, according to a report released by the Ministry of Economy, Trade & Industry. 

On a monthly basis, output rose for the second consecutive month and expanded 0.5% from the previous month, driven by production increases in transportation equipment and chemicals. 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average increased 1.4% to 70,508.02, and the broader TOPIX advanced 0.8% to 70,508.02. 

Semiconductor-linked stocks traded mixed as investors reassessed the sustainability of the AI infrastructure investment. 

Tokyo Electron jumped 5%, Advantest Corp. gained 2.9%, SoftBank Group increased 2.5%, and Kioxia Holdings advanced 6.6%. 

Global AI Surge Supported China's Factory Activity Expansion In June

China's indexes lacked direction as investors reviewed the latest updates on business activities. 

The Hang Seng Index decreased more than 1%, and the mainland-focused CSI 300 Index edged up 0.5% after the factory activities expanded for the fourth consecutive month in a row. 

NBS Manufacturing PMI increased to 50.3 in June from 50.0 in the previous month, according to the National Bureau of Statistics. 

The strong export demand for AI-related electric and electronic goods drove the increase in factory activities, despite subdued domestic demand. 

The measure of factory activities showed growth amid Middle East conflict, but strong demand from the ASEAN region and the U.S. supported high-tech exports. 

The NBS nonmanufacturing PMI increased to 50.2 from 50.1 in the previous month amid signs of stabilization in the sector. 

Crude oil prices hovered near the pre-war level as commercial shipment activity picked up in the Strait of Hormuz. 

Brent crude oil prices for immediate-month delivery held at $73.65 a barrel as investors held out for progress in US-Iran peace talks later this week. 

China Indexes and Stocks 

The Hang Seng Index decreased 1.3% to 22,726.02, and the mainland-focused CSI 300 Index added 0.5% to 4,951.56. 

Financial services providers and resource sector stocks led decliners in trading on Tuesday. 

China Life, Zijin Mining, Industrial and Commercial Bank, China Construction Bank, and Agriculture Bank of China declined between 3% and 5%. 

Semiconductor-related stocks stayed in focus in Hong Kong and in Shenzhen following a rebound in tech stocks in overnight trading in New York. 

SMIC jumped 7%, GigaDevice Semiconductor dropped 3%, NAURA Technology increased 2.9%, and Eoptolink soared 9%.

Global AI Surge Supported China's Factory Activity Expansion In June

China's indexes lacked direction as investors reviewed the latest updates on business activities. 

The Hang Seng Index decreased more than 1%, and the mainland-focused CSI 300 Index edged up 0.5% after the factory activities expanded for the fourth consecutive month in a row. 

NBS Manufacturing PMI increased to 50.3 in June from 50.0 in the previous month, according to the National Bureau of Statistics. 

The strong export demand for AI-related electric and electronic goods drove the increase in factory activities, despite subdued domestic demand. 

The measure of factory activities showed growth amid Middle East conflict, but strong demand from the ASEAN region and the U.S. supported high-tech exports. 

The NBS nonmanufacturing PMI increased to 50.2 from 50.1 in the previous month amid signs of stabilization in the sector. 

Crude oil prices hovered near the pre-war level as commercial shipment activity picked up in the Strait of Hormuz. 

Brent crude oil prices for immediate-month delivery held at $73.65 a barrel as investors held out for progress in US-Iran peace talks later this week. 

China Indexes and Stocks 

The Hang Seng Index decreased 1.3% to 22,726.02, and the mainland-focused CSI 300 Index added 0.5% to 4,951.56. 

Financial services providers and resource sector stocks led decliners in trading on Tuesday. 

China Life, Zijin Mining, Industrial and Commercial Bank, China Construction Bank, and Agriculture Bank of China declined between 3% and 5%. 

Semiconductor-related stocks stayed in focus in Hong Kong and in Shenzhen following a rebound in tech stocks in overnight trading in New York. 

SMIC jumped 7%, GigaDevice Semiconductor dropped 3%, NAURA Technology increased 2.9%, and Eoptolink soared 9%.

Fragile U.S.-Iran Ceasefire Keeps Stock and Energy Markets On Edge

Wall Street indexes advanced in Monday's trading, and investors reassessed the latest pause in hostilities between the U.S. and Iran. 

Over the weekend, the U.S. and Iran exchanged fire over the Strait of Hormuz that threatened to derail negotiations in search of lasting peace. 

Uncertainty over the Middle East oil supplies through the Strait of Hormuz remained high amid growing skepticism that the U.S. and Iran could agree on a durable peace agreement. 

The U.S. president promised to end the war in the Middle East in less than four weeks, but after four months there are no signs of ending hostilities in the region. 

Moreover, crude oil inventories in China, Japan, and India are running at and approaching historic low levels, raising fears that tighter supply conditions are likely to persist in the second half of this year. 

For now, the U.S. and Iran paused hostilities and allowed commercial ships to sail freely through the narrow passageway on Monday following a weekend of air strikes in southern Iran, Kuwait, and Bahrain. 

AI-related chip stocks rebounded in Monday's trading, and Arm Holdings increased 2.2%, Marvell Technology gained 2.4%, and Intel advanced 1.7%. 

Across the Atlantic, European stock markets traded down in volatile trading as investors sold off defense-related stocks for the second consecutive week. 

In Asia, benchmark indexes in Japan erased most of the session's early losses and, in Hong Kong, gained more than 1.5% in Monday's trading. 

A global rout in technology stocks intensified as the week progressed, but losses were capped following a decline in crude oil prices at the end of last week.

After a week of wild swings, the S&P 500 index decreased 2%, and the Nasdaq Composite declined 4.6%, with Alphabet, Nvidia, Intel, and Broadcom losing between 8% and 11% amid growing concerns over the stretched AI valuations, sustainability of AI infrastructure spending, and lack of earnings visibility for key AI players. 

The weakness in tech stocks dragged down broader indexes in Japan, South Korea, Taiwan, and Europe.

Fragile U.S.-Iran Ceasefire Keeps Stock and Energy Markets On Edge

Wall Street indexes advanced in Monday's trading, and investors reassessed the latest pause in hostilities between the U.S. and Iran. 

Over the weekend, the U.S. and Iran exchanged fire over the Strait of Hormuz that threatened to derail negotiations in search of lasting peace. 

Uncertainty over the Middle East oil supplies through the Strait of Hormuz remained high amid growing skepticism that the U.S. and Iran could agree on a durable peace agreement. 

The U.S. president promised to end the war in the Middle East in less than four weeks, but after four months there are no signs of ending hostilities in the region. 

Moreover, crude oil inventories in China, Japan, and India are running at and approaching historic low levels, raising fears that tighter supply conditions are likely to persist in the second half of this year. 

For now, the U.S. and Iran paused hostilities and allowed commercial ships to sail freely through the narrow passageway on Monday following a weekend of air strikes in southern Iran, Kuwait, and Bahrain. 

AI-related chip stocks rebounded in Monday's trading, and Arm Holdings increased 2.2%, Marvell Technology gained 2.4%, and Intel advanced 1.7%. 

Across the Atlantic, European stock markets traded down in volatile trading as investors sold off defense-related stocks for the second consecutive week. 

In Asia, benchmark indexes in Japan erased most of the session's early losses and, in Hong Kong, gained more than 1.5% in Monday's trading. 

A global rout in technology stocks intensified as the week progressed, but losses were capped following a decline in crude oil prices at the end of last week.

After a week of wild swings, the S&P 500 index decreased 2%, and the Nasdaq Composite declined 4.6%, with Alphabet, Nvidia, Intel, and Broadcom losing between 8% and 11% amid growing concerns over the stretched AI valuations, sustainability of AI infrastructure spending, and lack of earnings visibility for key AI players. 

The weakness in tech stocks dragged down broader indexes in Japan, South Korea, Taiwan, and Europe.

Japan's Retail Sales Growth Accelerated, Toyota's Global Sales Dropped In May

Japan's benchmark indexes dropped in Monday's trading amid renewed clashes between the U.S. and Iran around the Strait of Hormuz. 

The Nikkei 225 decreased more than 1%, and the broader TOPIX decreased 0.4%, and the yen weakened to 161.79 against the U.S. dollar. 

International crude oil prices hovered around $72 a barrel after U.S. and Iran exchanged fire over the weekend, but both sides agreed to cease hostilities ahead of the next round of talks later this week in Doha, Qatar. 

Closer to home, Japan's retail sales rose for the third consecutive month in May, driven by the government's stimulus plan and rising wages. 

Retail sales increase accelerated to an annual pace of 5.3% from the upwardly revised 2.8% in the previous month, according to a report released by the Ministry of Economy, Trade, and Industry. 

Sales of automobiles soared 23.7%, machinery and equipment surged 14.5%, department stores increased 6.9%, and food and beverages inched higher by 2.4%. 

However, non-store sales decreased 4.2%, fuel declined 2.6%, and apparel and personal goods inched lower by 0.7%.

On a monthly basis, retail sales increased 1.9%, slower than the upwardly revised 2.1% in April, which was the fastest increase in four months.

Japan Indexes and Stocks 

The Nikkei 225 Stock Average decreased 1.1%, and the broader TOPIX declined 0.4% to 3,947.12. 

Semiconductor- and AI-linked stocks eased on Monday amid growing worries that the elevated level of investment in artificial intelligence infrastructure is not sustainable. 

Kioxia Holdings decreased 6.1% to ¥86,470.0, SoftBank Group fell 5.1% to ¥5,905.0, Tokyo Electron edged up 1.5% to ¥74,060.0, and Advantest Corp. dropped 1.7% to ¥31,860.0. 

Sumitomo Mitsui Financial decreased 1% to ¥6,327.0, Mitsubishi UFJ Financial dropped 1.5% to ¥3,195.0, and Mizuho Financial declined 1.4% to ¥7,689.0. 

Nippon Yusen decreased 1.5% to ¥5,184.0, Mitsui OSK Lines added 0.5% to ¥5,243.0, and Kawasaki Kisen Kaisha fell 0.6% to ¥2,445.50. 

Toyota Motor Corp declined 0.5% to ¥2,755.50, and the vehicle maker said its global sales in May declined 7.2% from a year ago to 834,279 units. 

Global sales decreased for the fourth consecutive month, largely because of the sluggish demand in China amid the Middle East conflict. 

Toyota's exports to the Middle East plunged 66% to 7,323, declining for the fourth consecutive month because of the supply disruptions following the regional conflict.