Market UpdatesAug 20, 20262 Min
Global market wrap: Asian stocks bounce back as US markets gain; SK Hynix jumps over 13%
We are back with quick updates on global developments around stock markets, commodities and companies that you shouldn’t miss today.
Asian stocks recovered on Thursday tracking gains in the US market after yields on longer-dated US Treasurys pulled back from multi-year highs.
South Korea’s Kospi index climbed 6.2% on Thursday to 6,872. Japan’s Nikkei index rose 0.9% to 65,938.
China’s Shanghai Composite index inched up 0.3% to 3,905 after the country’s central bank kept benchmark lending rates unchanged for another month. Hong Kong’s Hang Seng Index also jumped 1.1% to 25,786.
Australia’s S&P/ASX 200 was marginally up by 0.2% to 9,073 on Thursday. However, Singapore’s Straits Times dropped 0.4% to 5,672.
US stock futures ticked slightly higher on Thursday after the stock markets closed in the green after three days of losses. S&P 500 futures rose 0.2%, Nasdaq 100 futures were up 0.5%, while futures tied to the Dow were almost flat, up just 0.06%.
On Wednesday, the S&P 500 index snapped a three-day losing streak to close higher by 0.2%. The Dow Jones Industrial Average and the Nasdaq Composite were also up 0.2% each.
Oil prices rose further on Thursday as tensions in the Middle East escalated after US President Donald Trump announced an economic warfare on Iran and threatened “tremendous” consequences for its supporters.
The US crude oil futures for September delivery rose 0.2% to $84.56 per barrel by 0026 EDT, while Brent futures for October delivery jumped 0.36% to $91.95 per barrel.
Gold prices in the US hovered near two-month highs on Thursday on lower US Treasury yields and softer dollar. US gold futures for December delivery inched up 0.15% to $4,552.14 per ounce. However, spot gold fell 0.6% to $4,495 per ounce by 0426 GMT.
Here’s a look at the key developments of the day:
Merck, Moderna shares shoot up as cancer vaccine shows promise
Shares of pharmaceutical company Merck jumped over 12% on Wednesday, while Moderna shares soared a massive 177% in a single day after the companies announced that their experimental personalized cancer vaccine have showed positive initial results in the first-ever late-stage trial. This brings them one step closer to filing for approval of the treatment option.
The movement of the two stocks was so wide apart because of the companies’ relative sizes. Merck’s market capitalisation was around $333 billion as it entered the trade on Wednesday, while Moderna’s market cap was near $25 billion.
Stripe to acquire AI startup OpenRouter
Fintech company Stripe said on Wednesday that it planned to buy artificial intelligence (AI) startup OpenRouter to expand into the AI model market.
Terms of the deal weren’t disclosed, but a report said that the price tag is about $7.5 billion, with $1.5 billion allocated to OpenRouter’s founders. OpenRouter had raised $113 million at a valuation of about $1.3 billion less than three months ago.
SK Hynix shares bounce back over 13% after record $28.6 billion buyback plan
South Korea-listed shares of memory-chip giant SK Hynix Inc. bounced back by over 13% on Thursday after the company announced a record $28.6 billion share buyback. The buyback aimed to calm investors after the stock plunged nearly 10% in the previous session due to a broader selloff in semiconductor stocks.
SK Hynix said its board has approved a plan to buy back and cancel $28.6 billion of its own shares between August 20 and November 19. The programme covers about 24.07 million shares, equivalent to roughly 3.3% of shares outstanding.
Australia jobless rate hits near 5-year high at 4.5% in July
Data on Thursday showed that the Australian unemployment rate shot up unexpectedly in July and hit its highest since late 2021. This took off some pressure on the central bank to raise interest rates.
Figures from the Australian Bureau of Statistics showed net employment fell 15,800 in July compared with June when it had risen by a revised 80,300. This was against forecasts for an increase of 15,000 jobs, though full-time jobs did rise by 16,300.
Japan’s imports hit record on oil costs; exports also hit a high on chip demand
Japan’s imports hit a monthly record in July as elevated oil prices drove up energy costs and inflationary pressures, while exports also climbed to an all-time high on a weaker yen and robust semiconductor-related demand.
Total imports by value grew 27.8% from a year earlier to 12.1 trillion yen ($76.39 billion), data showed on Thursday, hitting a fresh record for the second straight month and exceeding market forecasts for a 26.5% increase.
Exports growth accelerated for a fifth month, coming in at 23.2%. This was on the back of a 49% jump in value of semiconductor equipment exports.
