Global market wrap: Asian stocks decline amid uncertainty over US-Iran war; Kospi tumbles as Bank of Korea hikes rates

We are back with quick updates on global stock markets, commodities and companies that you shouldn’t miss today.

Asian markets mostly traded lower on Thursday as sentiment continued to remain volatile over growing geopolitical uncertainties.

US President Donald Trump said on Wednesday that Iran was showing willingness to negotiate, even as the military carried out another wave of strikes against Iran.

South Korea’s benchmark Kospi tumbled 6.3% on Thursday to 6,828, weighed down by a selloff in chip stocks. Japan’s Nikkei 225 declined 2.5% to 67,070.

China’s Shanghai Composite index also fell 0.8% to 3,923. Australia’s S&P/ASX 200 slipped 0.2% to 8,823, while Singapore’s Straits Times was down 0.4% to 5,537.

The only outlier was Hong Kong’s Hang Seng Index, which gained 1.7% to 25,099 on Thursday.

US stock futures were trading up marginally on Thursday. S&P 500 futures inched up 0.1%, Nasdaq 100 futures rose 0.12%, while futures tied to the Dow gained 0.13%.

Softer-than-expected inflation data and strong corporate earnings aided US equities in the previous session on Wednesday. The S&P 500 gained 0.4%, the Nasdaq 100 jumped 0.6%, while the Dow Jones Industrial Average rose 0.3%.

Oil prices were trading flat on Thursday amid news that the US has fired on an oil tanker attempting to reach Kharg Island in the Strait of Hormuz as part of its blockade on Iranian ports. The US crude oil futures for July delivery were unchanged at $79.60 per barrel by 0008 ET, while Brent futures for August delivery were down 0.2% to $84.79 per barrel.

Gold prices fell on Thursday as higher oil prices offset the impact of softer US inflation data. Spot gold fell 0.6% to $4,034 per ounce by 0411 GMT, while US gold futures for ​August delivery were down 0.3% to $4,040 per ounce.

Here’s a look at some major developments across global markets:

Alibaba and Baidu gain on partnership with Apple

Hong Kong-listed shares of Chinese tech giants Alibaba and Baidu gained 5% and 4%, respectively, after the companies confirmed that they were partnering with Apple to deploy their artificial intelligence (AI) tools.

An Alibaba spokesperson told CNBC Wednesday that Qwen will be integrated into Apple Intelligence experiences within iOS, iPadOS, macOS, and vision OS for users in China. Meanwhile, Baidu confirmed that it was working with the US company on Apple Intelligence features for iPhones in China.

Bank of Korea raises rates for first time in over three years

South Korea’s central bank has raised benchmark policy rates for the first time since January 2023 to tackle rising inflation.

The Bank of Korea hiked key policy rate by 25 basis points on Thursday to 2.75%, in line with estimates. “Inflation is projected to remain elevated for some time as the impact of the rise in energy prices feeds through with a time lag,” the central bank said in its statement.

SK Hynix shares slide 11% amid broader tech selloff

Shares of South Korean chipmaker declined over 11% on Thursday, taking cues from the correction seen in shares of major chip companies in the US overnight.

Thursday’s fall reversed the 8% gain seen in the SK Hynix stock in the previous session. The share price has been under pressure after the company’s American Depository Receipt (ADR) got listed on Friday on Nasdaq amid growing worries over AI spending by tech companies.

SpaceX shares fall below IPO price

Elon Musk-led SpaceX shares fell below their IPO price of $135 apiece on Wednesday at the most vulnerable time when the stock is staring at more potential volatility in early August.

The share “lockup” restrictions on insiders are likely to lift in coming weeks, potentially flooding the market with additional shares. The stock price may see renewed pressure as the number of shares available for trading on the Nasdaq increases significantly.

SpaceX stock on Wednesday hit a low of $132.15 before closing at $135.27. It is now down 33% from its peak.

Data center provider Csquare IPO raises $1.05 billion

Amid a rebound in the IPO activity in the US, Dallas-based data center provider Csquare on Thursday announced that it has raised $1.05 billion through its public offer.

Csquare sold 50 million shares at $21 apiece, below its marketed range ​of $23 to $27, valuing the company at about $3.25 billion. Shares are expected ​to begin ⁠trading on the New York Stock Exchange on July 16.