Market UpdatesAug 19, 20262 Min

Global market wrap: Asian stocks tumble on selloff in chip stocks; Xiaomi shares surge 7% in Hong Kong

Global Market Wrap

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

Asian stock markets slid on Wednesday amid a selloff seen in tech and chip stocks worldwide as the Middle East conflict deteriorates. The global bond rout also worsened sentiment.

South Korea’s Kospi index tumbled 5.5% on Wednesday to 6,495. Japan’s Nikkei index declined 3.1% to 65,358.

China’s Shanghai Composite index lost 2% to 3,912, while Hong Kong’s Hang Seng Index was marginally up by 0.2% to 25,533.

Singapore’s Straits Times slipped 0.2% to 5,680 on Wednesday, while Australia’s S&P/ASX 200 was down 0.4% to 9,036.

US stock futures also dropped on Wednesday after key market indices closed lower for a third day. S&P 500 futures inched down 0.1%, Nasdaq 100 futures down 0.3%, while futures tied to the Dow slipped 0.13%.

On Tuesday, the S&P 500 index slipped for a third day, closing down 0.7%. The Dow Jones Industrial Average also slipped 0.2%, while the Nasdaq Composite was down 1.3%s.

Oil prices rose further on Wednesday after Iran claimed that the key shipping route of the Strait of Hormuz remained closed.

The US crude oil futures for September delivery gained 0.75% to $84.69 per barrel by 0056 EDT, while Brent futures for October delivery rose 0.67% to $91.62 per barrel.

Gold prices dropped on Wednesday ahead of the release of the latest Federal Open Market Committee (FOMC) meeting minutes set to be released later in the day. Spot gold declined 0.5% to $4,399 per ounce by 0456 GMT, while US gold futures for ​December delivery slipped 0.5% to $4,398 per ounce.

Here’s a look at the key developments of the day:

OpenAI’s Q2 revenue growth disappoints investors

According to a report, ChatGPT maker OpenAI’s revenue grew just 18% in the second quarter, lagging far behind rival Anthropic.

OpenAI reportedly told investors that its revenue reached $6.7 billion in the quarter ended June compared with $5.7 billion in the first quarter. In comparison, Anthropic more than doubled its revenue to $11.6 billion during the same period, surpassing OpenAI significantly.

OpenAI’s operating loss also widened to $12.3 billion in the June quarter compared with $9.3 billion loss in the first quarter, the report said.

Anthropic plans to give extra voting power to CEO, founders ahead of IPO

Anthropic PBC is reportedly planning to give its Chief Executive Officer Dario Amodei and other co-founders shares extra voting power as the company prepares to make its Wall Street debut, according to a report.

This kind of share structure is now common in the tech industry as it is designed to make sure that founders have greater say over the direction of their company, the report said. It added that the specifics of the voting ⁠arrangements at Anthropic could not be learned, and the plans could still change.

Unitree Robotics Surges 629% After $904 Million Shanghai IPO

The world’s biggest humanoid-robot maker by sales received overwhelming response from investors on its stock market debut in China. Unitree Robotics shares opened 629% higher in their Shanghai trading debut after raising $904 million in its initial public offering (IPO).

The shares of the Hangzhou-based company rose to 1,100 yuan from the IPO price of 150.8 yuan, before paring some gains. The opening price gave the company a market value of 445 billion yuan.

Xiaomi shares surge 7% in Hong Kong after second quarter earnings

Hong Kong-listed Xiaomi shares rose 6.8% on Wednesday after the company said the worst period of pressure on its smartphone business had passed as the pace of memory price hikes looked set to slow in the second half.

The Chinese technology group reported second-quarter revenue of 108.9 billion yuan ($16.15 billion), down 6.1% from a year earlier, while adjusted net profit slipped 42.6% to 6.2 billion yuan.

ShengShu Technology exploring $500 million Hong Kong IPO

AI video platform ShengShu Technology is exploring a Hong Kong initial public offering that could raise more than $500 million, according to a report.

The company that operates the Vidu video generator and is backed by Alibaba Group Holding Ltd has engaged China International Capital Corp. and Citic Securities Co. to work on the planned share sale. The report added that the IPO may be launched next year.