Market UpdatesJun 29, 20262 Min
Asian markets wobble again on fresh US-Iran tensions; Oil rises, gold falls
We are back again with quick updates on key happenings across global markets, commodities and companies.
Asia-Pacific markets traded mixed on Monday as investors weighed escalating tensions between the US and Iran following fresh attacks in the Middle East. Over the weekend, the US struck Iranian military targets, while Iran launched retaliatory attacks near the Strait of Hormuz. Reports later suggested both sides had agreed to pause further strikes and resume talks in Doha, on June 30.
South Korea's benchmark Kospi fell 0.2% to 8,394, while Japan's Nikkei 225 traded flat at 69,380, extending losses amid a sell-off in AI-related technology stocks.
Shanghai Composite edged 1.1% higher to 4,073, while Hang Seng surged 2.1% to 22,989, led by gains in technology shares. Australia's S&P/ASX 200 advanced 0.7% to 8,823.
US stock futures recovered after reports emerged that the US and Iran have backed away from a fresh escalation of their conflict. S&P 500 futures and Nasdaq 100 futures were both trading up 0.6% each, while futures tied to the Dow rose 0.3%.
Last week, tech-heavy Nasdaq 100 and the S&P 500 had corrected by 4.6% and 2%, respectively, while the Dow Jones Industrial Average had managed to rise 0.6% for the week.
Oil prices gained amid the heightened global volatility. The US crude oil futures for July delivery gained 1.1% to $70.01 per barrel. Brent futures, the international benchmark, for August delivery rose 1 % to $73.35 per barrel.
Gold prices dropped again after recording four straight weekly losses as higher oil prices and fears of prolonged war between Iran and the US fanned inflation concerns.
Spot gold edged lower by 0.5% to $4,069 per ounce by 0334 GMT, while US gold futures for August delivery were trading down 0.3% lower at $4,083 per ounce.
Here's a look at some major developments across global markets:
Google limits Meta’s use of its Gemini AI models
Google has put limits on Meta’s use of its Gemini AI models, according to a report by Financial Times. This happened as Meta sought more computing capacity than Google could provide. Google told Meta around March that it could not meet the full Gemini capacity the company had sought to purchase. This reportedly disrupted and delayed some of Meta’s internal AI projects.
Samsung, SK Hynix shares fall on spending concerns
Shares of Samsung Electronics tumbled 4.7%, while those of SK Hynix dropped 3.1% on Monday after reports surfaced that the two companies are expected to unveil investment plans of up to 2,000 trillion won ($1.3 trillion) over the next 10 years. The investment plans will be announced during a government briefing at 2 pm local time on Monday. The meeting will be chaired by South Korea’s President Lee Jae Myung.
European investors rework portfolios amid red-alert heatwaves
As multiple western European countries grapple with record heatwaves, European investors are rethinking how to prepare their portfolios for the societal changes anticipated alongside a future of sweltering summers. According to a report, investment firms and venture funds are looking to invest in companies that have products and solutions that can help people in responding to these new challenges.
Baidu shares jump 7% on Hong Kong IPO plans for its AI unit
Hong Kong-listed shares of China’s search engine Baidu surged more than 7% Monday on reports that its artificial intelligence (AI) chip unit Kunlunxin is targeting an initial public offering (IPO) in the city at a target valuation of $50 billion. According to a report, prospective investors in the Kunlunxin IPO were asked to buy semiconductors worth three to seven times the value of their intended investment in the planned listing.
Three Chinese companies make strong Hong Kong market debuts
Shares of three Chinese new listings rose with a solid premium on Monday when they made their Hong Kong debuts. Baige Online Digital Technology shares surged nearly 3 times. The stock gained 291.7% to HK$61.1. The biopharmaceutical firm Alebund Pharmaceuticals (Jiangsu) also opened 85.8% higher, while Crealights Technology climbed 75.4% at the open.
Momenta seeks $752 million from Hong Kong listing
On Monday, autonomous-driving firm Momenta Global Ltd started taking investor orders for its Hong Kong IPO to raise HK$5.9 billion ($752 million). The company is offering about 19.9 million shares at HK$295.60 each. If the share sale is completed at that price, the company would be valued at the equivalent of nearly $9 billion.
