Market UpdatesAug 05, 20262 Min
Global market wrap: Asian stocks advance as US nears Iran deal to reopen Strait of Hormuz; SoftBank jumps 10%
We are back with quick updates on developments around global stock markets, commodities and companies that are creating buzz today.
Asian stocks recorded a strong rally on Wednesday on expectations that the US and Iran could be closing in on a deal to end their conflict soon.
South Korea’s benchmark Kospi advanced 4.1% to 6,620, while Japan’s Nikkei 225 index zoomed 3.1% to 65,933.
China’s Shanghai Composite index jumped 1.3% on Wednesday to 3,874, while Hong Kong’s Hang Seng Index inched up 0.1% to 25,881.
Australia’s S&P/ASX 200 also rose 0.7% to 9,209. Singapore’s Straits Times was the only index that slipped in the negative, trading 0.4% lower at 5,588 on Wednesday.
US stock futures were trading with mild gains in overnight trade after major US indices jumped for a second day in the regular session. S&P 500 futures gained 0.3%, Nasdaq 100 futures were marginally up by 0.1%, while futures tied to the Dow rose 0.4%.
On Tuesday, the Dow Jones Industrial Average and the S&P 500 closed at record highs, rising 1.7% and 1.8%, respectively. The Nasdaq Composite index also shot up 2.6%.
Oil prices corrected further on Wednesday as supply concerns eased driven by hopes that the Strait of Hormuz could be reopened. The US crude oil futures for July delivery dropped 0.8% to $75.18 per barrel by 0039 EDT, while Brent futures for August delivery fell 0.6% to $78.89 per barrel.
Gold prices were up on Wednesday on falling crude oil prices and softer US dollar. Spot gold advanced 1.4% to $4,133 per ounce by 0439 GMT on Friday, while US gold futures for August delivery jumped 0.9% to $4,191 per ounce.
Here’s a look at the key developments of the day:
AMD shares plunge 10% even as revenue climbs 50%
Shares of US chipmaker Advanced Micro Devices (AMD) plunged around 10% in extended trading hours on Tuesday even as the company’s second-quarter earnings beat expectations.
AMD revenue soared 50% in the second quarter, mainly driven by its Data Center business. Data Center sales stood at $6.7 billion, up 107% year-on-year.
However, investors got uncomfortable with the capital expenditure number announced by the company. AMD said it spent $808 million on capital expenditures compared with $282 million in the year-ago period and $389 million in the previous quarter.
SpaceX shares slide 7.5% after debut results
In its first earnings report since going public, Elon Musk-led SpaceX on Tuesday announced that its revenue nearly doubled in the June quarter. The company said that growth was fuelled by its Starlink satellite communications and AI businesses. However, the stock slid 7.5% in after-market trading hours as executives flagged the company’s spending spree.
SpaceX reported revenue of $7.8 billion for the April-June period compared with $4.1 billion a year earlier. Starlink revenue, which accounted for over half of total revenue, rose 66%. Revenue from the AI business surged about 250%.
But capital expenditure jumped multi-fold as well to $18 billion in the June quarter compared with $2.83 billion a year earlier. Finance chief Bret Johnsen said he expected capital spending would be similar for the next couple of quarters, spooking investors.
P&G buys supplements maker Thorne for $3.8 billion
Keeping in mind the growing focus on healthier lifestyles fuelled by rising interest in preventive care, Procter & Gamble (P&G) on Tuesday announced that it was acquiring supplements maker Thorne for $3.8 billion in cash from LVMH-backed private equity firm L Catterton.
The takeover marked a major push by P&G into the health and wellness market. The stock was up about 1% in afternoon trading after the news.
UK's Segro agrees to $19-billion takeover offer from Prologis
British warehouse landlord Segro has accepted a takeover offer by rival US logistics firm Prologis in a deal worth up to £14.3 billion ($19.19 billion).
The deal ranks among the biggest foreign takeovers of a UK-listed company on record. It also adds to a record year for mergers and acquisitions in the UK, and is the second-biggest so far after Unilever's $65 billion food business merger, announced in March.
SoftBank jumps 10% as Asia tech stocks track Wall Street AI rally
Shares of SoftBank Group shot up more than 10% after Asian technology stocks surged on Wednesday. A strong overnight Wall Street rally fuelled the momentum along with easing oil prices that pushed major US indices to record highs.
Tech stocks were on a roll like chip equipment maker Tokyo Electron that added 3.6%. Advantest jumped 7%, Japanese memory chipmaker Kioxia rose 6.3%, South Korea’s SK Hynix jumped 6.9%, while Samsung Electronics gained over 4%.
Banks to offload $15 billion of debt for Anthropic data centre
According to a report by the Financial Times, banks are planning to offload $15 billion of debt tied to a Google-backed data centre in Texas that has been leased to Anthropic. This is because Wall Street lenders are now growing wary of holding AI infrastructure debt on their balance sheets.
A consortium of banks led by Morgan Stanley is planning to tap the bond market to refinance the debt they committed to the 2,000-acre data centre campus under construction in Hubbard, Texas, the report added.
