Market UpdatesJul 22, 20262 min
Global market wrap: Asian stocks gain for a second day as chipmakers rally; oil jumps further
We are back with quick updates on global developments around stock markets, commodities and companies that are creating buzz today.
Asian markets continued to recover on Wednesday after a rebound in chip stocks worldwide, although US president Donald Trump’s threat to target a key Iranian nuclear site weighed on investor sentiment.
South Korea’s benchmark Kospi surged 4.7% to 7,062 on Wednesday, while Japan’s Nikkei 225 index gained 1% to 66,887.
China’s Shanghai Composite index rose 0.5% to 3,884, Singapore’s Straits Times was up 0.3% to 5,543, while Australia’s S&P/ASX 200 inched up 0.3% to 8,820.
However, Hong Kong’s Hang Seng Index dropped 0.8% to 24,924.
US stock futures slipped on Wednesday as investors gear up for more earnings reports after a busy Tuesday. S&P 500 futures inched down 0.1%, Nasdaq 100 futures slipped 0.4%, while futures tied to the Dow were by a marginal 0.09%.
On Tuesday, the S&P 500 had gained 0.9%, the Nasdaq 100 had climbed 1.3%, while the Dow Jones Industrial Average had risen 0.74% on the back of encouraging corporate earnings for the June quarter.
Oil prices advanced further on Wednesday amid escalations in the US-Iran war. The US crude oil futures for July delivery rose 1.2% to $85.32 per barrel by 0018 ET, while Brent futures for August delivery gained 1.3% to $92.20 per barrel.
Gold prices jumped for a second consecutive session on Wednesday. Spot gold climbed 1.2% to $4,123 per ounce by 0418 GMT, while US gold futures for August delivery gained 1.4% to $4,133 per ounce.
Here’s a look at the key developments of the day:
Nike to cut off thousands of online distributors in China
Nike is planning to cut off thousands of online distributors in China and restructure its online presence to create a more consistent consumer experience in terms of branding and pricing.
Starting next year, Nike’s online footprint will shift primarily to the retailer’s official website and app, along with the storefronts it operates on Tmall, JD.com and Douyin. Currently, consumers can shop Nike products through all of those channels along with thousands of other online storefronts that are powered by the company’s brick-and-mortar partners in the region and a network of secondary distributors.
Wistron Corp shares climb 9.7% on opening first US facility
Shares of Taiwan-based Wistron Corporation jumped 9.7% on the Taiwan Stock Exchange on Wednesday after the company announced the opening of its first US facility to build AI servers for Nvidia.
The $700 million facility is located in Texas and currently produces Nvidia’s GB300 Grace Blackwell Ultra Superchip. The technology service provider said that the facility will later expand to produce Nvidia’s Vera Rubin Superchip.
US tech giants’ AI expenditure to put cash flow under pressure by 2027
According to a Reuters report, US hyperscalers Microsoft, Alphabet, Amazon, Meta and Oracle are expected to spend more on their artificial intelligence (AI) than they generate in free cash flow by 2027.
The report said that the five companies will generate about $340 billion more in annual operating cash flow in 2027 than in 2025, but capex is expected to rise by roughly $534 billion, equivalent to about $1.57 of additional investment for every $1 of additional cash flow.
Samsung in talks to invest in Mistral at €20 billion valuation
South Korea’s Samsung is in talks to invest about €1 billion in AI start-up Mistral, according to a report by Financial Times. The investment is a part of a fundraising round that could value Mistral at roughly €20 billion ($22.81 billion).
The report added that Swedish investor EQT's Scaleup Europe Fund is in talks to back Mistral’s fundraising round.
China’s MoonshotAI pursues $50-billion valuation with Hong Kong IPO
Following the successful launch of its new AI model Kimi K3, China’s MoonshotAI is pursuing a $50 billion valuation in preparation for its Hong Kong initial public offering (IPO).
The company is expected to close its current round at a $31.5 billion valuation soon before beginning a new fund-raising round scheduled in August with aspirations to achieve a valuation reaching $50 billion.
