Market UpdatesJun 25, 20262 Min
Micron Rally Lifts Asian Markets, Gold Falls; SK Hynix Plans Mega Nasdaq Listing
We are back with quick updates on stock markets, commodities and companies that you shouldn’t miss.
Asian markets were strongly back in the green on Thursday as solid earnings posted by US chipmaker Micron Technology eased investor concerns around tech companies.
After the close of US market hours on Wednesday, Micron reported fiscal third-quarter results that topped analyst expectations by a huge margin.
Japan’s Nikkei 225 surged over 4% on Thursday to 72,366, while South Korea’s benchmark Kospi shot up over 5% to 8,930. South Korea’s bourse operator on Thursday had to briefly halt trading in Kospi for 5 minutes after the index surged in the early morning session on the back of a rally in chipmaking stocks.
Singapore’s Straits Times rose marginally by 0.1%, too, to 5,221. China’s Shanghai Composite index was trading little changed at 4,120, up 0.2%. Though Hong Kong’s Hang Seng dropped by 1.4% to 23,054, while Australia’s S&P/ASX 200 was down 0.6% to 8,748.
US stock futures rose on Thursday as investors cheered Micron’s earnings. S&P 500 futures were trading up 0.4%, Nasdaq 100 futures rose 1.6%, while futures tied to the Dow were almost unchanged with a mere 0.04% drop.
During the regular session on Wednesday, tech-heavy Nasdaq 100 had fallen 0.4%, the S&P 500 had slipped 0.1%, while Dow Jones Industrial Average had closed 0.35% higher.
Oil prices extended the decline on Thursday as stranded tankers exited the Strait of Hormuz as per the arrangements of the US-Iran peace deal, easing oil supply concerns.
The US crude oil futures for July delivery were down 1.5% to $69.30 per barrel by 2308 ET. Brent futures, the international benchmark, for August delivery fell 1.6% to $72.69 per barrel.
Gold prices extend losses on the stronger US dollar along with rate hike fears. Investors awaited the announcement of key inflation numbers in the US, which may set tone for the Federal Reserve’s stance on interest rates going ahead. Spot gold declined 0.6% to $3,976 per ounce by 0308 GMT, while US gold futures for August delivery were trading 0.4% lower at $3,992 per ounce.
Here's a look at some major developments across global markets:
SK Hynix to raise over $29 billion via Nasdaq listing
South Korean chip giant SK Hynix on Wednesday announced that it plans to list its American depositary receipts (ADRs) on Nasdaq by as soon as July 10. The company plans to raise as much as $29.4 billion by issuing 17.79 million new ADR shares. Reacting to the announcement, shares of SK Hynix surged as much as 11% on Thursday.
Rally in AI stocks recharged by Micron, Qualcomm earnings
The rally in AI-driven shares, which was waning in the past couple of days, got a fresh booster from the earnings forecast from tech giants Micron Technology and Qualcomm.
A Reuters report said that stock prices of chipmakers surged late on Wednesday, adding over $400 billion in market value after the two companies announced their earnings.
Japan unveils $2.3 trillion investment plan
Japan’s Prime Minister Sanae Takaichi has unveiled a long-term plan that calls for investing more than ¥370 trillion ($2.3 trillion) in the 14-year period ending in March 2041. According to documents released on Wednesday after a policy advisory panel’s meeting, the country’s vision is to achieve massive investment in artificial intelligence and semiconductors as well as other key sectors including defence, space and shipbuilding.
BOJ policymaker calls for rate hike once every few months
Bank of Japan (BOJ) board member Naoki Tamura said that the central bank should raise interest rates once every few months and stand ready to speed up the pace of hikes in the wake of the inflationary risks from the Middle East conflict. Tamura said that underlying inflation has already reached 2% and upside risks to prices warrant attention regardless of developments in the Middle East.
Southbound Stock Connect flows surge to record high
The revival in Hong Kong’s IPO market has helped drive southbound Stock Connect flows to a record high over the past year. Through the programme, mainland Chinese investors purchased HK$1.19 trillion (US$151.8 billion) worth of Hong Kong-listed shares in the 12 months to March, according to the Securities and Futures Commission’s annual report released on Wednesday.
