Market UpdatesJul 17, 20262 Min
Global market wrap: Asian stocks extend declines; Nikkei tumbles over 5% as chip stocks slide
We are back with quick updates on global stock markets, commodities and companies that are creating buzz today.
Asian markets extended declines on Friday tracking overnight losses in the US stocks markets amid a correction in shares of chipmakers.
Japan’s Nikkei 225 tumbled over 5% to 63,473 as the tech rout hit the market after Taiwan Semiconductor Manufacturing Co.’s (TSMC’s) strong results failed to meet investors’ expectations. South Korea’s benchmark Kospi remained closed for trading on account of a public holiday.
China’s Shanghai Composite index also declined 1.6% to 3,819, while Hong Kong’s Hang Seng Index dropped 2% to 24,514 on Friday.
Australia’s S&P/ASX 200 fell 0.7% to 8,778. Singapore’s Straits Times was down 0.6% to 5,506.
US stock futures dropped in trade on Friday as earnings weighed on investor sentiment, too, besides the tech selloff and the Iran war. S&P 500 futures were trading down 0.9%, Nasdaq 100 futures declined 1.4%, while futures tied to the Dow fell 0.8%.
In Thursday’s session, The S&P 500 lost 0.5%, the Nasdaq 100 shed 1.5%, while the Dow Jones Industrial Average was down 0.2%.
Oil prices continued their upward trajectory after Iran cautioned that it will “crush” key targets in the region if US President Donald Trump targets the country’s infrastructure in the coming days. The US crude oil futures for July delivery rose 1.2% at $79.89 per barrel by 0040 ET, while Brent futures for August delivery were up 1% to $85.10 per barrel.
Gold prices were on track for their biggest weekly loss in six weeks on Friday. Spot gold were up 0.2% to $3,983 per ounce by 0441 GMT, while US gold futures for August delivery were down 0.2% to $3,987 per ounce.
Here’s a look at some major developments across global markets:
Netflix shares plunge 9% on disappointing earnings forecast
Netflix shares plunged over 9% in after-hours trading after the company’s forecast for the third-quarter revenue and earnings fell short of estimates. For the just-ended June quarter, Netflix revenue and EPS (earnings per share) were roughly in line with analyst expectations.
The streaming giant also said that it would cut the frequency of viewing-hours reports as the company seeks new avenues of growth.
PayPal not happy with $53 billion takeover bid by Stripe, Advent
According to a Reuters report, PayPal’s board is not happy with the $53 billion takeover bid by rival Stripe and private equity firm Advent International and sees it as undervaluing the company and facing regulatory and financing hurdles.
The board’s early view is that while the $60.50 per share offer represents a premium to the company’s recent share price, it does not fully reflect the potential value the company could create over the coming years, the report added.
SpaceX shares dive 3% as Starship mega rocket launch aborted
Marking a decline for the fifth consecutive session, SpaceX shares dropped over 3% in extended trading hours on Thursday after the Elon Musk-led rocket company scrubbed the launch of its Starship mega rocket.
“Some of the engines didn’t start, triggering an automatic launch abort,” Musk wrote in a post on X. He pledged to make another attempt “hopefully in a few days.”
Singapore’s key exports jump 20.7% in June
Singapore’s non-oil domestic exports rose 20.7% in June compared with a year ago compared with 38.4% expansion in May. A consistent surge in electronics shipments aided the June growth number.
Electronics shipments surged 105.1% year on year in June, up from 94.8% growth in May, on robust demand for AI, data showed.
Japan's biggest power generator begins study on US listing
According to a Reuters report, Japan’s biggest power generator JERA has begun a feasibility study for a US listing as it explores means of expanding overseas and broadening funding options.
JERA has started examining US market conditions, investor demand and regulatory requirements, but the study is at an early stage and the company has not made any decisions on details such as timing of an initial public offering (IPO), listing structure or market valuation, the report added.
China’s top airlines warn of heavy losses
China's biggest airlines Air China, China Eastern Airlines and China Southern Airlines have warned that they expected combined first-half net losses of up to $1.33 billion as weakening demand raises doubts on absorption of higher fuel costs by airlines during the industry’s busiest months.
This is in a sharp reversal from the combined first-quarter profit seen by airlines due to strong Lunar New Year demand.
