Public Markets 3 Days

Last updated: July 31, 2026, 2:30 AM ET

Asian Markets Rally on AI Optimism, Yen Intervention Boosts Currency

Asian stocks in nearly four months, fueled by renewed optimism surrounding artificial intelligence demand and strong earnings from major tech firms. South Korea's Kospi, leading the regional rally as chip and technology shares rebounded sharply after a significant sell-off. The yen following suspected intervention by Japanese authorities to bolster the currency, with Japan's finance ministry hinting at overseas support. Other Asian markets also experienced a rebound, tracking overnight gains in U.S. technology stocks. Singapore's retrenchments, however since the pandemic, as overseas-facing industries underwent restructuring.

Corporate Earnings and Outlooks Show Mixed Performance

French utility Engie SA, benefiting from energy market volatility and cost-cutting measures. Insurer AXA also after reporting an increase in first-half earnings, and confirmed its outlook, assessing the impact of wildfires. German medical equipment supplier Siemens Healthineers due to weakness in its diagnostics division, now expecting fiscal-year revenue growth of 3.5% to 4.0% compared to a previous forecast of 4.5% to 5%. Sony's first-quarter net profit surpassed expectations, prompting the company to raise its guidance, supported by its music and image-sensor businesses. In India, Swiggy and other competitors as Zepto's planned IPO faced a roadblock.

Economic Indicators and Market Volatility

Kenya's annual inflation rate in July, exceeding the central bank's target range for a third consecutive month, driven by rising energy costs. The Rhine River, a crucial trade artery in eight years, forcing production shutdowns in Germany amid soaring temperatures. In the U.S., regulators in investments used by KKR and Apollo, signaling growing concern over unseen risks within insurance balance sheets. Meanwhile, retail investors in South Korea, Taiwan, and mainland China, reflecting a forced exit from positions due to a collapse in technology stocks.

AI Dominance and Tech Sector Swings

The artificial intelligence trade, with Leopold Aschenbrenner's hedge fund experiencing a 67% decline in July and subsequently selling the bulk of its stocks to Citadel. Big Tech companies like Google, Amazon, Microsoft, and Meta, exceeding $1 trillion collectively since the AI boom began. Microsoft achieved largest for any U.S. company, adding $450 billion in market value, though Meta shares experienced a decline. Apple's Siri, transforming it into a more capable chatbot, while the company also due to strains on tech supply chains from AI build-outs.

Commodities and Global Supply Concerns

Copper headed for a monthly advance on tightening global supply, with significant material flows to the U.S. ahead of a potential import decision. Iron ore prices from a potential strike at BHP Group's Port Hedland export hub, although weak Chinese demand is expected to cap price gains. Oil futures following attacks in the Black Sea, and steadied at the end of a volatile week, on track for their largest monthly gain since March as the U.S.-Iran conflict . Saudi Aramco considering a new oil pricing strategy for Asia as Houthi militant attacks elevate risks in the Red Sea.

Financial Markets and Regulatory Developments

Hong Kong to provide a hedging tool for the globalization of China's debt market and currency. The Philippines intends to revise its local-currency bond pricing by excluding the impact of withholding tax. The Financial Conduct Authority in the UK has launched a new initiative to revive London share trading, proposing a single stream of stock data and publishing market depth figures. U.S. regulators warned growing over "circular" risks in investments favored by KKR and Apollo. Central banks in early 2026, with a data revision indicating a 76% decrease in official sector bullion buying during the first quarter.

Corporate Dealmaking and Restructuring

HSBC has agreed to sell its Australian loan book to Blackstone for $25 billion as part of a global overhaul. Virgin Media O2's owners are exploring options to reduce its £22 billion debt pile, considering measures such as dividend cuts and job losses. CVC Capital Partners is considering a sale of its Chinese retail pharmacy chain, Xi'an Yikang Pharmaceutical Co. Apnimed Inc., a late-stage drug developer in an upsized U.S. initial public offering. Menswear firm Reformation Inc. closed flat in its trading debut after raising $210.9 million in its listing.

Global Economic Trends and Inflation

China's economy expanded for a third consecutive year in 2025, driven by arms exports to Russia, increased trade with China, and domestic industry development. North Korea's economy also saw expansion. In Egypt, the nation in financing after successfully completing the penultimate review of its International Monetary Fund program. Rising U.S. yields India's strategy regarding interest rates and the rupee. The Philippines ahead of its inclusion in the JPM Index.