Public Markets 8 Hours

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

Asian Markets Rally on AI Optimism, Yen Intervention

Asian stocks in nearly four months, fueled by renewed optimism in artificial intelligence and strong tech earnings. The Kospi surged 15% to lead the region’s rally, with chipmakers like SK Hynix and Samsung regaining ground after significant selling pressure earlier in the week. South Korean stocks climbed by a record 15% as major technology firms' spending plans refueled AI trade optimism, while retail investors in the region amid wild tech stock swings. Japan's yen jumped sharply on signs of market intervention, with authorities refraining from confirming their actions but hinting at overseas support. Japan waded back just before its central bank’s rate decision, an intervention that showed signs of backing from the US. Authorities are in close contact with their US and Japanese counterparts following the yen's sharp rally, a senior finance ministry official said. Meanwhile, gold, supported by a sharp decline in the US dollar after Japan intervened to bolster the yen.

European Equities Show Mixed Performance; Sector Earnings Diverge

In Europe, French utility Engie SA amid energy market volatility and cost-cutting measures. French insurer AXA backed its 2026 targets after reporting a rise in first-half earnings, with profit meeting estimates and the company confident on its outlook. However, German supplier Siemens Healthineers for the fiscal year due to weakness in its diagnostics business, now expecting comparable revenue growth between 3.5% and 4.0%, down from a previous forecast of 4.5% to 5%. The Rhine River drought is stranding ships and forcing German production shutdowns as temperatures approach 40C, nearing its lowest level in eight years. London's financial regulator, the FCA to revive share trading by proposing a single stream of stock data and publishing market depth figures.

US Markets and Corporate News: AI Spending, Banking Deals, and Biotech IPOs

Big Tech companies, including Google, Amazon, Microsoft, and Meta, have to over $1 trillion since the AI boom began in 2023, with Amazon alone increasing its spending to $220 billion this year. Separately, US regulators in investments used by KKR and Apollo, signaling growing concern about unseen risks in assets filling insurance balance sheets. HSBC has to Blackstone as part of a global overhaul. In the biotech sector, Shionogi-backed Apnimed in an upsized US initial public offering for its sleep apnea drug development. Meanwhile, JPMorgan Chase, playing a key role in FIFA's plans to raise billions after its involvement in the Super League controversy. Tesla is weighing the sale of its China business to pave the way for a potential SpaceX merger, citing geopolitical concerns in its second-largest market.

Emerging Markets Face Inflation, Economic Shifts, and IPO Activity

Kenya’s annual inflation rate in July, exceeding the central bank's target range for a third month due to rising energy costs. Singapore’s retrenchments since the pandemic last quarter, as overseas-facing industries underwent restructuring. North Korea’s economy expanded for a third consecutive year in 2025, driven by arms exports to Russia, increased trade with China, and domestic industrial development. The Philippines ahead of JPMorgan Index inclusion, a move that could impact existing investors. In India, billionaire family offices are offering profit-sharing to attract top investment talent amidst fierce competition. Swiggy and other competitors’ stocks, benefiting from the setback of the loss-making firm's planned initial public offering. Egypt unlocked about in IMF financing after passing a program review. In a notable market event, Kontrolmatik’s rise and fall.

Commodities and Industrial Activity Impacted by Supply and Geopolitics

Copper set monthly on tightening global supply, with significant material flows to the US ahead of a key import decision. Iron ore prices from potential strike action at BHP Group's Port Hedland export hub, though weak Chinese demand is expected to cap gains. BHP Group itself at its key Australian iron ore export port, escalating a labor dispute. Oil prices following attacks in the Black Sea. The Rhine drought is also impacting industrial activity, with the river near its lowest level in eight years, forcing production shutdowns in Germany.

AI Sector Faces Scrutiny and Volatility

The AI sector continues to be a focal point, with hedge fund manager Leopold Aschenbrenner's firm in July and selling the bulk of its stocks to Citadel. Aschenbrenner's hedge fund, a key player in the Wall Street AI trade to Citadel. The disclosure of AI systems breaking into computers at three organizations by Anthropic, following a similar report from OpenAI, raises concerns. Investors are being advised on how to, as many cross-asset holdings are perceived as too tilted towards innovation and insufficiently protected against inflation. The dramatic swings in tech stocks have also prompted retail traders in South Korea, Taiwan, and mainland China to.