Market Update
Japan's Nikkei 225 Plunged 5% as Global Ai Trade Unwinds
Akira Ito
17 Jul, 2026
Tokyo
Japan's benchmark indexes turned sharply lower and extended weekly losses amid deepening global sell-off in AI-related stocks.
The Nikkei 225 Stock Average fell nearly 5%, the broader TOPIX fell more than 3%, and the yen weakened to 162.41 against the U.S. dollar.
The yield on 10-year Japanese government bonds inched higher for the second consecutive session and increased to 2.73% amid imported-energy-driven inflation.
The price of Brent crude oil rose 1% to $85.09 a barrel amid escalating military exchanges between the U.S. and Iran, raising fears of a prolonged shutdown of commercial shipping through the Strait of Hormuz.
Japan's leading semiconductor equipment and electronic component makers extended weekly losses in Friday's trading as investors soured on the prospects of an AI-driven rally.
For the week, Kioxia Holdings plunged 31%, Tokyo Electron declined 11%, Advantest Corp. fell 10%, SoftBank Group declined 17%, and Lasertec Corp. decreased 9%.
The Japanese yen wobbled around the 162 level amid growing realization that the fiscal policy expansion and the Bank of Japan's reluctance to lift rates amid increasing inflationary pressures driven by the five-monthlong conflict in the Middle East.
Many currency traders are preparing the yen to test the 170 mark against the U.S. dollar, as the Bank of Japan shows no urgency to revise rates higher, Japanese corporations continue to park their overseas earnings in foreign nations, and the Japanese government pursues expansionary fiscal policy.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 5.8% to 62,939.59, and the broader TOPIX dropped 4.1% to 3,866.99.
For the week, the Nikkei 225 Stock Average plunged 8.7%, and the TOPIX dropped 5.0%, driven by sharp losses in semiconductor-related stocks.
South Korean markets were closed on Friday, but Taiwan's benchmark index closed down 6%.
SoftBank Group plunged 12.4% to ¥5,221.0, Tokyo Electron decreased 10.5% to ¥63,450.0, Advantest Corp. declined 12.9% to ¥26,095.0, and Kioxia Holdings dropped 16.1% to ¥52,110.0.
Nippon Yusen KK gained 2.6% to ¥5,684.0, Mitsui OSK Lines edged up 0.9% to ¥5,571.0, and Kawasaki Kisen Kaisha Ltd. increased 2.3% to ¥2,704.0.
Japan's Nikkei 225 Plunged 5% as Global Ai Trade Unwinds
Akira Ito
17 Jul, 2026
Tokyo
Japan's benchmark indexes turned sharply lower and extended weekly losses amid deepening global sell-off in AI-related stocks.
The Nikkei 225 Stock Average fell nearly 5%, the broader TOPIX fell more than 3%, and the yen weakened to 162.41 against the U.S. dollar.
The yield on 10-year Japanese government bonds inched higher for the second consecutive session and increased to 2.73% amid imported-energy-driven inflation.
The price of Brent crude oil rose 1% to $85.09 a barrel amid escalating military exchanges between the U.S. and Iran, raising fears of a prolonged shutdown of commercial shipping through the Strait of Hormuz.
Japan's leading semiconductor equipment and electronic component makers extended weekly losses in Friday's trading as investors soured on the prospects of an AI-driven rally.
For the week, Kioxia Holdings plunged 31%, Tokyo Electron declined 11%, Advantest Corp. fell 10%, SoftBank Group declined 17%, and Lasertec Corp. decreased 9%.
The Japanese yen wobbled around the 162 level amid growing realization that the fiscal policy expansion and the Bank of Japan's reluctance to lift rates amid increasing inflationary pressures driven by the five-monthlong conflict in the Middle East.
Many currency traders are preparing the yen to test the 170 mark against the U.S. dollar, as the Bank of Japan shows no urgency to revise rates higher, Japanese corporations continue to park their overseas earnings in foreign nations, and the Japanese government pursues expansionary fiscal policy.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 5.8% to 62,939.59, and the broader TOPIX dropped 4.1% to 3,866.99.
For the week, the Nikkei 225 Stock Average plunged 8.7%, and the TOPIX dropped 5.0%, driven by sharp losses in semiconductor-related stocks.
SoftBank Group plunged 12.4% to ¥5,221.0, Tokyo Electron decreased 10.5% to ¥63,450.0, Advantest Corp. declined 12.9% to ¥26,095.0, and Kioxia Holdings dropped 16.1% to ¥52,110.0.
Nippon Yusen KK gained 2.6% to ¥5,684.0, Mitsui OSK Lines edged up 0.9% to ¥5,571.0, and Kawasaki Kisen Kaisha Ltd. increased 2.3% to ¥2,704.0.
Stretched Valuations and AI Fatigue Deepen China and Asia-Wide Sell-Off
Li Chen
17 Jul, 2026
Hong Kong
China's indexes turned sharply lower and extended weekly losses amid growing bearishness towards artificial intelligence trade.
The Hang Seng Index decreased nearly 2%, and the mainland-focused CSI 300 Index fell about 2.5% as investors questioned the recent rally in AI- and semiconductor-linked stocks.
Stocks in Shanghai and Hong Kong struggled to rise above the flatline as a global sell-off persists in semiconductor stocks.
Investors looked ahead to the policymakers gathering later this month following the release of mixed economic data.
China's economic growth slowed to 4.2% in the second quarter, slower than 5% in the first quarter, but industrial production accelerated following the sustained rise in exports to the ASEAN region, the European Union, and the U.S.
Economic growth slowed to its lowest pace since late 2022 amid persistent weakness in domestic consumer demand and lingering weakness in the property sector.
The weakness in property prices across 70 major cities and the weakening job market overshadowed the strong rise in global goods exports in the first half.
China's economic growth in 2026 is likely to slow to 4.0% and weaken further to 3.5% in 2027.
China Indexes and Stocks
The Hang Seng Index decreased 1.8% to 24,556.88, and the mainland-focused declined 2.4% to 4,586.72.
For the week, the Hang Seng advanced 1.5%, the CSI 300 Index fell 3.5%, and the SSE Composite decreased 3.7%.
Semiconductor-linked stocks led decliners in Hong Kong, Shanghai, and Shenzhen trading.
Naura Technology declined 2.7% to ¥685.47, Eoptolink Technology fell 6.5% to ¥505.20, Zhongji Innolight plunged 10% to ¥1,001.07, and SMIC fell 6% to $70.65.
Hygon Information Technology decreased 4.2% to ¥306.86; Cambricon Technologies fell 10.1% to ¥1,207.00.
Stretched Valuations and AI Fatigue Deepen China and Asia-Wide Sell-Off
Li Chen
17 Jul, 2026
Hong Kong
China's indexes turned sharply lower and extended weekly losses amid growing bearishness towards artificial intelligence trade.
The Hang Seng Index decreased nearly 2%, and the mainland-focused CSI 300 Index fell about 2.5% as investors questioned the recent rally in AI- and semiconductor-linked stocks.
Stocks in Shanghai and Hong Kong struggled to rise above the flatline as a global sell-off persists in semiconductor stocks.
Investors looked ahead to the policymakers gathering later this month following the release of mixed economic data.
China's economic growth slowed to 4.2% in the second quarter, slower than 5% in the first quarter, but industrial production accelerated following the sustained rise in exports to the ASEAN region, the European Union, and the U.S.
Economic growth slowed to its lowest pace since late 2022 amid persistent weakness in domestic consumer demand and lingering weakness in the property sector.
The weakness in property prices across 70 major cities and the weakening job market overshadowed the strong rise in global goods exports in the first half.
China's economic growth in 2026 is likely to slow to 4.0% and weaken further to 3.5% in 2027.
China Indexes and Stocks
The Hang Seng Index decreased 1.8% to 24,556.88, and the mainland-focused declined 2.4% to 4,586.72.
Semiconductor-linked stocks led decliners in Hong Kong, Shanghai, and Shenzhen trading.
Naura Technology declined 2.7% to ¥685.47, Eoptolink Technology fell 6.5% to ¥505.20, Zhongji Innolight plunged 10% to ¥1,001.07, and SMIC fell 6% to $70.65.
Hygon Information Technology decreased 4.2% to ¥306.86; Cambricon Technologies fell 10.1% to ¥1,207.00.
U.S. Indexes Meandered as Investors Debated AI-Trade Sustainability
Barry Adams
16 Jul, 2026
New York City
U.S. stocks trended lower following a rally driven by strong earnings from financial companies and lower bond yields.
The S&P 500 Index decreased 0.2%, and the tech-focused Nasdaq Composite declined 0.5% as semiconductor stocks eased reflecting weakness in global peers.
Nvidia, Intel, AMD, SanDisk, Micron Technology, and Broadcom declined between 2% and 6% amid lingering worries about the sustainability of the artificial intelligence trade.
The West Texas Intermediate crude oil price decreased 0.03% to $79.57, and the Brent crude oil price fell 0.2% to $84.76 a barrel amid escalating tensions in the Middle East.
The U.S. and Iran exchanged military strikes and conducted additional strikes that involved Gulf nations—including Bahrain, Kuwait, Jordan, and the UAE.
Despite harsh rhetoric from the U.S. president, Iran continues to retaliate, conduct additional lethal strikes, and impose a blockade in the Strait of Hormuz.
With a reduced stockpile of missiles, the U.S. is struggling to carry out strikes, preventing Iran from conducting attacks on commercial ships and imposing tolls for passage through the Strait of Hormuz.
Global semiconductor stocks declined for the second consecutive day, with SK Hynix falling 12% in Seoul, STMicroelectronics decreasing 3.5%, ASML declining 2.8% in Amsterdam, and Infineon Technologies dropping 2.2%.
The weakness in semiconductor-related stocks dragged down broader indexes in Japan, South Korea, and mainland China.
In Asia, the Nikkei 225 Stock Average dropped nearly 3%, the Kospi index decreased 6.4%, and the CSI 300 Index fell 1.9%.
U.S. Movers
United Airlines decreased 1.4% to $118.0 despite the international carrier reporting better-than-expected results in the second quarter. The airline's softer-than-estimated outlook dampened investor sentiment.
Total operating revenue increased 16% to $17.7 billion from $15.2 billion, net income decreased 17.3% to $805 million from $973 million, and diluted earnings per share fell to $2.46 from $2.97 a year ago.
Fuel costs in the quarter jumped 84% to $5.1 billion from $2.8 billion, and the company passed on approximately half to customers.
In the third quarter, United anticipates recovering between 80% and 90% of the increase in fuel costs and 100% by the fourth quarter.
The company guided adjusted diluted earnings per share to range between $2.50 and $3.50 in the third quarter and between $9.00 and $11.00 for the full year 2026.
J.B. Hunt Transport Services soared 9.4% to $302.26 after the company released its second-quarter results.
Total operating revenue increased to $3.5 billion from $2.9 billion, net income advanced to $181.0 million from $128.6 million, and diluted earnings per share rose to $1.91 from $1.31 a year ago.
Fuel surcharge revenue soared to $641.5 million from $351.8 million, and fuel and fuel taxes cost jumped to $235.2 million from $135.7 million a year.
In other words, the company passed on more than a 200% fuel price increase to customers, which supported the surge in income in the current quarter.
Taiwan Semiconductor decreased 4.6% to $400.24 after the company reported a sharp rise in revenue and earnings in the second quarter.
Net sales increased 36% to NT 1.27 trillion from NT 933.8 billion, net income soared 77.4% to NT 706.5 billion from NT 398.3 billion, and diluted earnings per share advanced to NT 27.25 from NT 15.36 a year ago.
In U.S. dollars, second quarter revenue increased 33.7% to $40.20 billion, and revenue advanced 12% from the first quarter.
Gross margin for the quarter was 67.7%, operating margin was 60.3%, and net profit margin was 55.6%.
The company estimated third quarter revenue to range between $44.6 billion and $45.8 billion, gross margin to range between 65% and 67%, and operating profit margin to be between 56% and 58%.
The company reported record quarterly revenue and a fifth consecutive quarter of profit.
The company revised higher its full-year 2026 capital expenditure estimate from the high-end of the $52 billion to $56 billion range to a new range between $60 billion and $64 billion, indicating continued demand from core customers.
Simultaneously, the company announced its plans for an additional investment of $100 billion in Arizona, deepening its investment in the U.S.
The stock declined in New York's trading because investors worried that higher capital expenditure generally flags weaker cash flow in the near term and delays return on investment.
UnitedHealth Group advanced 4.9% to $443.0 after the health insurance company reported better-than-expected results in the second quarter.
Total revenues increased to $112 billion from $111.6 billion, net earnings jumped to $5.7 billion from $3.6 billion, and diluted earnings per share increased to $6.04 from $3.74 a year ago.
UnitedHealth's medical cost ratio was 86.7% compared to 89.4% a year ago as the company struggled to contain costs.
The healthcare company revised upward its full-year 2026 adjusted earnings per share between $19.50 and $20.00 and diluted earnings per share between $18.45 and $18.95.
U.S. Indexes Meandered as Investors Debated AI-Trade Sustainability
Barry Adams
16 Jul, 2026
New York City
U.S. stocks trended lower following a rally driven by strong earnings from financial companies and lower bond yields.
The S&P 500 Index decreased 0.2%, and the tech-focused Nasdaq Composite declined 0.5% as semiconductor stocks eased reflecting weakness in global peers.
Nvidia, Intel, AMD, SanDisk, Micron Technology, and Broadcom declined between 2% and 6% amid lingering worries about the sustainability of the artificial intelligence trade.
The West Texas Intermediate crude oil price decreased 0.03% to $79.57, and the Brent crude oil price fell 0.2% to $84.76 a barrel amid escalating tensions in the Middle East.
The U.S. and Iran exchanged military strikes and conducted additional strikes that involved Gulf nations—including Bahrain, Kuwait, Jordan, and the UAE.
Despite harsh rhetoric from the U.S. president, Iran continues to retaliate, conduct additional lethal strikes, and impose a blockade in the Strait of Hormuz.
With a reduced stockpile of missiles, the U.S. is struggling to carry out strikes, preventing Iran from conducting attacks on commercial ships and imposing tolls for passage through the Strait of Hormuz.
Global semiconductor stocks declined for the second consecutive day, with SK Hynix falling 12% in Seoul, STMicroelectronics decreasing 3.5%, ASML declining 2.8% in Amsterdam, and Infineon Technologies dropping 2.2%.
The weakness in semiconductor-related stocks dragged down broader indexes in Japan, South Korea, and mainland China.
In Asia, the Nikkei 225 Stock Average dropped nearly 3%, the Kospi index decreased 6.4%, and the CSI 300 Index fell 1.9%.
U.S. Movers
United Airlines decreased 1.4% to $118.0 despite the international carrier reporting better-than-expected results in the second quarter. The airline's softer-than-estimated outlook dampened investor sentiment.
Total operating revenue increased 16% to $17.7 billion from $15.2 billion, net income decreased 17.3% to $805 million from $973 million, and diluted earnings per share fell to $2.46 from $2.97 a year ago.
Fuel costs in the quarter jumped 84% to $5.1 billion from $2.8 billion, and the company passed on approximately half to customers.
In the third quarter, United anticipates recovering between 80% and 90% of the increase in fuel costs and 100% by the fourth quarter.
The company guided adjusted diluted earnings per share to range between $2.50 and $3.50 in the third quarter and between $9.00 and $11.00 for the full year 2026.
J.B. Hunt Transport Services soared 9.4% to $302.26 after the company released its second-quarter results.
Total operating revenue increased to $3.5 billion from $2.9 billion, net income advanced to $181.0 million from $128.6 million, and diluted earnings per share rose to $1.91 from $1.31 a year ago.
Fuel surcharge revenue soared to $641.5 million from $351.8 million, and fuel and fuel taxes cost jumped to $235.2 million from $135.7 million a year.
In other words, the company passed on more than a 200% fuel price increase to customers, which supported the surge in income in the current quarter.
Taiwan Semiconductor decreased 4.6% to $400.24 after the company reported a sharp rise in revenue and earnings in the second quarter.
Net sales increased 36% to NT 1.27 trillion from NT 933.8 billion, net income soared 77.4% to NT 706.5 billion from NT 398.3 billion, and diluted earnings per share advanced to NT 27.25 from NT 15.36 a year ago.
In U.S. dollars, second quarter revenue increased 33.7% to $40.20 billion, and revenue advanced 12% from the first quarter.
Gross margin for the quarter was 67.7%, operating margin was 60.3%, and net profit margin was 55.6%.
The company estimated third quarter revenue to range between $44.6 billion and $45.8 billion, gross margin to range between 65% and 67%, and operating profit margin to be between 56% and 58%.
The company reported record quarterly revenue and a fifth consecutive quarter of profit.
The company revised higher its full-year 2026 capital expenditure estimate from the high-end of the $52 billion to $56 billion range to a new range between $60 billion and $64 billion, indicating continued demand from core customers.
Simultaneously, the company announced its plans for an additional investment of $100 billion in Arizona, deepening its investment in the U.S.
The stock declined in New York's trading because investors worried that higher capital expenditure generally flags weaker cash flow in the near term and delays return on investment.
Japan's Nikkei 225 Dropped 3% Following Intense Sell-Off In Semiconductor Stocks
Akira Ito
16 Jul, 2026
Tokyo
Japan's indexes faced selling pressure and ended a two-day rally amid renewed weakness in semiconductor-related stocks.
The Nikkei 225 stock average decreased 2.5%, the broader TOPIX declined 1%, and the yen hovered at 162.11 against the U.S. dollar.
The weakness in memory module makers and advanced chipmakers in overnight trading in New York rippled to Asian markets, as investors questioned the sustainability of the artificial intelligence trade.
Escalating tensions in the Middle East also weighed on the market sentiment, and soaring crude oil prices raised the prospect of higher interest rates later in the year.
The Brent crude oil price decreased 0.7% to $84.40 a barrel and traded volatile after the U.S. and Iran exchanged heavy artillery fire over the Strait of Hormuz.
The five-monthlong war in the Middle East has stoked fears of a wider war in the region and prolonged disruptions in commercial shipments through the narrow passageway, a key route for about 20% of global oil and gas exports.
The import-energy-dependent economy of Japan is likely to face upward price pressure as higher energy prices travel through broader sectors of the economy.
Japan's 10-year government bond yield held around 2.69% after Finance Minister Satsuki Katayama proposed including investments in government bonds in a tax-free investment program for individual investors.
The finance minister urged the country's massive pension fund to increase its exposure to Japan's government bonds, as the government prepares to expand its fiscal budget.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 2.5% to 67,004.28, and the broader TOPIX declined 1% to 4,045.09.
Kioxia Holdings declined 13.6% to ¥63,120.0, Tokyo Electron dropped 6.5% to ¥69,520.0, Advantest Corp. decreased 5.8% to ¥29,680.0, and Fujikura Ltd. fell 6.4% to ¥4,798.0.
Nippon Yusen KK decreased 1.3% to ¥5,540.0, Mitsui OSK Lines declined 1.6% to ¥5,504.0, and Kawasaki Kisen Kaisha dropped 1.6% to ¥2,632.50.
Japan's Nikkei 225 Dropped 3% Following Intense Sell-off In Semiconductor Stocks
Akira Ito
16 Jul, 2026
Tokyo
Japan's indexes faced selling pressure and ended a two-day rally amid renewed weakness in semiconductor-related stocks.
The Nikkei 225 stock average decreased 2.5%, the broader TOPIX declined 1%, and the yen hovered at 162.11 against the U.S. dollar.
The weakness in memory module makers and advanced chipmakers in overnight trading in New York rippled to Asian markets, as investors questioned the sustainability of the artificial intelligence trade.
Escalating tensions in the Middle East also weighed on the market sentiment, and soaring crude oil prices raised the prospect of higher interest rates later in the year.
The Brent crude oil price decreased 0.7% to $84.40 a barrel and traded volatile after the U.S. and Iran exchanged heavy artillery fire over the Strait of Hormuz.
The five-monthlong war in the Middle East has stoked fears of a wider war in the region and prolonged disruptions in commercial shipments through the narrow passageway, a key route for about 20% of global oil and gas exports.
The import-energy-dependent economy of Japan is likely to face upward price pressure as higher energy prices travel through broader sectors of the economy.
Japan's 10-year government bond yield held around 2.69% after Finance Minister Satsuki Katayama proposed including investments in government bonds in a tax-free investment program for individual investors.
The finance minister urged the country's massive pension fund to increase its exposure to Japan's government bonds, as the government prepares to expand its fiscal budget.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 2.5% to 67,004.28, and the broader TOPIX declined 1% to 4,045.09.
Kioxia Holdings declined 13.6% to ¥63,120.0, Tokyo Electron dropped 6.5% to ¥69,520.0, Advantest Corp. decreased 5.8% to ¥29,680.0, and Fujikura Ltd. fell 6.4% to ¥4,798.0.
Nippon Yusen KK decreased 1.3% to ¥5,540.0, Mitsui OSK Lines declined 1.6% to ¥5,504.0, and Kawasaki Kisen Kaisha dropped 1.6% to ¥2,632.50.
China Indexes Diverged as Investors Questioned Elevated Tech Valuations
Li Chen
16 Jul, 2026
Hong Kong
Stocks in China diverged on Thursday as investors reassessed the sustainability of the AI-driven rally and reviewed the latest economic releases.
The Hang Seng Index soared nearly 2%, and the CSI 300 Index fell 0.8% as investors questioned the durability of robust earnings growth.
Semiconductor stocks faced heavy selling pressure in early trading, and memory module makers led the decliners in Shanghai, Hong Kong, and Shenzhen.
The Brent crude oil price decreased 0.5% to $84.58 a barrel as the U.S. struck more targets deep into Iran, and Iran attacked U.S. military bases in Bahrain, Kuwait, Jordan, and the UAE.
Investors stayed cautious following the release of key economic data earlier this week, highlighting uneven economic recovery and persistent domestic demand growth weakness.
China's economy expanded at an annual pace of 4.3% in the second quarter, the slowest pace since 2022 as consumers remained on the sidelines.
Moreover, retail sales, fixed-asset investment, and the urban jobless rate painted mixed economic trends despite strong exports in the first half.
Investors are closely watching the late-July Politburo, a key policy decision-making arm of the Communist Party, which is set to review the first-half economic performance and set course for the remainder of the year.
China Indexes and Stocks
The Hang Seng Index increased 1.95% to 25,162.29, and the mainland-focused CSI 300 Index decreased 0.8% to 4,749.86.
Cambricon Technologies decreased 1.4% to ¥1,327.73; Naura Technology Group fell 3% to ¥720.33; SMIC advanced 0.7% to HK $76.65, and Zhongji Innolight eased 4.6% to ¥1,114.94, and Eoptolink Technology dropped 3.6% to ¥534.12.
China Indexes Diverged as Investors Questioned Elevated Tech Valuations
Li Chen
16 Jul, 2026
Hong Kong
Stocks in China diverged on Thursday as investors reassessed the sustainability of the AI-driven rally and reviewed the latest economic releases.
The Hang Seng Index soared nearly 2%, and the CSI 300 Index fell 0.8% as investors questioned the durability of robust earnings growth.
Semiconductor stocks faced heavy selling pressure in early trading, and memory module makers led the decliners in Shanghai, Hong Kong, and Shenzhen.
The Brent crude oil price decreased 0.5% to $84.58 a barrel as the U.S. struck more targets deep into Iran, and Iran attacked U.S. military bases in Bahrain, Kuwait, Jordan, and the UAE.
Investors stayed cautious following the release of key economic data earlier this week, highlighting uneven economic recovery and persistent domestic demand growth weakness.
China's economy expanded at an annual pace of 4.3% in the second quarter, the slowest pace since 2022 as consumers remained on the sidelines.
Moreover, retail sales, fixed-asset investment, and the urban jobless rate painted mixed economic trends despite strong exports in the first half.
Investors are closely watching the late-July Politburo, a key policy decision-making arm of the Communist Party, which is set to review the first-half economic performance and set course for the remainder of the year.
China Indexes and Stocks
The Hang Seng Index increased 1.95% to 25,162.29, and the mainland-focused CSI 300 Index decreased 0.8% to 4,749.86.
Cambricon Technologies decreased 1.4% to ¥1,327.73; Naura Technology Group fell 3% to ¥720.33; SMIC advanced 0.7% to HK $76.65, and Zhongji Innolight eased 4.6% to ¥1,114.94, and Eoptolink Technology dropped 3.6% to ¥534.12.