Market Update
China Indexes Closed Down Tracking Global Losses In Tech Stocks
Li Chen
02 Jul, 2026
Hong Kong
China's benchmark indexes halted a 3-day rally, driven by a sell-off in technology stocks.
The Hang Seng Index increased 1.3%, and the CSI 300 Index fell nearly 2% following sharp losses in semiconductor stocks.
The technology rally halted following another down day in overnight trading in New York.
Investors reassessed the sustainability of the recent AI-driven rally amid worries that valuations have risen so much and that elevated levels are not sustainable.
The latest batch of mixed economic releases also contributed to investors' caution amid persistent weakness in domestic demand growth and lingering weakness in the residential market.
China Indexes and Stocks
The Hang Seng Index increased 1.3% to 23,180.64, and the mainland-focused CSI 300 Index dropped 1.9% to 4,867.43.
Zhongji Innolight decreased 4%, Eoptolink Technology dropped 5.2%, and Hygon Information Technology declined 6%.
Wall Street Indexes Trim Weekly Rally as Semiconductor and Memory Stocks Recede
Barry Adams
01 Jul, 2026
New York City
U.S. stocks traded higher, and AI- and semiconductor-related stocks led the market's advance.
The S&P 500 Index increased 0.3%, the tech-heavy Nasdaq Composite edged up 0.4%, and private payrolls rose less than expected in June.
Benchmark indexes advanced on the final trading day of the second quarter, as investors continued to add risk exposure to semiconductor and memory-related chips.
At the end of the first half, the S&P 500 Index jumped 9.6%, the Nasdaq Composite advanced 12.8%, and the small-cap-focused Russell 2000 soared 22%, registering its best first-half performance since 1991.
The surge in AI computing made already tight memory supply conditions tighter, driving memory prices more than three-fold over the last year.
In six months, SanDisk soared 850%, Micron Technology advanced 310%, and Western Digital gained 280%, a scale of return that generally takes several years.
Investors bid up these stocks as hyperscalers order large quantities of high-speed memory and storage to train and run AI systems as the largest technology companies race to expand their data centers.
Previous AI darlings have come under heavy pressure in June, dragging down Microsoft by 24% and Meta by 14% over the six months, respectively.
The surge in demand for advanced semiconductors also powered indexes in Asia and Europe.
Benchmark indexes in Germany gained 2%, in France added 5%, and in the UK increased 7%.
Market averages in Japan soared 40% and in South Korea soared 95% but declined 5% in India and 6% in Hong Kong.
Gold hit a new seven-month low and traded at $3,995 an ounce, plunging 28% from its peak of $5,594.28 an ounce reached on January 29.
On the economic front, U.S. private businesses added fewer-than-expected jobs in June, and the pace of hiring declined from May, according to ADP.
Private enterprises added 96,000 net new jobs in June, below 122,000 in May and 105,000 in April.
Education and healthcare added the most jobs, followed by trade, transportation, utilities, and financial services. Meanwhile, annual wage gains held steady at 4.4% for those staying in their jobs, while increasing by 6.0% for those switching.
U.S. Movers
Shutterstock plunged 33% to $9.38, and Getty Images Holdings decreased 5% to $0.81 after the two companies called off a $3.7 billion merger plan following additional demands from the UK regulators.
Getty said in a regulatory filing with the SEC that it rejected the UK Competition and Market Authority's merger condition, which would require Shutterstock to sell its editorial business.
Both companies are facing a new wave of competition from generative AI products, which can create images based on basic requests from users.
Wall Street Indexes Trim Weekly Rally as Semiconductor and Memory Stocks Recede
Barry Adams
01 Jul, 2026
New York City
U.S. stocks traded higher, and AI- and semiconductor-related stocks led the market's advance.
The S&P 500 Index increased 0.3%, the tech-heavy Nasdaq Composite edged up 0.4%, and private payrolls rose less than expected in June.
Benchmark indexes advanced on the final trading day of the second quarter, as investors continued to add risk exposure to semiconductor and memory-related chips.
At the end of the first half, the S&P 500 Index jumped 9.6%, the Nasdaq Composite advanced 12.8%, and the small-cap-focused Russell 2000 soared 22%, registering its best first-half performance since 1991.
The surge in AI computing made already tight memory supply conditions tighter, driving memory prices more than three-fold over the last year.
In six months, SanDisk soared 850%, Micron Technology advanced 310%, and Western Digital gained 280%, a scale of return that generally takes several years.
Investors bid up these stocks as hyperscalers order large quantities of high-speed memory and storage to train and run AI systems as the largest technology companies race to expand their data centers.
Previous AI darlings have come under heavy pressure in June, dragging down Microsoft by 24% and Meta by 14% over the six months, respectively.
The surge in demand for advanced semiconductors also powered indexes in Asia and Europe.
Benchmark indexes in Germany gained 2%, in France added 5%, and in the UK increased 7%.
Market averages in Japan soared 40% and in South Korea soared 95% but declined 5% in India and 6% in Hong Kong.
Gold hit a new seven-month low and traded at $3,995 an ounce, plunging 28% from its peak of $5,594.28 an ounce reached on January 29.
On the economic front, U.S. private businesses added fewer-than-expected jobs in June, and the pace of hiring declined from May, according to ADP.
Private enterprises added 96,000 net new jobs in June, below 122,000 in May and 105,000 in April.
Education and healthcare added the most jobs, followed by trade, transportation, utilities, and financial services. Meanwhile, annual wage gains held steady at 4.4% for those staying in their jobs, while increasing by 6.0% for those switching.
U.S. Movers
Shutterstock plunged 33% to $9.38, and Getty Images Holdings decreased 5% to $0.81 after the two companies called off a $3.7 billion merger plan following additional demands from the UK regulators.
Getty said in a regulatory filing with the SEC that it rejected the UK Competition and Market Authority's merger condition, which would require Shutterstock to sell its editorial business.
Both companies are facing a new wave of competition from generative AI products, which can create images based on basic requests from users.
Japan's 3-Day Rally Extended Advances as Semiconductor Equipment Makers Led Gainers
Akira Ito
01 Jul, 2026
Tokyo
Japan's benchmark indexes extended their gains for the third consecutive session, and investors shrugged off AI valuation worries.
The Nikkei 225 Stock Average edged up 0.8%, the broader TOPIX inched higher 0.5%, and the yen held near 161.67 against the U.S. dollar.
AI- and semiconductor-linked stocks powered the broader market rally, reflecting technology-led rally on Wall Street overnight.
The S&P 500 index jumped 0.8%, and the tech-heavy Nasdaq Composite advanced 1.5% in New York, as the AI-linked stocks rebounded.
The Nikkei 225 jumped 37% in the second quarter, the best quarterly return dating back to 1965, and gained 40% at the end of the first half.
The sharp rally in Japanese stocks was supported by a surge in semiconductor equipment makers and electronic component makers, driven by a global demand for AI-powered data centers.
Market sentiment remained buoyant despite Iran war-driven energy and supply chain shocks and uncertainties related to the U.S. tariffs.
Japan Indexes and Stocks
The Nikkei 225 Stock Average increased 0.8% to 70,642.93, and the broader TOPIX advanced 0.5% to 4,014.79.
Tokyo Electron gained 2.4% to ¥79,130.0, extending this year's rise to over 110%, Advantest Corp. inched up 0.5% to ¥32,390.0, and Taiyo Yuden jumped 15% to ¥23,110.0.
In the first half, SoftBank Group soared 30%, Kioxia Holdings jumped 689%, and Furukawa Electric surged 313%.
Japan's 3-Day Rally Extended Advances as Semiconductor Equipment Makers Led Gainers
Akira Ito
01 Jul, 2026
Tokyo
Japan's benchmark indexes extended their gains for the third consecutive session, and investors shrugged off AI valuation worries.
The Nikkei 225 Stock Average edged up 0.8%, the broader TOPIX inched higher 0.5%, and the yen held near 161.67 against the U.S. dollar.
AI- and semiconductor-linked stocks powered the broader market rally, reflecting technology-led rally on Wall Street overnight.
The S&P 500 index jumped 0.8%, and the tech-heavy Nasdaq Composite advanced 1.5% in New York, as the AI-linked stocks rebounded.
The Nikkei 225 jumped 37% in the second quarter, the best quarterly return dating back to 1965, and gained 40% at the end of the first half.
The sharp rally in Japanese stocks was supported by a surge in semiconductor equipment makers and electronic component makers, driven by a global demand for AI-powered data centers.
Market sentiment remained buoyant despite Iran war-driven energy and supply chain shocks and uncertainties related to the U.S. tariffs.
Japan Indexes and Stocks
The Nikkei 225 Stock Average increased 0.8% to 70,642.93, and the broader TOPIX advanced 0.5% to 4,014.79.
Tokyo Electron gained 2.4% to ¥79,130.0, extending this year's rise to over 110%, Advantest Corp. inched up 0.5% to ¥32,390.0, and Taiyo Yuden jumped 15% to ¥23,110.0.
In the first half, SoftBank Group soared 30%, Kioxia Holdings jumped 689%, and Furukawa Electric surged 313%.
China Indexes Struggled to Rise Above Flatline
Li Chen
01 Jul, 2026
Hong Kong
China's indexes traded mixed, and investors shrugged off recent AI valuation worries.
The Hang Seng Index decreased 0.6%, and the mainland-focused CSI 300 Index fell 0.4% as investors reviewed the private survey of business activity.
RatingDog China Manufacturing PMI inched down to a three-month low of 51.7 in June, from 51.8 in May, according to the monthly update released by S&P Global.
The private survey, which includes a larger sample of mid-sized companies and export-driven businesses, showed faster growth than the official data released on Tuesday.
The NBS Manufacturing PMI increased to 50.3 from 50.0 in May, largely because of the surge in high-tech exports overcoming the persistent weakness in domestic demand.
In overnight trading in New York, the S&P 500 Index increased 0.8%, and the tech-heavy Nasdaq Composite jumped 1.5% following a rebound in AI-related stocks.
China Indexes and Stocks
The Hang Seng Index decreased 0.6% to 22,881.02, and the mainland-focused CSI 300 Index added 0.4% to 5,001.54.
Semiconductor and tech stocks advanced in the hopes of higher earnings in the current and next year.
Eoptolink Technology decreased 3.3%, NAURA Technology Group advanced 7.5%, and Shennan Circuits declined 0.3%.
Zhongji Innolight decreased 2.9% to ¥1,231.0, and SMIC added 5.9% to $89.40.
China Indexes Struggled to Rise Above Flatline
Li Chen
01 Jul, 2026
Hong Kong
China's indexes traded mixed, and investors shrugged off recent AI valuation worries.
The Hang Seng Index decreased 0.6%, and the mainland-focused CSI 300 Index fell 0.4% as investors reviewed the private survey of business activity.
RatingDog China Manufacturing PMI inched down to a three-month low of 51.7 in June, from 51.8 in May, according to the monthly update released by S&P Global.
The private survey, which includes a larger sample of mid-sized companies and export-driven businesses, showed faster growth than the official data released on Tuesday.
The NBS Manufacturing PMI increased to 50.3 from 50.0 in May, largely because of the surge in high-tech exports overcoming the persistent weakness in domestic demand.
In overnight trading in New York, the S&P 500 Index increased 0.8%, and the tech-heavy Nasdaq Composite jumped 1.5% following a rebound in AI-related stocks.
China Indexes and Stocks
The Hang Seng Index decreased 0.6% to 22,881.02, and the mainland-focused CSI 300 Index added 0.4% to 5,001.54.
Semiconductor and tech stocks advanced in the hopes of higher earnings in the current and next year.
Eoptolink Technology decreased 3.3%, NAURA Technology Group advanced 7.5%, and Shennan Circuits declined 0.3%.
Zhongji Innolight decreased 2.9% to ¥1,231.0, and SMIC added 5.9% to $89.40.
AI Wild Swings and Tech Rally Lifts Major Averages to Best First Half Returns In Five Years
Barry Adams
30 Jun, 2026
New York City
Stocks in New York advanced on Tuesday, and benchmark indexes are set to close out the solid first half and second quarter amid lingering uncertainty in the energy markets.
The S&P 500 Index increased 0.1%, and the tech-heavy Nasdaq Composite advanced 0.2% as investors reassessed the need for an elevated level of investment in AI infrastructure.
In the first half, the S&P 500 Index advanced 8%, and the tech-heavy Nasdaq Composite jumped 11%, and major averages created new highs despite the ongoing war in the Middle East and uncertainty over AI infrastructure spending.
However, market indexes rebounded in the second quarter as fears over the prolonged closure of the Strait of Hormuz eased and investor jitters subsided over the elevated level of AI spending.
Caution still prevailed, and hyperscalers like Alphabet, Meta Platforms, Microsoft, and Oracle dropped as much as 20% from the highs reached in early June.
Moreover, memory makers continued to scale new highs, and SanDisk, Micron Technology, Marvell Technology, and Seagate booked triple-digit returns in the first half.
U.S. Movers
Digital Realty Trust dropped 4.5% to $181.99, and the company agreed to acquire a stake in three data centers from Blackstone for $3.5 billion.
The company agreed to pay $1.2 billion in cash and $2.3 billion in stock for data centers in Northern Virginia.
Digital Realty will acquire Blackstone's 80% stake in two 96-megawatt data centers in Manassas, Virginia, and a 50% stake in a similar-sized facility in Sterling, Virginia.
Kering SA decreased 6.5% to €249.50 after the luxury group reiterated its annual outlook in a call with analysts ahead of its quarterly results on July 28.
However, the recently appointed CEO Luca de Meo highlighted a challenging macro environment, and disruptions in the Middle East and persistent weakness in China continue to drag on its overall revenues.
AI Wild Swings and Tech Rally Lifts Major Averages to Best First Half Returns In Five Years
Barry Adams
30 Jun, 2026
New York City
Stocks in New York advanced on Tuesday, and benchmark indexes are set to close out the solid first half and second quarter amid lingering uncertainty in the energy markets.
The S&P 500 Index increased 0.1%, and the tech-heavy Nasdaq Composite advanced 0.2% as investors reassessed the need for an elevated level of investment in AI infrastructure.
In the first half, the S&P 500 Index advanced 8%, and the tech-heavy Nasdaq Composite jumped 11%, and major averages created new highs despite the ongoing war in the Middle East and uncertainty over AI infrastructure spending.
However, market indexes rebounded in the second quarter as fears over the prolonged closure of the Strait of Hormuz eased and investor jitters subsided over the elevated level of AI spending.
Caution still prevailed, and hyperscalers like Alphabet, Meta Platforms, Microsoft, and Oracle dropped as much as 20% from the highs reached in early June.
Moreover, memory makers continued to scale new highs, and SanDisk, Micron Technology, Marvell Technology, and Seagate booked triple-digit returns in the first half.
U.S. Movers
Digital Realty Trust dropped 4.5% to $181.99, and the company agreed to acquire a stake in three data centers from Blackstone for $3.5 billion.
The company agreed to pay $1.2 billion in cash and $2.3 billion in stock for data centers in Northern Virginia.
Digital Realty will acquire Blackstone's 80% stake in two 96-megawatt data centers in Manassas, Virginia, and a 50% stake in a similar-sized facility in Sterling, Virginia.
Kering SA decreased 6.5% to €249.50 after the luxury group reiterated its annual outlook in a call with analysts ahead of its quarterly results on July 28.
However, the recently appointed CEO Luca de Meo highlighted a challenging macro environment, and disruptions in the Middle East and persistent weakness in China continue to drag on its overall revenues.
Japan's Jobless Rate Held Steady and Industrial Production Logged Modest Gain In May
Akira Ito
30 Jun, 2026
Tokyo
Japan's benchmark indexes advanced for the second consecutive session even as the yen hovered at a four-decade low amid growing speculation of regulatory interventions.
The Nikkei 225 Stock Average increased nearly 1.5%, the broader TOPIX gained 0.8%, and the yen hovered at 161.57 against the U.S. dollar.
The weaker yen is likely to boost profits at export-driven Japanese corporations but also fuel household inflation because of higher prices for imported commodities.
Japan's industrial production declined in May, as the Middle East conflict continued to pose risks to supply chains and energy costs.
Industrial output declined at an annual pace of 1.7%, reversing a 2.0% increase in April, according to a report released by the Ministry of Economy, Trade & Industry.
On a monthly basis, output rose for the second consecutive month and expanded 0.5% from the previous month, driven by production increases in transportation equipment and chemicals.
Japan's jobless rate was 2.5% in May, unchanged from the previous month according to a separate report released by the ministry.
The number of employed in May edged up 0.1% to 68.8 million as fewer people changed jobs at the conclusion of the hiring season for the start of the new business year.
The job availability ratio edged down a fraction to 1.17, meaning there were 117 jobs available for every 100 job seekers, according to a separate report.
New job openings declined across all 11 sectors, led by a 16.9% decrease in personal services and amusement services; a 16.8% fall in retail and wholesale trade; a 14.4% decline in accommodation, eating, and drinking services; and a 10.3% weakness in construction.
Japan Indexes and Stocks
The Nikkei 225 Stock Average increased 1.4% to 70,508.02, and the broader TOPIX advanced 0.8% to 70,508.02.
Semiconductor-linked stocks traded mixed as investors reassessed the sustainability of the AI infrastructure investment.
Tokyo Electron jumped 5%, Advantest Corp. gained 2.9%, SoftBank Group increased 2.5%, and Kioxia Holdings advanced 6.6%.
Japan's Jobless Rate Held Steady and Industrial Production Logged Modest Gain In May
Akira Ito
30 Jun, 2026
Tokyo
Japan's benchmark indexes advanced for the second consecutive session even as the yen hovered at a four-decade low amid growing speculation of regulatory interventions.
The Nikkei 225 Stock Average increased nearly 1.5%, the broader TOPIX gained 0.8%, and the yen hovered at 161.57 against the U.S. dollar.
The weaker yen is likely to boost profits at export-driven Japanese corporations but also fuel household inflation because of higher prices for imported commodities.
Japan's industrial production declined in May, as the Middle East conflict continued to pose risks to supply chains and energy costs.
Industrial output declined at an annual pace of 1.7%, reversing a 2.0% increase in April, according to a report released by the Ministry of Economy, Trade & Industry.
On a monthly basis, output rose for the second consecutive month and expanded 0.5% from the previous month, driven by production increases in transportation equipment and chemicals.
Japan Indexes and Stocks
The Nikkei 225 Stock Average increased 1.4% to 70,508.02, and the broader TOPIX advanced 0.8% to 70,508.02.
Semiconductor-linked stocks traded mixed as investors reassessed the sustainability of the AI infrastructure investment.
Tokyo Electron jumped 5%, Advantest Corp. gained 2.9%, SoftBank Group increased 2.5%, and Kioxia Holdings advanced 6.6%.
Global AI Surge Supported China's Factory Activity Expansion In June
Li Chen
30 Jun, 2026
Hong Kong
China's indexes lacked direction as investors reviewed the latest updates on business activities.
The Hang Seng Index decreased more than 1%, and the mainland-focused CSI 300 Index edged up 0.5% after the factory activities expanded for the fourth consecutive month in a row.
NBS Manufacturing PMI increased to 50.3 in June from 50.0 in the previous month, according to the National Bureau of Statistics.
The strong export demand for AI-related electric and electronic goods drove the increase in factory activities, despite subdued domestic demand.
The measure of factory activities showed growth amid Middle East conflict, but strong demand from the ASEAN region and the U.S. supported high-tech exports.
The NBS nonmanufacturing PMI increased to 50.2 from 50.1 in the previous month amid signs of stabilization in the sector.
Crude oil prices hovered near the pre-war level as commercial shipment activity picked up in the Strait of Hormuz.
Brent crude oil prices for immediate-month delivery held at $73.65 a barrel as investors held out for progress in US-Iran peace talks later this week.
China Indexes and Stocks
The Hang Seng Index decreased 1.3% to 22,726.02, and the mainland-focused CSI 300 Index added 0.5% to 4,951.56.
Financial services providers and resource sector stocks led decliners in trading on Tuesday.
China Life, Zijin Mining, Industrial and Commercial Bank, China Construction Bank, and Agriculture Bank of China declined between 3% and 5%.
Semiconductor-related stocks stayed in focus in Hong Kong and in Shenzhen following a rebound in tech stocks in overnight trading in New York.
SMIC jumped 7%, GigaDevice Semiconductor dropped 3%, NAURA Technology increased 2.9%, and Eoptolink soared 9%.
Global AI Surge Supported China's Factory Activity Expansion In June
Li Chen
30 Jun, 2026
Hong Kong
China's indexes lacked direction as investors reviewed the latest updates on business activities.
The Hang Seng Index decreased more than 1%, and the mainland-focused CSI 300 Index edged up 0.5% after the factory activities expanded for the fourth consecutive month in a row.
NBS Manufacturing PMI increased to 50.3 in June from 50.0 in the previous month, according to the National Bureau of Statistics.
The strong export demand for AI-related electric and electronic goods drove the increase in factory activities, despite subdued domestic demand.
The measure of factory activities showed growth amid Middle East conflict, but strong demand from the ASEAN region and the U.S. supported high-tech exports.
The NBS nonmanufacturing PMI increased to 50.2 from 50.1 in the previous month amid signs of stabilization in the sector.
Crude oil prices hovered near the pre-war level as commercial shipment activity picked up in the Strait of Hormuz.
Brent crude oil prices for immediate-month delivery held at $73.65 a barrel as investors held out for progress in US-Iran peace talks later this week.
China Indexes and Stocks
The Hang Seng Index decreased 1.3% to 22,726.02, and the mainland-focused CSI 300 Index added 0.5% to 4,951.56.
Financial services providers and resource sector stocks led decliners in trading on Tuesday.
China Life, Zijin Mining, Industrial and Commercial Bank, China Construction Bank, and Agriculture Bank of China declined between 3% and 5%.
Semiconductor-related stocks stayed in focus in Hong Kong and in Shenzhen following a rebound in tech stocks in overnight trading in New York.
SMIC jumped 7%, GigaDevice Semiconductor dropped 3%, NAURA Technology increased 2.9%, and Eoptolink soared 9%.