Market Update
China's Investors Held Out for Higher Highs Amid Renewed Interest In AI
Li Chen
13 Aug, 2026
Hong Kong
Stocks in China advanced amid a renewed interest in AI-related stocks, and energy stocks lacked direction following conflicting signals from the Middle East.
The Hang Seng Index edged up 0.01%, and the mainland-focused CSI 300 Index increased 0.5% tracking strength across Asian markets.
AI- and semiconductor-linked stocks extended this week's gains ahead of quarterly results from SMIC later today, and investors are looking for insights into the demand for advanced chips.
Tech-heavy benchmarks in Tokyo and Seoul soared 1.6% and 4.5%, respectively, following strong earnings from major tech companies, which reinforced confidence in sustained AI infrastructure.
Moreover, AI adoption is accelerating across a wider range of applications and broader segments of the economy, supporting the case for revenue momentum.
The U.S. annual consumer price inflation weakened for the second consecutive month in July, but prices are still rising faster than the Fed's target rate, complicating policymakers' task.
Overall and core consumer price inflation slowed in July from June, according to the U.S. Bureau of Labor Statistics.
The annual consumer price inflation eased to 3.4% in July from 3.5% in June and declined for the second consecutive month after reaching a two-year high of 4.2% in May.
The annual core inflation, which excludes volatile food and energy prices, slowed to 2.5% from 2.4%.
U.S. consumer price inflation has remained above the Federal Reserve's 2% annual target for over five consecutive years, extending into its sixth straight year as of mid-2026.
China Indexes and Stocks
The Hang Seng Index edged up 0.01% to 25,442.61, and the mainland-focused CSI 300 Index increased 0.5% to 4,712.14.
SMIC gained 3.6% to HK $69.85 ahead of the company's quarterly results later on Thursday.
Zhongji Innolight increased 2.8% to ¥947.0, Eoptolink Technology advanced 4.2% to ¥446.0, Cambricon Technologies gained 3.2% to ¥1,142.08, and NAURA Technology edged up a fraction to ¥760.0.
Energy stocks struggled to advance on Thursday amid contradictory signals from the U.S., Iran, and Oman, reinforcing the view that the reopening of the Strait of Hormuz is likely to take longer than previously estimated.
CNOOC Ltd. decreased 1.3% to HK $23.64, PetroChina fell 0.8% to HK $9.44, and China Petroleum and Chemical declined 0.8% to HK $4.22.
U.S. Stocks Edged Higher After Subdued Inflation Report
Barry Adams
12 Aug, 2026
New York City
U.S. stocks edged higher as investors reacted to the latest batch of quarterly results; however, lingering uncertainty over energy shipments from the Middle East muted advances.
The S&P 500 Index increased 0.3%, and the tech-heavy Nasdaq Composite advanced 0.7% as investors reviewed results from Foxconn, Super Micro Computer, and CoreWeave.
High-flying AI-related and semiconductor-related stocks extended this week's gains, after Super Micro Computer reported strong quarterly results and a revenue update.
Middle East tensions weighed on investors' sentiment after Iran-backed Houthi rebels claimed responsibility for attacks on a cargo ship that killed six people in the Bab el-Mandeb Strait on Tuesday.
Later the U.S. forces confirmed they fired missiles targeting a container ship that allegedly violated the U.S. blockade of Iranian ports in the Gulf of Oman.
The West Texas Intermediate crude oil price per barrel decreased 0.1% to $83.07, and the Brent crude oil price eased 0.1% to $88.74.
The U.S. annual consumer price inflation weakened for the second consecutive month in July, but prices are still rising faster than the Fed's target rate, complicating policymakers' task.
Overall and core consumer price inflation slowed in July from June, according to the U.S. Bureau of Labor Statistics.
The annual consumer price inflation eased to 3.4% in July from 3.5% in June and declined for the second consecutive month after reaching a two-year high of 4.2% in May.
The annual core inflation, which excludes volatile food and energy prices, slowed to 2.5% from 2.4%.
U.S. consumer price inflation has remained above the Federal Reserve's 2% annual target for over five consecutive years, extending into its sixth straight year as of mid-2026.
U.S. Movers
Super Micro Computer increased 9.2% to $34.52 after the server maker reported strong fiscal fourth quarter results ending in June.
Revenue soared to $11.1 billion from $5.4 billion, net income soared to $1.2 billion from $195 million, and diluted earnings per share advanced to $1.62 from 31 cents a year ago.
Net sales for the full fiscal year ended June 30, 2026, soared to $39.1 billion from $22.0 billion; net income for the fiscal year surged to $2.2 billion from $1.0 billion, and diluted earnings per share increased to $3.26 from $1.68 a year ago.
For fiscal year 2027, the company expects net sales in the range of $65.0 billion to $72.0 billion, confirming the sustained demand from AI-powered data centers.
Revenue in the fiscal first quarter ending in September to range between $14.5 billion and $15.5 billion, diluted earnings per share between 89 cents and 98 cents, and adjusted earnings per share between $1.01 and $1.10.
CoreWeave soared 17.7% to $106.32 after the cloud computing infrastructure provider reported slightly better-than-expected adjusted margins in the second quarter.
Revenue increased to $2.7 billion from $1.2 billion, net loss expanded to $626 million from $290 million, and diluted loss per share increased to $1.14 from 60 cents a year ago.
Adjusted operating income decreased to $128 million from $200 million, and adjusted operating income margin eased to 5% from 16%, but it was ahead of market expectations.
U.S. Stocks Edged Higher After Inflation Report
Barry Adams
12 Aug, 2026
New York City
U.S. stocks edged higher as investors reacted to the latest batch of quarterly results; however, lingering uncertainty over energy shipments from the Middle East muted advances.
The S&P 500 Index increased 0.3%, and the tech-heavy Nasdaq Composite advanced 0.7% as investors reviewed results from Foxconn, Super Micro Computer, and CoreWeave.
High-flying AI-related and semiconductor-related stocks extended this week's gains, after Super Micro Computer reported strong quarterly results and a revenue update.
Middle East tensions weighed on investors' sentiment after Iran-backed Houthi rebels claimed responsibility for attacks on a cargo ship that killed six people in the Bab el-Mandeb Strait on Tuesday.
Later the U.S. forces confirmed they fired missiles targeting a container ship that allegedly violated the U.S. blockade of Iranian ports in the Gulf of Oman.
The West Texas Intermediate crude oil price per barrel decreased 0.1% to $83.07, and the Brent crude oil price eased 0.1% to $88.74.
U.S. Movers
Super Micro Computer increased 9.2% to $34.52 after the server maker reported strong fiscal fourth quarter results ending in June.
Revenue soared to $11.1 billion from $5.4 billion, net income soared to $1.2 billion from $195 million, and diluted earnings per share advanced to $1.62 from 31 cents a year ago.
Net sales for the full fiscal year ended June 30, 2026, soared to $39.1 billion from $22.0 billion; net income for the fiscal year surged to $2.2 billion from $1.0 billion, and diluted earnings per share increased to $3.26 from $1.68 a year ago.
For fiscal year 2027, the company expects net sales in the range of $65.0 billion to $72.0 billion, confirming the sustained demand from AI-powered data centers.
Revenue in the fiscal first quarter ending in September to range between $14.5 billion and $15.5 billion, diluted earnings per share between 89 cents and 98 cents, and adjusted earnings per share between $1.01 and $1.10.
CoreWeave soared 17.7% to $106.32 after the cloud computing infrastructure provider reported slightly better-than-expected adjusted margins in the second quarter.
Revenue increased to $2.7 billion from $1.2 billion, net loss expanded to $626 million from $290 million, and diluted loss per share increased to $1.14 from 60 cents a year ago.
Adjusted operating income decreased to $128 million from $200 million, and adjusted operating income margin eased to 5% from 16%, but it was ahead of market expectations.
Japan's Nikkei 225 and TOPIX Extends Weekly Gains, Yen's Weakness Shifts Focus to BoJ
Akira Ito
12 Aug, 2026
Tokyo
Stocks in Japan headed higher, and benchmark indexes extended this week's gains as technology and financial stocks powered the upsurge.
The Nikkei 225 Stock Average inched higher by 0.6%, the broader TOPIX edged up 0.7%, and the yen weakened to 159.38 against the U.S. dollar.
Tech stocks extended gains for the third session in a row in Tokyo following positive results from CoreWeave and a strong sales outlook from Super Micro Computer, supporting the sustainability of the global AI trade.
The yen gave up about half of the gains since the U.S.-Japan joint intervention about ten days ago, confirming that the persistent rate differentials and the lagging BoJ's rate hikes are driving the investor sentiment.
The Brent crude oil price per barrel increased 0.7% to $89.49 as the U.S. and Iran sent contradictory signals over the reopening of the Strait of Hormuz, used for about 20% of the global supply of crude oil.
Japan Indexes and Stocks
The Nikkei 225 Stock Average edged up 0.6% to 67,376.05, and the broader TOPIX gained 0.7% to 4,127.64.
Kioxia Holdings soared 4.4% to ¥50,140.0, Advantest Corp. increased 2.4% to ¥35,110.0, Tokyo Electron advanced 2.3% to ¥58,040.0, and Ibiden Corp. gained 2.5% to ¥20,570.0.
Japan's Nikkei 225 and TOPIX Extends Weekly Gains, Yen's Weakness Shifts Focus to BoJ
Akira Ito
12 Aug, 2026
Tokyo
Stocks in Japan headed higher, and benchmark indexes extended this week's gains as technology and financial stocks powered the upsurge.
The Nikkei 225 Stock Average inched higher by 0.6%, the broader TOPIX edged up 0.7%, and the yen weakened to 159.38 against the U.S. dollar.
Tech stocks extended gains for the third session in a row in Tokyo following positive results from CoreWeave and a strong sales outlook from Super Micro Computer, supporting the sustainability of the global AI trade.
The yen gave up about half of the gains since the U.S.-Japan joint intervention about ten days ago, confirming that the persistent rate differentials and the lagging BoJ's rate hikes are driving the investor sentiment.
The Brent crude oil price per barrel increased 0.7% to $89.49 as the U.S. and Iran sent contradictory signals over the reopening of the Strait of Hormuz, used for about 20% of the global supply of crude oil.
Japan Indexes and Stocks
The Nikkei 225 Stock Average edged up 0.6% to 67,376.05, and the broader TOPIX gained 0.7% to 4,127.64.
Kioxia Holdings soared 4.4% to ¥50,140.0, Advantest Corp. increased 2.4% to ¥35,110.0, Tokyo Electron advanced 2.3% to ¥58,040.0, and Ibiden Corp. gained 2.5% to ¥20,570.0.
China's Indexes Hovered Near Flatline In Cautious Trading Ahead of SMIC Results
Li Chen
12 Aug, 2026
Hong Kong
China's indexes struggled to stay above the flatline amid uncertainty over energy shipments through the Strait of Hormuz and renewed optimism linked to AI trade.
The Hang Seng Index decreased 1.2%, and the mainland-focused CSI 300 Index edged up 0.6% as technology stocks led the recovery.
The Brent crude oil price per barrel increased 1% to $89.05 as the U.S. and Iran sent contradictory signals over the reopening of the Strait of Hormuz, used for about 20% of the global supply of crude oil.
Tech stocks advanced following the strong quarterly sales growth from CoreWeave and the upbeat sales outlook by Super Micro Computer.
Moreover, investors are excited for the release of quarterly results from Semiconductor Manufacturing International Corp., which could offer fresh insights into chip demand.
Benchmark indexes in Shanghai and Hong Kong have struggled to advance over the last three weeks, partly driven by a weakening macroeconomic outlook and uncertainty over energy shipments from the Middle East.
The rebound in volatile tech stocks has also driven semiconductor- and AI-linked stocks higher, despite worries over stretched valuations and the difficulties of monetizing AI-driven products and services.
China Indexes and Stocks
The Hang Seng Index decreased 1.2% to 25,350.74, and the mainland-focused CSI 300 Index edged up 0.6% to 4,690.52.
Zhongji Innolight increased 4.5% to ¥926.41, Eoptolink Technology gained 4.4% to ¥435.90, Cambricon Technologies Corp. advanced 3.4% to ¥1,124.0, and Victory Giant Technology edged up 1.2% to ¥277.90.
Alibaba Group Holding decreased 3.4% to ¥277.90, Tencent Holdings dropped 3.1% to HK $456.40, and Meituan declined 1.8% to HK $91.35.
China's Indexes Hovered Near Flatline In Cautious Trading Ahead of SMIC Results
Li Chen
12 Aug, 2026
Hong Kong
China's indexes struggled to stay above the flatline amid uncertainty over energy shipments through the Strait of Hormuz and renewed optimism linked to AI trade.
The Hang Seng Index decreased 1.2%, and the mainland-focused CSI 300 Index edged up 0.6% as technology stocks led the recovery.
The Brent crude oil price per barrel increased 1% to $89.05 as the U.S. and Iran sent contradictory signals over the reopening of the Strait of Hormuz, used for about 20% of the global supply of crude oil.
Tech stocks advanced following the strong quarterly sales growth from CoreWeave and the upbeat sales outlook by Super Micro Computer.
Moreover, investors are excited for the release of quarterly results from Semiconductor Manufacturing International Corp., which could offer fresh insights into chip demand.
Benchmark indexes in Shanghai and Hong Kong have struggled to advance over the last three weeks, partly driven by a weakening macroeconomic outlook and uncertainty over energy shipments from the Middle East.
The rebound in volatile tech stocks has also driven semiconductor- and AI-linked stocks higher, despite worries over stretched valuations and the difficulties of monetizing AI-driven products and services.
China Indexes and Stocks
The Hang Seng Index decreased 1.2% to 25,350.74, and the mainland-focused CSI 300 Index edged up 0.6% to 4,690.52.
Zhongji Innolight increased 4.5% to ¥926.41, Eoptolink Technology gained 4.4% to ¥435.90, Cambricon Technologies Corp. advanced 3.4% to ¥1,124.0, and Victory Giant Technology edged up 1.2% to ¥277.90.
Alibaba Group Holding decreased 3.4% to ¥277.90, Tencent Holdings dropped 3.1% to HK $456.40, and Meituan declined 1.8% to HK $91.35.