Asian stocks today: Asian markets traded higher on Thursday, July 23, driven by gains in regional semiconductor stocks amid optimism that they would benefit from strong artificial intelligence (AI) spending. Meanwhile, oil prices extended their recent rally.
Japan’s Nikkei 225 advanced more than 1.10%, while the broader TOPIX index gained nearly 1%.
The MSCI Asia Pacific Index climbed 0.8%, led by South Korea’s Kospi, which surged over 4% on expectations of robust AI-related investment. The small-cap Kosdaq index also rose 1.42%.
Samsung Electronics and SK Hynix climbed over 4% each, as investors viewed the South Korean chipmakers among the biggest beneficiaries of the global artificial intelligence (AI) boom.
Australia’s benchmark S&P/ASX 200 gained 0.72%. Meanwhile, Hong Kong’s Hang Seng index futures were trading at 24,997, above the previous session’s closing level of 24,892.66.
What’s driving Asian markets today?
Asian markets advanced despite mixed earnings from major US technology companies overnight. Alphabet fell more than 3% in after-hours trading after raising its capital expenditure guidance for the year, while Tesla declined 4% following weaker-than-expected second-quarter earnings. IBM also edged lower after trimming its full-year sales forecast. However, US equity-index futures recovered part of their earlier losses.
Alphabet’s results are being closely watched as the first major earnings release of the season, with investors looking for evidence over the next two weeks that heavy investments in artificial intelligence are translating into stronger financial performance. The focus comes after last week’s selloff pushed a key semiconductor index into bear market territory.
Meanwhile, oil prices continued to climb after Iran-backed Houthi militants claimed responsibility for targeting two Saudi oil tankers in the Red Sea, intensifying tensions in West Asia and fuelling concerns over potential supply disruptions.
Brent crude, the global benchmark, rose 2% to around $96 a barrel, while US West Texas Intermediate (WTI) crude gained 1.4% to $88.07 a barrel. The move followed US President Donald Trump’s warning that the United States would target Iranian bridges and power plants if attacks on ships in the Strait of Hormuz continued, prompting a warning from Iran in return.
The surge in crude prices weighed on US Treasury bonds on Wednesday, July 22. The yield on the two-year Treasury note rose four basis points, while the 30-year yield remained above 5% for its longest stretch since the beginning of the global financial crisis, highlighting investor concerns over rising government debt and persistent inflation.
In the currency market, the Japanese yen remained under pressure after touching its weakest level against the US dollar since 1986 earlier this week. It was last trading largely unchanged at 163.10 per dollar.
US stock market today
US stock futures edged lower on Wednesday evening as investors assessed the latest corporate earnings, concerns over artificial intelligence-related spending, and higher crude oil prices.
Dow Jones Industrial Average futures declined 75 points, or 0.1%, while S&P 500 futures slipped 0.3%. Nasdaq 100 futures also fell 0.4%.
During the regular trading session, the Dow Jones Industrial Average ended nearly flat, slipping 6.06 points, or 0.01%. The benchmark S&P 500 declined 0.14%, while the tech-heavy Nasdaq Composite dropped 0.57%.
(With inputs from agencies)
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.