Jul 08 ,2026
Synopsis:
Asia equities ended mixed in Wednesday trade. Technology-related stocks in South Korea, Japan and Taiwan sold off again amid ongoing concerns over valuation and capacity across the AI-spectrum. Technology stocks in Hong Kong saw strong gains on a trio of news stories. Shenzhen lower, Shanghai slightly higher. Taiwan also up alongside Singapore. Australia lower, India giving up some recent gains. US futures down, Europe mostly lower in the first hour. US dollar slightly higher, NZD stronger following RBNZ decision, yen weakening late on, won strengthened again ahead of SK Hynix's listing in the US. Crude oil sharply higher with Brent at $77.7/bl following Trump's social media posts that Iran "MoU is over"; precious metals lower, industrial metals mixed. Cryptocurrencies lower.
China's technology stocks rallied strongly on several reports; first, Zhipu was talking with other chip designers for its own custom AI chip; second that DeepSeek was developing its own chip to help power AI systems; and third, that Beijing had summoned AI companies to discuss restricting overseas access to homegrown AI models. Among the notable gainers in the cluster, Tencent (700.HK) Alibaba (9988.HK), Knowledge Atlas Technology (2513.HK) all saw double-digit percent gains while Baidu (9888.HK) was also strong. Volumes in Hong Kong also ticked higher.
Elsewhere, non-China based AI-related stocks sank again as Advantest (6857.JP) and Tokyo Electron (8035.JP) dragged on the Nikkei 225. In South Korea, Samsung Electronics (005930.KS) and SK Hynix (000660.KS) weighed again, and there was another notable underperformance in construction stocks to send the Kospi into a technical bear market. Stocks also weighed by a higher oil price after Iran and the US traded attacks that sent the number of ships transiting the Strait of Hormuz back to single digits, and several economists to warn of more pending turmoil in energy markets. Late on, post market close, Trump said MoU with Iran was over, triggering a sharp spike in Brent crude. In other developments today, the RBNZ raised its OCR 25 bps with its statement leaning hawkish.
In corporate news, China Ministry of Commerce and NDRC officials recently met with top AI-related tech firms including Baidu (9888.HK), ByteDance (BYTE.HK) and Alibaba (9988.HK) to restrict overseas access to homegrown AI models. CATL (750.HK) received a safety permit to end suspension of lithium mine closed since August to clear key hurdle. Zhipu (Knowledge Atlas Technology, 2513.HK) is in early talks with domestic Chinese chip designers over building its own custom AI chip for GLM models, according to TheInformation; stock sharply higher. SK Hynix (000660.KS) ADR listing is multiple times oversubscribed ahead of Thursday pricing, according to a Bloomberg report. Samsung and SK Hynix-backed Rebellions (0N4WBR-E) is considering an IPO in South Korea next year, according to its CEO on CNBC.
Digest:
Notable Gainers:
+15.0% 268.HK (Kingdee International Software Group): guides H1 adjusted net income sharply above year-ago level
+13.4% 2513.HK (Knowledge Atlas Technology): reportedly in early talks with domestic chip design houses about building its own custom AI chip for GLM model
+8.5% 3035.TT (Faraday Technology): reports June revenue NT$1.42B, +26.6% y/y
+6.3% 9888.HK (Baidu): China reportedly considering restricting overseas access to most advanced homegrown AI models
+3.1% 2502.JP (Asahi Group Holdings): reports FY results delayed by cyber attack; operating income beats guidance but below FactSet estimates
+1.1% 8630.JP (Sompo): US subsidiary to acquire Service Insurance Companies, a workers' compensation insurance specialist
+1.1% 3003.JP (Hulic Co.): acquires Tokyo Kyoiku Ken, operator of university-prep program, from Benesse group; terms undisclosed
Notable Decliners:
-6.7% 6990.HK (Sichuan Kelun-Biotech Biopharmaceutical): launches 5.8M-share placement at HK$470.20/share to fund R&D, clinical trials, and pipeline expansion
-5.0% 2726.JP (PAL GROUP Holdings): reports Q1 revenue and operating income below FactSet estimates
-1.7% 443060.KS (HD Hyundai Marine Solution): KKR reportedly exits investment, sells remaining 5% stake
-0.2% 5631.JP (The Japan Steel Works): raises FY28 targets in updated 2028 management plan
Data:
Economic:
Japan
June bank lending +5.7% y/y vs +5.7% in prior month
May current account balance ¥3,968.3B vs consensus ¥4,121.3B and ¥3,907.8B in prior month
Markets:
Nikkei: (1,437.91) or (2.11%) to 66819.05
Hang Seng: 702.57 or +2.99% to 24199.46
Shanghai Composite: (19.36) or (0.49%) to 3970.88
Shenzhen Composite: (53.27) or (1.97%) to 2650.43
ASX200: (18.80) or (0.21%) to 8785.10
KOSPI: (409.52) or (5.35%) to 7246.79
SENSEX: (567.82) or (0.73%) to 77612.90
Currencies:
$-¥: +0.15 or +0.09% to 162.2520
$-KRW: (10.35) or (0.68%) to 1504.1200
A$-$: +0.00 or +0.12% to 0.6938
$-INR: (0.05) or (0.06%) to 95.2495
$-CNY: +0.00 or +0.01% to 6.7948
This information and data is provided for general informational purposes only. The Bank of New York Mellon and our information suppliers do not warrant or guarantee the accuracy, timeliness or completeness of this information or data. We provide no advice nor recommendation or endorsement with respect to any company or securities. We do not undertake any obligation to update or amend this information or data. Nothing herein shall be deemed to constitute an offer to sell or a solicitation of an offer to buy securities.
Please refer to "Terms Of Use".
DEPOSITARY RECEIPTS:
NOT FDIC, STATE OR FEDERAL AGENCY INSURED
MAY LOSE VALUE
NO BANK, STATE OR FEDERAL AGENCY GUARANTEE