Phoenix 24
Investors balance rate hopes against technology valuation fears.
HONG KONG, CHINA — July 2026.
Asian stock markets advanced broadly on Friday after the Dow Jones Industrial Average reached another record high, although weakness persisted across several semiconductor and artificial-intelligence companies. Investors welcomed signs that the United States labor market was cooling, potentially reducing the pressure on the Federal Reserve to maintain an aggressive interest-rate policy. The rebound was calmer than the previous session, when concerns about excessive technology valuations triggered major losses among regional chipmakers. Market performance remained uneven as some previously punished companies recovered while others extended their declines.
South Korea’s Kospi led the regional advance with a gain of more than 4%, recovering part of the nearly 8% decline recorded on Thursday. Samsung Electronics climbed approximately 7%, while memory-chip rival SK Hynix advanced 4.9% as investors returned cautiously to companies exposed to artificial-intelligence infrastructure. The movement represented a significant technical rebound, but it did not eliminate concerns surrounding semiconductor valuations and the sustainability of recent investment expectations. South Korean technology shares remain highly sensitive to changes in demand for memory products, data-center equipment and advanced computing systems.
Japan’s Nikkei 225 gained approximately 1%, supported by a 6.6% increase in memory manufacturer Kioxia. The advance was not shared by every technology company, with semiconductor-equipment supplier Tokyo Electron falling around 2.5% during the session. This divergence illustrated how investors are distinguishing between different segments of the chip industry instead of treating the sector as a single investment category. Companies connected to memory recovery attracted renewed demand, while equipment manufacturers and highly valued artificial-intelligence suppliers continued facing pressure.
Hong Kong’s Hang Seng index rose about 1.7%, while the Shanghai Composite gained approximately 0.7%. Australia’s S&P/ASX 200 advanced 1.3%, supported by improved regional sentiment and Wall Street’s record-setting performance. Taiwan moved against the broader trend as the Taiex declined around 0.6%, reflecting continued caution toward an index heavily exposed to semiconductor production. The mixed results demonstrated that the regional recovery remained dependent on each market’s industrial composition and level of exposure to the global technology cycle.
European markets opened with more moderate movements as investors assessed the Asian rebound and awaited additional economic signals. The Euro Stoxx 50 and the broader Stoxx Europe 600 remained within a narrow range of approximately 0.3%. Britain’s FTSE 100, Germany’s DAX, France’s CAC 40 and Italy’s FTSE MIB posted gains generally ranging from 0.1% to 0.3%. Spain’s IBEX 35 and the Italian market performed slightly better, advancing by around 0.4% during early trading.
Wall Street had closed with mixed results on Thursday despite the Dow gaining 1.1% and finishing near 52,900 points. The S&P 500 ended almost unchanged even though approximately seven out of every ten constituent companies advanced during the session. Semiconductor losses weighed heavily on the index, while the technology-focused Nasdaq declined 0.8%. The contrast showed that the Dow’s record did not represent a uniform rally across the American market, particularly among companies associated with artificial intelligence.
Investors were encouraged by employment data showing that United States employers created 57,000 jobs during the previous month. The figure was substantially below the approximately 100,000 positions forecast by economists and also lower than the result registered in May. A slower labor market could reduce wage-related inflationary pressure and give the Federal Reserve greater flexibility when determining future interest-rate adjustments. Financial markets generally favor lower borrowing costs because they support business investment, consumer spending and the present value assigned to future corporate earnings.
Artificial-intelligence and semiconductor shares nevertheless remained under significant pressure after an extended period of rapid appreciation. Micron Technology erased early gains and closed 5.5% lower after losing 10.6% during the preceding session. Semiconductor-equipment company Lam Research fell more than 10%, while Nvidia declined 1.4% despite maintaining a market capitalization approaching $4.7 trillion. These movements reflected growing concern that expectations surrounding artificial-intelligence spending may have advanced faster than near-term earnings and infrastructure demand can justify.
Cryptocurrency-related shares strengthened after Bitcoin gained approximately 2%, supporting companies such as Robinhood and Coinbase. The movement indicated that investors remained willing to take risks in selected areas despite reducing exposure to several prominent technology names. Digital-asset companies can benefit from higher cryptocurrency prices through increased trading activity, transaction revenue and stronger market participation. Their advance also demonstrated that risk appetite had not disappeared entirely, but had shifted away from some of the most crowded semiconductor positions.
Oil prices rose moderately while remaining below the levels recorded before the war involving Iran began in late February. International benchmark Brent crude gained approximately 1% to trade near $73 per barrel, while United States crude increased 0.5% to around $69. Lower energy prices compared with earlier conflict-related peaks could help contain inflation and reduce pressure on central banks to maintain restrictive monetary policies. Markets now face a delicate balance between hopes for lower interest rates, fears of slowing economic growth and questions about whether technology valuations can withstand further scrutiny.
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