- Asian Stocks Rise on TSMC’s Advance, Dollar Dips: Markets Wrap
Asian stocks advanced as a global equity rally gained fresh vigor on strong economic data that eased concerns
about the US economy. Taiwan Semiconductor Manufacturing Co. jumped after a bullish outlook. The MSCI
Asia Pacific Index rose 0.6%, with gains in Hong Kong and mainland China while Japanese stocks fell ahead of a
closely watched election this weekend. Equity-index futures for US rose 0.1% after the S&P 500 and Nasdaq
100 set closing highs Thursday. TSMC’s shares rallied as much as 2.7% – set for a record close in Taipei – as the
company forecast boosted confidence in artificial-intelligence spending. Cryptocurrencies gained after
Congress passed the first federal legislation to regulate stablecoins and cleared the way for broader use of the
technology in everyday finance. - S&P 500 rises to new closing record, boosted by solid earnings and U.S. economic data
Stocks rose on Thursday, buoyed by fresh economic data reports along with a slew of corporate earnings
releases. The S&P 500 added 0.54% for a record close of 6,297.36 — its ninth this year. The tech-heavy Nasdaq
Composite advanced 0.75% for its tenth record close of 2025, ending at 20,885.65. Both indexes also touched
fresh intraday all-time highs. The Dow Jones Industrial Average gained 229.71 points, or 0.52%, and settled at
44,484.49. - Oil rises on Mideast risk, tight supply
Oil prices rose on Thursday as analysts pointed to low inventories and renewed Middle East risks as factors
supporting the market. Brent crude futures were up 84 cents, or 1.23%, to $69.36 a barrel by 1:39 p.m. ET,
while U.S. West Texas Intermediate crude futures rose $1.08, or 1.63%, to $67.46 a barrel. U.S. President
Donald Trump has said letters notifying smaller countries of their U.S. tariff rates would go out soon, and has
also alluded to prospects of a deal with Beijing on illicit drugs and a possible agreement with the European
Union. “Near-term prices (are) set to remain volatile due to the uncertainty over the final scale of U.S. tariffs
and the resultant impact on global growth,” said Ashley Kelty, an analyst at Panmure Liberum, adding that
prices would likely settle lower in the medium term. The oil market was also reacting to a tightened inventory
scenario, said John Evans, analyst at PVM Oil Associates. U.S. crude inventories fell by 3.9 million barrels last
week, government data on Wednesday showed, compared with analysts’ expectations in a Reuters poll for a
552,000-barrel draw. Last week, the International Energy Agency said that oil output increases were not leading
to higher inventories, which showed markets were thirsty for more oil. - Gold eases on firmer dollar, solid US data
Gold prices edged lower on Thursday, weighed down by a stronger dollar and robust U.S. economic data, while
caution persisted as markets awaited clarity on tariff developments. Spot gold fell 0.3% to $3,337.43 per ounce
after hitting a session low of $3,309.59. U.S. gold futures settled 0.4% lower at $3,345.3. Following the latest
U.S. data, “there was a bit of rise in the dollar and U.S. Treasury yields are higher. So, it’s put a little weakness
in the gold market,” said Bob Haberkorn, senior market strategist at RJO Futures. The dollar gained 0.3%,
making the greenback-priced gold more expensive for foreign currency holders. U.S. jobless claims fell last
week, pointing to steady job growth in July, while retail sales data beat expectations, adding 0.6% last month,
though some of the gain likely reflected tariff-driven price increases. Fed Governor Adriana Kugler said the Fed
should not cut interest rates “for some time” as the impact of Trump administration tariffs begins to pass
through to prices. Gold is often regarded as a hedge against uncertainty and inflation, but higher interest rates
diminish its appeal, as it yields no interest. On the trade front, Japan’s top trade negotiator held talks with the
U.S. Commerce Secretary on U.S. tariffs, as Tokyo races to avert a 25% levy that will be imposed unless a deal
is clinched by an August 1 deadline. Elsewhere, spot silver added 0.3% to $38.07 per ounce and platinum gained
3.1% to $1,460.13. - Japan’s core inflation cools in June as expected, coming down from 29-month high as rice prices ease
Japan’s core inflation cooled to 3.3% in June, coming down from a 29-month high of 3.7% as rice inflation
showed signs of easing. The figure — which strips out costs for fresh food — was in line with the 3.3% expected
by economists polled by Reuters. The headline inflation rate in the country dropped to 3.3%, coming down
from 3.5% in May, but marking the 39th straight month that inflation has run above the Bank of Japan’s 2%
target. The so-called “core-core” inflation rate, which strips out prices of both fresh food and energy and is
closely monitored by the BOJ, climbed to 3.4% from 3.3% in the month before. Rice prices, which have seen
their fastest rate of increase in over half a century in May, saw a slight easing to a 100.2% increase year over
year, compared to the 101.7% jump in May. Rice prices have begun to decline after the government released
its stockpiles earlier this year, although prices remain elevated. Japan had struggled with rising rice prices over
the second half of 2024 and the first half of 2025 due to poor harvests in 2023. - Israel’s stock market outperforms Middle East counterparts despite multi-front wars
Israel’s stock market is at a record high and has seen the greatest gains of any country in the Middle East over
the 22 months of war that began on Oct. 7, 2023. Israel has been waging multi-front wars, sustaining the
mobilization of hundreds of thousands of troops that would ordinarily be part of the workforce, it’s currently
facing charges of war crimes in international courts, all while grappling with a large protest movement and
political turmoil at home. Despite this, its economic landscape remains buoyant – lifted by significant foreign
investment and more recently by renewed investor confidence following its 12-day conflict with Iran. Initially
dropping as much as 23% in the month following the October Hamas attack and Israel’s declaration of war,
the Tel Aviv Stock Exchange had rebounded to and exceeded pre-war levels by the first quarter of 2024. As of
July 17, the TASE is up over 200% from its Oct. 2023 low. The country’s GDP for the last quarter of 2023 shrank
nearly 20%, following a deep contraction in private consumption and investment triggered by the war. The full
year nonetheless finished with modest growth of 2%, and a further 1% GDP growth in 2024, driven mainly by
government spending. In June of this year, the OECD forecast 4.9% growth in economic activity for Israel in 2026. - Bitcoin prices climb back to above $120,000
Bitcoin prices rose over 1% to $120,692.67 on Thursday after the U.S. House of Representatives passed a bill
to create a regulatory framework for stablecoins, which are cryptocurrencies pegged to traditional assets like
the U.S. dollar. Ether prices jumped over 5% to $3,634.33. The bill, which has long been lobbied by the digital
asset industry, will now land on U.S. President Donald Trump’s desk, who is expected to sign it into law. - PepsiCo’s results exceed expectations on international growth, soda demand rebound
PepsiCo reported better-than-expected quarterly results on Thursday, driven by steady demand for its sodas
and snacks in the U.S. and other major markets, including Europe. The Gatorade owner sounded a more upbeat
tone in its comments this quarter, after previously warning that heightened macro and consumer uncertainties
could be a drag on its business in the U.S. and some international markets this year. “Our business remained
resilient during the second quarter, navigating through a complex geopolitical and macroeconomic
environment,” PepsiCo (NASDAQ:PEP) executives said in a statement. PepsiCo, like its rival Coca-Cola
(NYSE:KO), has responded to a shift in consumer demand for healthier drinks and snacks by offering more
options, such as its recently acquired prebiotic soda brand Poppi. The company also said it would rebrand Lay’s
and Tostitos by the end of the year with no artificial colors or flavors, and that its K-12 food portfolio will also
stop using artificial colors. - Ast Spacemobile stock hits all-time high at 58.03 USD
Ast Spacemobile Inc (NASDAQ:ASTS) has reached a significant milestone, with its stock price hitting an all-time
high of $58.03, accompanied by robust trading volume averaging 13.27 million shares over the past three
months. According to InvestingPro analysis, the stock is currently trading above its Fair Value. This achievement
underscores the company’s remarkable growth over the past year, during which its stock has surged by nearly
293%, with particularly strong momentum showing a 153% gain in the last six months alone. The soaring stock
price reflects investor confidence and the company’s strong market position in the rapidly evolving space
technology sector. InvestingPro analysis indicates the stock is in overbought territory, with 15 additional
technical indicators available for subscribers. As Ast Spacemobile continues to expand its capabilities and
partnerships, market analysts are closely watching its trajectory, with analyst price targets ranging from $30 to
$64, noting the potential for further growth in the coming months. Discover comprehensive valuation metrics
and expert analysis in the Pro Research Report, available exclusively on InvestingPro. In other recent news, AST
SpaceMobile announced it secured $100 million in non-dilutive equipment financing, led by Trinity Capital
Inc (NASDAQ:TRIN)., to support its manufacturing and network deployment goals. This financing provides long
term liquidity through 2031 and marks the company’s first such agreement, reflecting its transition from
research and development to full-scale operations. Additionally, AST SpaceMobile reported concluding the
second quarter with over $900 million in cash, cash equivalents, and restricted cash. In another development,
AST SpaceMobile repurchased $225 million of its convertible notes, reducing its outstanding debt and cash
interest obligations. This transaction involved a registered direct offering of common stock to fund the
repurchase, expected to close by July 2025. Analyst coverage on AST SpaceMobile has been active, with Clear
Street initiating a Buy rating and a $59 price target, citing long-term growth potential. - ABB Ltd. reported record order intake and profit margins that surpassed views, spurred by rising demand
for automation tools and data center-driven investments in electrical grids
Chief Executive Officer Morten Wierod said the electrification unit saw double-digit growth, and that electric
utilities “need to invest because the power consumption is increasing in the data center”. Orders surged 16%
in the second quarter to $9.79 billion, lifted by a single $600 million deal for process-automation tools in the
US, the industrial supplier said. That outstripped the $8.93 billion average estimate. Ebita margins came in at
19.2% at ABB, versus the 18.8% estimate. Margins increased in the process-automation unit as well as the
electrification business that has recently led ABB’s performance. ABB reiterated its full-year outlook, while
acknowledging some uncertainty in the global environment. ABB shares gained 9.9%, and Citigroup analyst
Martin Wilkie expects “small single digit percentage upgrades” to consensus estimates following the second
quarter results. - Netflix reported second-quarter results that exceeded investor expectations in every major metric, with
revenue growing to $11.1 billion and earnings jumping to $7.19 a share
The company raised its forecast for full-year sales and profit margins, expecting to generate up to $45.2 billion
in sales and an operating margin of 29.5%. Net income is on track to exceed $10 billion for the first time, thanks
to exchange rates that will boost sales and a strong slate of programs. The second-half schedule includes new
seasons of the hit shows Stranger Things and Wednesday, as well as movies such as Happy Gilmore 2. The
streaming leader faces more competition for its customers’ attention than ever before. Its share of total TV
viewing hasn’t grown in the US over the last year, and the company said that its average member is watching
about the same amount of TV as a couple years ago. However, the company prefers to grow internally, Chief
Financial Officer Spencer Neumann said. Management expects engagement to increase in the second half of
this year and believes the company can steal share from competitors. Netflix’s user growth in the US has
slowed, according to market researcher Antenna. The company boosted its customer base for a couple of years
by cracking down on password sharing. The benefits from that program have started to wane. Shares of Netflix
were down about 1.9% in afterhours trading. The stock has nearly doubled over the past year. - Union Pacific Corp. is exploring an acquisition of Norfolk Southern Corp., according to people familiar
with the matter
A deal would merge the No. 1 and No. 5 North American railroads by revenue, companies with a combined
market value of almost $200 billion. Mergers of the handful of large North American railroads are relatively
rare, in part because of the challenge of receiving regulatory approval. Canadian Pacific in 2023 closed a deal
for Kansas City Southern valued at about $31 billion. Speculation has been growing about a large merger in the
North American rail industry under the assumption that the government will be more amenable to
consolidation under President Donald Trump. Union Pacific Chief Executive Officer Jim Vena and Norfolk
Southern’s chief financial officer Jason Zampi have expressed support for a merger, with Vena saying he thinks
it would be beneficial for the country and Zampi noting there would be a lot of benefit. Shares of Norfolk
Southern rose 4.9% afterhours. - United Airlines Holdings Inc. said the second half of the year has become more predictable and suggested
it may be able to beat its earnings targets after customers resumed booking flights
The airline narrowed the range for its full-year earnings target to a band of $9 to $11, and Chief Executive
Officer Scott Kirby called the goal conservative that has possible “upside.” Tom Fitzgerald, a TD Cowen analyst,
said “The company is executing well on controllable costs and, with second-half demand looking healthy,
should be well positioned to keep taking domestic share and drive margins higher.” The airline had a second
quarter adjusted profit per share of $3.87, while analysts were expecting $3.84. Quarterly revenue rose 1.7%,
falling short of analysts’ expectations. Shares rose 3.1%
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