Global Markets Roar Back: Nasdaq Futures Surge, Kospi Skyrockets on Tech Earnings & AI Bets Amidst Diverse Global Economic News

Nasdaq futures opened significantly higher on Friday, signaling a strong continuation of Wall Street's recent sharp rebound. This market optimism was largely propelled by Amazon's impressive earnings report, which exceeded expectations and bolstered confidence in the burgeoning artificial intelligence sector.

The tech-heavy Nasdaq 100 futures advanced by 0.9%, reflecting robust investor sentiment. Futures for the Dow Jones Industrial Average also saw gains, rising 0.39%, while S&P 500 futures edged up 0.38%.

Across Asia, markets mirrored the positive trend. South Korea's Kospi index experienced a phenomenal surge of over 15% on Friday, necessitating trading curbs due to the exceptional performance of semiconductor giants SK Hynix and Samsung Electronics. Japan's benchmark Nikkei 225 also jumped over 3%, and the S&P/ASX 200 in Australia rose 0.27%. Conversely, the Hang Seng Index saw a slight dip of 0.11%, while China's CSI 300 climbed 1.24%.

Post-market trading saw Amazon shares leap more than 9% following its announcement of better-than-expected second-quarter revenue. The company's cloud-computing division was a key driver, reinforcing investor belief in sustained AI-related expenditure.

Apple also reported strong fiscal third-quarter revenue, surpassing forecasts, primarily due to a significant 22% increase in iPhone sales. However, a shortfall in service revenue led to a 6% decline in its stock price.

These after-hours movements built upon a powerful rally during Thursday's regular session. Microsoft led the charge, with its stock soaring 16% after the software behemoth reported stronger-than-expected growth in its Azure cloud business. These stellar results ignited a widespread advance among AI-linked chipmakers, pushing the iShares Semiconductor ETF (SOXX) up by over 8%.

This market recovery followed a challenging session on Wednesday, which saw the Dow plunge over 1,100 points, marking its most significant one-day decline since April 2025. Selling intensified late in the session amidst concerns that the Federal Reserve's decision to hold interest rates steady indicated it was lagging in its efforts to combat inflation.

Such inflation worries rippled through the Treasury market, with the 30-year Treasury yield climbing 6 basis points on Wednesday to exceed 5.2%, nearing levels last seen in 2007.

"Investors are recalibrating expectations for Fed rate cuts, reducing the excess liquidity that has fueled speculative, momentum-driven markets," commented Richard Bernstein, global head of macro and customized investing at Janus Henderson Investors. He added, "Market leadership is expanding beyond the 'Magnificent 7' as investors increasingly reward improving fundamentals rather than hype-driven momentum."

Despite the week's considerable volatility, the major averages were poised to conclude higher. Heading into Friday, the Dow was up approximately 0.5% for the week, the S&P 500 had gained roughly 0.4%, and the Nasdaq Composite was ahead by about 0.6%.

European markets open higher

European markets commenced Friday's trading session on an optimistic note. The pan-European Stoxx 600 index rose 0.74% shortly after 8:00 a.m. in London, with most regional sectors and major bourses showing positive momentum.

Basic resources stocks led the gains, climbing 1.27%, closely followed by technology stocks, which were up 1.17%. In contrast, travel and leisure names, alongside media companies, both saw declines of almost 1% in early trading.

All major European bourses edged higher, with the FTSE 100, CAC 40, DAX, and FTSE MIB all trading in the green.

— Hugh Leask

BP announces exit from North Sea oil business

U.K. energy giant BP revealed on Friday its intention to divest its operations in the North Sea. This move is part of a broader strategic review of its global assets, initiating a process to market its North Sea interests.

BP's North Sea division currently employs around 1,100 individuals and includes two production hubs in the central North Sea, along with three sites situated west of Shetland.

U.K. Energy Secretary Miatta Fahnbulleh emphasized the significance of North Sea oil as a "vital national asset," stating that oil and gas would remain integral to the country's energy mix "for years to come." She added, "My priority is ensuring that the workers and local community are protected during this sale process."

— Hugh Leask

Bank of Japan keeps rates steady, warns core inflation might exceed 2% target

The Bank of Japan (BOJ) maintained its policy rate on Friday, even as it issued a caution that the country's core inflation could potentially surpass its 2% target.

The central bank's decision to hold rates at 1% was passed with an 8-1 vote, with board member Hajime Takata advocating for a hike to 1.25%.

In its economic outlook, the BOJ projected that core inflation would likely accelerate to a level "clearly above" 2% during the second half of its 2026 fiscal year (September to March). This anticipated acceleration was attributed to wage increases being passed into consumer prices, a rise in crude oil prices, and the recent depreciation of the yen. The central bank expects inflation to gradually decline back towards 2% as crude oil prices stabilize.

Japan's core inflation rate for July stood at 1.6%, having remained below the 2% mark for most of 2026.

—Lim Hui Jie

Alimentation Couche-Tard to acquire Poland's Zabka Group in a deal valued at $8.6 billion

Canada-based Alimentation Couche-Tard announced plans on Friday to acquire Zabka Group, Poland's leading convenience store operator, in a transaction estimated at 32.62 billion zloty ($8.6 billion).

The acquisition has received approval from Zabka's management and shareholders representing approximately 57% of the company's outstanding shares, including financial backers like CVC Capital Partners and Partners Group, as stated by Couche-Tard. This strategic deal will significantly broaden Couche-Tard's footprint in central and eastern Europe, complementing its existing network of nearly 400 Circle K service stations in Poland.

This announcement follows earlier reports that Zabka and Japan's Seven & i Holdings were unable to reach an agreement on terms for the Polish company's purchase.

—Jenny Lee

European stock markets set for a positive start

European futures showed upward movement ahead of Friday's market open, with Stoxx 50 futures gaining 0.63%, tracking the positive rebound seen in the U.S. market.

London, Paris, Frankfurt, and Milan markets were all expected to open higher, contributing to what has been a positive week for major European bourses.

Italy's FTSE MIB was anticipated to start the session up 0.65%, the German DAX 0.63% higher, France's CAC 40 set to open 0.61% up, and the U.K.'s FTSE 100 forecasted to be 0.49% higher.

— Hugh Leask

Oil prices ease as recovering Hormuz Strait traffic tempers war premium

Oil prices saw further declines on Friday as indications of improved crude flow through the Strait of Hormuz alleviated supply concerns. Earlier in the week, a resumption of hostilities between the U.S. and Iran had initially driven prices higher.

West Texas Intermediate (WTI) futures for September delivery fell 1.62% to $82.24 per barrel. Brent crude futures, the global benchmark, decreased by 0.98% to $88.16 a barrel.

Commonwealth Bank of Australia noted on Friday that stronger oil flows through the Strait of Hormuz had calmed market anxieties after U.S.-Iran strikes pushed Brent temporarily above $93 a barrel. The bank estimates that traffic through the critical waterway has recovered to approximately 30%-35% of pre-war levels, suggesting that a rebound to around 50%-60% of normal flows could reintroduce oversupply conditions in the global oil market.

—Lee Ying Shan

Mitsubishi Materials shares rise over 5% on investment in German subsidiary

Shares of Mitsubishi Materials climbed over 5% on Friday after the company disclosed plans to invest approximately 50 million euros ($57.6 million) to enhance its tungsten recycling capabilities at its German subsidiary, H.C. Starck Tungsten GmbH.

This investment will boost the annual tungsten scrap processing capacity at H.C. Starck's Goslar site in Germany from about 5,000 metric tons to 7,000 metric tons. Construction is slated to commence in 2026 and reach completion by 2028.

—Jenny Lee

HSBC's Hong Kong shares hit record high after Australia portfolio deal with Blackstone

HSBC's Hong Kong-listed shares reached an intra-day record high on Friday, following Blackstone's agreement to acquire the bank's A$36 billion ($25 billion) home and personal loan portfolio in Australia.

Blackstone stated in a press release that this transaction represents "the largest home loan portfolio transaction globally," underscoring its ongoing commitment to deploying substantial capital in Australia's housing market.

The lender's Hong Kong-listed shares were last trading 1.78% higher at 167.50 Hong Kong dollars.

—Justina Lee

China’s factory activity unexpectedly contracts in July as export rush fades

China's factory activity unexpectedly contracted in July for the first time since February, as the robust export surge that fueled a second-quarter rebound began to dissipate. This contraction puts additional pressure on Beijing to stimulate domestic demand.

Official manufacturing purchasing managers' index (PMI) data from the National Bureau of Statistics on Friday showed a decline to 49.2 from 50.3 in June. This figure fell below the 50-point threshold that delineates expansion from contraction, defying economists' median forecast of 50.

—Anniek Bao

SK Hynix shares surge 25%, while Samsung soars over 20% as AI rally roars back

South Korea's leading chipmakers, SK Hynix and Samsung Electronics, saw their shares skyrocket in Seoul on Friday. This surge mirrored a sharp rally in U.S. technology stocks, revitalized by outstanding earnings reports from Amazon and Microsoft, which renewed investor confidence in artificial intelligence spending.

SK Hynix's stock was trading more than 25% higher, potentially marking its best single-day performance on record. Samsung's shares also surged over 20%. Other notable gains included LG Innotek advancing 11.2% and Seoul Semiconductor rising 7.8%.

Japanese chip stocks also experienced significant rallies. Advantest climbed nearly 18%, Tokyo Electron gained almost 9%, Disco rose over 13%, Lasertec advanced more than 12%, and Renesas Electronics added over 10%. SoftBank Group, a significant proxy for artificial intelligence due to its ownership of Arm, also jumped more than 9%.

—Lee Ying Shan

South Korea's Kospi surges 14%, leads Asia rally as chip stocks soar

In Asia, South Korea's Kospi index surged over 14%, spearheading regional gains. This dramatic rise was primarily driven by the monumental performance of chip industry heavyweights SK Hynix and Samsung Electronics, which prompted a trading halt.

Japan's benchmark Nikkei 225 jumped over 5%, while the broader Topix index added 1.94%. Australia's S&P/ASX 200 also saw an increase, rising 0.64%, and its benchmark advanced 0.83%.

—Lee Ying Shan

Asia markets set to rise after Wall Street rebound

Asia-Pacific markets were poised for a robust open on Friday, tracking Wall Street's strong rebound. This positive sentiment was ignited by upbeat earnings from Amazon, which boosted investor confidence and propelled Nasdaq futures higher in overnight trading.

Japan's benchmark Nikkei 225 was expected to see a significant jump, with its futures contract in Chicago trading at 63,830, compared to the index's previous close of 61,867.43.

Similarly, futures for Hong Kong's Hang Seng index were last traded at 26,021, against the index's close of 25,858.88.

Futures for Australia's benchmark S&P/ASX 200 were last at 9,010, compared to the index's close of 8,967.7.

— Lee Ying Shan

Stocks making moves after hours

Several notable stocks exhibited significant movements in extended trading:

• Coinbase: Shares of the cryptocurrency exchange declined by more than 5% after reporting its third consecutive quarterly loss.
• Rivian Automotive: The electric vehicle manufacturer's shares rose nearly 2% following the firm's announcement that it would reduce its 2026 spending plans and slightly narrow its projected losses for the year.
• Reddit: The social media platform's shares dropped over 7% in after-hours trading, amidst investor concerns regarding its search-referral traffic from Google.
• First Solar: Shares of First Solar increased by more than 3% after the company delivered second-quarter earnings that exceeded Wall Street expectations, even though revenue was largely in line with estimates.

— Yun Li

Individual investors stay uncharacteristically bearish for a 25th week

Main Street investors, as surveyed by the American Association of Individual Investors (AAII), maintained an unusually pessimistic outlook for the 25th consecutive week.

The proportion of individual investors identifying as bearish about the stock market's prospects over the next six months decreased marginally to 42.1% in the week ending Wednesday, down from 42.3% the previous week. This figure remains significantly above the historical average of 31.0%. The last instance of bearish sentiment falling below 31.0% was in early February, preceding the outbreak of the conflict with Iran later that month.

Optimistic investors increased to 31.0% from 29.6% last week, marking the second consecutive week that the percentage of bulls remained below the historical average of 37.5%.

Neutral investors declined to 26.9% from 28.1%. The percentage of investors expressing an agnostic view on stocks has consistently been below the historical average of 31.5% every week since mid-January 2025, shortly before the commencement of President Trump's second term.

— Scott Schnipper

Strong crack spreads send four refining stocks to all-time highs Thursday

The conflict in Iran has proven beneficial for America's publicly traded oil refineries.

Crack spreads – which represent the gross profit margin a refinery earns from processing a barrel of crude oil into products like gasoline – are currently strong. This favorable environment led to four refining stocks closing at all-time highs on Thursday: PBF Energy, Delek US Holdings, Par Pacific Holdings, and HF Sinclair.

Three other major refiners – Valero Energy, Marathon Petroleum, and Phillips 66 – are also hovering near the all-time highs they achieved just last week.

PBF Energy, whose stock has surged 170% in 2026, reported exceptional second-quarter earnings excluding one-time items of $6.22 per share premarket Thursday. This significantly surpassed analysts' estimates of $4.15 per share, according to FactSet data. The company's revenue of $11.7 billion also exceeded the Street's consensus of $9.6 billion.

— Scott Schnipper