Asian shares declined Thursday, as a broad tech selloff continued on concerns over tighter US restrictions on chip sales to China. Japanese and South Korean stocks led the region’s losses, with the Topix index falling as much as 1.5%. Tokyo Electron Ltd. faced the brunt of selling for a second day, dropping almost 11%. Taiwan Semiconductor Manufacturing Co. shed as much as 4.3%. Hong Kong and mainland Chinese shares fluctuated, while US futures edged higher after the S&P 500 fell 1.4% and the Nasdaq dropped 2.9% to record its worst day since 2022. A dollar index traded near the lowest level in two months. Treasuries were steady in Asia after small moves on Wednesday. The latest rout in chip stocks came after Bloomberg reported that the Biden administration told allies it’s considering severe curbs if companies like Tokyo Electron and ASML keep giving China access to advanced semiconductor technology. The tech underperformance followed a first half which saw megacaps propel the market higher, stretching their valuations and leaving them with a tougher setup for the rest of 2024. On Wednesday, US chip giants Nvidia Corp., Advanced Micro Devices Inc. and Broadcom Inc. drove a closely watched semiconductor gauge down almost 7% — the biggest slide since 2020 — while in Europe, ASML Holding NV tumbled 11% even after the Dutch giant reported strong orders. The yen lost ground after rising 1.4% against the greenback Wednesday. The Bank of Japan is unlikely to raise interest rates this month and will instead cut its bond buying a little more than expected to avoid any fueling of yen weakness, according to a former executive director at the central bank. In the US, the Federal Reserve’s Beige Book showed slight economic growth and cooling inflation. Fed Governor Christopher Waller said the Fed is getting “closer” to cutting rates, but is not there yet.
Among the major economic data released in the region Thursday, Australia added more than twice the number of jobs economists expected last month, while Japan’s exports grew for a seventh consecutive month in June. In China, President Xi Jinping will unveil his long-term vision for the economy as he wraps up a twice-a-decade conclave on reform. In the corporate world, Warner Bros Discovery Inc. is considering splitting its streaming and studio businesses from legacy TV, one of several options intended to boost its share price, the Financial Times reported. West Texas Intermediate, the US oil benchmark, gained again after rising 2.6% Wednesday as investors digested news of wildfires in Canada that threaten 400,000 barrels a day of the country’s oil production. US After Hours CHUY +47.4% jumps on news DRI will acquire it; BYND -16.2% sharply lower on WSJ report that it has engaged with bondholders for restructuring talks; DFS +4.7%, EFX +3%, STLD +3% higher on earnings.
Nikkei -2.19% Hang Seng +0.51% CSI +0.29% Shanghai +0.20% Shenzen +0.15%
Eur$ 1.0935 CNH 7.2690 CNY 7.2554 JPY 156.14 GBP 1.3007 CHF 0.8840 RUB 88.5215 TRY 33.0950 WTI$ 83.42 +0.60% Gold 2,466 +0.25% BTC 64,715 +0.30% ETH 3,424
S&P +0.21% Nasdaq +0.37% EuroStoxx -0.02% FTSE +0.35% Dax +0.10% SMI +0.12%
Macro :
- EU June Car Registrations Rise 4.3% Y/y to 1.090m Units
- Xi’s Competing Priorities Strain China’s Powerful Tech Regulator
- Korean Nuclear Stocks Soar on Multibillion Dollar Czech Deal
Keep an eye on :
- ABBN SW : ABB 2Q Operating Ebita Beats Estimates
- AC FP : Ace Hotel Said to Explore Sale After Failed Deal With Sortis
- AA US : Alcoa 2Q Adjusted Ebitda $325M Vs. $137M Y/y
- ASML NA : ASML SHARES CLOSE DOWN 11% IN BIGGEST DROP SINCE MARCH 2020
- BG AV : Bawag 2Q Net Income Meets Estimates
- BESI NA : Besi's Hybrid Bond May Cool Overheating AMD, Nvidia Chips: React
- BYND US : Beyond Meat Shares Tumble on Report of Restructuring Talks
- BHG SS : BHG Group 2Q Sales Misses Estimates
- BOSN SW : Bossard 1H Ebit Misses Estimates
- CTY1S FH : Citycon Narrows FY EPRA EPS Forecast
- COREA SS : Corem Property Offers 100m Shares
- DBAN GY : Deutsche Beteiligungs Prelim 3Q Net ‘Significantly Lower’ Y/y
- DBK GY : Deutsche Bank looks to Asia-Pacific wealth management business to drive core growth
- EQT SS : EQT 1H Adjusted Ebitda Misses Estimates
- EQT SS : EQT Sees New Infrastructure Fund Reaching €20 Billion Target
- FSKRS FH : Fiskars 2Q Comparable Ebit Misses Estimates
- GALP PL : PAC Closes $443m Deal for Etu Energias to Buy Galp Block Stake
- GF SW : Georg Fischer 1H Ebit Misses Estimates (1)
- HNSA SS : Hansa Biopharma 2Q Net Loss SEK207.9M, Est. Loss SEK169.4M
- H US : Hyatt Said to Be in Advanced Talks to Buy Standard Hotels Brand
- INTRUM SS : Intrum 2Q Revenue Misses Estimates
- JUVE IM : Juventus Football Gets Notice From Lawyers for Indictment
- LAGRB SS : Lagercrantz 1Q Net Revenue Meets Estimates
- LLOY LN : Lloyds, Oaktree Partner to Fund £1b of UK Buyout Loans: FT
- MC FP : Bulgari Promotes Laura Burdese to Deputy CEO - WWD
- MEDX SW : Medmix Sees FY Adj. Ebitda Margin 18% to 19%, Saw at Least 20%
- MIPS SS : Mips 2Q Operating Profit Beats Estimates
- MTGB SS : MTG 2Q Adjusted Ebitda Beats Estimates
- NOKIA FH : Nokia Maintains FY Adjusted Operating Profit Forecast
- NOVN SW : Novartis Raises 2024 Profit Forecast on Demand For New Drugs
- OPM FP : OPmobility Gets Contract to Equip Stadler Hydrogen Trains
- OKDBV FH : Oriola 2Q Adjusted Ebit Margin 1.2%
- PCELL SS : PowerCell 2Q Sales SEK66.3M Vs. SEK62.4M Y/y
- PUB FP : Publicis Raises Annual Revenue Outlook on US, China Growth
- RNO FP : Renault Group 1H Sales Rise 1.9% Y/Y to 1.15M Vehicles
- RESURS SS : Resurs Holding 2Q EPS Misses Estimates
- RIEN SW : Rieter FY Sales Forecast Misses Estimates
- RUI FP : Rubis Unit Signs $265M Master Shelf Facility Subscription Pact
- SAN FP : Sanofi Phase 3 Study of Altuviiio for Hemophilia Meets Endpoints
- SCHA NO : Schibsted 2Q Ebitda Misses Estimates
- SFSN SW : SFS 1H Sales Matches Estimates
- SKFB SS : SKF 2Q Adjusted Operating Profit Meets Estimates
- SLIGR NA : Sligro 1H Ebit EU6M Vs. EU4M Y/y
- STAN LN : StanChart Private Bank Adds New Hires in Singapore, HK and UAE
- SUN SW : Sulzer Boosts FY Organic Revenue Forecast
- TEL NO : Telenor 2Q Revenue Misses Estimates
- TELIA SS : Telia 2Q Services Revenue Meets Estimates
- TGS NO : TGS 2Q Net Income Beats Estimates
- THULE SS : Thule Gains as New Products Impress Amid Weak 2Q Report
- TW/ LN : TWFG IPO of 11m Shrs Prices at $17/Shr, Above Estimated Range
- VACN SW : VAT 1H Net Sales Beats Estimates
- VERK FH : Verkkokauppa.com 2Q Revenue Misses Estimates
- VPLAYB SS : Viaplay 2Q Sales SEK4.49B
- DG FP : Vinci Group Wins €2.9B Deal for Electrical Conversion Platforms
- VOLCARB SS : Volvo Car 2Q Operating Income Beats Estimates
- VOLVB SS : Volvo Says Price Rises Help Returns as Truck Demand Softens (1)
- WBD US : Warner Weighs Splitting Streaming, Studio Arms From TV, FT Says