As of 12:00 Germany time (CEST, UTC+2)
TL;DR: Asian equities ended the week strongly as enthusiasm around SK Hynix’s U.S. listing revived demand for AI and memory-chip exposure. Europe was less convinced, with miners and travel companies offsetting another decline in semiconductor shares. Oil eased toward $76 but remained higher on the week, while Japanese assets rallied after the government encouraged pension funds to direct more capital toward domestic markets.
In Asian Equity Markets stocks rose sharply as investors positioned for SK Hynix’s Nasdaq debut. Japan’s Nikkei gained around 1.2 percent, while South Korea’s KOSPI advanced more than 2.5 percent after several sessions of extreme volatility. SK Hynix raised $26.5 billion through its American depositary receipt offering, with demand reportedly exceeding the available shares several times over. The response confirmed that investors still want direct exposure to AI memory demand, even after the recent correction in semiconductor valuations.
In European Equity Markets stocks were broadly steady as strength in miners, telecoms and travel companies offset weakness in technology. The pan-European STOXX 600 gained around 0.2 percent in early trading, with basic-resource shares up roughly 2 percent. Travel and leisure stocks also advanced after easyJet agreed in principle to a takeover proposal from Apollo Global. European chip companies moved in the opposite direction, with ASML, Siltronic and Soitec falling as investors remained cautious about elevated AI valuations.
In U.S. Equity Markets futures eased modestly ahead of the SK Hynix listing and the start of second-quarter earnings season. The S&P 500 and Nasdaq remained on course for weekly gains despite sharp moves beneath the index level. Major U.S. banks begin reporting next week, followed by several technology and consumer companies. Analysts expect S&P 500 earnings to rise by more than 20 percent from a year earlier, creating a high bar for companies that have already benefited from rising profit forecasts.
In Commodities Markets oil moved lower but retained a sizeable weekly gain after renewed fighting between the United States and Iran disrupted the recent decline in the geopolitical premium. Brent traded near $76 per barrel, roughly 5 percent higher on the week, while WTI remained around $71. Shipping through the Strait of Hormuz has continued, but the breakdown of the ceasefire has made the pace of the supply recovery less predictable.
In Currency Markets the yen strengthened after Japan’s government encouraged state pension funds to increase their exposure to domestic financial assets. USD/JPY fell toward 161.5, moving away from the 40-year extremes reached earlier in the week. The prospect of capital being redirected from overseas markets toward Japanese bonds and equities offered the currency more support than verbal intervention warnings had provided. The broader dollar index remained close to 101.
In Bond Markets Japanese government bonds rallied as the proposed pension shift raised expectations for greater domestic demand. Earlier concerns over expansionary fiscal policy had pushed Japanese yields to multi-decade highs. In the United States, the 10-year Treasury yield remained around 4.55 percent as investors balanced softer labour data against persistent inflation and energy risks. Attention now moves to next week’s U.S. CPI report and Kevin Warsh’s first congressional testimony as Federal Reserve Chair.
The Cross-Asset Read
Friday confirmed that demand for AI exposure has not disappeared.
The $26.5 billion SK Hynix offering attracted strong institutional interest, Asian chip markets rallied and investors were willing to look beyond another week of geopolitical disruption. That is meaningful after a correction driven by doubts over valuations, spending requirements and the sustainability of memory-chip margins.
The response was not uniform.
European semiconductor shares fell while miners, airlines and telecoms advanced. Japan’s domestic assets also benefited from the possibility that pension capital could be redirected away from foreign markets. Investors are still participating in the equity rally, but they are spreading that exposure across more sectors and regions.
This leaves earnings with a larger role next week. Banks will provide an early reading on economic activity, while TSMC will offer one of the clearest tests of whether AI demand is still accelerating quickly enough to justify current chip valuations.
Brent remaining below $78 and the U.S. 10-year yield staying below 4.60 percent would leave a workable backdrop for earnings. If both move higher while semiconductor results fail to lift the wider sector, the valuation reset is likely to continue.
The appetite for AI remains strong. The burden of proof has shifted back to earnings.
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