Markets

• Global stock markets from Wall Street to Seoul are experiencing significant volatility due to the rapid rise and subsequent sell-offs of AI-driven tech stocks. • The impact varies by region, with TSMC accounting for approximately 40% of Taiwan's stock market and Softbank recently surpassing Toyota as Japan's most valuable company. • Singapore's market remains less sensitive to these swings compared to its neighbors due to a different sectoral composition.

• AI-driven indexes achieved some of their best quarters on record during Q2, fueled by a massive rally in hardware and semiconductor stocks. • Key gains were seen in Taiwan and South Korea, with Samsung surging 436% and SK Hynix climbing nearly 230% as the "picks-and-shovels" trade intensified. • The surge is driven by sustained, high capital expenditure spending from major AI labs and hyperscalers, indicating no immediate slowdown in infrastructure investment.

• The ASIFMA 2026 Asia-Pacific Capital Markets Survey has identified the top eight markets in the APAC region for ease of doing business. • Leading jurisdictions include Singapore, Hong Kong, Australia, Japan, India, Taiwan, China Mainland, and South Korea. • The survey highlights 11 key product and service lines targeted for expansion, led by Equities, Fixed Income, FX, Asset Management, and ESG & Sustainability.

• Mark Mahaney of Evercore ISI analyzed Alphabet and Meta shares on 'Varney & Co.', focusing on the impact of researcher departures and new talent acquisitions. • Joseph Tanious from Northern Trust Asset Management discussed market volatility and the shift of investor rotation away from big tech toward other sectors. • Tanious further addressed the resilience of the current economy and how ongoing inflation continues to affect consumer behavior.

• Asian markets are currently experiencing volatility driven by the Kospi and ongoing geopolitical uncertainty regarding Iran. • Mixed macroeconomic data was reported, including June PMI Manufacturing figures showing expansion in Taiwan (55.2), Thailand (53.6), Malaysia (50.7), Philippines (50.9), and Vietnam (51.8). • Corporate headwinds persist as Nike struggles in China and Microsoft is speculated to implement further job cuts.

• U.S. stock markets closed higher on July 1, 2026, with the technology-heavy Nasdaq Composite leading the gains. • The S&P 500 also rose, reflecting a broad increase in value across 500 large companies and overall positive market sentiment. • The Dow Jones Industrial Average saw more subdued activity due to the performance of its industrial and financial components.

• Asia-Pacific markets showed mixed performance following strong first-half gains on Wall Street, which were primarily driven by the semiconductor sector. • South Korea's KOSPI index fell 2.63% to 8,253.22, while financial markets in Hong Kong remained closed for a public holiday. • Investors are closely monitoring upcoming commentary from the Fed Chair and key economic reports due Wednesday, including the June ADP employment data and ISM manufacturing readings.