Tumbles

• The Nikkei 225 index plunged over 800 yen to the 67,400 range on July 8, following a significant drop in South Korea's KOSPI, which tumbled more than 5%. • Trading activity on the Tokyo Stock Exchange Prime Market remained high, with a preliminary trading value of approximately ¥7.81 trillion ($48.1 billion) and 1.48942 billion shares traded by 2:00 p.m. • This decline marks the second consecutive day of a "risk-off chain reaction" originating in Asia, triggering sympathy selling across Japanese markets.

• South Korea's KOSPI index experienced a sharp correction, tumbling 11% over five trading sessions. • The decline was primarily driven by heavyweight semiconductor stocks as investors worry that AI-related rallies have outpaced actual market fundamentals. • This trend extended across Asia, with significant drops in Japan's Nikkei 225 (-2.04%), Taiwan's Taiex (-2.31%), China's Shanghai Composite (-1.26%), and Hong Kong's Hang Seng (-0.51%).

• The Euro (EUR) fell nearly 0.5% to approximately 184.00 against the Japanese Yen (JPY) during Thursday's European trading session. • The decline follows a sudden surge in the Yen's value, which market analysts suspect is the result of direct intervention by Japanese authorities. • This volatility stems from a narrowing interest rate differential as the Bank of Japan (BoJ) gradually abandons its decade-long ultra-loose monetary policy while other central banks consider rate cuts.

• The Mexican Peso declined against the US Dollar on Wednesday, with the USD/MXN trading at 17.55, an increase of 0.37%. • The currency drop is driven by overall US Dollar strength and growing speculation regarding the potential cancellation of the USMCA free trade agreement signed in 2020. • This volatility highlights the Peso's sensitivity to geopolitical trends, including the USMCA's stability and the ongoing process of nearshoring manufacturing to Mexico.

• Asian tech stocks declined sharply, with South Korea's KOSPI tumbling 3% and Japan's Nikkei 225 pulling back following a recent record-high rally. • Major companies including Samsung Electronics, SK Hynix, and SoftBank saw losses, driven by profit-taking and SoftBank's decline linked to a delayed OpenAI listing. • Market sentiment was further dampened after South Korea's Financial Supervisory Service indefinitely postponed new weekly options due to extreme volatility.

• The Indian stock market surged, with the Sensex climbing 1,126.36 points (1.49%) to 76,654.31 and the Nifty rising 339.25 points (1.44%) to nearly 24,000. • Market gains were driven by falling oil prices following a US-Iran deal, with 557 shares advancing compared to only 65 declines. • Key gainers included Shriram Finance, Interglobe Aviation, Bajaj Finance, and L&T, while ONGC, Cipla, and Apollo Hospitals saw losses.

• The European Union's €20 billion initiative to establish five AI data centers is facing significant delays and funding gaps, with the bidding process pushed back to July. • Interest from potential partners has plummeted, with the number of interested companies dropping from 70 to just 10, leading some consortia to reconsider their involvement. • Key industry players are still involved, including Telefónica leading a Spanish consortium and Germany's Schwarz Group and Deutsche Telekom expressing interest in leading bids.