Key Takeaways
- SK Hynix (SKHY) prices its landmark U.S. listing at $149 per ADR, raising $26.5 billion in the world’s second-largest stock sale to fund AI infrastructure.
- Japan’s Producer Price Index (PPI) surged 7.1% year-on-year in June, exceeding forecasts of 6.8% and marking the fastest acceleration in over three years due to a weak yen and energy costs.
- U.S. forces launched "powerful strikes" against Iranian targets following attacks on commercial vessels in the Strait of Hormuz, ending a brief 11-day ceasefire and spiking geopolitical risk.
- MiniMax Group announced a HK$16 billion capital raise through a combination of new share placements and zero-coupon convertible bonds to expand its AI model research and infrastructure.
- Charles Schwab (SCHW) reported a surge in "Trump Account" activity following the July 4 launch of the new government-backed savings vehicles for children.
Tech and AI Sector Momentum
South Korean semiconductor giants saw significant gains as the AI trade intensified. SK Hynix (SKHY) finalized its Nasdaq listing price at $149 per ADR, a 2.9% premium to its domestic closing price, after the offering was more than seven times oversubscribed. The $26.5 billion raised will be used to build new factories and equipment to meet insatiable demand for high-bandwidth memory (HBM) chips. Meanwhile, Samsung Electronics (SSNLF) shares surged over 4% amid reports that Chairman Lee Jae-yong plans to meet Nvidia (NVDA) CEO Jensen Huang in the U.S. later this month to discuss deepening their AI partnership.
MiniMax Group also moved to capitalize on the AI boom, announcing a placement of 35.6 million new Class A shares at HK$268 each to raise HK$9.54 billion. Additionally, the company proposed HK$6.5 billion in zero-coupon guaranteed convertible bonds due 2027. The combined proceeds are earmarked for advancing AI model research and development and expanding the company's computing infrastructure.
Geopolitical Tensions and Inflation
Geopolitical risks returned to the forefront as U.S. officials confirmed the launch of airstrikes on Iranian missile and drone facilities. The strikes were a direct response to Iranian attacks on three commercial vessels in the Strait of Hormuz. While diplomatic channels remain technically open, President Donald Trump warned that the ceasefire is "over," leading to immediate volatility in energy markets and a steadying of gold prices as traders weighed the risk of a broader conflict.
In Asia, Japan’s June PPI rose 7.1% year-on-year, significantly higher than the 6.3% recorded in May. The data reflects the compounding pressure of a weak yen and rising raw material costs, which are being passed through the supply chain. This hotter-than-expected inflation reading has increased speculation regarding the Bank of Japan's next move on interest rates, as producer prices have now remained above 5% for three consecutive months.
Corporate Earnings and Clarifications
Seven & i Holdings (SVNDY) shares declined 2.4% despite the company raising its full-year profit outlook to ¥425 billion ($2.6 billion). While the company reported a first-quarter profit beat driven by strong fuel margins in its U.S. 7-Eleven unit, investors appeared cautious over declining revenue and the delay of its North American IPO until at least next March.
In the logistics tech space, WiseTech Global (WTC) issued a clarification regarding its relationship with Danish giant DSV. The company confirmed that DSV remains an active customer with a contract running until September 2028. WiseTech noted that transaction volumes with DSV grew 20% over the last six months, countering recent market speculation about a potential exit by the major client.
Domestic Policy and Retail Trading
The financial sector noted a significant uptick in activity surrounding the newly launched "Trump Accounts." Charles Schwab (SCHW) reported a trading surge in these child savings vehicles, which formally launched on July 4. The U.S. Treasury confirmed that over 6 million accounts have been opened, with the government providing a $1,000 starter contribution for eligible infants. The default investment for these accounts has been set as the State Street SPDR Portfolio S&P 500 ETF (SPYM).
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.