Key Takeaways
- Amazon (AMZN) shares surged nearly 10% in after-hours trading following a robust Q2 earnings beat, while Apple (AAPL) fell over 6% despite exceeding revenue estimates.
- Suspected currency intervention by Japan and South Korea sent the yen soaring over 3% against the dollar, following comments from US Treasury Secretary Scott Bessent that the yen is "very undervalued."
- The Bank of Japan (8301) maintained its short-term interest rate at 1.00% in an 8-1 vote, signaling a cautious but hawkish stance as it monitors inflation risks.
- French energy giant Engie (ENGIY) raised its 2026 profit guidance after reporting H1 recurring net income of €3 billion, outperforming analyst estimates of €2.88 billion.
- German semiconductor stocks are poised for a strong open, with pre-market gains of 2.6% to 4.8% following a tech-led rally in US markets.
Tech Giants Diverge in After-Hours Trading
Global markets are reacting to a split performance from US technology titans. Amazon (AMZN) saw its stock price climb nearly 10% after reporting a 20% increase in net sales to $200.6 billion for the second quarter, driven by strong demand for its AI-integrated cloud services. Jefferies responded to the results by raising its price target for the e-commerce leader to $330 from $320.
In contrast, Apple (AAPL) shares dropped more than 6% in late trading. While the company reported record March quarter revenue of $111.2 billion and an all-time high for its services division, investor concerns regarding the "memory crisis" and future pricing for the iPhone 18 range appeared to weigh on the stock.
Currency Markets Shaken by Suspected Intervention
The Japanese yen stole the spotlight in Asia, surging as much as 3.3% to reach the 158 handle against the US dollar. Market sources indicate that Japanese authorities, potentially in coordination with South Korea, intervened in the foreign exchange market to support the currency after it hit four-decade lows.
US Treasury Secretary Scott Bessent added fuel to the move, stating that the yen has "substantially overshot equilibrium" and that the US views excess volatility as "unhealthy." This suspected intervention preceded the Bank of Japan's (8301) decision to keep interest rates steady at 1.00%, though board member Hajime Takata dissented, calling for a 25-basis-point hike.
European Energy and Tech Outlook Brightens
Engie (ENGIY) delivered a strong first-half performance, reporting an EBIT of €5.38 billion, which surpassed the estimated €5.3 billion. The utility company subsequently raised its full-year 2026 net recurring income forecast to a range of €4.9 billion to €5.5 billion, citing strong natural gas trading and increased transmission tariffs.
In Germany, the semiconductor sector is benefiting from the positive momentum in US tech. Stocks like Infineon Technologies (IFX) are expected to open significantly higher, building on a year where the company has already seen its stock rise nearly 75% due to its role in the AI infrastructure buildout.
Industrial Disruptions and Yield Shifts
On the industrial front, Toyota Boshoku (3582) announced a temporary halt to operations at its Kyushu plant. The move follows a shutdown at Toyota Motor (TM) Kyushu, as the region recovers from a powerful 7.1-magnitude earthquake that struck Kumamoto Prefecture earlier this week, disrupting key automotive and semiconductor supply chains.
Fixed income markets also saw movement, with the 20-year Japanese Government Bond (JGB) yield rising 1.5 basis points to 3.685%. This shift reflects broader market expectations of a gradual tightening in Japanese monetary policy, even as the central bank remains on hold for the current session.
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.