Key Takeaways
- Moderna (MRNA) secured FDA approval for mFLUSIVA, the world’s first mRNA-based influenza vaccine, targeting adults aged 50 and older.
- Hong Kong-listed insurers plummeted after reports that China has begun enforcing a 20% tax on offshore insurance income, with Prudential (PRU) and AIA Group (1299) seeing sharp declines.
- South Korea reported a record current account surplus of $49.73 billion for June, driven by a 196.9% surge in semiconductor exports amid the global AI boom.
- Honda Motor (HMC) more than doubled its quarterly net profit to a record high, fueled by a weak yen and robust demand for hybrid vehicles in North America.
- Australia’s trade balance swung to a surprise A$1.93 billion surplus in June, defying expectations of a deficit as iron ore and gold exports rebounded.
Moderna Achieves Milestone with mRNA Flu Vaccine Approval
The U.S. Food and Drug Administration (FDA) has granted approval to Moderna (MRNA) for its seasonal influenza vaccine, mFLUSIVA, marking the first time mRNA technology has been authorized for use against the flu. The vaccine is approved for adults aged 50 to 64, with accelerated approval granted for those 65 and older pending further clinical data. Moderna expects doses to reach select retail pharmacies within the next few weeks, positioning the company to compete in the upcoming 2026-2027 respiratory virus season.
Asian Markets Shaken by China’s Offshore Tax Enforcement
Shares of major insurers and financial institutions in Hong Kong tumbled on Thursday following reports that Chinese tax authorities are cracking down on offshore investment gains. According to reports from Caixin, authorities in Beijing and Hangzhou have begun levying a 20% personal income tax on returns from Hong Kong insurance policies, including dividends and interest. Prudential (PRU) shares fell as much as 13%, while AIA Group (1299) and HSBC (HSBC) also saw significant selling pressure as investors feared the move would curb capital flight and dampen demand from mainland visitors.
South Korea and Japan Navigate Divergent Tech Trends
South Korea achieved a historic current account surplus of $49.73 billion in June, nearly doubling the previous record set just a month prior. The surge was led by semiconductor exports, which jumped nearly 200% year-on-year, though the broader market remained volatile as Samsung Electronics (005930) shares declined 6% amid profit-taking and shifting memory price expectations. Meanwhile, in Japan, reports surfaced of a massive 2 trillion yen ($12.4 billion) investment plan involving Japanese, U.S., and UAE investors to build the nation’s largest AI data center project, signaling continued momentum in regional AI infrastructure.
Corporate Earnings and Macroeconomic Shifts
Honda Motor (HMC) reported a standout quarter, with net profit doubling to a record high as the weak yen boosted the value of overseas earnings. The automaker raised its full-year operating profit forecast by 30% to 650 billion yen, citing strong hybrid sales in the U.S. In the currency markets, the South Korean won strengthened to 1,415.30 per dollar, its highest level since late 2025, while the Canadian Dollar remained firm as oil prices stabilized and traders dialed back bets on aggressive Federal Reserve rate hikes following comments from San Francisco Fed President Mary Daly, who defended the central bank's decision to hold rates steady in July.
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.