Key Takeaways
- China's Foreign Ministry has called on the United States to take "practical actions" to maintain the stability and smooth operation of the global chip supply chain, amidst ongoing tensions over semiconductor export controls.
- China is implementing new economic measures, including collecting 75.8% security deposits starting August 14 and offering interest subsidy policies to eight consumer sectors to boost domestic spending.
- Maersk (MAERSK.B) stock rose by 3.1% during morning trading, following strong second-quarter results and an upgraded full-year outlook, despite continued disruptions in the Red Sea.
- Nomura's Executive Nishi projects the Nikkei index to reach around ¥45,000 by year-end, signaling bullish sentiment for the Japanese market.
China's Foreign Ministry has issued a statement expressing hope that the United States will take concrete steps to ensure the stability and smooth operation of the global chip supply chain. This comes as Beijing continues to criticize Washington's export restrictions on advanced semiconductors, arguing that such measures disrupt the global industry and violate market rules. China has urged the U.S. to rectify its practices and warned of potential legal repercussions under Chinese laws for entities implementing these restrictions. Reports also indicate that China is pushing the U.S. to ease export controls on high-bandwidth memory (HBM) chips, crucial for artificial intelligence, as part of potential trade negotiations.
Domestically, China's Commerce Ministry announced that it will begin collecting security deposits covering 75.8% from August 14, indicating new trade-related measures. Concurrently, the Finance Ministry revealed plans to offer interest subsidy policies to enterprises across eight key consumer sectors, including catering, tourism, and elderly care. These policies are designed to alleviate financial burdens on both individuals and businesses, thereby stimulating consumption and supporting economic growth.
In the shipping sector, Maersk (MAERSK.B) saw its stock climb 3.1% during the morning trading session. The Danish shipping giant recently raised its full-year guidance, attributing the improved outlook to robust second-quarter results, resilient demand, and its ability to navigate market volatility. Despite ongoing disruptions in the Red Sea, which the company anticipates will persist through the full year, Maersk has demonstrated strong operational performance.
Meanwhile, in Japan, Nomura's Executive Nishi has set an optimistic target for the Nikkei index, forecasting it to reach approximately ¥45,000 by the end of the year. This projection reflects a positive outlook for Japanese equities. Separately, the state of UK jobs data remains a point of confusion, as highlighted by Viraj, suggesting ongoing uncertainty in the British labor market.
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.