Key Takeaways
- SK Hynix (000660.KS) reported a record Q2 profit of ₩9.2 trillion (~$6.7B), a 69% year-over-year surge, driven by robust demand for AI memory chips like HBM, signaling accelerated AI investments.
- China's economy showed mixed signals in the first half of the year, with gold production dropping 0.31% year-over-year and consumption decreasing 3.54%.
- Geopolitical tensions escalated in Southeast Asia as Cambodia's Defense Ministry confirmed clashes with Thai troops, with Cambodian forces retaliating after being attacked.
- Former President Trump is scheduled to tour the Federal Reserve on Thursday, while Tesla (TSLA) CEO Elon Musk warned that U.S. government cuts in EV support could lead to "a few rough quarters" for electric vehicle makers.
SK Hynix (000660.KS), a major supplier to Nvidia (NVDA), announced a record second-quarter profit, significantly beating analyst estimates. The South Korean chipmaker's operating profit surged by 69% year-over-year to ₩9.2 trillion (approximately $6.7 billion), primarily fueled by the booming demand for high-bandwidth memory (HBM) chips essential for artificial intelligence applications. The company plans to accelerate its investments in AI technology following this strong performance.
In economic news from Asia, China's gold market experienced a slight contraction in the first half of the year. Gold production saw a marginal decline of 0.31% year-over-year, while gold consumption decreased more significantly by 3.54%. Meanwhile, Xinhua, China's official news agency, emphasized the country's role as a key partner for Europe ahead of an upcoming leaders' meeting, highlighting ongoing diplomatic and economic engagements.
Geopolitical developments emerged from Southeast Asia, where Cambodia's Defense Ministry confirmed military conflict with Thai troops near a border point. The ministry stated that Cambodian forces retaliated after being attacked by Thai soldiers, a claim echoed by the Thai army which also reported clashes. This marks a concerning escalation in border disputes between the two nations.
In U.S. political and economic circles, former President Donald Trump is slated to tour the Federal Reserve on Thursday, according to the White House. This visit comes as Tesla (TSLA) CEO Elon Musk voiced concerns over potential U.S. government reductions in support for electric vehicle manufacturers. Musk warned that such cuts could lead to "a few rough quarters" for EV companies, indicating potential headwinds for the burgeoning sector.
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.