Key Takeaways
- SK Hynix (005930.KS) reported record quarterly profits and sales, driven by robust demand for high-bandwidth memory (HBM) chips essential for artificial intelligence (AI) applications, with operating profit surpassing 9 trillion won ($6.53 billion) for the first time.
- Columbia University has agreed to a settlement of over $220 million with the Trump administration, including a $200 million fine, to resolve civil rights violation allegations related to antisemitism on campus and facilitate the reinstatement of federal research funding.
- Asia-Pacific markets are poised for a mostly higher open, fueled by positive sentiment stemming from recent trade deal developments, particularly a U.S.-Japan agreement, and anticipation of further trade talks.
- Tesla (TSLA) has warned that provisions within Donald Trump’s $3.4 trillion fiscal package will present significant challenges for the electric vehicle manufacturer in the coming months, primarily by impacting the lucrative market for emissions credits.
- Fortescue (FMG) posted record iron ore shipments but is scaling back and adjusting timelines for its green hydrogen projects amid strategic shifts and market uncertainties, including high energy prices.
SK Hynix (005930.KS) has announced a stellar financial performance, achieving record quarterly operating profit and sales. The South Korean chipmaker reported an operating profit of 9.21 trillion won ($6.53 billion) for the April-June period, a 68.5% increase from a year ago, and revenue jumped 35.4% to 22.23 trillion won. This surge is primarily attributed to the booming demand for high-bandwidth memory (HBM) chips, crucial components for advanced AI systems, solidifying SK Hynix's leadership in this segment. The company expects strong HBM demand to continue through 2025, driven by aggressive investments from global technology firms in AI infrastructure.
In the education sector, Columbia University has reached a significant settlement with the Trump administration. The agreement involves a payment of $200 million over three years to the federal government, part of a larger $220+ million settlement that also includes $21 million to resolve U.S. Equal Employment Opportunity Commission investigations. This resolution addresses allegations of civil rights violations against Jewish students and is expected to lead to the reinstatement of federal research funding that was previously revoked.
Meanwhile, Asia-Pacific markets are showing positive momentum, largely influenced by recent developments in global trade. Indices across the region are set to open mostly higher, buoyed by improved investor sentiment following a U.S.-Japan trade deal. This agreement, which lowers U.S. import duties on Japanese autos to 15% from a threatened 25%, has spurred hopes for further trade agreements, including upcoming discussions between U.S. and Chinese officials.
However, not all companies are benefiting from the current political landscape. Tesla (TSLA) has expressed concerns that provisions within President Donald Trump’s $3.4 trillion fiscal package will pose significant challenges. The electric vehicle giant anticipates that these measures will particularly impact its ability to generate revenue from selling emissions credits, a substantial source of profit for the company in previous quarters.
In the commodities and mining sector, Fortescue (FMG) announced record iron ore shipments of 97.1 million tonnes in the first half of the financial year, driven by strong Pilbara operations and progress at the Iron Bridge project. Despite this, the company is undergoing a strategic shift, cutting approximately 700 jobs and scaling back its ambitious green hydrogen projects. Fortescue cited market uncertainties and high global energy prices as reasons for adjusting timelines and reducing capital expenditure in its green energy division by 20%.
In other market news, Japan's benchmark 10-year JGB futures opened lower, down 0.04 points in early trading, signaling mild upward pressure on yields as bond prices dipped.
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.