Key Takeaways
- TSMC (TSM) reported a record 77.4% surge in second-quarter net profit to T$706.6 billion ($21.99 billion), significantly beating market expectations as AI chip demand continues to outpace supply.
- The UK government has officially taken British Steel into public ownership to protect strategic steelmaking capacity, marking the first major industrial nationalization in the country since the 1980s.
- China’s imports from Africa surged by as much as 40.2% year-on-year in June following the expansion of a zero-tariff policy for 53 African nations, driven by a "hunger" for critical minerals and agricultural goods.
- US Defense Secretary Pete Hegseth updated his Israeli counterpart on ongoing military operations against Iran, as US strikes target coastal defenses and missile sites amid a naval blockade of Iranian ports.
- Shanghai Nickel contracts climbed above 3%, hitting a three-week peak as supply concerns re-emerged due to the indefinite closure of the Strait of Hormuz by Iran.
TSMC Dominates with Record AI-Driven Growth
Taiwan Semiconductor Manufacturing Co. (TSM) has solidified its position as the primary beneficiary of the global artificial intelligence boom. The world's largest contract chipmaker posted a 77.4% jump in net profit for the April-June period, reaching a record T$706.6 billion ($21.99 billion). This performance far surpassed the T$632.6 billion analysts had anticipated.
The company's revenue for the quarter rose 36% to T$1.27 trillion, fueled by insatiable demand for advanced 3-nanometre and 5-nanometre process technologies. As a key supplier to Nvidia (NVDA) and Apple (AAPL), TSMC is expected to raise its full-year revenue growth outlook during its upcoming earnings call.
UK Nationalizes British Steel to Secure Strategic Interests
In a historic shift in industrial policy, the British government has brought British Steel into public ownership effective July 16, 2026. The move follows the passage of the Steel Industry (Nationalisation) Act, which was deemed necessary to protect the UK's national interest and prevent the closure of blast furnaces at the Scunthorpe site.
The government intervened after the company’s previous Chinese owner, Jingye Group, struggled with high energy costs and inadequate investment. The nationalization aims to safeguard 33,000 direct and supply-chain jobs and ensure the domestic production of "virgin steel" essential for the UK's defense and infrastructure sectors.
Geopolitical Escalations in the Middle East and South China Sea
Military tensions are rising as US Central Command (CENTCOM) launched waves of strikes against Iranian coastal defenses and missile sites. The operations are part of a broader effort to weaken Iranian military capabilities after Tehran announced the "indefinite closure" of the Strait of Hormuz. Brent crude prices responded by hitting a one-month high of $84.95 a barrel.
In Southeast Asia, the Philippine Foreign Ministry reported "ongoing momentum" in talks for a South China Sea Code of Conduct. Serving as the ASEAN chair for 2026, the Philippines aims to finalize a legally binding agreement by year-end to de-escalate maritime disputes with China.
Commodity Markets and Trade Shifts
Shanghai Nickel prices surged over 3% to hit a three-week peak, breaking the 130,000 yuan/mt level. The rally is supported by supply tightening in Indonesia, where the government refused to raise mining quotas, and renewed sulfur supply concerns stemming from the conflict in the Middle East.
Meanwhile, Goldman Sachs (GS) reaffirmed a "buy" rating on Hong Kong Exchanges and Clearing (HKEX) (0388.HK). The bank cited Beijing’s increased policy support and a 60% increase in the Bond Connect Southbound quota as key drivers for a recovery in average daily turnover despite a 5% decline in the exchange's share price year-to-date.
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.