{"id":64271,"date":"2026-07-05T21:08:19","date_gmt":"2026-07-06T01:08:19","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-react-to-opec-supply-hike-and-ai-driven-growth-in-japan\/64271\/"},"modified":"2026-07-05T21:08:19","modified_gmt":"2026-07-06T01:08:19","slug":"global-markets-react-to-opec-supply-hike-and-ai-driven-growth-in-japan","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-react-to-opec-supply-hike-and-ai-driven-growth-in-japan\/64271\/","title":{"rendered":"Global Markets React to OPEC+ Supply Hike and AI-Driven Growth in Japan"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>OPEC+ agreed to raise production targets by 188,000 barrels per day (bpd) starting in August<\/strong>, signaling a gradual unwinding of voluntary cuts as regional tensions ease.<\/li>\n<li><strong>Japanese corporations are projected to achieve record profits for a sixth consecutive year in FY 2026<\/strong>, fueled by a global AI investment boom and a weak yen.<\/li>\n<li><strong>Hanwha Ocean (<a href=\"\/stock\/042660.KS\">042660.KS<\/a>) shares surged 11.7%<\/strong> following reports that Canada is nearing a decision on a <strong>60 trillion won ($43.5 billion)<\/strong> submarine procurement contract.<\/li>\n<li><strong><a href=\"https:\/\/stockmarketwatch.com\/metal\/gold\" data-internallinksmanager029f6b8e52c=\"4\" title=\"gold price today\">Gold prices<\/a> rebounded above $4,000 per ounce<\/strong> as softer-than-expected U.S. labor data led investors to scale back bets on further Federal Reserve interest rate hikes.<\/li>\n<li><strong>Hong Kong\u2019s private sector returned to expansion<\/strong>, with the S&amp;P Global PMI rising to <strong>52.0 in June<\/strong>, up from 50.4 in May.<\/li>\n<\/ul>\n<hr>\n<h2>Energy Markets: OPEC+ Increases Supply Targets<\/h2>\n<p><strong>Crude <a href=\"https:\/\/stockmarketwatch.com\/energy\/crude-oil\" data-internallinksmanager029f6b8e52c=\"12\" title=\"Crude oil\">oil prices<\/a><\/strong> declined on Monday after <strong>OPEC+<\/strong> members, including <strong>Saudi Arabia<\/strong> and <strong>Russia<\/strong>, agreed to increase production targets by <strong>188,000 bpd<\/strong> for August. This marks the fifth consecutive monthly increase, reflecting the alliance&#39;s effort to restore supply as the <strong>Strait of Hormuz<\/strong> gradually reopens following an interim deal between the U.S. and Iran. <strong>Brent crude<\/strong> futures slipped 0.33% to <strong>$71.88 a barrel<\/strong>, while <strong>U.S. West Texas Intermediate (WTI)<\/strong> fell to <strong>$68.58<\/strong>.<\/p>\n<p>Despite the higher targets, analysts note that much of the increase remains &quot;on paper&quot; as producers continue to ramp up infrastructure following recent regional conflicts. <em>The market&#39;s reaction suggests that traders are prioritizing the prospect of higher global supply over lingering geopolitical risks.<\/em><\/p>\n<h2>Equities: Japan\u2019s AI Boom and Defense Surges<\/h2>\n<p>In Japan, the <strong>Nikkei 225<\/strong> reached the <strong>72,300 level<\/strong> in June, marking its third straight month of record highs. The rally is being driven by a massive &quot;AI boom&quot; that has seen semiconductor leaders like <strong>Tokyo Electron<\/strong> (<a href=\"\/stock\/8035.T\">8035.T<\/a>) and <strong>Advantest<\/strong> (<a href=\"\/stock\/6857.T\">6857.T<\/a>) soar. Analysts expect the momentum to carry through fiscal 2026, with firms poised to log their sixth year of record-breaking profits.<\/p>\n<p>In the defense sector, South Korea&#39;s <strong>Hanwha Ocean<\/strong> (<a href=\"\/stock\/042660.KS\">042660.KS<\/a>) saw its stock jump <strong>11.7%<\/strong> on Monday. The surge comes as Canadian Prime Minister <strong>Mark Carney<\/strong> is expected to announce the preferred bidder for the <strong>Canadian Patrol Submarine Project (CPSP)<\/strong>. The contract, which involves building up to <strong>12 submarines<\/strong>, is one of the largest military procurements in Canadian history.<\/p>\n<h2>Macroeconomics: Fed Bets and Regional Growth<\/h2>\n<p><strong>Gold<\/strong> prices found support as investors adjusted their expectations for <strong>Federal Reserve<\/strong> policy. Following weaker-than-expected U.S. jobs data, the probability of a September rate hike fell to approximately <strong>50%<\/strong>, down from <strong>67%<\/strong> earlier in the week. This shift has weakened the <strong>U.S. Dollar Index (DXY)<\/strong>, making bullion more attractive to international buyers.<\/p>\n<p>Meanwhile, <strong>Hong Kong\u2019s<\/strong> economy showed signs of resilience as the <strong>S&amp;P Global PMI<\/strong> hit <strong>52.0 in June<\/strong>. The reading indicates the strongest expansion in the private sector since early 2025, supported by a rebound in export demand and stabilized business activity. <em>The data suggests that despite global inflationary pressures, regional trade hubs are beginning to see a recovery in new orders.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways OPEC+ agreed to raise production targets by 188,000 barrels per day (bpd) starting in August, signaling a gradual 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