{"id":65575,"date":"2026-07-28T21:08:09","date_gmt":"2026-07-29T01:08:09","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-react-to-middle-east-escalation-and-sk-hynix-earnings-surge\/65575\/"},"modified":"2026-07-28T21:08:09","modified_gmt":"2026-07-29T01:08:09","slug":"global-markets-react-to-middle-east-escalation-and-sk-hynix-earnings-surge","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-react-to-middle-east-escalation-and-sk-hynix-earnings-surge\/65575\/","title":{"rendered":"Global Markets React to Middle East Escalation and SK Hynix Earnings Surge"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong><a href=\"https:\/\/stockmarketwatch.com\/energy\/crude-oil\" data-internallinksmanager029f6b8e52c=\"12\" title=\"Crude oil\">Oil prices<\/a> surged 3.4%<\/strong> as Brent reached <strong>$87<\/strong> and WTI hit <strong>$81.97<\/strong> following coordinated U.S. and Saudi airstrikes against Iran-backed militias in Iraq.<\/li>\n<li><strong>SK Hynix (<a href=\"\/stock\/000660\">000660<\/a>) reported a 557% jump in profit<\/strong>, driving a 2% gain in South Korean stocks despite missing some analyst estimates on specific Q2 figures.<\/li>\n<li><strong>Japan confirmed 13 fatalities<\/strong> following a major earthquake in Kumamoto, though Toyota (<a href=\"\/stock\/TM\">TM<\/a>) has already begun restarting production at three regional factories.<\/li>\n<li><strong>U.S. Central Command (CENTCOM)<\/strong> intercepted an Iranian &quot;attempted surprise attack&quot; on U.S. troops, shifting market focus toward the Strait of Hormuz ahead of Wednesday\u2019s Fed decision.<\/li>\n<li><strong>European equity futures<\/strong> are trading higher, with the <strong>EURO STOXX 50 up 0.4%<\/strong>, as markets balance geopolitical tensions against strong corporate earnings.<\/li>\n<\/ul>\n<h2>Middle East Tensions Ignite Energy Markets<\/h2>\n<p>Crude oil snapped a three-day losing streak on Wednesday morning after <strong>U.S. Central Command<\/strong> and the <strong>Saudi Defence Ministry<\/strong> confirmed coordinated precision strikes in Iraq. The strikes targeted <strong>Iran-aligned groups<\/strong> in the Karbala and Nineveh provinces following unsuccessful &quot;unwarranted attacks&quot; against U.S. forces and Saudi energy infrastructure in Riyadh.<\/p>\n<p><strong>Brent crude rose 3.4% to approximately $87 per barrel<\/strong>, while <strong>WTI crude climbed 3.4% to $81.97<\/strong>. The Saudi Defence Ministry stated that while the kingdom seeks to avoid further escalation, it will <strong>retaliate against any aggression<\/strong> targeting its sovereign energy facilities.<\/p>\n<h2>SK Hynix Leads Asian Tech Rally<\/h2>\n<p>In Asia, the <strong>MSCI Asia Pacific Index rose 0.7%<\/strong>, bolstered by a massive rally in South Korean chipmaker SK Hynix (<a href=\"\/stock\/000660\">000660<\/a>). The company reported that <strong>second-quarter profit surged 557%<\/strong> on the back of insatiable demand for AI-related memory, even as the headline figure slightly missed some market forecasts.<\/p>\n<p>SK Hynix management signaled a bullish outlook for the remainder of the year, forecasting <strong>stronger memory bit growth in H2<\/strong> compared to H1. The company plans to begin <strong>HBM4E production in 2027<\/strong> and noted that negotiations for 2027 HBM pricing are already underway with leading cloud service providers.<\/p>\n<h2>Japan Grapples with Earthquake Recovery<\/h2>\n<p>Japanese Prime Minister Takaichi confirmed <strong>13 fatalities<\/strong> following the Kumamoto earthquake, with government officials warning the death toll could rise. Despite the tragedy, industrial recovery is moving quickly; Toyota (<a href=\"\/stock\/TM\">TM<\/a>) has reportedly <strong>restarted production at three factories<\/strong> in the Kyushu region.<\/p>\n<p>The <strong>Nikkei 225 rose 0.9%<\/strong>, led by gains in the semiconductor and automotive sectors. In the fixed-income market, the <strong>2-year Japanese government bond yield declined 2.5 basis points to 1.465%<\/strong> as investors assessed the economic impact of the seismic activity.<\/p>\n<h2>Corporate Earnings and Global Outlook<\/h2>\n<p>Mining giant Rio Tinto (<a href=\"\/stock\/RIO\">RIO<\/a>) reported a <strong>47% increase in first-half profit<\/strong> and raised its interim dividend, providing a boost to the materials sector. Meanwhile, European markets are preparing for a positive open, with <strong>DAX futures advancing 0.3%<\/strong> and <strong>FTSE futures gaining 0.1%<\/strong>.<\/p>\n<p>Investors remain cautious as <strong>JPMorgan (<a href=\"\/stock\/JPM\">JPM<\/a>)<\/strong> warned of a 50% probability of a &quot;hawkish hold&quot; from the Federal Reserve later today. Market participants are also bracing for high-stakes earnings reports from U.S. tech titans including <a href=\"https:\/\/stockmarketwatch.com\/stock\/MSFT\" data-internallinksmanager029f6b8e52c=\"18\" title=\"Stock: MSFT\">Microsoft<\/a> (<a href=\"\/stock\/MSFT\">MSFT<\/a>), Meta (<a href=\"\/stock\/META\">META<\/a>), and Apple (<a href=\"\/stock\/AAPL\">AAPL<\/a>) later this week.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Oil prices surged 3.4% as Brent reached $87 and WTI hit $81.97 following coordinated U.S. and Saudi airstrikes 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