{"id":65713,"date":"2026-07-31T01:08:12","date_gmt":"2026-07-31T05:08:12","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/asian-markets-surge-as-china-signals-support-kumamoto-chip-hub-restores-operations\/65713\/"},"modified":"2026-07-31T01:08:12","modified_gmt":"2026-07-31T05:08:12","slug":"asian-markets-surge-as-china-signals-support-kumamoto-chip-hub-restores-operations","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/asian-markets-surge-as-china-signals-support-kumamoto-chip-hub-restores-operations\/65713\/","title":{"rendered":"Asian Markets Surge as China Signals Support; Kumamoto Chip Hub Restores Operations"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Taiwan\u2019s TAIEX index skyrocketed over 6.8% (2,728 points)<\/strong> in a massive technical rebound, reclaiming the <strong>42,000-point mark<\/strong> after a brutal five-day sell-off.<\/li>\n<li><strong>China\u2019s Politburo pledged to bolster capital market resilience<\/strong>, sparking hope for state-led interventions to stabilize a technology sector hit by its worst monthly decline on record.<\/li>\n<li><strong>Critical semiconductor facilities in Kumamoto, Japan<\/strong>, including those operated by Taiwan Semiconductor (<a href=\"\/stock\/TSM\">TSM<\/a>) and Renesas Electronics (<a href=\"\/stock\/RNECY\">RNECY<\/a>), have begun <strong>phased production restarts<\/strong> following a 7.1-magnitude earthquake.<\/li>\n<li><strong>JPMorgan Chase (<a href=\"\/stock\/JPM\">JPM<\/a>) adjusted its outlook on Lowe\u2019s Companies (<a href=\"\/stock\/LOW\">LOW<\/a>)<\/strong>, lowering the price target to <strong>$252 from $279<\/strong> amid persistent concerns over discretionary home improvement spending.<\/li>\n<\/ul>\n<h2>Taiwan Markets Stage Record Rebound<\/h2>\n<p>The Taiwan Stock Exchange\u2019s benchmark <strong>TAIEX<\/strong> staged a dramatic &quot;retaliatory rally&quot; on Friday, surging more than <strong>2,700 points<\/strong> to close back above the psychologically significant <strong>42,000 level<\/strong>. The move was fueled by a global recovery in semiconductor stocks and a massive <strong>7.94% jump<\/strong> in Taiwan Semiconductor (<a href=\"\/stock\/TSM\">TSM<\/a>), which alone contributed roughly <strong>1,400 points<\/strong> to the index&#39;s gains.<\/p>\n<p>Other major tech players including MediaTek (<a href=\"\/stock\/2454.TW\">2454.TW<\/a>) and ASE Technology (<a href=\"\/stock\/ASX\">ASX<\/a>) hit their <strong>10% daily upward limit<\/strong>, erasing much of the gloom from a week that saw the market plunge nearly <strong>11%<\/strong>. Analysts noted that record-high margin call liquidations earlier in the week likely flushed out leveraged sellers, paving the way for Friday&#39;s sharp V-shaped recovery.<\/p>\n<h2>China\u2019s Politburo Signals Market Intervention<\/h2>\n<p>In a rare move, China\u2019s top decision-making body, the <strong>Politburo<\/strong>, explicitly referenced capital markets in its latest economic readout, vowing to <strong>&quot;enhance the resilience and confidence&quot;<\/strong> of investors. Chaired by President Xi Jinping, the meeting signaled that Beijing is prepared to move beyond rhetoric to stabilize a stock market that has struggled despite previous state buying efforts totaling <strong>60 billion yuan ($8.9 billion)<\/strong>.<\/p>\n<p>Market participants are particularly focused on potential support for the <strong>technology and AI sectors<\/strong>, which have been caught in a global sell-off. While the Politburo did not announce a &quot;bazooka&quot; stimulus package, the shift in language toward <strong>&quot;practical and effective incremental measures&quot;<\/strong> has bolstered expectations for targeted fiscal spending in the second half of 2024.<\/p>\n<h2>Kumamoto Chip Hub Recovers from Seismic Shock<\/h2>\n<p>The global semiconductor supply chain breathed a sigh of relief as major manufacturers in Japan\u2019s <strong>&quot;Silicon Island&quot;<\/strong> began restoring operations after Tuesday&#39;s powerful earthquake. Taiwan Semiconductor (<a href=\"\/stock\/TSM\">TSM<\/a>) confirmed that its <strong>JASM plant<\/strong> in Kumamoto remained structurally sound and has resumed phased production, though construction on its second facility remains temporarily paused as a precaution against aftershocks.<\/p>\n<p>Renesas Electronics (<a href=\"\/stock\/RNECY\">RNECY<\/a>) also reported progress, restarting its <strong>Nishiki plant<\/strong> to produce critical automotive microcontrollers, with the <strong>Kawashiri facility<\/strong> expected to follow by next week. While the 7.1-magnitude quake caused significant local disruption and claimed at least <strong>34 lives<\/strong>, the impact on global chip supply appears more contained than the devastating 2016 disaster.<\/p>\n<h2>Analysts Trim Targets for Home Improvement Retail<\/h2>\n<p>On the corporate front, <strong>JPMorgan<\/strong> analysts have revised their price target for Lowe\u2019s Companies (<a href=\"\/stock\/LOW\">LOW<\/a>) downward to <strong>$252<\/strong>, reflecting a more cautious stance on the consumer cyclical sector. The adjustment comes as high interest rates and a cooling housing market continue to weigh on <strong>big-ticket discretionary projects<\/strong>, which traditionally drive a significant portion of Lowe&#39;s revenue.<\/p>\n<p>Despite the target cut, the firm maintained an <strong>Overweight rating<\/strong>, suggesting that the retailer remains well-positioned for a long-term recovery. This sentiment is echoed by recent board actions, including a <strong>dividend increase to $1.25 per share<\/strong>, signaling management&#39;s confidence in the company&#39;s free cash flow despite the current macroeconomic headwinds.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Taiwan\u2019s TAIEX index skyrocketed over 6.8% (2,728 points) in a massive technical rebound, reclaiming the 42,000-point mark after 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