{"id":65714,"date":"2026-07-31T01:38:14","date_gmt":"2026-07-31T05:38:14","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-rally-as-south-korean-chip-giants-rebound-geopolitical-risks-weigh-on-gold\/65714\/"},"modified":"2026-07-31T01:38:14","modified_gmt":"2026-07-31T05:38:14","slug":"global-markets-rally-as-south-korean-chip-giants-rebound-geopolitical-risks-weigh-on-gold","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-rally-as-south-korean-chip-giants-rebound-geopolitical-risks-weigh-on-gold\/65714\/","title":{"rendered":"Global Markets Rally as South Korean Chip Giants Rebound; Geopolitical Risks Weigh on Gold"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>South Korean chipmakers SK Hynix (<a href=\"\/stock\/000660\">000660<\/a>) and Samsung Electronics (<a href=\"\/stock\/005930\">005930<\/a>) surged up to 30%<\/strong>, triggering a massive <strong>17% rally in the KOSPI index<\/strong> as investors returned to the AI sector following a brutal three-day sell-off.<\/li>\n<li><strong><a href=\"https:\/\/stockmarketwatch.com\/metal\/gold\" data-internallinksmanager029f6b8e52c=\"4\" title=\"gold price today\">Gold prices<\/a> struggled to maintain intraday gains<\/strong>, pressured by a strengthening <strong>U.S. Dollar<\/strong> as escalating <strong>U.S.-Iran tensions<\/strong> revived expectations for a potential <strong>Federal Reserve rate hike<\/strong> in September.<\/li>\n<li><strong>HSBC raised its price target for Shell (<a href=\"\/stock\/SHEL\">SHEL<\/a>) to 3,650p<\/strong>, citing robust cash flow and a massive <strong>\u00a33.1 billion share buyback program<\/strong> fueled by high energy prices.<\/li>\n<li><strong>Russia reported striking a vessel carrying military supplies<\/strong> near the Ukrainian port of <strong>Odesa<\/strong>, heightening risks to Black Sea shipping lanes and grain exports.<\/li>\n<li><strong>Japan\u2019s housing starts for June rose 18.6% year-over-year<\/strong>, significantly outperforming analyst estimates of <strong>12.7%<\/strong> and signaling resilience in the domestic construction sector.<\/li>\n<\/ul>\n<h2>South Korean Tech Giants Lead Record Market Recovery<\/h2>\n<p>South Korea\u2019s benchmark <strong>KOSPI index<\/strong> staged a historic recovery on Friday, jumping <strong>17%<\/strong> to reclaim the <strong>6,500 level<\/strong>. The rally was spearheaded by <strong>SK Hynix (<a href=\"\/stock\/000660\">000660<\/a>)<\/strong>, which hit its <strong>30% daily trading limit<\/strong>, and <strong>Samsung Electronics (<a href=\"\/stock\/005930\">005930<\/a>)<\/strong>, which surged over <strong>21%<\/strong>.<\/p>\n<p>The rebound follows a period of extreme volatility where the <strong>KOSPI<\/strong> lost nearly a quarter of its value in July. Investors were encouraged by strong earnings from U.S. tech giants like <strong><a href=\"https:\/\/stockmarketwatch.com\/stock\/MSFT\" data-internallinksmanager029f6b8e52c=\"18\" title=\"Stock: MSFT\">Microsoft<\/a> (<a href=\"\/stock\/MSFT\">MSFT<\/a>)<\/strong>, which eased fears that the massive capital expenditure on <strong>Artificial Intelligence (AI)<\/strong> was failing to generate immediate returns.<\/p>\n<h2>Geopolitical Tensions Revive Fed Hike Bets<\/h2>\n<p><strong>Gold<\/strong> prices remained under pressure, trading near <strong>$4,080 per ounce<\/strong> as the <strong>U.S. Dollar<\/strong> strengthened. The primary driver was a resurgence in <strong>U.S.-Iran hostilities<\/strong>, which has fueled concerns over energy-driven inflation.<\/p>\n<p>Market participants are now pricing in a <strong>63% chance of a Federal Reserve rate hike<\/strong> in September, up from previous weeks. This hawkish shift has dampened the appeal of non-yielding bullion, despite its traditional status as a safe-haven asset during times of war.<\/p>\n<h2>Energy Sector Strength and Maritime Risks<\/h2>\n<p>In the energy sector, <strong>HSBC<\/strong> analysts upgraded their outlook for <strong>Shell (<a href=\"\/stock\/SHEL\">SHEL<\/a>)<\/strong>, raising the price target from <strong>3,500p to 3,650p<\/strong>. The bank highlighted <strong>Shell&#39;s<\/strong> superior cash generation, which allowed the company to maintain a <strong>$3 billion quarterly buyback pace<\/strong> despite broader market uncertainty.<\/p>\n<p>Meanwhile, the conflict in Eastern Europe continues to threaten global supply chains. The <strong>Russian Defence Ministry<\/strong> claimed its forces hit a cargo vessel en route to <strong>Odesa<\/strong> that was purportedly carrying military equipment. This follows a string of attacks on merchant shipping in the <strong>Black Sea<\/strong>, which analysts warn could further destabilize global wheat and commodity prices.<\/p>\n<h2>Japan\u2019s Housing Sector Shows Surprising Resilience<\/h2>\n<p>Economic data from <strong>Japan<\/strong> provided a positive surprise as <strong>June housing starts<\/strong> grew by <strong>18.6% year-over-year<\/strong>. While this was a deceleration from May\u2019s <strong>33.9%<\/strong> surge, it comfortably beat the consensus estimate of <strong>12.7%<\/strong>.<\/p>\n<p>The <strong>annualized housing starts<\/strong> reached <strong>0.786 million units<\/strong>, exceeding the previous month&#39;s <strong>0.750 million<\/strong>. This data suggests that despite the <strong>Bank of Japan&#39;s<\/strong> recent moves toward monetary normalization, the domestic real estate and construction markets remain on a growth trajectory.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways South Korean chipmakers SK Hynix (000660) and Samsung Electronics (005930) surged up to 30%, triggering a massive 17% 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