On Tuesday (7 July, 9:16 AM, GMT+7, Bangkok time), most major indices in the Asia Pacific showed a downward sentiment, as South Korea’s Kospi index saw a sharp pullback, primarily due to steep losses among major technology firms. Shares in both SK Hynix and Samsung Electronics declined more than 5%, despite the latter posting a significant jump in quarterly earnings preview.
Samsung Electronics announced preliminary second-quarter operating profit of 89.4 trillion won ($58 billion), rising dramatically from the prior year and surpassing market forecasts, driven by surging demand for memory chips supporting AI infrastructure. Analysts had been expecting operating profit closer to 84.2 trillion won.
Investors have grown cautious, looking for clearer signs that the AI cycle can maintain its rapid growth pace. The tech sector in the U.S. recently marked a record quarterly performance, but attention has now shifted to whether current levels of investment and increased competition will continue to support earnings growth in line with high expectations.
On the geopolitical front, concerns over the Middle East have lessened, but tensions among NATO members have emerged as a new focus for markets. As U.S. President Donald Trump applies pressure on the alliance partners regarding defense expenditures, this has resulted in renewed scrutiny of transatlantic relations ahead of this week’s NATO summit in Ankara, Turkey.
Japan’s NIKKEI declined by 1.23% to 68,883.17. South Korea’s KOSPI slumped by 4.10% to 7,721.29, while Australia’s ASX 200 climbed by 0.06% to 8,836.60.
As for stocks in China, Shanghai’s SSEC fell by 0.59% to 4,017.30, Shenzhen’s SZI dipped by 0.28% to 15,373.48, while Hong Kong’s HSI grew by 0.39% to 23,708.19.
The U.S. stock markets edged up on Monday as the Dow Jones Industrial Average (DJIA) gained 0.29% to 53,055.91. NASDAQ rose by 1.12% to 26,121.16, and S&P 500 added 0.72% to 7,537.43. VIX dropped by 1.52% to 15.57.
As for commodities, oil prices settled lower on Monday after Saudi Arabia reduced its official selling prices and OPEC+ moved forward with another production target increase set to begin in August. Additional downward pressure came as shipments through the Strait of Hormuz showed further recovery. Brent crude futures closed at $71.99 per barrel, a decrease of 13 cents or 0.2%. U.S. West Texas Intermediate crude futures finished the day at $68.55 per barrel, down 14 cents or 0.2%.
This morning, Brent futures increased 52 cents, or 0.72%, to $72.51 per barrel, and the WTI futures surged 53 cents, or 0.77%, to $69.08 per barrel.
Meanwhile, gold futures contracted by 0.36% to $4,152.40 per Troy ounce.
