Markets sat on edge as new exchanges of strikes between the United States and Iran renewed doubts over the fragile ceasefire, while competing claims about whether the Strait of Hormuz is open added to volatility in energy and shipping markets.
Risk appetite was dented after chipmaker SK Hynix plunged about 15% following a record‑breaking IPO, stoking concern that the AI rally may be overstretched. The selloff contrasted with strength at foundry peers: TSMC reported quarterly sales surged roughly 36%, underscoring diverging fortunes across the semiconductor complex.
In Japan, government bonds rallied the most in two years after the finance minister urged repatriation of overseas investments, a move that lifted demand for domestic paper and pressured yields.
Corporate news was mixed. Akzo Nobel rebuffed a roughly $8.6 billion bid from Nippon for its paint unit, while Stellantis said shipments rose about 10% in 2Q26 in North America. Volkswagen’s CEO signalled the company is looking at “smart solutions” beyond plant closures to address competitive pressures.
Market action was subdued: European equities traded flat. In Asia, Japan and Hong Kong rose about 0.5% while mainland Chinese stocks corrected roughly 2%. US futures were set to open lower by about 0.5%–1%, and Brent crude traded up about 3% near $78 a barrel as investors priced renewed geopolitical risk.