Tech Earnings Lift Asian Stocks as Rate Bets Shift and Yields Retreat

What moved markets

Asian stock markets rose on Wednesday as robust earnings and renewed appetite for technology shares pushed Wall Street to record highs. [2] The reported gains differed between accounts: the Nikkei rose either 3.5% or 3.0%, South Korea’s market rose either 4.3% or 3.4%, and MSCI’s broadest Asia-Pacific index outside Japan rose either 2.3% or 1.5%; Chinese blue chips gained 1.5% in the account that reported that figure. [2] [4]

The earnings signal was also company-specific. S&P 500 companies were forecast to report a 29% increase in second-quarter earnings per share, although that figure covered companies still due to report. [3] In Europe, the Stoxx 600 rose 1.3% and briefly reached a record as its members reported a 19% increase in profits. [3]Explore related learning+

Why individual shares diverged

The reported company reactions connected market performance with particular revenue, cash-flow and spending figures. Meta fell 8% after a disappointing quarterly revenue forecast and low free cash flow, while Microsoft rose 16% after its fastest cloud growth in four years and an indication that it would limit new capital spending during the year. Amazon rose 15% after stronger-than-expected cloud-computing revenue. [3]

A UBS basket of artificial-intelligence winners rose 11% over two sessions after reassuring earnings reports. [3] The same reporting said investors had become more disciplined about paying higher valuations for large-cap technology, but the available facts do not establish a single response across all technology companies. [3]

AMD shares fell after the bell despite results beating analysts’ or market forecasts; the reported decline was 8.8% in one account and 9% in another. [2] [4] SpaceX shares fell 7.5% after hours amid concerns that capital spending was consuming cash flow, while as many as 912 million shares held by employees and other pre-IPO stakeholders became eligible for sale on Thursday. [2]

Rates, oil and uncertainty

Markets reduced the probability of a September Federal Reserve rate hike to 57% from 67%. [2] [4] The 10-year Treasury yield fell from the previous week’s 4.747% high, but the reported current level differed: NST Online gave 4.603%, while Devdiscourse gave 4.6187%. [2] [4] Jeff Schmid of the Federal Reserve Bank of Kansas City called for tighter policy to return inflation to the central bank’s 2% target. [2]Explore related learning+

Oil prices fell after Qatar said mediators were making progress toward ending the US-Iran war, although both accounts said details of that progress were lacking. [2] [4] Brent was reported at either $78.85 or $79.02 a barrel, and US crude at either $75.09 or $75.35. [2] [4] Ship-tracking data suggested Strait of Hormuz oil flows may have reached 40% to 45% of pre-war levels in the previous week; one analyst estimated flows would need to reach 50% to 60% to create oversupply conditions. [2]

The cited Reuters article was unavailable in the available record, so it does not establish an additional detail for this account. [1] Gold rose as yields fell, but reported gains and prices also differed, from a 1.6% rise to $4,140 an ounce to a 0.1% rise to $4,080. [2] [4]

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