This content was published on
July 21, 2026 - 07:59
5 minutes
(Bloomberg) — Asian stocks rose for the first time in four days as investors returned to chipmakers, driving a rebound in the sector after the recent selloff. Oil declined.The MSCI Asia Pacific Index of shares climbed 2.4%, with chip giants Samsung Electronics Co. and Taiwan Semiconductor Manufacturing Co. the two biggest contributors. Benchmarks in South Korea and Taiwan — barometers for AI investments — both gained around 4%. A tech-heavy gauge in mainland China jumped over 7% as the country mobilized a range of state-linked institutions.Japan’s Nikkei 225 Stock Average rose 3% after slipping into correction territory on Friday. Contracts for the Nasdaq 100 Index advanced 1%, following gains for a semiconductor benchmark in the US. European stocks, though, were set for a tepid open.Also supporting sentiment was a pullback in oil after two days of gains. Brent crude fell over 1% to $88.20 a barrel as diplomatic efforts to ease tensions in the Middle East continued. Iran said mediators were in touch with proposals to ease hostilities after more than a week of worsening clashes, while Reuters reported a suggestion for a 10-day halt of strikes.The rally in stocks comes after elevated oil prices and escalating Middle East tensions contributed to a pullback last week. Investors are now turning to megacap earnings later this week for clues on whether this year’s AI-driven rally can be sustained.“The market has already undergone a fairly substantial correction,” said Ikuo Mitsui, a fund manager at Aizawa Securities Co. in Tokyo. “At the same time, corporate earnings have held up reasonably well and have proved more resilient than expected.”This week brings the first results from the US megacaps, and pressure is building for the companies to justify AI investments. Tesla Inc. and Alphabet Inc. kick off big tech’s reporting season Wednesday. Then, Microsoft Corp., Meta Platforms Inc., Apple Inc. and Amazon.com Inc. announce the following week.Investors will be looking to Alphabet’s earnings for updates on spending and semiconductors after a report said that the company is developing a server chip designed to optimize its Gemini artificial intelligence model.“A brutal month for chip stocks has sharpened scrutiny of the AI spending wave,” said Josh Gilbert, APAC and Mideast lead analyst at Etoro. “Capital expenditure commentary will matter just as much as the headline numbers.”Elsewhere, the Canadian dollar held steady after the Trump administration vowed to impose a fresh 50% tariff on some of the country’s goods. Treasuries held losses from Monday, while gold climbed 1% to about $4,050 an ounce.The pound will remain in focus after declining in the previous session as the UK’s new prime minister Andy Burnham named former Defense Secretary John Healey to be his Chancellor of the Exchequer in a surprise move.Attention remains firmly on the tech sector. For now, there’s little evidence that the latest escalation in the Middle East will weaken economic growth, enough to change the pro-risk stance, BlackRock Investment Institute strategists led by Jean Boivin wrote in a note.“The AI investment boom — an important driver of growth — and our preference for AI infrastructure remain intact despite recent volatility,” the strategists wrote. “Today’s global economy is also far less oil-intensive than previous energy shocks, making it more resilient to higher energy prices.”Corporate News:A federal judge temporarily paused Paramount Skydance Corp.’s $110 billion takeover of Warner Bros. Discovery Inc. saying it “likely” violates antitrust law. Novartis AG reported higher-than-expected profit last quarter as newer cancer medicines offset the aging blockbuster Entresto’s generic hit, signaling a return to growth. Julius Baer Group Ltd. profit more than doubled in the first half of the year as the Swiss wealth manager emerges from a long reorganization in the wake of losses linked to Austrian property tycoon Rene Benko. Swatch Group AG gave upbeat guidance for sales growth for the rest of this year after posting lower-than-expected profit in the first half. Some of the main moves in markets:StocksS&P 500 futures rose 0.5% as of 6:55 a.m. London time Nasdaq 100 futures rose 1.1% The MSCI Asia Pacific Index rose 2.4% The MSCI Emerging Markets Index rose 2.3% Japan’s Topix rose 2.2% Australia’s S&P/ASX 200 fell 0.1% Hong Kong’s Hang Seng rose 0.2% The Shanghai Composite rose 1.2% Euro Stoxx 50 futures were little changed CurrenciesThe Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1418 The Japanese yen was little changed at 162.52 per dollar The offshore yuan was little changed at 6.7659 per dollar The British pound was little changed at $1.3443 CryptocurrenciesBitcoin rose 0.6% to $65,704.2 Ether rose 1.3% to $1,929.19 BondsThe yield on 10-year Treasuries was little changed at 4.59% Japan’s 10-year yield advanced two basis points to 2.725% Australia’s 10-year yield declined two basis points to 4.94% CommoditiesSpot gold rose 1.4% to $4,063.02 an ounce West Texas Intermediate crude fell 0.9% to $82.50 a barrel This story was produced with the assistance of Bloomberg Automation.–With assistance from Momoka Yokoyama, Matthew Burgess and Bing Hong Lok.©2026 Bloomberg L.P.
