Morning Wrap: Asia dips on US semiconductor sell-off. All eyes on TSMC (16.07.2026)

📉 Indices & Asian Session

US index futures opened slightly higher, remaining close to yesterday’s close after a volatile session, particularly in the semiconductor sector. Futures on the Nasdaq (US100), S&P 500 (US500), DJIA (US30), and Russell 2000 (US2000) are all up by approximately 0.15%, matching the movement of European Stoxx 50 (EU50) futures.

• SpaceX stock hits all-time low ahead of Starship flight: SpaceX (SPCX.US) shares slid to a record low of $132.75, breaking below their $135 IPO price. Despite overall optimism on Wall Street, investor attention now shifts to Thursday's highly anticipated 13th Starship test flight, which serves as a key near-term catalyst.

• Asian markets fall on chip selloff and geopolitical fears: Most Asian stock markets dropped on Thursday, weighed down by a sharp correction in the semiconductor space and escalating US-Iran tensions near the strategic Strait of Hormuz. While the Nikkei 225 fell 2.7% (JP225: -1.24%) and South Korea’s KOSPI plunged over 6%—with chip giants SK Hynix and Samsung Electronics sliding between 8% and 11%—Hong Kong's Hang Seng bucked the trend, rising 1.7%.

• Investors await TSMC results for AI demand cues: Despite the broad market weakness, investor focus remains heavily locked on TSMC's upcoming quarterly earnings report to gauge the long-term sustainability of global artificial intelligence demand.

🌍 Economy & Geopolitics

• Bank of Korea raises rates to 2.75% as inflation climbs: The BOK delivered a 25 basis point rate hike—its first since January 2023—to combat sticky inflation of 3.2%, supported by strong Q1 GDP growth dynamics (+3.8%).

• Finance Minister Katayama reiterates Tokyo's FX warnings as yen remains pressured: Satsuki Katayama repeated standard warnings that the government is ready to take appropriate action on currency markets at any time deemed necessary. However, she offered no new specific details as the yen continues to hover near the 162 per dollar level. Katayama declined to comment on specific exchange rate levels, noting that FX rates are driven by multiple factors, and added that boosting Japan's global economic competitiveness is key to maintaining confidence in the yen.

• Trump weighs military escalation against Iran: President Trump is leaning toward expanding US military operations. Operational plans under high-level discussion include intensifying airstrikes, deploying ground forces to seize strategic islands like Kharg Island, and targeting fortified underground sites suspected of hosting secret nuclear activities.

• Trump prefers rate pause over hikes, expects inflation to fall: President Trump stated he believes inflation will end the year lower than current levels. He reiterated that while he wants to see interest rates cut, a pause in rate adjustments is still preferable to raising them.

💱 Foreign Exchange (FX)

• Quiet trading across major currency pairs: The dollar index (USDIDX) is trading with marginal gains of +0.05%, as a lower PPI print slightly cools rate hike expectations in the US. Volatility on the most liquid pairs (USDJPY, EURUSD, GBPUSD) does not exceed +/- 0.05%.

• Antipodean currencies and Franc see some divergence: The exceptions to the flat trading are antipodean currencies (NZDUSD: +0.15%, AUDUSD: -0.1%). Among G10 currencies, the Swiss franc is losing the most ground (GBPCHF, USDCHF: +0.25%). The EURUSD pair is up 0.05% to 1.1467.

🛢️ Energy & Precious Metals

• Energy commodities under selling pressure: Brent crude (OIL) futures are down 1.2% to $84.50 per barrel, while WTI crude futures have slipped 1.65% to $79.90 per barrel. Natural gas (NATGAS) futures are down 0.5% in the US, while rising 0.2% in Europe.

• Another leg down for precious metals: Precious metals are sliding again despite a calmer US dollar. Gold has dropped 0.7% to $4,030/oz, while Silver is down 0.8% to $57.30/oz.