Asian stock markets retreated on Tuesday despite an extraordinary profit forecast from South Korea’s Samsung Electronics, while the Japanese yen continued to struggle near levels not seen in four decades.
Samsung Electronics, recognized as the world’s largest manufacturer of memory chips, projected operating profit for the April-through-June quarter at 89.4 trillion won — equivalent to roughly $58.44 billion. That figure represents a nearly 19-times increase over the same period last year and marks a third consecutive quarter of record operating profit for the company.
Despite the impressive forecast, South Korean shares dropped sharply, falling 4.1%. The MSCI’s broadest measure of Asia-Pacific stocks outside Japan slid 0.73%, and Japan’s Nikkei index declined 1.08%.
Toru Suehiro, chief economist at Daiwa Securities, offered an explanation for the unusual market dynamic, saying the recent surge in AI-related stocks has likely been fueled by economic and inflation concerns, with investors seeking shelter in that sector amid worries about the broader outlook — including rising tensions involving Iran.
“While it would be healthier for share prices to move in line with the economy and the real economy, those conditions do not change that rapidly,” Suehiro wrote, adding that markets were therefore likely to stay range-bound for the time being.
On Wall Street the night before, all three major U.S. stock indexes finished in positive territory, driven by expectations that artificial intelligence will power a strong second-quarter earnings season. The Dow Jones Industrial Average gained 0.29%, the S&P 500 climbed 0.72%, and the Nasdaq Composite rose 1.12%.
In other corporate news, South Korean chipmaker SK Hynix launched a U.S. share sale on Monday aimed at raising 43 trillion won, or about $28.07 billion, drawing interest of up to $7 billion from major investors. Separately, Broadcom announced an expanded partnership with Apple to develop and supply custom chips through 2031.
On the currency front, the yen remained pinned to the weaker side of 162 per dollar in early Asian trading on Tuesday, and fell to nearly its lowest level against the British pound since 2007, touching 217.09. Traders have grown increasingly bold in pushing the yen lower, as Japanese authorities have yet to step in — though the possibility of a surprise intervention continues to limit how far the currency falls.
A senior analyst at MUFG Bank, Akihiko Yokoo, noted that Japan is scheduled to hold an auction of 30-year government bonds Tuesday. A weak auction result could push government bond yields higher and accelerate further selling of the yen, he said.
The dollar index, which tracks the U.S. currency against a range of peers including the yen and euro, edged up 0.03% to 100.89. The euro dipped 0.01% to $1.1439.
Oil prices ticked higher but gains were modest as traders shifted focus to potential supply increases and questions about future demand, following a drop to pre-Iran war price levels on Monday. U.S. crude rose 0.54% to $68.92 per barrel, while Brent crude climbed 0.49% to $72.34 per barrel.
President Donald Trump said Monday that the United States would either reach a deal with Iran or “finish the job,” renewing his threat of military action as Tehran expressed defiance following the funeral of former Supreme Leader Ayatollah Ali Khamenei.
Trump is set to attend a NATO meeting in Turkey this week. Federal Reserve watchers will also be paying close attention Wednesday when the Federal Open Market Committee releases its minutes — the first under new Chair Kevin Warsh.
The yield on the benchmark U.S. 10-year Treasury note edged up slightly to 4.483%, compared with 4.479% the previous session.
In commodity markets, gold fell 0.49% to $4,143.59 per ounce. Silver dropped nearly 1% to $61.47 per ounce, and copper slipped 0.21% to $13,375.00 per ton.
