Global Shares Surge, AI Earnings Calm Concerns, Yen Weakens as BOJ Holds Rates

Late‑week gains in global equities set the stage for a weekly upside, driven by upbeat earnings from U.S. tech giants that eased fears about the sustainability of the AI rally. Microsoft’s latest report projected strong cash generation through fiscal 2027, while Amazon announced its most robust cloud growth in over four years, reinforcing investor confidence that the massive AI investment is beginning to pay off.

In Asia, South Korea’s KOSPI rebounded dramatically, leaping 17.91% to close the week with a record‑setting rally after a series of steep losses earlier in the month. The tech‑heavy index remains roughly 30% below its all‑time peak, underscoring the volatility in AI‑related stocks.

On the futures front, the Nasdaq 100 was up 0.83%, the S&P 500 futures gained 0.35%, and the Dow futures rose 0.46%. Europe’s STOXX 600 reached a new record high, while the MSCI All‑Country World Price index climbed 0.87%, putting it on track to break a two‑week losing streak.

Currency markets saw the yen continue its slide against the dollar after the Bank of Japan (BOJ) left rates unchanged on Friday. The dollar strengthened 0.56% to 160.38 yen, following a 2.42% decline the day before when Japan intervened with yen purchases and dollar sales.

BOJ Governor Kazuo Ueda signaled that inflation risks are tilted upward and that the central bank is ready to accelerate rate hikes if conditions allow. Despite the intervention, market observers believe that a more substantial reversal of yen weakness will require a stronger domestic asset base and a quicker pace of tightening.

The ongoing Middle East conflict remains a significant risk factor for global equities, with fresh hostilities dampening hopes for a swift resolution. Oil prices reflected this uncertainty, with Brent crude posting a sharp rise in July and heading for its first monthly gain since March.