Yen Intervention on Watch; Korean Stocks Jump by Record | The Asia Trade 7/31/2026

Summary

A busy Asia session features strong rebound in tech stocks after U.S. earnings, suspected Japanese yen intervention, and a BOJ policy hold. Korean equities surge on government AI fund news, while Amazon's AI capex is rewarded. Yen weakness persists despite intervention as rate differentials dominate.

• Amazon's cloud beat and heavy AI capex are cheered by investors, with the stock gaining after-hours.
• Japanese officials reportedly intervened to support the yen, but wide rate differentials keep it near 160 per dollar.
• BOJ is expected to hold rates though hawkish talk could add support to the yen; intervention timing is controversial.
• South Korean stocks post record intraday gains after a week of steep losses, helped by a $14 billion sovereign wealth fund plan for domestic AI investments.
• The AI trade roars back, with Philadelphia Semiconductor Index seeing its best day since April 2025.
• Japan's momentum stocks are favored over traditional exporters as yen dynamics shift.
• China's Politburo acknowledges growth concerns but stops short of big stimulus, sending bond yields lower.
• Risk appetite returns broadly, lifting Asian equities with Korea and Japan tech leading the bounce.