Korea Set for Record Surge as Global AI Momentum Returns | Daybreak Europe 7/31/2026

Summary

Korean stocks soared by a record, recovering from the week's earlier rout as the AI trade rebounded on Amazon's aggressive spending plans and strong chip earnings. The Bank of Japan held rates and upgraded its growth outlook, while the yen remained volatile after intervention. US Treasury Secretary Bessent called the yen undervalued. On the bond side, Allspring's Lauren van Biljon sees value in UK front-end gilts and Australian bonds, citing overly hawkish market pricing and early rate-cut potential.

• Kospi posts its largest-ever gain, led by Samsung and SK Hynix, as the AI trade revives.
• Amazon's $220 billion 2026 capex forecast and strong cloud earnings fuel global chip rally.
• Bank of Japan holds rates, upgrades growth outlook; yen intervention loses steam.
• Scott Bessent says the yen is undervalued and should strengthen.
• Apple warns supply shortages will hit revenue growth.
• UK front-end gilts seen as attractive on dovish BoE tilt and overpriced hiking expectations.
• Australian bonds favored for potential first-mover rate cuts in 2027.
• Forvia CEO flags margin improvement and defense diversification; AXA CEO discusses wildfire insurability.