Global markets surge as US data boosts Asia equities

Global markets rose sharply on July 18 as strong U.S. economic indicators and corporate earnings lifted investor confidence.

Asian shares climbed following Wall Street’s record-breaking performance: the MSCI Asia-Pacific index (ex-Japan) surged to its highest level since late 2021. The S&P 500 and Nasdaq closed at new record highs, supported by impressive U.S. retail sales (+0.6%) and declining weekly jobless claims (221,000). Key corporate reports also underpinned the rally. Netflix, TSMC, PepsiCo, and United Airlines all exceeded expectations, helping to boost tech and consumer staples sectors. TSMC’s profits highlighted ongoing demand for AI chips, reinforcing the positive momentum in semiconductor stocks.

Key Highlights

• Asian equities surged after U.S. markets hit record highs on strong data
• Tech and consumer stocks rallied: Netflix, TSMC, PepsiCo, United Airlines led gains
• Yen weakened ahead of Japan vote; Treasury yields and dollar held steady

Currency markets were active: the yen weakened to around ¥148.5 per dollar ahead of Japan’s upper-house election, reflecting political uncertainty. Meanwhile, the U.S. dollar extended weekly gains, underpinned by robust U.S. data.

In fixed income, U.S. Treasury yields remained stable, with the 10-year note around 4.45%, while commodity prices saw mixed movement—oil gained modestly amid Middle East tensions and gold edged lower as investor sentiment favored risk assets.

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Turning to India, Nifty futures pointed to a positive opening, supported by global market strength and upbeat U.S. economic data. While Indian IT names like Wipro impressed, others such as TCS, HCLTech, and Axis Bank faced pressure .