U.S. stock futures edged lower, with Dow futures down 0.1%, S&P 500 futures down 0.2%, and Nasdaq 100 futures down 0.3%, as investors assessed earnings, AI spending, and rising oil prices. Alphabet fell 3% after raising its 2026 capital expenditure forecast to as much as $205 billion, fueling concerns over heavy AI investment despite strong demand.

Oil prices rose after renewed U.S. strikes on Iran, increasing worries that higher energy costs could keep inflation elevated and delay Federal Reserve rate cuts. Investors are also awaiting key earnings from companies including American Airlines, T-Mobile, Union Pacific, Norfolk Southern, and Intel, along with the latest weekly jobless claims data. After-hours movers included Medpace (+19%), Rollins (-10%), and Shutterstock (-10%).

Southwest Airlines reported a strong second quarter, with adjusted EPS of 94 cents beating the expected 51 cents and revenue of $8.72 billion exceeding the $8.58 billion forecast. Revenue rose 16.4%, helped by a 21% increase in average fares to $225.61, while net income increased 9.4% to $233 million. However, the stock came under pressure after the airline issued weaker-than-expected third-quarter EPS guidance of 50–75 cents versus the 82-cent consensus and lowered its full-year earnings outlook to $3.25–4.25 per share.

Gold prices have retreated to around US$4,100/oz, down more than 20% from their January peak near US$5,600/oz, due to a stronger US dollar, higher interest rate expectations, and profit-taking. While analysts have lowered near-term price targets to around US$4,300–4,900/oz, many remain positive on gold over the longer term, citing continued central bank buying, geopolitical risks, and its role as a portfolio hedge.

Billionaire investor John Paulson said he believes gold is still in the early stages of a long-term bull market, driven by rising demand from central banks and investors as confidence in paper currencies declines. He argued that gold mining stocks, particularly NovaGold, offer greater upside than owning physical gold.

After-hours trading was mixed as earnings and guidance drove sharp moves. Alphabet fell more than 4% despite beating revenue expectations with $119.8 billion versus $116.9 billion, as investors reacted to its higher 2026 capital spending of $195–205 billion for AI.

Companies that missed expectations declined, including Rollins (-10%) with 30 cents EPS on $1.08 billion revenue, Las Vegas Sands (-6%) with 59 cents EPS and $3.15 billion revenue, Tesla (-3%) after 33 cents EPS missed forecasts despite $28.24 billion in revenue beating estimates, and Southwest Airlines (-1%) on weaker revenue and guidance. Shutterstock also fell 10% after suspending its dividend and announcing a CEO departure.

On the upside, Medpace surged 19% after beating estimates and raising guidance, United Rentals gained 10% on stronger-than-expected results and a higher full-year outlook, CSX rose 4% after earnings and revenue topped forecasts, and ServiceNow added more than 2% after beating expectations and raising its subscription revenue outlook. IBM rose 2% despite a slight earnings miss, while Texas Instruments fell 3% even after exceeding earnings and revenue estimates.

Zixin Group announced a joint venture with ZTO Nongte to develop a sweet potato industrial park in Shandong, China. The venture will have RMB10 million ($1.91 million) in registered capital, with ZTO Nongte owning 51% and Zixin 49%. The investment will be funded internally and is not expected to materially impact FY2027 earnings.

Mapletree Logistics Trust (MLT) plans to divest two logistics properties in China for a combined RMB724 million (about $137.9 million) to a sponsor-led fund, as well as sell 39 Changi South Avenue 2 for $16.6 million, 20% above its latest valuation. The sales are part of MLT’s strategy to recycle capital into newer logistics assets and are not expected to materially affect FY2027 financials.

OUE REIT reported a strong 1HFY2026, with DPU rising 28.6% year-on-year to 1.26 cents, supported by stronger hospitality performance, contributions from its 19.9% stake in Salesforce Tower, and 16.6% lower finance costs. Revenue increased 3.8% to $136.1 million, while net property income rose 4.8% to $110.3 million. The REIT also announced the proposed divestment of Crowne Plaza Changi Airport as part of its capital recycling strategy.

Mi Technovation plans to list its semiconductor materials business, Mi Material, on the Singapore Exchange (SGX) to capitalize on strong AI-driven demand for advanced chips. CEO Oh Kuang Eng cited Singapore’s talent pool, research ecosystem, and proximity to its new Johor plant as key reasons. Mi Material, which produces solder balls for advanced chip packaging, mainly exports to Taiwan and plans to expand its Singapore R&D operations by hiring around 40 researchers.

CSE Global acquired US-based SEI Wireless Solutions for US$8 million, with 80% of the payment completed upfront and the remainder subject to purchase price adjustments. SEI will become a wholly owned subsidiary funded through bank borrowings.

The acquisition strengthens CSE Global’s communications business, expanding its presence in the US infrastructure market. SEI specializes in two-way radio systems, wireless communication infrastructure, and safety and security technologies for mission-critical customers.

Hong Kong stocks fell sharply, with the Hang Seng Index down 0.95% to 24,892, the HSCEI falling 1.31%, and the Hang Seng Tech Index dropping 3.04%. The decline was led by heavyweight technology stocks, including Tencent (-7.05%), NetEase (-7.39%), Kuaishou (-5.32%), while Alibaba, Xiaomi, Baidu, and JD.com each lost more than 2%, amid concerns over capital rotation and reduced fund holdings.

In contrast, gold and mining stocks rallied as spot gold climbed above US$4,100, with Zijin Mining (+6.03%), Zijin Gold International (+9.24%), and Chifeng Gold and Lingbao Gold both surging about 15%. Meanwhile, Kingboard Holdings (-10.17%) and Kingboard Laminates (-15.28%) tumbled, while AI-related stocks weakened after JPMorgan cut target prices, with MiniMax (-11.42%) and Z.AI (-3.61%) declining.

Bloomberg Intelligence expects Hong Kong home prices to rise 11% in 2026, the biggest annual increase in nearly a decade, with prices projected to gain 19% over 2026–2027. The recovery is expected to be driven by strong mainland Chinese demand, limited new housing supply, and a robust rental market.

Tencent shares fell 7.1%, their biggest one-day drop in over a year, on concerns that second-quarter mobile gaming revenue may have declined and as investors rotated into AI-related stocks. Analysts estimate mobile gaming revenue could have fallen 2.6% year-on-year, while Tencent has lost more than 26% from its recent highs amid concerns over AI spending and a weak macroeconomic environment.

Malaysian companies reported mixed earnings and corporate developments. Eco-Shop posted record 4Q net profit of RM72.6 million (+44.9%) on RM772.9 million revenue (+12.2%) and raised its full-year dividend to 2.15 sen per share. IGB REIT saw NPI jump 51% to RM181.2 million and declared a 3.44 sen/unit distribution, while IGB Commercial REIT grew NPI 18.5% and declared 1.35 sen/unit. CTOS Digital increased 2Q net profit 7% to RM22.7 million, announced a 0.70 sen dividend, and plans a 1.07 sen special dividend plus RM24.5 million in share buybacks after a stake sale. In contrast, United Plantations saw 2Q profit fall 22.2% to RM194 million due to higher costs.

On the corporate front, UOA REIT declared a 3.94 sen/unit distribution after NPI rose 30.8%. GDB Holdings secured a RM439.4 million contract to build a mixed-use tower in Mont Kiara, while Velesto Energy won a US$51 million (RM208.4 million) drilling contract from Chevron Malaysia. Orkim will acquire a tanker for RM94.9 million, MyNews is buying land in Rawang for RM24.7 million for a new distribution centre, and Aberdeen Group acquired a 5.08% stake in MTT Shipping, valued at about RM123 million.

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