Last week’s Jakota markets:
- Japan’s Nikkei 225 rose 0.6% as core inflation cooled to 3.3% in June, while investors weighed political risks from upcoming elections and looming U.S. tariffs on imports
- South Korea’s KOSPI advanced 0.4%, breaching the 3,200 point threshold for the first time in nearly four years amid stimulus optimism and tariff concerns
- Taiwan’s TAIEX surged 2.8%, led by Taiwan Semiconductor’s blowout earnings that exceeded Wall Street estimates and prompted raised full year guidance
- The JAKOTA Blue Chip 150 Index inched up 0.2%, with South Korean biotech Alteogen leading gains after securing a key U.S. patent and Japanese retailer Seven & i Holdings slumping on deal collapse
Japan
Japan’s stock market posted modest gains this week, with the Nikkei 225 climbing 0.6%. Investor sentiment remained cautious amid political uncertainty ahead of the July 20 Upper House election, where Prime Minister Shigeru Ishiba’s ruling Liberal Democratic Party-Komeito coalition risks losing its majority.
On the economic front, Japan’s inflationary pressures showed signs of cooling. Core consumer prices rose 3.3% year-over-year in June – below the 3.4% consensus forecast and down from 3.7% in May. The deceleration was driven largely by lower energy costs, aided by government subsidies.
The U.S. plans to impose a 25% reciprocal tariff on Japanese imports starting August 1, as previously announced. Bilateral trade negotiations continue, with the potential for a formal agreement still under discussion.
Meanwhile, exports slipped 0.5% from a year earlier in June, missing expectations for a 0.5% increase and marking the second consecutive monthly decline. U.S. tariffs continued to weigh on external demand, with shipments to the U.S. dropping sharply amid weaker sales of automobiles, auto parts and pharmaceuticals. Exports to China also fell.
South Korea
South Korean stocks advanced this week, with the KOSPI rising 0.4% and surpassing the 3,200 point mark for the first time in nearly four years on Monday. The rally was fuelled by optimism over potential stimulus measures, including cash handouts, despite renewed tariff threats from President Donald Trump.
Taiwan
Taiwan’s stock market rallied this week, with the TAIEX gaining 2.8%, boosted by strong performance from its key constituent, Taiwan Semiconductor (TSMC). The world’s leading contract chip maker reported second quarter earnings that beat Wall Street estimates and raised its full year guidance, citing sustained demand for advanced process technologies.
JAKOTA Blue Chip 150 Index
The JAKOTA Blue Chip 150 Index edged up 0.2% this week. Among the 150 constituents, 78 stocks finished higher.
Alteogen, a South Korean biopharmaceutical company, emerged as the top performer on the JAKOTA Blue Chip 150 Index for the second consecutive week after securing a U.S. substance patent for ALT-B4, a recombinant human hyaluronidase developed with its proprietary Hybrozyme platform.
ALT-B4 is designed to degrade hyaluronic acid in subcutaneous tissue, allowing intravenous drugs to be reformulated for subcutaneous injection, potentially extending product life cycles, reducing side effects and enhancing patient convenience.
The patent is set to be registered with the U.S. Patent and Trademark Office on July 29 and is expected to remain valid through early 2043. The approval follows a Notice of Allowance issued earlier this year. Alteogen said it strategically timed the registration and supplemented the filing with additional data, underscoring the patent’s value in the biopharma space.
Seven & i Holdings, a Japanese diversified retail holding company, was the worst performer among JAKOTA Blue Chip 150 constituents this week after Canada’s Alimentation Couche-Tard withdrew its $47 billion acquisition bid.
The convenience store operator announced on Wednesday it was withdrawing its takeover bid for Japan’s Seven & i Holdings, citing a “persistent lack of good faith engagement.”
“There has been no sincere or constructive engagement from 7&i that would facilitate the advancement of any proposal, contrary to comments made publicly by 7&i representatives,” the Canadian company said in a statement. Seven & i Holdings expressed disappointment over Couche-Tard’s “unilateral” decision to end talks.
