Asian Markets Mixed on August 4, 2026: KOSPI Volatility, Taiwan Record, and Wall Street's AI-Powered Rally

Taiwan Weighted Index: Record Close

In contrast to Korea's turmoil, Taiwan's benchmark index hit a fresh all-time closing high, riding a broad tech rally and strong demand for semiconductor heavyweights . The rally diverged sharply from the AI rout in Seoul, illustrating how the AI trade is playing out differently across Asian markets.

Japan's Nikkei 225: Decline on Weak Bond Auction

Japan's Nikkei 225 fell 0.6%–0.9% to around 63,300–63,755, declining for a second consecutive session . The pressure came from a weak 10-year Japanese government bond (JGB) auction that pushed the 10-year JGB yield up by 2.9 basis points to 2.828%, approaching its highest level in about a month . The poor auction signaled fragile investor demand as the market prices in further Bank of Japan tightening . The yen also weakened for the first time in five sessions, trading 0.3% softer against the U.S. dollar at 157.715, as the dust settled from rare coordinated intervention by Tokyo and Washington .

Broader Asia: MSCI Asia Pacific Lower

The MSCI gauge of Asia Pacific stocks slid 0.7%, with eight of 11 industry groups posting losses, as the region failed to join Wall Street's tech-led advance .

Wall Street: Record-Setting Momentum

U.S. stocks rallied toward all-time highs, powered by a combination of strong economic data and blockbuster earnings.

ISM Manufacturing PMI surged to 55.6 in July from 53.3, marking the strongest expansion since May 2022, with faster output, solid new orders, and a return to job growth .

Palantir Technologies reported Q2 revenue of $1.94 billion, up 93% year-over-year, crushing estimates of $1.801 billion. Net income reached approximately $1.1 billion, with EPS of $0.41 versus the $0.35 expected . The company raised full-year guidance, projecting as much as $8.16 billion in sales, and described commercial demand as "otherworldly" . Palantir shares surged 17.2% in premarket trading , and the rally helped push the S&P 500 to gain 1.7% and the Dow Jones Industrial Average to add nearly 600 points, closing near records . ON Semiconductor also contributed to positive sentiment, adding 7.5% after forecasting quarterly revenue above expectations .

The S&P 500 climbed to 7,644.56 and the Dow Jones Industrial Average surged to 53,825.50 intraday, both marking fresh all-time peaks .

Oil Prices Cool After Trump's Diplomatic Overture to Iran

Oil prices declined on Tuesday after President Trump made diplomatic comments regarding Iran, reviving talks and easing fears of an immediate supply disruption . The S&P GSCI commodity index fell, with crude giving back some of its recent geopolitical risk premium as Iran negotiations resumed .

Outlook: What's Ahead

• U.S. nonfarm payrolls (Friday): The July jobs report is the marquee macro event of the week. Markets will watch for confirmation that the labor market is cooling enough to keep the Federal Reserve on a gradual easing path without tipping into recession .
• SpaceX first public earnings report: Markets are watching for the release of SpaceX's first public earnings report this week, with interest in Starlink revenue, Starship development costs, and overall profitability. No official filing date has been confirmed in available sources.

Bottom line: Asian markets were mixed and volatile on Tuesday, with Korea's AI-driven turbulence contrasting with Taiwan's record run and Japan's bond-driven pullback. Wall Street's strength — powered by Palantir's blowout forecast and the best ISM manufacturing reading in over four years — set a bullish tone, but the focus now shifts to Friday's U.S. jobs data for confirmation of a soft-landing trajectory.