Chip stocks rebound, lifting Asia-Pacific markets; both Japanese and Korean stock markets rise over 2%, Samsung Electronics up 6%. Oil prices fall, gold prices rise slightly.

``` Chip stocks staged a strong rebound as Asia-Pacific markets regained upward momentum on Tuesday after four consecutive days of decline. However, with the earnings season for tech giants approaching, whether it can extend the AI-driven rally remains the biggest uncertainty in the market. Asia-Pacific stock markets rose across the board on Tuesday, with the MSCI Asia-Pacific Index up 1.7%, ending four straight days of losses. The chip sector was the core driver of the rebound—Samsung Electronics surged 6%, and TSMC also strengthened, lifting both South Korea’s Kospi and Taiwan’s benchmark index by more than 2.5%. With the Japanese stock market closed on Monday, the Nikkei 225 caught up on Tuesday with a 2.2% gain. Meanwhile, U.S. stock futures also rebounded from early lows, with Nasdaq 100 futures rising as much as 0.5%. A pullback in oil prices further improved market sentiment. Brent crude fell 0.9% to about $88.46 per barrel, after Monday’s high prices had fueled inflation worries and weighed on the bond market. Earnings Season Begins, AI Narrative Faces Scrutiny Behind the market rebound, investors are turning their attention to the U.S. tech giants’ earnings season starting this week. Tesla and Alphabet will kick things off by releasing their results on Wednesday, heralding the start of major tech companies’ earnings announcements. Microsoft, Meta, Apple, and Amazon will release their earnings in the following week. The key market question now is: Can these companies prove that their massive investments in AI are yielding real returns? Ikuo Mitsui, fund manager at Aizawa Securities, stated: “The market has already experienced a significant correction, but at the same time, corporate earnings have remained relatively resilient, showing more strength than expected.” Strategists at BlackRock Investment Institute led by Jean Boivin wrote in their latest report: “The AI investment boom—as an important growth driver—and our preference for AI infrastructure have remained intact through recent volatility.” They also pointed out: “The current global economy relies far less on oil than during past energy shocks, which makes it more resilient to rising oil prices.” Oil Prices Retreat, but Risks Remain Despite the pullback in oil prices on Tuesday, the situation in the Middle East remains a potential market risk. Houthi forces have threatened to block exports through the Red Sea, and the market continues to monitor whether Saudi Arabian exports will be affected. Last week, oil prices surged, with WTI crude closing at the highest level since mid-June. Rising energy costs had fueled inflation worries and put pressure on the bond market, with the U.S. 10-year Treasury yield currently holding near 4.59%. BlackRock strategists believe there is currently no evidence to suggest the situation in the Middle East will escalate to the point of causing enough shock to economic growth to change the market’s risk appetite. Trump Imposes 50% Tariffs on Canada, Trade Tensions Flare Again According to CCTV News, the White House announced on July 20 local time that it will impose an additional 50% ad valorem tariff on certain Canadian products, citing Canada’s “discriminatory measures” against the U.S. in the auto and auto parts trade. The new tariffs will take effect at 12:01 a.m. Eastern Time on August 19 and will be levied on top of existing tariffs, taxes, and other fees. Bloomberg reported that if Trump eventually implements this measure, it would be one of the toughest trade actions against the U.S.’s second-largest trading partner. The Canadian dollar remained relatively stable in response, with little change in the exchange rate. Gold Edges Up, Dollar Index Little Changed Gold rose 0.4% to about $4,024 an ounce. The U.S. dollar index was little changed. The euro traded at $1.1414, the yen at 162.49 to the dollar, and the offshore yuan at 6.7649 to the dollar. Risk Warning and Disclaimer Markets are risky, and investments should be made with caution. This article does not constitute personal investment advice, nor does it take into account the special investment objectives, financial situation or needs of any individual user. Users should consider whether any opinions, views or conclusions in this article are appropriate for their particular circumstances. Invest accordingly at your own risk. ```