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Asian markets surge on AI; US-Japan intervene, yen rises

8/5/2026

50 7 Full Breakdown

Summary

Asian Markets Surge

Asian markets surged on August 5 as the Nikkei 225 rose 3.5% on AI and chip gains.
South Korea’s Kospi jumped 4.3% after SK Hynix rose 7.4%.
SoftBank Group shares rose over 10% when Arm Holdings surged on AI data-center royalty optimism.
Brent crude fell to $78.27 a barrel as hopes to reopen the Strait of Hormuz lowered oil prices.

Summary

US-Japan Intervenes

The United States and Japan intervened in Japan’s FX market, the first U.S. action in 15 years, lifting the yen about 4 %.
The dollar index stayed near a two-month low of 99.98 after the operation.
Analysts warned the intervention does not fix inflation, the rate-gap or economic-strength differences, leaving the yen’s future uncertain.

History

Historical Context

Japan’s 1970s and 1985 interventions to curb yen appreciation set a precedent for later joint actions. In April 1998 the U.S. Treasury and Bank of Japan sold $10 billion, lifting the yen about 2 %—the biggest coordinated move since the 1995 rally. The July 2024 yen near ¥161 per dollar and 2022-2024 BOJ interventions illustrate that such coordination offers only temporary relief.

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Asian Markets Surge

Asian markets surged on August 5 as the Nikkei 225 rose 3.5% on AI and chip gains.
South Korea’s Kospi jumped 4.3% after SK Hynix rose 7.4%.
SoftBank Group shares rose over 10% when Arm Holdings surged on AI data-center royalty optimism.
Brent crude fell to $78.27 a barrel as hopes to reopen the Strait of Hormuz lowered oil prices.

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