Japanese government bonds experienced severe selling pressure on July 6, with the 10-year yield surging to 2.830% intraday — the highest level since October 1996. The spike followed Prime Minister Takaichi Sanae's announcement of an annual 10 trillion yen fiscal expansion plan, removing previous 'fiscal consolidation' language from policy documents. The yen-dollar exchange rate simultaneously breached 162 yen in Tokyo trading, nearing the weakest level in 40 years since the 1986 Plaza Accord. The dual collapse in Japanese bonds and currency marks what analysts are calling the worst simultaneous decline in nearly four decades.
Japanese 10-Year Bond Yield Hits 2.830% on Fiscal Expansion Concerns
Japanese 10-year government bond yields reached 2.830% during intraday trading on July 6, marking the highest level since October 1996. The Takaichi Sanae government formally announced a fiscal spending plan of 10 trillion yen (approximately 9.45 trillion won) annually starting next year. The original policy framework removed references to 'fiscal consolidation' that had been included in government fiscal management principles through the previous year. This policy shift triggered large-scale selling of Japanese government bonds. The yen-dollar exchange rate in Tokyo foreign exchange markets surpassed 162 yen intraday, approaching the lowest level since the 1986 Plaza Accord.
NVIDIA AI Rack Delay Triggers Asian Technology Stock Selloff
Semiconductor analysis firm SemiAnalysis reported that NVIDIA's next-generation AI rack 'Kaiber NVL144' has been delayed by more than 12 months, with the launch postponed to 2028. The Kaiber NVL144 is designed as a next-generation AI rack combining 144 Rubin Ultra chips to operate as a single massive computer. Insufficient mass production capability for multilayer printed circuit boards (PCB) and incomplete optical communication connections for ultra-high-speed interconnect devices (NVSwitch) were identified as causes of the delay. Plans to combine two racks to expand scale were also canceled, postponing CEO Jensen Huang's emphasized AI data center expansion plans by at least one year. Asian stocks with NVIDIA as a major customer, including Japanese PCB manufacturer Ibiden and Hong Kong-based Kingboard Laminates Holdings, plunged more than 10% intraday.
SK Hynix Schedules $28.1 Billion ADR Listing on NASDAQ
SK Hynix (000660) is scheduled to list American Depositary Receipts (ADR) on NASDAQ on July 10 with a valuation of $28.1 billion (43.14 trillion won). This represents the largest-ever listing by a foreign company in the United States, surpassing Alibaba ($25 billion) and Aramco ($25.6 billion). SK Hynix's 2026 forward price-to-earnings ratio (PER) stands at 7.42 times, lower than third-ranked memory manufacturer Micron's 9.44 times. Taiwan's TSMC has maintained an ADR premium of more than 10% above its home shares in recent periods. The Korean market is expected to be more open than Taiwan's, with easier mutual exchange between home shares and ADRs. Qualification for inclusion in major indices such as the NASDAQ 100 is expected to generate mechanical buying demand from exchange-traded funds (ETFs) tracking these indices.
OPEC+ Increases Production Quota Amid Oil Price Decline
International oil prices returned to pre-Iran war levels in the upper $60 per barrel range. OPEC+ (Organization of the Petroleum Exporting Countries member states and non-member oil-producing country alliance) agreed to increase daily production quotas by 188,000 barrels starting in August, continuing a five-month production increase trend. Brent crude recorded $71.61 per barrel and US West Texas Intermediate (WTI) crude recorded $68.30 per barrel intraday on July 6. China's seaborne crude oil imports in June reached 5.84 million barrels per day, the lowest level in 10 years. The United Arab Emirates (UAE), which withdrew from OPEC, has potential for production expansion, and Russia's export increases are overlapping, raising concerns about supply glut.
Lee Jae-yong Departs for US Sun Valley Conference
Samsung Electronics Chairman Lee Jae-yong departed on July 6 to attend the Sun Valley Conference in the United States. The Sun Valley Conference is a private event held annually since 1983 by US investment bank Allen & Company, where global big tech executives and investment industry figures discuss strategic cooperation and mergers and acquisitions (M&A). Chairman Lee is expected to meet with Meta CEO Mark Zuckerberg, OpenAI CEO Sam Altman, and Amazon CEO Andy Jassy to discuss expansion of AI memory long-term supply agreements (LTA). Samsung Electronics' memory supply contracts signed in the second quarter of this year included approximately 30% LTA proportion. Samsung Electronics' foundry (semiconductor contract manufacturing) division is reviewing next-generation AI chip contract manufacturing agreements with Anthropic and Meta following Tesla and IBM.
FAQ
Q: What caused Japanese 10-year bond yields to reach the highest level since 1996?
A: On July 6, Japanese 10-year government bond yields hit 2.830% intraday following Prime Minister Takaichi Sanae's announcement of an annual 10 trillion yen fiscal expansion plan that removed 'fiscal consolidation' language from policy documents.
Q: Why was NVIDIA's Kaiber NVL144 AI rack launch delayed to 2028?
A: SemiAnalysis reported that insufficient mass production capability for multilayer printed circuit boards (PCB) and incomplete optical communication connections for ultra-high-speed interconnect devices (NVSwitch) caused the delay of more than 12 months.
Q: When is SK Hynix scheduled to list ADRs on NASDAQ?
A: SK Hynix is scheduled to list American Depositary Receipts (ADR) on NASDAQ on July 10 with a valuation of $28.1 billion (43.14 trillion won).
