Stock Index

China’s A-share market saw a sharp deleveraging in July, with the combined margin-financing balance falling from a June 25 peak of 3.01 trillion yuan to 2.59 trillion yuan by the end of the month, a drop of 14%. Most of the pullback was concentrated in individual tech-board stocks such as those on the STAR Market and ChiNext. The retreat helped drive the tech-heavy Star Market 50 Index down 26% for the month, its worst monthly performance on record. Analysts said the move was mainly driven by leveraged investors closing positions rather than deteriorating fundamentals, and was catalyzed by swings in overseas AI-related stocks.

India’s National Stock Exchange (NSE) rolled out a new closing auction to replace the previous 30-minute volume-weighted average price (VWAP) method for setting official closes. The Nifty ended at 24,774.30, up 390.70 points (1.60%), after a 0.8% late surge at around 3:28 PM, while the Sensex closed at 78,639.03, up 544.39 points (0.70%). The 90-basis-point gap between the indices was far wider than the usual 5–10 basis points, pointing to immediate disruption in index pricing and derivatives settlement.

U.S. stocks surged as markets reacted to expectations of a shift in Trump’s policy stance. The Dow closed at a record 53,178, while the S&P 500 rose 1.5% to 7,600 and the Nasdaq gained 2.1%. WTI crude futures fell more than 6% to $79.49 a barrel and Treasury yields declined across maturities. Boeing shares rose nearly 5% after its second-quarter results pointed to improving earnings and cash flow, and 77% of companies have beaten expectations.

On the first trading day of August, Tel Aviv Stock Exchange benchmarks moved lower, with the TA-35 down 1.04% to 4,106.14 and the TA-125 off 1.06% to 4,028.40. The BlueTech Global Index fell 0.96% to 658.75, while the TelBond 60 corporate bond index edged up 0.03%. In FX, the shekel weakened slightly against both the dollar and the euro. Bank Hapoalim (POLI) and Bank Leumi (LUMI) fell 0.42% and 0.95%, while Camtek (CAMT) led TA-35 decliners.

U.S. stocks rose on Monday, with the Dow Jones Industrial Average up 1.19% to 53,111.43 and the S&P 500 gaining 0.68% to 7,540.32. Communication services led sector gains, while energy shares fell 1.7%. Tyson Foods (TSN) slid about 4% after reporting third-quarter revenue below expectations. In commodities, oil dropped 6.3% and gold edged down 0.3%.

Global investors are rebuilding positions in South Korean equities after July’s turbulence, with foreigners logging a record net purchase of 7.2 trillion won (around $5 billion) in a single session. Leveraged ETF assets tied to Samsung Electronics and SK Hynix shrank from nearly $50 billion in late June to about $17 billion, after volatility intensified. J.P. Morgan estimates hedge funds have completed around 90% of their deleveraging. The renewed inflows have supported South Korea’s main stock indexes and heavyweight technology shares.

South Korea’s Kospi tumbled more than 5% on Monday after posting a record 18% gain in the previous session, ending at 6,257. The slide was driven by roughly 8% declines in Samsung Electronics and SK Hynix, which together account for more than half of the index, alongside selling pressure amplified by leveraged ETF-related volatility. The benchmark is still up 45% in 2026 so far, but it has fallen more than 33% from its June peak of 9,386.

China’s major A-share indexes all closed lower on Monday. The Shanghai Composite fell 0.59% and the Shenzhen Component dropped 0.96%. The CSI 300 slipped 0.98% while the ChiNext Index declined 1.24%. The STAR 50 Index led losses, tumbling 5.08%.

China’s National Social Security Fund increased its stakes in A-share listed companies in the first seven months of 2025, adding mainly to semiconductors, electronics and components. Those holdings accounted for 58.96% of its total portfolio value, data show. Over the same period, the CSI 300 Index fell 2.16% in the first half, highlighting broader market pressure. The fund’s largest positions were in chipmaker Espressif Systems and Zhongxin Group, while it managed 3.5 trillion yuan in pension assets.

A hedge fund was pushed to the brink by a liquidity crunch after a steep drop in semiconductor shares, as global chip stocks lost $3 trillion in market value in July. Citadel stepped in to buy $16 billion of the fund’s public equity holdings at a 10% discount, a deal intended to prevent an uncontrolled wave of selling. The fund had previously been chosen to play a leading role in SK Hynix’s $27 billion U.S. IPO. The episode underscored systemic risks in the semiconductor sector and weighed on the Nasdaq semiconductor index.