U.K. economy grew 0.4% in second quarter with surprise jump in business investment
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Business investment in the U.K. jumped 1.7% in the second quarter, beating the 0.5% drop expected by Reuters, as GDP rose in the three months to the end of June.
Real GDP increased 0.4% in the second quarter, down from 0.6% in the previous quarter, but in line with expectations, the U.K.’s Office for National Statistics said Thursday. Monthly GDP was up 0.3%, following no growth in May.
Within gross fixed capital formation — which tracks national investment in productive assets — the surprise 1.7% jump in business investment was fueled by IT, communications, machinery and other hardware investment, the ONS said.
Business investment is now estimated to be 0.8% higher than the same quarter a year ago.
Economists and strategists said second-quarter strength was driven largely by temporary factors, including unusually warm weather and the FIFA World Cup.
Suren Thiru, chief economist at the Institute of Chartered Accountants in England and Wales, warned of a “painful deceleration” in the third quarter, adding that softer economic activity means the chances of a Bank of England rate hike in September remain “slim.”
“Overall, economic activity in the first half of the year has proven more resilient than many expected,” said David Smith, portfolio manager at Henderson High Income. “However, history suggests some caution is warranted, as growth has tended to lose momentum in the second half of the year amid uncertainty ahead of the Budget.”
—Hugh Leask
European markets expected to open Thursday’s session in the green
The sun rises over Paris with a view of the Eiffel Tower as seen from Saint-Cloud, France on August 25, 2025.
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Stoxx 50 futures were 0.39% higher ahead of the Thursday’s opening bell, with the continent’s main bourses expected to start the session in the green.
The French CAC 40 led the way, up 0.34% ahead of the market open, with Germany’s DAX set to start the day up 0.28%. The Italian FTSE MIB was expected to open up 0.33%, and the U.K.’s FTSE 100 seen opening 0.29% higher.
—Hugh Leask
Asian chip stocks climb as AI enthusiasm returns
Asian semiconductor stocks rallied Thursday, extending a rebound in the region’s technology sector as easing concerns over U.S. rate hikes and renewed optimism around artificial intelligence spending lifted sentiment.
In South Korea, memory-chip heavyweight SK Hynix jumped more than 7%, while Samsung Electronics gained about 5.7%. Other semiconductor-related names also advanced, with LG Innotek up 4.3% and Seoul Semiconductor gaining 1.8%. The moves build on a sharp recovery in Korean chipmakers after a bruising sell-off in recent weeks.
Japanese semiconductor stocks also climbed. Chip-testing equipment maker Advantest rose 4.9%, while Tokyo Electron gained about 3.2%. Disco surged more than 6%, Lasertec added about 5.1% while Kioxia jumped over 7%.
Taiwan’s TSMC edged up 0.62%.
—Lee Ying Shan
Samsonite shares jump 7% after luggage maker agrees to acquire BÉIS
Shares of Samsonite Group gained 7.2% on Thursday after the luggage maker announced it had agreed to acquire an 85% stake in BÉIS, a U.S.-based lifestyle and travel brand, for $178.5 million.
Founded in 2018, BÉIS targets younger, predominantly female consumers and has expanded into lifestyle bag categories. The brand generated roughly $210 million in net sales in 2025.
Samsonite’s latest acquisition comes as the Hong Kong-listed luggage maker prepares for a U.S. dual listing.
—Jenny Lee
Oil rises on worries over supply disruptions as spill near Oman worsens
Oil rose Thursday as recent deadly attacks on vessels in the Gulf of Oman and the Red Sea keep markets jittery, while a spill near Oman continues to spread.
Futures for international benchmark Brent crude for October delivery gained 1.01% to $88.09 a barrel. U.S. West Texas Intermediate futures for September advanced 1.15% to $82.31 per barrel.
Brent
Oman’s coastline has reportedly started being affected by a massive oil spill caused by a leaking tanker that ran aground June 30 carrying an estimated 800,000 barrels of Russian oil and is under international sanctions, according to Reuters. It’s leaking near a nature reserve that’s home to wildlife including Arabian Sea humpback whales and Socotra cormorants, Reuters reported.
—Justina Lee
Tencent, Foxconn shares fall after second-quarter results
Shares of Tencent Holdings fell 3%, while Foxconn dropped 2.8% following the release of their second-quarter results Wednesday.
Tencent’s revenue rose 11% from a year earlier to 204.78 billion Chinese yuan ($30.36 billion), while net profit attributable to shareholders edged up 0.7% to 56 billion yuan.
Foxconn reported a 41% jump in second-quarter revenue to $2.53 trillion New Taiwan dollars, while operating profit rose 68% to NT$94.8 billion.
— Jenny Lee
South Korea stocks enter bull market as AI trade roars back
South Korean stocks rallied Thursday, lifting the benchmark Kospi into a technical bull market as a global revival in the AI trade fuels a sharp recovery after last month’s historic sell-off.
The Kospi jumped over 4% in early trade, taking its rebound from its July 30 low to roughly 23%, data from LSEG showed.
Index heavyweights Samsung Electronics and SK Hynix led the gains, with the chip giants rising over 4% and 7%, respectively.
—Lee Ying Shan
South Korea’s Kospi rises over 4%, Japan’s Nikkei 225 gains more than 1%
Asia-Pacific markets opened largely in the green on Thursday. South Korea’s Kospi rose 4%, while the small-cap Kosdaq added 0.92%.
Japan’s Nikkei 225 added 1.5%, and the Topix advanced 0.99%.
Australia’s benchmark S&P/ASX 200 was down 0.12%.
— Lee Ying Shan
Japan’s Nikkei 225 is set to open higher with focus on producer inflation data
Japan stocks were set to open higher, with focus on the country’s wholesale inflation data.
Japan’s Nikkei 225 Chicago futures contract was trading at 68,585 and its Osaka counterpart was last at 68,550 compared with the index’s previous close of 67,524.06.
Hong Kong’s Hang Seng index futures last traded at 25,320, below the benchmark’s close of 25,440.17.
Futures for Australia’s S&P/ASX 200 last traded at 9,128, compared with the index’s Wednesday close of 9,209.4.
Investors also await U.S. wholesale inflation data after consumer inflation came in line with estimates.
The July reading of the U.S. producer price index, which gauges what wholesalers pay for raw goods and materials, is set for release Thursday at 8:30 a.m. ET. Economists polled by Dow Jones expect an increase of 0.2% from the prior month.
— Lee Ying Shan
Cerebras, Coherent among the stocks making big moves after the bell
Coherent — The photonics company lost almost 3% in extended trading after adjusted gross margin for the fourth quarter was roughly in line with estimates. Non-GAAP gross margin was 40.2%, while the StreetAccount consensus estimate anticipated 40%. Guidance for first quarter earnings and revenue surpassed analysts’ expectations.
Cerebras Systems – Shares of the artificial intelligence chip manufacturer tumbled 14%. Revenue in the second quarter came in at $180 million, versus the $194 million LSEG consensus estimate.
Cisco Systems – Shares fell 3%. Adjusted gross margin for the fourth quarter only narrowly beat estimates, coming in at 66.3% versus the StreetAccount consensus call for 66%.
— Fred Imbert
