Top Stories This Morning: Asia Recovers After Sell-Off, SpaceX Raises $25 Billion

Stock indices in the Asia-Pacific region are rebounding after yesterday’s sell-off, although shares of major technology companies are trading mixed. The U.S. Senate approved a resolution to end the war against Iran, demonstrating a lack of broad support for the conflict even among Republicans. Less than two weeks after its record-breaking IPO, SpaceX raised another $25 billion through a bond offering, with demand reaching nearly $90 billion. Read about these and other topics in our roundup of key events as of the morning of June 24.

The U.S. Senate approved a resolution calling for an end to military action against Iran by a majority vote, marking a rare instance of Republicans disagreeing with Donald Trump on a foreign policy issue, according to Bloomberg. The resolution calls for an end to hostilities without separate congressional approval, although its practical implications remain unclear given the current temporary peace agreement.

The decision reflects growing dissatisfaction with the conflict within the United States: according to polls, a majority of Americans support ending it. The war has led to rising fuel prices and accelerated inflation, and additional household spending on gasoline and diesel since the start of the conflict is estimated at approximately $62 billion.

SpaceX raised $25 billion through an unsecured bond offering less than two weeks after its record-breaking IPO, according to CNBC. Investor demand reached nearly $90 billion, according to sources familiar with the matter cited by the network, and the company will use the proceeds primarily to repay a $20 billion loan, as well as for general corporate purposes.

Despite having more than $100 billion in cash on its balance sheet following its IPO, SpaceX continues to actively raise capital to develop Starship, expand the Starlink satellite network, pursue artificial intelligence projects, and acquire the startup Cursor. At the same time, Starlink remains the company’s only profitable business, and SpaceX’s cumulative losses since its founding exceed $41 billion, the TV channel notes.

MSCI has once again declined to include South Korea on the list of candidates for reclassification as a developed market, maintaining the country’s status as an emerging market, according to CNBC. The index provider cited ongoing restrictions in the foreign exchange market, difficulties for foreign investors, and the insufficient effectiveness of the reforms implemented.

At the same time, MSCI has extended its review of Indonesia’s status through November. If measures to improve market access fail to convince investors, the country risks not only failing to improve its status but also being reclassified from the emerging markets category to the frontier markets category.

Shares of Asian tech companies showed mixed performance on Wednesday following a massive sell-off the previous day, according to CNBC. Samsung Electronics shares rose more than 7%, while SK Hynix shares fell 0.7% (having dropped more than 3% during the session), and the Kospi index gained 2%.

In other markets in the region, performance was also mixed: Tencent rose 1%, Baidu fell by more than 1% but then recovered its losses and is also up 1%, while JD.com fell by more than 2% and Xiaomi is up a symbolic 0.18%. Analysts at Wedbush view the recent correction in South Korean tech stocks as profit-taking following the Kospi’s nearly 100% gain this year, rather than a sign of deteriorating fundamentals in the sector, the TV channel reports.

Alphabet will be added to the Dow Jones Industrial Average, replacing Verizon, effective at the opening bell on June 29, according to CNBC. The network notes that this decision will strengthen the presence of major technology companies in the index and increase its focus on artificial intelligence, cloud infrastructure, and digital advertising.

Despite recent volatility, Alphabet's stock has risen by more than 10% since the beginning of the year. The company will join tech giants such as Nvidia, Amazon, Apple, and Microsoft in the Dow Jones.

— Japan's broad-based Topix index fell 0.6%, while the Nikkei 225 fell 0.7%.

— Hong Kong's Hang Seng Index remained virtually unchanged, while mainland China's CSI 300 Index rose 0.24%.

— In South Korea, the KOSPI index rose 2%, and the KOSDAQ index rose 1.5%.

— Australia's S&P/ASX 200 remained virtually unchanged.

— S&P 500 futures are up 0.2%, Nasdaq 100 futures are up 0.6%, and Dow Jones Industrial Average futures are down 0.1%.

This article was AI-translated and verified by a human editor