Top Stories This Morning: Sony and TSMC Are Preparing a $6.4 Billion Project; Shein Is Valued at $22–25 Billion

Sony and TSMC are discussing an investment of approximately $6.4 billion in a joint venture to manufacture image sensors in Japan, banking on demand from AI robots and self-driving cars. Bloomberg Intelligence valued Shein at $22–25 billion ahead of its IPO—lower than the company’s own targets. Read about these and other topics in our roundup of key events as of the morning of August 10.

Stocks and currencies in emerging markets rose on Monday following an unexpectedly weak U.S. jobs report released on Friday. The MSCI Emerging Markets Index gained 0.7% and is on track to fully recoup last week’s losses. The biggest contributors were shares of technology companies Taiwan Semiconductor Manufacturing, Delta Electronics, and SK Hynix.

The emerging-market currency index rose 0.2% and is on track to post its fourth consecutive day of gains.

U.S. stock index futures traded mixed: S&P 500 futures rose 0.2%, Nasdaq Composite futures rose 0.4%, while Dow Jones Industrial Average futures edged slightly lower.

Gold traded above $4,300 per ounce on Monday after rising more than 7% last week—its biggest gain since late January, according to Bloomberg. The precious metal also received a boost from an unexpected decline in U.S. job losses.

Spot gold fell 0.4% to $4,324.39 per ounce amid profit-taking. Prices are receiving additional support from rising hedge fund bets on gold, inflows into Chinese gold ETFs, and purchases by the People’s Bank of China, which increased its reserves by 640,000 ounces in July.

Oil prices rose on Monday amid mixed signals from the U.S. and Iran regarding the possible reopening of the Strait of Hormuz, according to CNBC. October Brent futures gained about 1%, but then gave up most of those gains. September WTI contracts rose 0.8%.

Iranian Foreign Minister Abbas Arakchi stated that Tehran is not currently engaged in direct negotiations with the U.S., although Washington had previously suggested that a deal was imminent, the television channel reported. Iran is demanding that six conditions be met before opening the strait, including an end to the war and the payment of compensation, while the U.S. insists on free navigation without Iranian permits, fees, or controls, CNBC noted.

Sony and TSMC are discussing an investment of about 1 trillion yen ($6.4 billion) in a joint venture to build a factory in Japan to produce image sensors—key components of machine vision systems—according to sources cited by Nikkei and Bloomberg. The companies expect to begin production in 2029.

The new production capacity is planned to be established at Sony’s existing plant in Kumamoto Prefecture. The partners anticipate growing demand for such sensors for AI-powered robots and autonomous vehicles. According to sources, Sony will hold a controlling stake in the joint venture, and the Japanese government will consider providing financial support for the project.

Bloomberg Intelligence analysts estimate that Shein’s fair value is $22–25 billion. This corresponds to 13–15 times projected earnings for 2027. The company itself had hoped for a valuation of $30–40 billion in its upcoming IPO in Hong Kong, sources told Reuters earlier.

Bloomberg Intelligence expects Shein’s profits to rebound to $1.67 billion in 2027 following a weak 2026, and then to grow by approximately 20% annually through 2029. Analysts note that the forecast is constrained by slowing growth, import duties, logistics costs, and regulatory risks. In 2023, Shein was valued at $66 billion, and at its peak in 2022, it was valued at approximately $100 billion.

South Korea's Kosdaq small-cap index jumped 6.8% on Monday and has now risen more than 30% from its low on July 30. The exchange had to temporarily suspend its program buying, according to Bloomberg.

Investors are shifting their focus to smaller companies after authorities tightened access to leveraged ETFs tracking Samsung Electronics and SK Hynix shares, the agency explained. Last week, the KOSDAQ jumped 11%, while the KOSPI lost 5.1%—marking the KOSDAQ’s best relative performance since the dot-com era in 2000.

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