China exports surge on AI boom and tariff rush
China's exports rose at the fastest pace since June 2021, fueled by booming AI-related demand and companies rushing to front-load shipments ahead of potential tariff hikes. Total foreign trade surged 16.9% year-on-year in the first half of 2026. While AI-driven sectors are booming, weaker export segments continue to lag, creating a mixed picture for the world's second-largest economy.
Former President Trump has proposed offering US naval protection in the Strait of Hormuz in exchange for a 20% fee from vessels passing through. The plan could double shipping costs and faces significant operational and diplomatic hurdles. Analysts question how the fee-based protection model would be enforced and whether it would be accepted by the international maritime community.
Renewed fighting in the Middle East has sent oil prices jumping, while stock futures trade mixed as traders weigh geopolitical risks against upcoming earnings reports. Asian shares showed mixed performance amid the escalating tensions. AI stocks have also taken a hit as risk-off sentiment spreads across global equity markets.
Indian IT stocks including Infosys, HCL Tech, TCS, Wipro, and Coforge are attracting significant analyst attention with multiple brokerages issuing target price revisions. CLSA, JPMorgan, Morgan Stanley, Citi, and over a dozen other firms have weighed in on HCL Tech. The sector is seeing heightened interest amid global AI demand and outsourcing trends.