The USD/JPY exchange rate fell 170 pips in the short term, breaking below the 156 level.

Nvidia Senior Vice President Gilad Shainer announced at a recent tech forum that Co-packaged Optics (CPO) has entered mass production. Switches developed by Nvidia in collaboration with its supply chain have begun delivery to key partners and are already deployed internally at the company. Switches equipped with CPO technology are expected to be widely deployed in AI data centers globally starting this year. Shainer noted that the biggest opportunity in the future optical communications market lies in vertical scaling (Scale-up), which requires over ten times the bandwidth efficiency of horizontal scaling (Scale-out). Shainer previously led R&D at Mellanox; after Nvidia acquired the firm, he headed the AI Platform Network Transmission division and co-developed the COUPE silicon photonic packaging platform with TSMC. This announcement helps dispel market concerns over optical communications specification upgrades and boosts the operational outlook for related vendors. It is reported that Nvidia has already integrated CPO into its Spectrum-X switches, with the goal of supporting the upcoming large-scale deployment of the Vera Rubin AI platform, which delivers at least three times the computing speed of the GB300. Trendforce projects that the CPO/NPO market will exceed $39 billion by 2030, with growth momentum accelerating significantly between 2028 and 2029 as vertical scaling drives the adoption of optical interconnects. Separately, according to BIT (bit.com) market data, as of press time, CPO-related stocks posted modest pre-market gains: AAOI rose 2.63%, LITE gained 1.92%, and MRVL increased 2.4%.

According to on-chain analyst Ai Yi (@ai_9684xtpa), two new addresses opened a cumulative 5x long position in KAITO worth $6.94 million (notional value: $7.106 million) on Hyperliquid in the early hours of today, becoming KAITO’s two largest positions. Both addresses sourced their margin from OKX. KAITO has plunged nearly 20% in the past 24 hours, rapidly trimming its month-to-date gains, leaving the two addresses with an unrealized loss of $991,000.

Morgan Stanley upgraded its rating on South Korean equities to Overweight, setting a target of 9,000 points, implying 36% upside from current levels. The firm noted that the previous sharp deleveraging cycle is nearing its end, with KOSPI valuations hitting historic lows and presenting a more attractive entry point for investors. Its data shows hedge funds have completed roughly 75% of their deleveraging, while leveraged ETF assets have shrunk by 70% from their peak, leading to a notable improvement in shareholding structure. Shawn Kim, head of Morgan Stanley’s Asia Technology Team, outlined three near-term catalysts for South Korean chip stocks in the report: 1. Capital expenditure: The capital management moves of Samsung Electronics and SK hynix are seen as the most important near-term catalyst. The market is awaiting specific announcements from the two firms on their "value enhancement" plans and capital returns; timing remains unclear, but the expectation itself acts as a potential catalyst. 2. HBM4 pricing: Samsung Electronics recently stated HBM4 will account for around 60% of its total HBM sales by the end of next year. If HBM4 prices hit market expectations of over $3 per Gb, it will provide a positive boost to overall DRAM pricing in 2026 and 2027. 3. iPhone 18 launch cycle: Mobile devices still make up 30% to 40% of global DRAM demand and 25% to 30% of NAND demand. According to feedback from South Korean Apple supply chain members including LG Innotek, Apple holds a positive outlook on the iPhone 18 cycle, projecting year-over-year shipment growth of 5% to 10%. The iPhone 18 is set to launch in September, with the first batch of models being all Pro series (including Pro, Pro Max, and foldable variants). Strong sales would provide a positive tailwind for Samsung Electronics and SK hynix.

A South Korean crypto exchange activated the sidecar mechanism for KOSDAQ, suspending program trading for 5 minutes.

Earlier this week, Trump reassured market risk assets by announcing plans to hold talks with Iran and suspend strikes. However, Asian-Pacific equities opened lower and trended downward on Monday, failing to respond positively, as markets remain in an adjustment cycle. This week will bring a flurry of macroeconomic data and corporate earnings reports, with the market’s focus squarely on Friday’s U.S. July non-farm payrolls report—the first full employment data since the Federal Reserve held rates steady in July, which will directly shape market pricing for the September interest rate path. Meanwhile, SpaceX is set to release its first earnings report since going public, and two days later, it will face the largest single-stock lock-up expiration in U.S. stock market history (approximately 911.5 million shares), putting severe liquidity pressure on the market. Key events this week: Monday: Earnings reports from U.S. stocks including Palantir and ON Semiconductor; Tuesday: U.S. June JOLTs job openings, factory orders, trade balance, SpaceX’s first post-IPO earnings, AMD earnings; Wednesday: U.S. July ADP employment, ISM non-manufacturing PMI, earnings from SanDisk, Western Digital, Circle, and Eli Lilly; Thursday: U.S. initial jobless claims for the week ended August 1, Challenger job cuts; SpaceX’s first batch of restricted shares lock-up expiration (up to ~911.5 million shares, potential value nearly $100 billion); Friday: U.S. July non-farm payrolls, unemployment rate; Fed officials Loretta Mester and Thomas Barkin to deliver speeches.

A-share listed Changxin Technology fell more than 5% intraday, currently trading at 50.9 yuan.