Orient Securities' insurance report says long-dated bonds remain the core of insurers' asset portfolios as allocation shifts from pure duration extension to structural optimization. Persistently low rates are compressing coupon and reinvestment returns; lengthening duration only delays a downward shift in the yield center. The report expects most listed insurers' net investment yields to decline YoY in 2025 as high-coupon stock matures and new allocations earn lower interest. Static estimates show long-duration holdings cut annual reallocation needs but cannot fully offset low-rate pressure. Currently 30-year government and local-government bond yields remain above insurers' marginal new liability funding costs, leaving long-duration assets with coupon coverage and duration-matching value; the 30Y-10Y spread has widened markedly from 2025 lows. Insurers' allocation logic is moving to duration matching + term-premium capture + timing-driven positioning.

South Korea's KOSPI index briefly fell 3% and is trading 2.8% lower; SK Hynix trading 7.7% lower, Samsung Electronics trading 3% lower.

韩国KOSPI指数一度下跌3%，现跌2.8%，SK海力士现跌7.7%，三星电子跌3%。

Bank of East Asia wealth management strategist Chen Weicong said tech firms’ higher AI spending and rising energy and memory production costs have weakened earnings recovery for heavyweight tech and consumer names, prompting a cut to this year’s Hang Seng earnings forecast and a target reduction from 29,000 to 27,100. The implied P/E on the forecast is about 10x, slightly below the 10-year average of ~10.5x, making valuations increasingly attractive and recent overselling a buying opportunity. He expects a short-lived phase rebound in H2; the July Politburo meeting could be a catalyst if it signals further growth-stabilizing policies.

China International Capital Co research says high external uncertainty will drive investors to use interim reports to find structural winners. Key themes: upstream oil, gas, chemicals and select metals as potential earnings bright spots; technology hardware and power equipment exposed to the AI cycle and to overseas demand, and non-bank financials; the AI supply chain—optical communications that directly benefit from AI deployment, plus batteries and energy storage that also gain from energy‑security and supply‑chain security. Also monitor cyclical industries with relatively balanced supply–demand and improving demand/capacity dynamics, notably specialty chemicals, optoelectronics and certain innovative pharmaceuticals.

Japan's Nikkei 225 fell 1.00% intraday.