Market Update
Japan's Exports Growth Accelerated and Inflation Eased In April
Akira Ito
22 May, 2026
Tokyo
Japan's indexes advanced on Friday and extended gains of the previous session amid renewed optimism over the artificial intelligence-related stocks.
The Nikkei 225 Stock Average soared nearly 3%, the broader TOPIX advanced over 1%, and the yen weakened to 159.07 against the U.S. dollar.
Investors allocated more capital to technology and AI-related stocks following solid earnings from Nvidia Corp. and OpenAI and SB Energy inching closer to their initial public offerings in the U.S.
Tech stocks rebounded after Nvidia Corp., the key advanced semiconductor chipmaker, reported solid revenue and earnings growth in its latest quarter, driven by a 92% surge in revenue from AI-driven data centers.
The latest boom in the buildout of AI factories has catapulted the market cap of Nvidia from $400 billion at the end of 2022 to $5.4 trillion as of Wednesday.
The yen continued to approach the 160 level against the U.S. dollar, and investors reviewed the latest inflation updates.
Japan's Overall Inflation Stayed Below BoJ Target Rate
Japan's annual overall and core inflation remained below the central bank's 2% target rate for the fourth consecutive month in April.
Overall inflation eased to an annual rise of 1.4%, and core inflation slowed to 1.4% from 1.8% in March, respectively, according to the Ministry of Internal Affairs and Communications.
The electricity prices fell at a slower pace of 2.6% from 8.0% in the previous month, as the impact of government subsidies faded.
Energy costs declined 3.9% following a 5.7% fall in March, and retail prices of petrol plunged 9.7% after the government offered price support to consumers.
Prices for food, excluding fresh items, rose at a slower annual pace of 4.1% from a 5.2% rise in the previous month.
The latest consumer price inflation report did not provide any clear sign about the inflation in the months ahead, but investors are anticipating the Bank of Japan raising rates in the fourth quarter.
Core-core inflation, which excludes volatile food and energy prices to reflect underlying price trends, slowed to an annual rise of 1.9%, the softest pace of increase since July 2024.
Japan's Real Wages Extended Decline to Fourth Consecutive Year
Japan's monthly average wage gains failed to keep up with price hikes in the financial year ending in March, according to the latest report by the Ministry of Health, Labor, and Welfare.
Japan's real wages, or cash earnings per worker including base and overtime pay adjusted for inflation, declined 0.5% in fiscal 2025, marking the fourth consecutive year of decline, a separate report from the government showed on Friday.
Nominal monthly wages rose 2.5% to 357,979 yen, or $2,250, and consumer prices rose 3.0% in the reporting year, slower than 3.5% in the previous year.
Rising Global Demand Accelerated Japan's Export Growth In April
Japan's exports and trade surplus rose in April, amid a strong demand for electrical and electronic products in the ASEAN region, the EU, China, India, and the U.S.
Exports rose annually 14.8% to 10.5 trillion yen, accelerating from an 11.5% rise in March, marking the eighth consecutive month of increase, reflecting resilient global demand despite supply disruptions caused by the U.S. and Israel's war on Iran.
Shipments to the European Union soared 26.9%, to the ASEAN region advanced 19.9%, to China by 15.5%, to the U.S. by 9.5%, and to India by 8.9%.
However, shipments to the Middle East shrank by 56% from a year ago, amid supply disruptions in the Strait of Hormuz.
Imports advanced 9.7% to 10.2 trillion yen, and Japan switched crude oil imports from the Middle East to the U.S. amid ongoing tensions in the Middle East.
The total shipments of the fuel to Japan plunged 63.7% by volume and 49.4% by value in April, the government data showed.
The value of imports from the U.S. soared 118% and from the Middle East declined by 67% in volume from a year earlier, according to the preliminary trade statistics from the Ministry of Finance.
The trade balance swung to a surplus of 301.9 billion yen in April from a deficit of 149.5 billion yen in the corresponding month a year ago.
The trade surplus was the largest since November, as growth in exports outpaced the imports, and import demand remained resilient, partly because of the government's supportive measures introduced in late 2025.
Japan Indexes and Stocks
The Nikkei 225 Stock Average jumped 2.7% to 63,325.64, and the broader TOPIX advanced 1.1% to 3,897.03.
Semiconductor- and AI-related stocks led gainers in Tokyo as investors returned to increase exposure to fast-growing companies.
Fujikura Ltd, SoftBank Group, Tokyo Electron, and Advantest Corp. rose between 4% and 10%.
Nippon Yusen, Kawasaki Kisen Kaisha, and Mitsui OSK Lines decreased between 0.5% and 1.4%.
Japan's Exports Growth Accelerated and Inflation Eased In April
Akira Ito
22 May, 2026
Tokyo
Japan's indexes advanced on Friday and extended gains of the previous session amid renewed optimism over the artificial intelligence-related stocks.
The Nikkei 225 Stock Average soared nearly 3%, the broader TOPIX advanced over 1%, and the yen weakened to 159.07 against the U.S. dollar.
Investors allocated more capital to technology and AI-related stocks following solid earnings from Nvidia Corp. and OpenAI and SB Energy inching closer to their initial public offerings in the U.S.
Tech stocks rebounded after Nvidia Corp., the key advanced semiconductor chipmaker, reported solid revenue and earnings growth in its latest quarter, driven by a 92% surge in revenue from AI-driven data centers.
The latest boom in the buildout of AI factories has catapulted the market cap of Nvidia from $400 billion at the end of 2022 to $5.4 trillion as of Wednesday.
The yen continued to approach the 160 level against the U.S. dollar, and investors reviewed the latest inflation updates.
Japan's Overall Inflation Stayed Below BoJ Target Rate
Japan's annual overall and core inflation remained below the central bank's 2% target rate for the fourth consecutive month in April.
Overall inflation eased to an annual rise of 1.4%, and core inflation slowed to 1.4% from 1.8% in March, respectively, according to the Ministry of Internal Affairs and Communications.
The electricity prices fell at a slower pace of 2.6% from 8.0% in the previous month, as the impact of government subsidies faded.
Energy costs declined 3.9% following a 5.7% fall in March, and retail prices of petrol plunged 9.7% after the government offered price support to consumers.
Prices for food, excluding fresh items, rose at a slower annual pace of 4.1% from a 5.2% rise in the previous month.
The latest consumer price inflation report did not provide any clear sign about the inflation in the months ahead, but investors are anticipating the Bank of Japan raising rates in the fourth quarter.
Core-core inflation, which excludes volatile food and energy prices to reflect underlying price trends, slowed to an annual rise of 1.9%, the softest pace of increase since July 2024.
Japan's Real Wages Extended Decline to Fourth Consecutive Year
Japan's monthly average wage gains failed to keep up with price hikes in the financial year ending in March, according to the latest report by the Ministry of Health, Labor, and Welfare.
Japan's real wages, or cash earnings per worker including base and overtime pay adjusted for inflation, declined 0.5% in fiscal 2025, marking the fourth consecutive year of decline, a separate report from the government showed on Friday.
Nominal monthly wages rose 2.5% to 357,979 yen, or $2,250, and consumer prices rose 3.0% in the reporting year, slower than 3.5% in the previous year.
Rising Global Demand Accelerated Japan's Export Growth In April
Japan's exports and trade surplus rose in April, amid a strong demand for electrical and electronic products in the ASEAN region, the EU, China, India, and the U.S.
Exports rose annually 14.8% to 10.5 trillion yen, accelerating from an 11.5% rise in March, marking the eighth consecutive month of increase, reflecting resilient global demand despite supply disruptions caused by the U.S. and Israel's war on Iran.
Shipments to the European Union soared 26.9%, to the ASEAN region advanced 19.9%, to China by 15.5%, to the U.S. by 9.5%, and to India by 8.9%.
However, shipments to the Middle East shrank by 56% from a year ago, amid supply disruptions in the Strait of Hormuz.
Imports advanced 9.7% to 10.2 trillion yen, and Japan switched crude oil imports from the Middle East to the U.S. amid ongoing tensions in the Middle East.
The total shipments of the fuel to Japan plunged 63.7% by volume and 49.4% by value in April, the government data showed.
The value of imports from the U.S. soared 118% and from the Middle East declined by 67% in volume from a year earlier, according to the preliminary trade statistics from the Ministry of Finance.
The trade balance swung to a surplus of 301.9 billion yen in April from a deficit of 149.5 billion yen in the corresponding month a year ago.
The trade surplus was the largest since November, as growth in exports outpaced the imports, and import demand remained resilient, partly because of the government's supportive measures introduced in late 2025.
Japan Indexes and Stocks
The Nikkei 225 Stock Average jumped 2.7% to 63,325.64, and the broader TOPIX advanced 1.1% to 3,897.03.
Semiconductor- and AI-related stocks led gainers in Tokyo as investors returned to increase exposure to fast-growing companies.
Fujikura Ltd, SoftBank Group, Tokyo Electron, and Advantest Corp. rose between 4% and 10%.
Nippon Yusen, Kawasaki Kisen Kaisha, and Mitsui OSK Lines decreased between 0.5% and 1.4%.
China's Indexes Halted Weekly Advances Valuation and Geopolitical Worries
Li Chen
22 May, 2026
Hong Kong
China's indexes traded down on Friday and extended weekly losses amid ongoing uncertainty over the U.S.-Iran peace talks.
The Hang Seng Index increased 1.2%, the mainland-focused CSI 300 Index gained 0.7%, and the yuan held at 6.80 against the U.S. dollar.
Investors returned to add positions to high-flying tech stocks amid expectations of faster earnings revisions following solid financial results from Nvidia Corp.
Brent crude oil prices rebounded 1.4% to $104.01 a barrel amid ongoing tensions in the Middle East and supply disruptions through the Strait of Hormuz.
On the domestic economic front, China's retail sales and industrial output signal slower growth and rising inflation as higher energy prices ripple through the economy.
Next week, investors are awaiting the release of business activity surveys, which could provide greater insights into the inner workings of the economy.
China Indexes and Stocks
The Hang Seng Index rose 1.2% to 25,696.28, and the mainland-focused CSI 300 Index added 0.7% to 4,816.59.
Zijin Mining Group, Zijin Gold International, and Aluminum Corporation of China advanced between 1% and 2%.
Alibaba Group, Tencent Holdings, Meituan, Baidu, and SMIC jumped between 2% and 4%.
MiniMax Group soared 11% to HK $736.0, and Knowledge Atlas Technology surged 19.6% to $1,208.0 in the hope that the two companies may be included in the Hang Seng Tech and composite indexes after the reconstitution on Friday.
China's Indexes Halted Weekly Advances Valuation and Geopolitical Worries
Li Chen
22 May, 2026
Hong Kong
China's indexes traded down on Friday and extended weekly losses amid ongoing uncertainty over the U.S.-Iran peace talks.
The Hang Seng Index increased 1.2%, the mainland-focused CSI 300 Index gained 0.7%, and the yuan held at 6.80 against the U.S. dollar.
Investors returned to add positions to high-flying tech stocks amid expectations of faster earnings revisions following solid financial results from Nvidia Corp.
Brent crude oil prices rebounded 1.4% to $104.01 a barrel amid ongoing tensions in the Middle East and supply disruptions through the Strait of Hormuz.
On the domestic economic front, China's retail sales and industrial output signal slower growth and rising inflation as higher energy prices ripple through the economy.
Next week, investors are awaiting the release of business activity surveys, which could provide greater insights into the inner workings of the economy.
China Indexes and Stocks
The Hang Seng Index rose 1.2% to 25,696.28, and the mainland-focused CSI 300 Index added 0.7% to 4,816.59.
Zijin Mining Group, Zijin Gold International, and Aluminum Corporation of China advanced between 1% and 2%.
Alibaba Group, Tencent Holdings, Meituan, Baidu, and SMIC jumped between 2% and 4%.
MiniMax Group soared 11% to HK $736.0, and Knowledge Atlas Technology surged 19.6% to $1,208.0 in the hope that the two companies may be included in the Hang Seng Tech and composite indexes after the reconstitution on Friday.
U.S. Movers: Intuit, Nvidia Corp., and Walmart
Scott Peters
21 May, 2026
New York City
Intuit Inc. dropped 13.8% to $331.08 after the company posted its fiscal third quarter results and announced its plan to layoff about 17% of its staff.
Revenue increased 10% to $8.6 billion from $7.8 billion, net income jumped 8% to $3.1 billion from $2.8 billion, and diluted earnings per share advanced to $11.09 from $10.02 a year ago.
The company raised its full-year revenue to range between $21.341 billion and $21.374 billion, an increase between 13% and 14% from a year ago.
The software company estimated full-year diluted earnings per share to range between $15.79 and $15.84.
Nvidia Corp. edged lower by 0.1% to $223.16 after the advanced chipmaker reported better-than-expected results in the fiscal first quarter ending on April 26.
Revenue soared 85% to $81.6 billion from $44.0 billion, net income soared 211% to $58.3 billion from $18.8 billion, and diluted earnings per share advanced to $2.39 from 76 cents a year ago.
Data center segment revenue jumped 92% to $75.2 billion, amid sustained demand from AI hyperscalers.
The company increased its quarterly cash dividend of 25 cents per share from 1 cent per share, payable on June 26 to shareholders on record on June 4.
In addition, the company announced an $80 billion additional share repurchase authorization, adding to its $38.5 billion remaining in the current share repurchase authorization.
Walmart Inc. decreased 1.1% to $127.99 after the retailer reported its results for the fiscal first quarter ending in April.
Revenue increased 7.1% to $175.7 billion from $164.0 billion, net income advanced 18.8% to $5.3 billion from $4.9 billion, and diluted earnings per share rose 20% to 67 cents from 56 cents a year ago.
Net sales at the U.S.-based stores advanced 4.5% to $117.2 billion from $112.2 billion, and comparable sales, excluding fuel sales, increased 4.1%, driven by a 3.0% increase in transactions and a 1.1% rise in average ticket size.
For the fiscal second quarter, the retailer guided revenue in constant currencies to rise between 4.0% and 4.5% from $175.8 billion and adjusted earnings per share to jump to between 72 cents and 74 cents from 68 cents a year ago.
Walmart reiterated its fiscal 2027 revenue to rise between 3.5% and 4.5%, adjusted earnings per share to fall between $2.75 and $2.85, and capital expenditures of 3.5% of net sales.
U.S. Movers: Intuit, Nvidia Corp., and Walmart
Scott Peters
21 May, 2026
New York City
Intuit Inc. dropped 13.8% to $331.08 after the company posted its fiscal third quarter results and announced its plan to layoff about 17% of its staff.
Revenue increased 10% to $8.6 billion from $7.8 billion, net income jumped 8% to $3.1 billion from $2.8 billion, and diluted earnings per share advanced to $11.09 from $10.02 a year ago.
The company raised its full-year revenue to range between $21.341 billion and $21.374 billion, an increase between 13% and 14% from a year ago.
The software company estimated full-year diluted earnings per share to range between $15.79 and $15.84.
Nvidia Corp. edged lower by 0.1% to $223.16 after the advanced chipmaker reported better-than-expected results in the fiscal first quarter ending on April 26.
Revenue soared 85% to $81.6 billion from $44.0 billion, net income soared 211% to $58.3 billion from $18.8 billion, and diluted earnings per share advanced to $2.39 from 76 cents a year ago.
Data center segment revenue jumped 92% to $75.2 billion, amid sustained demand from AI hyperscalers.
The company increased its quarterly cash dividend of 25 cents per share from 1 cent per share, payable on June 26 to shareholders on record on June 4.
In addition, the company announced an $80 billion additional share repurchase authorization, adding to its $38.5 billion remaining in the current share repurchase authorization.
Walmart Inc. decreased 1.1% to $127.99 after the retailer reported its results for the fiscal first quarter ending in April.
Revenue increased 7.1% to $175.7 billion from $164.0 billion, net income advanced 18.8% to $5.3 billion from $4.9 billion, and diluted earnings per share rose 20% to 67 cents from 56 cents a year ago.
Net sales at the U.S.-based stores advanced 4.5% to $117.2 billion from $112.2 billion, and comparable sales, excluding fuel sales, increased 4.1%, driven by a 3.0% increase in transactions and a 1.1% rise in average ticket size.
For the fiscal second quarter, the retailer guided revenue in constant currencies to rise between 4.0% and 4.5% from $175.8 billion and adjusted earnings per share to jump to between 72 cents and 74 cents from 68 cents a year ago.
Walmart reiterated its fiscal 2027 revenue to rise between 3.5% and 4.5%, adjusted earnings per share to fall between $2.75 and $2.85, and capital expenditures of 3.5% of net sales.
Solid Earnings Extend Market Rally to Eighth Week
Barry Adams
21 May, 2026
New York City
Stocks on Wall Street lacked direction in early trading on Thursday, and investors reviewed the latest corporate earnings and ongoing tensions in the Middle East.
The S&P 500 Index decreased 0.1%, and the tech-heavy Nasdaq Composite inched lower by a fraction as investors digested quarter results from Walmart and Nvidia.
The seven-week-long market rally has been supported by a solid earnings season, and investors have estimated that the surge in crude oil prices is likely to be contained to a few economic sectors.
Moreover, investors have looked beyond the inflation worries, as resilient consumer spending is showing no sign of easing despite higher food, transportation, and energy prices.
U.S. Movers
Intuit Inc. dropped 13.8% to $331.08 after the company posted its fiscal third quarter results and announced its plan to layoff about 17% of its staff.
Revenue increased 10% to $8.6 billion from $7.8 billion, net income jumped 8% to $3.1 billion from $2.8 billion, and diluted earnings per share advanced to $11.09 from $10.02 a year ago.
The company raised its full-year revenue to range between $21.341 billion and $21.374 billion, an increase between 13% and 14% from a year ago.
The software company estimated full-year diluted earnings per share to range between $15.79 and $15.84.
Nvidia Corp. edged lower by 0.1% to $223.16 after the advanced chipmaker reported better-than-expected results in the fiscal first quarter ending on April 26.
Revenue soared 85% to $81.6 billion from $44.0 billion, net income soared 211% to $58.3 billion from $18.8 billion, and diluted earnings per share advanced to $2.39 from 76 cents a year ago.
Data center segment revenue jumped 92% to $75.2 billion, amid sustained demand from AI hyperscalers.
The company increased its quarterly cash dividend of 25 cents per share from 1 cent per share, payable on June 26 to shareholders on record on June 4.
In addition, the company announced an $80 billion additional share repurchase authorization, adding to its $38.5 billion remaining in the current share repurchase authorization.
Walmart Inc. decreased 1.1% to $127.99 after the retailer reported its results for the fiscal first quarter ending in April.
Revenue increased 7.1% to $175.7 billion from $164.0 billion, net income advanced 18.8% to $5.3 billion from $4.9 billion, and diluted earnings per share rose 20% to 67 cents from 56 cents a year ago.
Net sales at the U.S.-based stores advanced 4.5% to $117.2 billion from $112.2 billion, and comparable sales, excluding fuel sales, increased 4.1%, driven by a 3.0% increase in transactions and a 1.1% rise in average ticket size.
For the fiscal second quarter, the retailer guided revenue in constant currencies to rise between 4.0% and 4.5% from $175.8 billion and adjusted earnings per share to jump to between 72 cents and 74 cents from 68 cents a year ago.
Walmart reiterated its fiscal 2027 revenue to rise between 3.5% and 4.5%, adjusted earnings per share to fall between $2.75 and $2.85, and capital expenditures of 3.5% of net sales.
Solid Earnings Extend Market Rally to Eighth Week
Barry Adams
21 May, 2026
New York City
Stocks on Wall Street lacked direction in early trading on Thursday, and investors reviewed the latest corporate earnings and ongoing tensions in the Middle East.
The S&P 500 Index decreased 0.1%, and the tech-heavy Nasdaq Composite inched lower by a fraction as investors digested quarter results from Walmart and Nvidia.
The seven-week-long market rally has been supported by a solid earnings season, and investors have estimated that the surge in crude oil prices is likely to be contained to a few economic sectors.
Moreover, investors have looked beyond the inflation worries, as resilient consumer spending is showing no sign of easing despite higher food, transportation, and energy prices.
U.S. Movers
Intuit Inc. dropped 13.8% to $331.08 after the company posted its fiscal third quarter results and announced its plan to layoff about 17% of its staff.
Revenue increased 10% to $8.6 billion from $7.8 billion, net income jumped 8% to $3.1 billion from $2.8 billion, and diluted earnings per share advanced to $11.09 from $10.02 a year ago.
The company raised its full-year revenue to range between $21.341 billion and $21.374 billion, an increase between 13% and 14% from a year ago.
The software company estimated full-year diluted earnings per share to range between $15.79 and $15.84.
Nvidia Corp. edged lower by 0.1% to $223.16 after the advanced chipmaker reported better-than-expected results in the fiscal first quarter ending on April 26.
Revenue soared 85% to $81.6 billion from $44.0 billion, net income soared 211% to $58.3 billion from $18.8 billion, and diluted earnings per share advanced to $2.39 from 76 cents a year ago.
Data center segment revenue jumped 92% to $75.2 billion, amid sustained demand from AI hyperscalers.
The company increased its quarterly cash dividend of 25 cents per share from 1 cent per share, payable on June 26 to shareholders on record on June 4.
In addition, the company announced an $80 billion additional share repurchase authorization, adding to its $38.5 billion remaining in the current share repurchase authorization.
Walmart Inc. decreased 1.1% to $127.99 after the retailer reported its results for the fiscal first quarter ending in April.
Revenue increased 7.1% to $175.7 billion from $164.0 billion, net income advanced 18.8% to $5.3 billion from $4.9 billion, and diluted earnings per share rose 20% to 67 cents from 56 cents a year ago.
Net sales at the U.S.-based stores advanced 4.5% to $117.2 billion from $112.2 billion, and comparable sales, excluding fuel sales, increased 4.1%, driven by a 3.0% increase in transactions and a 1.1% rise in average ticket size.
For the fiscal second quarter, the retailer guided revenue in constant currencies to rise between 4.0% and 4.5% from $175.8 billion and adjusted earnings per share to jump to between 72 cents and 74 cents from 68 cents a year ago.
Walmart reiterated its fiscal 2027 revenue to rise between 3.5% and 4.5%, adjusted earnings per share to fall between $2.75 and $2.85, and capital expenditures of 3.5% of net sales.
U.S. Movers: CAVA Group, Lowe's Companies, Nvidia, Target Corp.
Scott Peters
20 May, 2026
New York City
Nvidia Corp. increased 1.4% to $223.75 ahead of the advanced chipmaker's quarterly results after the close on Wednesday.
Lowe's Companies declined 2.1% to $213.79 despite the home improvement retailer reporting better-than-expected earnings in the fiscal first quarter ending in April.
Total sales in the quarter increased to $23.0 billion from $20.9 billion, net income edged down to $1.63 billion from $1.64 billion, and diluted earnings per share inched lower to $2.90 from $2.92 a year ago.
Comparable sales for the quarter increased 0.6%, driven by a 15.5% rise in online sales and 'continued strength in appliances, home services, and the professional segment.'
Lowe's reaffirmed its 2026 total sales to range between $92.0 billion and $94.0 billion, an increase between 7% and 9% from a year ago.
The company estimated a net interest expense of $1.6 billion, diluted earnings per share to range between $12.25 and $12.75, and capital expenditures of up to $2.5 billion.
Target Corp. increased by 0.4% to $127.80 after the retailer reported its financial results for the fiscal first quarter ending in April.
Net sales increased 6.7% to $25.4 billion from $23.8 billion, net income decreased 24.6% to $781 million from $1.04 billion, and diluted earnings per share dropped 24.5% to $1.71 from $2.27 a year ago.
Comparable traffic increased 4.4%; digital sales rose 8.9%, led by a 27% surge in the same-day delivery business segment.
The company hiked its 2026 sales growth estimate to 4% compared to 2025, two percentage points higher than the previous estimated range.
The retailer also estimated GAAP and adjusted earnings per share near the high end of the previous guidance range between $7.50 and $8.50.
CAVA Group soared 7.5% to $84.00 after the Mediterranean fast-casual restaurant chain operator revised higher its estimate of adjusted annual earnings.
Revenue in the fiscal first quarter ending on April 19 rose 32.2% to $434.4 million from $328.5 million, net income declined to $23.6 million from $25.7 million, and diluted earnings per share eased to 20 cents from 22 cents a year ago.
The fast-casual restaurant chain operator hiked its 2026 same-store sales growth range to between 4.5% and 6.5% from between 3% and 5%.
The company increased its 2026 adjusted operating income range to between $176 million and $184 million from $181 million and $191 million.