Market Update
Japan's Tech-Driven Rally Lifted Indexes to New Highs, Capital Spending Stalled In First Quarter
Akira Ito
01 Jun, 2026
Tokyo
Japan's benchmark indexes advanced on Monday and reached new intraday and closing highs, as technology shares extended amid continued enthusiasm for the AI-driven market rally.
The Nikkei 225 Stock Average advanced 0.7%, the broader TOPIX decreased 0.4%, and the yen hovered at 159.46 against the U.S. dollar.
Japan's semiconductor equipment makers are viewed as one of the key beneficiaries of the worldwide tech surge as hyperscalers ramp up investment in artificial intelligence infrastructure.
Japan's First-Quarter Capital Spending Stalls
Japanese companies spending on plant and equipment was flat from a year ago in the first quarter, according to a monthly update from the finance ministry.
Capital spending reversed from the annual 6.5% rise in the previous quarter and ended the increase of four consecutive quarters. Expenditure in the manufacturing sector declined 0.4% after being flat, and non-manufacturing investment inched up 0.3%.
The mixed performance highlighted the negative impact of energy product shipment disruptions in the Strait of Hormuz and the sustained demand driven by the datacenter buildouts.
Japan Indexes and Stocks
The Nikkei 225 Stock Average advanced 0.7% to 66,809.80, and the broader TOPIX fell 0.4% to 3,941.72.
In Monday's trading, Tokyo Electron advanced 3%, Furukawa Electric gained 2%, Sumitomo Electric gained 2%, SoftBank Group advanced 5%, and Kioxa Holding soared 8%.
Japan's Tech-Driven Rally Lifted Indexes to New Highs, Capital Spending Stalled In First Quarter
Akira Ito
01 Jun, 2026
Tokyo
Japan's benchmark indexes advanced on Monday and reached new intraday and closing highs, as technology shares extended amid continued enthusiasm for the AI-driven market rally.
The Nikkei 225 Stock Average advanced 0.7%, the broader TOPIX decreased 0.4%, and the yen hovered at 159.46 against the U.S. dollar.
Japan's semiconductor equipment makers are viewed as one of the key beneficiaries of the worldwide tech surge as hyperscalers ramp up investment in artificial intelligence infrastructure.
Japan's First-Quarter Capital Spending Stalls
Japanese companies spending on plant and equipment was flat from a year ago in the first quarter, according to a monthly update from the finance ministry.
Capital spending reversed from the annual 6.5% rise in the previous quarter and ended the increase of four consecutive quarters. Expenditure in the manufacturing sector declined 0.4% after being flat, and non-manufacturing investment inched up 0.3%.
The mixed performance highlighted the negative impact of energy product shipment disruptions in the Strait of Hormuz and the sustained demand driven by the datacenter buildouts.
Japan Indexes and Stocks
The Nikkei 225 Stock Average advanced 0.7% to 66,809.80, and the broader TOPIX fell 0.4% to 3,941.72.
In Monday's trading, Tokyo Electron advanced 3%, Furukawa Electric gained 2%, Sumitomo Electric gained 2%, SoftBank Group advanced 5%, and Kioxa Holding soared 8%.
China's Manufacturing Growth Remained Strong In May
Li Chen
01 Jun, 2026
Hong Kong
Stocks in mainland China and Hong Kong lacked direction in Monday's trading, and investors reviewed the latest updates on business activity surveys.
The Hang Seng Index increased 0.8%, and the mainland-focused CSI 300 Index decreased 0.6% amid lingering uncertainty over commercial shipping through the Strait of Hormuz.
The ongoing regional tensions in the Middle East have trapped about 2,000 ships in the narrow passageway, and about 100 million barrels per day of crude oil are prevented from reaching the global market.
The disruption of commercial shipments through the strait has significantly impacted the economies of imported-oil-dependent nations like China.
China's Business Surveys Signal Twin Headwinds
Business activity surveys confirmed the headwinds faced by China's economy, as energy supply disruptions raised input costs and subdued demand.
China's official NBS Manufacturing PMI edged down to 50.0 in May from 50.3 in the previous month, confirming external and domestic headwinds faced by businesses.
The input cost inflation moderated but remained elevated at 60.5 from 63.7, while the output price increase eased to a three-month low of 51.9 from 55.1 in the previous month, respectively, according to the National Bureau of Statistics.
The NBS Composite PMI rose to 50.5 in May from 50.1 in April, supported by a slight rebound in the non-manufacturing sector to 50.1 from 49.4, while the manufacturing PMI inched lower to 50.0 from 50.3 in the previous month, respectively.
A separate private survey, which includes a larger sample of export-driven private companies, showed a slight easing of activities in May.
The Rating Dog China General Manufacturing PMI inched lower to 51.8 in May from 52.2 in April, according to a report compiled by S&P Global.
Despite the ongoing geopolitical tensions, the index remained above the no-change mark for the fourth month in a row.
The composite PMI, which includes manufacturing and service sectors, expanded to 50.5 in May.
Domestic demand for Chinese manufactured goods continued to expand in May, while the rate of growth eased from April but remained among the highest registered over the last five years.
China Indexes and Stocks
The Hang Seng Index increased 0.8% to 25,380.58, and the CSI 300 Index decreased 0.6% to 4,864.19.
Technology shares in mainland trading led the decliners in Monday's trading.
NAURA Technology decreased 2.3%, Eoptolink fell 1.4%, and Zhongji Innolight declined 1.6%.
Alibaba Group Holding rose 2.2%, Tencent Holdings added 2.6%, and Baidu Inc. decreased 0.6%.
China's Manufacturing Growth Remained Strong In May
Li Chen
01 Jun, 2026
Hong Kong
Stocks in mainland China and Hong Kong lacked direction in Monday's trading, and investors reviewed the latest updates on business activity surveys.
The Hang Seng Index increased 0.8%, and the mainland-focused CSI 300 Index decreased 0.6% amid lingering uncertainty over commercial shipping through the Strait of Hormuz.
The ongoing regional tensions in the Middle East have trapped about 2,000 ships in the narrow passageway, and about 100 million barrels per day of crude oil are prevented from reaching the global market.
The disruption of commercial shipments through the strait has significantly impacted the economies of imported-oil-dependent nations like China.
China's Business Surveys Signal Twin Headwinds
Business activity surveys confirmed the headwinds faced by China's economy, as energy supply disruptions raised input costs and subdued demand.
China's official NBS Manufacturing PMI edged down to 50.0 in May from 50.3 in the previous month, confirming external and domestic headwinds faced by businesses.
The input cost inflation moderated but remained elevated at 60.5 from 63.7, while the output price increase eased to a three-month low of 51.9 from 55.1 in the previous month, respectively, according to the National Bureau of Statistics.
The NBS Composite PMI rose to 50.5 in May from 50.1 in April, supported by a slight rebound in the non-manufacturing sector to 50.1 from 49.4, while the manufacturing PMI inched lower to 50.0 from 50.3 in the previous month, respectively.
A separate private survey, which includes a larger sample of export-driven private companies, showed a slight easing of activities in May.
The Rating Dog China General Manufacturing PMI inched lower to 51.8 in May from 52.2 in April, according to a report compiled by S&P Global.
Despite the ongoing geopolitical tensions, the index remained above the no-change mark for the fourth month in a row.
The composite PMI, which includes manufacturing and service sectors, expanded to 50.5 in May.
Domestic demand for Chinese manufactured goods continued to expand in May, while the rate of growth eased from April but remained among the highest registered over the last five years.
China Indexes and Stocks
The Hang Seng Index increased 0.8% to 25,380.58, and the CSI 300 Index decreased 0.6% to 4,864.19.
Technology shares in mainland trading led the decliners in Monday's trading.
NAURA Technology decreased 2.3%, Eoptolink fell 1.4%, and Zhongji Innolight declined 1.6%.
Alibaba Group Holding rose 2.2%, Tencent Holdings added 2.6%, and Baidu Inc. decreased 0.6%.
Japan's Economic Updates Confirmed Resilient Conditions
Akira Ito
29 May, 2026
Tokyo
Japan's stock market indexes advanced on Friday, and investors reviewed the latest economic updates.
The Nikkei 225 Stock Average gained 2.6%, the broader TOPIX advanced 1.9%, and the Japanese yen closed at 159.04 against the U.S. dollar.
For the week, the Nikkei 225 Stock Average advanced 2.2%, and the TOPIX increased 1.1%, driven by persistent enthusiasm over the AI trade.
In May, the Nikkei 225 Stock Average gained 11.3%, and the TOPIX increased 6.8% after investors bid up AI- and semiconductor-related stocks for the second consecutive month.
Investors also reviewed the latest updates on the job market, industrial production, retail sales, and inflation.
Japan's Jobless Rate Eased and Job Market Expanded
The jobless rate eased to 2.5% in April from 2.7% in the previous month, as many people switched jobs at the start of the new financial year.
The number of people with jobs advanced 0.9% to a seasonally adjusted 68.76 million, the Ministry of Internal Affairs and Communications reported Friday.
Despite the geopolitical uncertainties, the job market is resilient, and the job availability ratio was unchanged from March at 1.18, according to a separate report.
Japan's Industrial Production Rebounded in April
Japan's industrial production expanded by 0.8% in April from the previous month, according to a monthly update from the Ministry of Economy, Trade, and Industry.
The gains in the manufacturing of machinery and chip-related devices made up for the decrease in vehicles and chemicals.
The decline in the chemicals sector was due to regular maintenance at plants, according to a government official.
The industrial production rebounded from the revised 0.4% decrease in March, as the supply disruptions of naphtha because of the effective closure of the Strait of Hormuz.
The seasonally adjusted indexes of manufacturing and mining increased to 102.8, from the 2000 base of 100, according to a preliminary report from the ministry.
The index of industrial shipments increased 1.5% from a year ago to 101.2, while the index for the inventories contracted by 0.2% to 96.1.
Stimulus Package Supported Retail Sales Growth In April
Japan's annual retail sales growth accelerated in April from March, supported by the government's stimulus package aimed at easing price pressures and boosting consumption.
Retail sales rose by 2.1% in April compared to the downwardly revised 1.4% rise in the previous month, according to a report from the Ministry of Economy, Trade & Industry.
Sales of automobiles rose by 15.4%, machinery and equipment by 5.5%, and food & beverages by 0.2%; however, sales of fuel declined by 9.0%, and apparel and personal items fell by 1.6%.
Tokyo-Area Inflation Moderated Amid Subsidies
The Tokyo area's price increase momentum eased in April, according to the latest report released by the Statistics Bureau of Japan.
Core inflation, which excludes food prices, rose at a slower annual pace of 1.3% compared to 1.5% in the previous month.
The fuel subsidies and favorable base effect limited the impact of higher raw material prices linked to the Middle East conflict.
However, corporations are likely to pass on higher prices to consumers, as years of sustained price pressures have made businesses more comfortable raising prices.
Japan Indexes and Stocks
The Nikkei 225 Stock Average surged 2.6% to 66,369.03, and the broader TOPIX advanced 1.9% to 3,977.84.
Investors bid up stocks providing components for high-end computer servers, including makers of multi-layered ceramic servers.
Murata Manufacturing advanced 12.7% to ¥9,625.0, Taio Yuden soared 14% to ¥14,815.0, and Ibiden Co. jumped 16.5% to ¥23,000.0.
Japan's Retail Sales and Job Market Updates Signaled Resilient Economic Conditions
Akira Ito
29 May, 2026
Tokyo
Japan's stock market indexes advanced on Friday, and investors reviewed the latest economic updates.
The Nikkei 225 Stock Average gained 2.6%, the broader TOPIX advanced 1.9%, and the Japanese yen closed at 159.04 against the U.S. dollar.
For the week, the Nikkei 225 Stock Average advanced 2.2%, and the TOPIX increased 1.1%, driven by persistent enthusiasm over the AI trade.
In May, the Nikkei 225 Stock Average gained 11.3%, and the TOPIX increased 6.8% after investors bid up AI- and semiconductor-related stocks for the second consecutive month.
Investors also reviewed the latest updates on the job market, industrial production, retail sales, and inflation.
Japan's Jobless Rate Eased and Job Market Expanded
The jobless rate eased to 2.5% in April from 2.7% in the previous month, as many people switched jobs at the start of the new financial year.
The number of people with jobs advanced 0.9% to a seasonally adjusted 68.76 million, the Ministry of Internal Affairs and Communications reported Friday.
Despite the geopolitical uncertainties, the job market is resilient, and the job availability ratio was unchanged from March at 1.18, according to a separate report.
Japan's Industrial Production Rebounded in April
Japan's industrial production expanded by 0.8% in April from the previous month, according to a monthly update from the Ministry of Economy, Trade, and Industry.
The gains in the manufacturing of machinery and chip-related devices made up for the decrease in vehicles and chemicals.
The decline in the chemicals sector was due to regular maintenance at plants, according to a government official.
The industrial production rebounded from the revised 0.4% decrease in March, as the supply disruptions of naphtha because of the effective closure of the Strait of Hormuz.
The seasonally adjusted indexes of manufacturing and mining increased to 102.8, from the 2000 base of 100, according to a preliminary report from the ministry.
The index of industrial shipments increased 1.5% from a year ago to 101.2, while the index for the inventories contracted by 0.2% to 96.1.
Stimulus Package Supported Retail Sales Growth In April
Japan's annual retail sales growth accelerated in April from March, supported by the government's stimulus package aimed at easing price pressures and boosting consumption.
Retail sales rose by 2.1% in April compared to the downwardly revised 1.4% rise in the previous month, according to a report from the Ministry of Economy, Trade & Industry.
Sales of automobiles rose by 15.4%, machinery and equipment by 5.5%, and food & beverages by 0.2%; however, sales of fuel declined by 9.0%, and apparel and personal items fell by 1.6%.
Tokyo-Area Inflation Moderated Amid Subsidies
The Tokyo area's price increase momentum eased in April, according to the latest report released by the Statistics Bureau of Japan.
Core inflation, which excludes food prices, rose at a slower annual pace of 1.3% compared to 1.5% in the previous month.
The fuel subsidies and favorable base effect limited the impact of higher raw material prices linked to the Middle East conflict.
However, corporations are likely to pass on higher prices to consumers, as years of sustained price pressures have made businesses more comfortable raising prices.
Japan Indexes and Stocks
The Nikkei 225 Stock Average surged 2.6% to 66,369.03, and the broader TOPIX advanced 1.9% to 3,977.84.
Investors bid up stocks providing components for high-end computer servers, including makers of multi-layered ceramic servers.
Murata Manufacturing advanced 12.7% to ¥9,625.0, Taio Yuden soared 14% to ¥14,815.0, and Ibiden Co. jumped 16.5% to ¥23,000.0.
China's Indexes Delivered Mixed Performance In May
Li Chen
29 May, 2026
Hong Kong
China's benchmark indexes delivered mixed performance after a week of trading, amid lingering Middle East tensions.
The Hang Seng Index advanced more than 1%, and the mainland-focused CSI 300 Index edged up a fraction.
After a week of choppy trading, the Hang Seng index decreased 1.3%, and the CSI 300 Index edged up 0.9%.
The Hang Seng Index fell 3.1% in May, while the mainland-focused index rose 2.2%.
China's stocks are attracting investor attention from around the world, participating in a market rally driven by electric vehicle makers, semiconductor chip developers, AI technology and product makers, renewable energy-focused companies, and rare earth and precious metals miners.
Despite the recent run-up in China-based stocks, investors have been cautious about increasing exposure to Chinese companies amid low margins, intense competition, and poor visibility of future profits.
China Indexes and Stocks
The Hang Seng Index increased 1.1% to 25,283.98, and the mainland-focused CSI 300 Index edged up 0.1% to 4,917.02.
SMIC declined 2%, Hua Hong Semiconductor decreased 3%, Xiaomi Corp. dropped 2%, and BYD advanced 2%.
BYD jumped as much as 4% after the company announced a series of technology breakthroughs, including China's first automotive-grade 4-nanometer chip design for autonomous driving systems.
China's Indexes Delivered Mixed Performance In May
Li Chen
29 May, 2026
Hong Kong
China's benchmark indexes delivered mixed performance after a week of trading, amid lingering Middle East tensions.
The Hang Seng Index advanced more than 1%, and the mainland-focused CSI 300 Index edged up a fraction.
After a week of choppy trading, the Hang Seng index decreased 1.3%, and the CSI 300 Index edged up 0.9%.
The Hang Seng Index fell 3.1% in May, while the mainland-focused index rose 2.2%.
China's stocks are attracting investor attention from around the world, participating in a market rally driven by electric vehicle makers, semiconductor chip developers, AI technology and product makers, renewable energy-focused companies, and rare earth and precious metals miners.
Despite the recent run-up in China-based stocks, investors have been cautious about increasing exposure to Chinese companies amid low margins, intense competition, and poor visibility of future profits.
China Indexes and Stocks
The Hang Seng Index increased 1.1% to 25,283.98, and the mainland-focused CSI 300 Index edged up 0.1% to 4,917.02.
SMIC declined 2%, Hua Hong Semiconductor decreased 3%, Xiaomi Corp. dropped 2%, and BYD advanced 2%.
BYD jumped as much as 4% after the company announced a series of technology breakthroughs, including China's first automotive-grade 4-nanometer chip design for autonomous driving systems.
U.S. Movers: Best Buy, Dollar Tree, Kohl's, Marvell Technology, Snowflake
Scott Peters
28 May, 2026
New York City
Marvell Technology decreased 2.8% to $193.24 after the semiconductor company reported financial results for its fiscal first quarter ending on May 3.
Net revenues increased 28% to $2.4 billion from $1.9 billion, net income dropped to $34.5 million from $177.9 million, and diluted earnings per share eased to 4 cents from 20 cents a year ago.
"We expect revenue growth to continue accelerating each quarter throughout fiscal 2027, driven by continued strength in our data center business,” said Matt Murphy, Marvell’s chairman and CEO.
The company raised its fiscal 2027 and 2028 guidance, "driven by strong demand across a broad set of Marvell solutions," including Ethernet switches and optical interconnect solutions.
The company guided fiscal second quarter revenue of $2.7 billion and diluted net income per share of 37 cents.
Snowflake Inc. soared 37% to $240.25 after the company posted its quarterly results and inked a long-term cloud infrastructure partnership deal with Amazon's AWS unit.
Net revenues in the fiscal first quarter, ending in April, rose 33% to $1.4 billion from $1.1 billion; net loss shrank to $295.6 million from $430.1 million; and diluted loss per share decreased to 86 cents from $1.29 a year ago.
The company estimated product revenue for the fiscal second quarter to range between $1.415 billion and $1.420 billion and for the full year to rise 31% to $5.84 billion, higher than the previous estimate of $5.66 billion.
Kohl's Corp. soared 11% to $14.31 after the retailer posted a narrower-than-expected loss in the fiscal first quarter.
Best Buy Company jumped 8.9% to $69.99 after the electronics retailer reported better-than-expected fiscal first quarter results.
Comparable sales advanced 2% from a year ago, and the specialty retailer reaffirmed its annual outlook.
Dollar Tree jumped 13% to $108.18 after the deep-discount retailer reported fiscal first-quarter results ending on May 2.
The company reiterated its current quarter and full-year sales estimates.
Net revenues increased 7.2% to $5 billion from $4.6 billion, net income increased to $347.3 million from $343.4 million, and diluted earnings per share rose to $1.76 from $1.61 a year ago.
The company expects net sales from continuing operations for the second quarter to range from $4.8 billion to $4.9 billion, based on comparable store net sales growth in the range of 2.5% to 3.5%.
The company guided full-year 2026 sales to fall between $20.5 billion and $20.7 billion and adjusted diluted earnings per share between $6.70 and $7.10.