Market Update
Japan's Indexes Advanced 3% and Yen Drifted to One-Year Low
Akira Ito
13 Jan, 2026
Tokyo
Japan's stocks advanced Tuesday amid easing trade tensions with China as investors returned from a three-day weekend.
The Nikkei 225 Stock Average increased 3.3%, the broader Topix Index gained 2.4%, and the yen weakened further to 158.72 against the U.S. dollar.
Market sentiment improved in Tokyo after China clarified that its export control on dual-use goods and technology applies for military use only, easing worries about civilian use.
Japan's benchmark indexes extended the previous week's gains as investors reviewed the unexpected increase in household spending driven by winter purchases.
The yen continued to drift towards a one-year low as the U.S. dollar edged up in international trading, and Japanese companies are likely to report higher earnings partly driven by the yen's weakness.
The yen continued to drift lower after Prime Minister Sanae Takaichi was expected to dissolve Japan's parliament as early as next month, adding another level of uncertainty.
Investors overlooked the Trump administration's investigation targeting the Federal Reserve and Fed Chair Jerome Powell as the U.S. president ramped up his campaign to remove the head of the central bank.
Japan Indexes and Stocks
The Nikkei 225 Stock Average soared 3.3% to 53,682.17, and the broader Topix Index advanced 2.4% to 3,598.05.
Defense stocks extended gains for the fourth week in a row amid expectations of higher government spending and looser export control.
IHI Corp. gained 5.7% to ¥3,421.0, Kawasaki Heavy Industries jumped 9.9% to ¥13,595.0, and Mitsubishi Heavy Industries gained 4.4% to ¥4,457.00.
Banks and financial services providers increased as the traders anticipated the Bank of Japan to continue to raise interest rates at least two times in 2026.
Sumitomo Mitsui Financial Group increased 2.7% to ¥5,394.0, Mitsubishi UFJ Financial advanced 4.5% to ¥2,762.0, and Mizuho Financial gained 5.3% to ¥6,524.0.
Japan's Indexes Advanced 3% and Yen Drifted to One-Year Low
Akira Ito
13 Jan, 2026
Tokyo
Japan's stocks advanced Tuesday amid easing trade tensions with China as investors returned from a three-day weekend.
The Nikkei 225 Stock Average increased 3.3%, the broader Topix Index gained 2.4%, and the yen weakened further to 158.72 against the U.S. dollar.
Market sentiment improved in Tokyo after China clarified that its export control on dual-use goods and technology applies for military use only, easing worries about civilian use.
Japan's benchmark indexes extended the previous week's gains as investors reviewed the unexpected increase in household spending driven by winter purchases.
The yen continued to drift towards a one-year low as the U.S. dollar edged up in international trading, and Japanese companies are likely to report higher earnings partly driven by the yen's weakness.
The yen continued to drift lower after Prime Minister Sanae Takaichi was expected to dissolve Japan's parliament as early as next month, adding another level of uncertainty.
Investors overlooked the Trump administration's investigation targeting the Federal Reserve and Fed Chair Jerome Powell as the U.S. president ramped up his campaign to remove the head of the central bank.
Japan Indexes and Stocks
The Nikkei 225 Stock Average soared 3.3% to 53,682.17, and the broader Topix Index advanced 2.4% to 3,598.05.
Defense stocks extended gains for the fourth week in a row amid expectations of higher government spending and looser export control.
IHI Corp. gained 5.7% to ¥3,421.0, Kawasaki Heavy Industries jumped 9.9% to ¥13,595.0, and Mitsubishi Heavy Industries gained 4.4% to ¥4,457.00.
Banks and financial services providers increased as the traders anticipated the Bank of Japan to continue to raise interest rates at least two times in 2026.
Sumitomo Mitsui Financial Group increased 2.7% to ¥5,394.0, Mitsubishi UFJ Financial advanced 4.5% to ¥2,762.0, and Mizuho Financial gained 5.3% to ¥6,524.0.
Hong Kong Indexes Advanced, GigaDevice Soared 40% On Trading Debut
Li Chen
13 Jan, 2026
Hong Kong
China stocks edged higher, driven by a rebound in purchases by foreign investors.
The Hang Seng Index increased 1%, and the mainland-focused CSI 300 index edged up 0.02%.
Markets in Asia overlooked rising geopolitical tensions after the U.S. imposed additional 25% duties on countries doing business with Iran.
Russia, China, India, Turkey, and the UAE are leading trade partners of Iran. However, it is not clear what products will attract the newly announced U.S. tariffs.
Despite the Trump administration's rollback of 25% tariffs on Chinese goods, the average tariffs hovered near 45% on Chinese goods shipments to the U.S.
The U.S. Supreme Court is expected to rule on the legality of the Trump administration's tariffs, and many legal experts anticipate the nation's highest court to deem the tariffs as illegal and needing an approval from the U.S. Congress.
The Chinese yuan strengthened to a three-year high of 6.97 against the U.S. dollar amid growing speculation that the U.S. could conduct additional military strikes in Iran.
China Indexes and Stocks
The Hang Seng Index increased 1% to 26,873.70, and the mainland-focused CSI 300 index added 0.02% to 4,790.96.
GigaDevice Semiconductor increased more than 40% to HK $223.80, and the advanced chip designer priced its initial public offering at HK $162.0 per share.
The maker of analog and sensor chips raised HK $4.7 billion in gross proceeds through the sale of 28.9 million shares.
Hongxing ColdChain edged up 5% to HK $12.80, and the frozen food warehouse company priced its initial public offering at HK $12.26 per share.
The company raised HK $285.20 million in gross proceeds through the sale of 23.26 million shares.
Hong Kong Indexes Advanced, GigaDevice Soared 40% On Trading Debut
Li Chen
13 Jan, 2026
Hong Kong
China stocks edged higher, driven by a rebound in purchases by foreign investors.
The Hang Seng Index increased 1%, and the mainland-focused CSI 300 index edged up 0.02%.
Markets in Asia overlooked rising geopolitical tensions after the U.S. imposed additional 25% duties on countries doing business with Iran.
Russia, China, India, Turkey, and the UAE are leading trade partners of Iran. However, it is not clear what products will attract the newly announced U.S. tariffs.
Despite the Trump administration's rollback of 25% tariffs on Chinese goods, the average tariffs hovered near 45% on Chinese goods shipments to the U.S.
The U.S. Supreme Court is expected to rule on the legality of the Trump administration's tariffs, and many legal experts anticipate the nation's highest court to deem the tariffs as illegal and needing an approval from the U.S. Congress.
The Chinese yuan strengthened to a three-year high of 6.97 against the U.S. dollar amid growing speculation that the U.S. could conduct additional military strikes in Iran.
China Indexes and Stocks
The Hang Seng Index increased 1% to 26,873.70, and the mainland-focused CSI 300 index added 0.02% to 4,790.96.
GigaDevice Semiconductor increased more than 40% to HK $223.80, and the advanced chip designer priced its initial public offering at HK $162.0 per share.
The maker of analog and sensor chips raised HK $4.7 billion in gross proceeds through the sale of 28.9 million shares.
Hongxing ColdChain edged up 5% to HK $12.80, and the frozen food warehouse company priced its initial public offering at HK $12.26 per share.
The company raised HK $285.20 million in gross proceeds through the sale of 23.26 million shares.
U.S. Stocks Fall, Gold and Silver Soar to New Highs After Trump Threatens Federal Reserve's Independence
Barry Adams
12 Jan, 2026
New York City
Stocks, bonds, and the U.S. dollar came under pressure after the U.S. president ramped up his campaign to attack the Federal Reserve.
The S&P 500 index decreased 0.7%, the tech-heavy Nasdaq declined 0.9%, and the U.S. dollar eased against all major currencies.
Last week, global markets extended early gains after a choppy week of trading as investors overlooked rising geopolitical tensions. U.S. Treasury yields and crude oil held steady, and gold advanced as investors debated future rate paths.
However, the market's mood was decisively negative after the U.S. Justice Department opened an investigation into Federal Reserve Chair Jerome Powell's testimony to the U.S. lawmakers regarding the renovation project.
The Department of Justice's criminal investigation is related to Powell's testimony to the Senate Banking Committee on the renovation of office buildings.
Powell shot back in a statement saying that this is not about renovation but yet another attempt by Mr. Trump to intimidate the central bank and bend the monetary policy to his liking.
"The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President," said Fed Chair Powell in a statement.
"This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions—or whether instead monetary policy will be directed by political pressure or intimidation," added Fed Chair Powell.
Powell's term as Federal Reserve Chairman is set to end in May, and the central bank is likely to lower rates at least two times in 2026 but stay put at the end of the next meeting later this month.
U.S. Stock Movers
Banks came under pressure after the U.S. president demanded to lower interest rates on credit card loans to 10%.
JP Morgan Chase, Citigroup, Wells Fargo, and Bank of America decreased between 3% and 5%.
Gold jumped 2% to $4,589.95, and silver advanced 5% to $84.14 following Trump's renewed attack on the Fed's independence.
On the earnings front, JPMorgan, Bank of America, Citigroup, Wells Fargo, Goldman Sachs, PNC Financial Services, BlackRock, Delta Airlines, and KB Home are set to report quarterly results this week.
U.S. Stocks Fall, Gold and Silver Soar to New Highs After Trump Threatens Federal Reserve's Independence
Barry Adams
12 Jan, 2026
New York City
Stocks, bonds, and the U.S. dollar came under pressure after the U.S. president ramped up his campaign to attack the Federal Reserve.
The S&P 500 index decreased 0.7%, the tech-heavy Nasdaq declined 0.9%, and the U.S. dollar eased against all major currencies.
Last week, global markets extended early gains after a choppy week of trading as investors overlooked rising geopolitical tensions. U.S. Treasury yields and crude oil held steady, and gold advanced as investors debated future rate paths.
However, the market's mood was decisively negative after the U.S. Justice Department opened an investigation into Federal Reserve Chair Jerome Powell's testimony to the U.S. lawmakers regarding the renovation project.
The Department of Justice's criminal investigation is related to Powell's testimony to the Senate Banking Committee on the renovation of office buildings.
Powell shot back in a statement saying that this is not about renovation but yet another attempt by Mr. Trump to intimidate the central bank and bend the monetary policy to his liking.
"The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President," said Fed Chair Powell in a statement.
"This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions—or whether instead monetary policy will be directed by political pressure or intimidation," added Fed Chair Powell.
Powell's term as Federal Reserve Chairman is set to end in May, and the central bank is likely to lower rates at least two times in 2026 but stay put at the end of the next meeting later this month.
U.S. Stock Movers
Banks came under pressure after the U.S. president demanded to lower interest rates on credit card loans to 10%.
JP Morgan Chase, Citigroup, Wells Fargo, and Bank of America decreased between 3% and 5%.
Gold jumped 2% to $4,589.95, and silver advanced 5% to $84.14 following Trump's renewed attack on the Fed's independence.
On the earnings front, JPMorgan, Bank of America, Citigroup, Wells Fargo, Goldman Sachs, PNC Financial Services, BlackRock, Delta Airlines, and KB Home are set to report quarterly results this week.
Japan's Indexes Advanced Monday and Yen Drifted Lower O
Akira Ito
12 Jan, 2026
Tokyo
Japan's stocks advanced Monday amid easing trade tensions with China.
The Nikkei 225 Stock Average increased 1.6%, the broader Topix Index gained 0.9%, and the yen weakened further to 158.07 against the U.S. dollar.
Market sentiment improved in Tokyo after China clarified that its export control on dual-use goods and technology applies for military use only, easing worries about civilian use.
Japan's benchmark indexes extended the previous week's gains as investors reviewed the unexpected increase in household spending driven by winter purchases.
The yen continued to drift towards a one-year low as the U.S. dollar edged up in international trading, and Japanese companies are likely to report higher earnings partly driven by the yen's weakness.
Japan Indexes and Stocks
The Nikkei 225 Stock Average increased 1.6% to 51,939.89, and the broader Topix added 0.9% to 3,514.11.
Defense stocks extended gains for the fourth week in a row amid expectations of higher government spending and looser export control.
IHI Corp. gained 3.2% to ¥3,235.0, Kawasaki Heavy Industries jumped 3.1% to ¥12,370.0, and Mitsubishi Heavy Industries inched up 0.1% to ¥4,267.0.
Banks and financial services providers increased as the traders anticipated the Bank of Japan to continue to raise interest rates at least two times in 2026.
Sumitomo Mitsui Financial Group increased 2.9% to ¥5,253.0, Mitsubishi UFJ Financial advanced 1.5% to ¥2,642.0, and Mizuho Financial gained 2.2% to ¥6,195.0.
China Markets Extended Previous Week's Gains
Li Chen
12 Jan, 2026
Hong Kong
Stocks in mainland China and Hong Kong advanced Monday, and investors increased exposure to high-flying technology stocks.
The Hang Seng Index increased 0.8%, and the mainland-focused CSI 300 index edged up 0.4% as investors reviewed mixed inflation data released last Friday.
Investors held out for higher earnings in the fourth quarter, driving benchmark indexes to new highs as foreign investors continue to participate in initial public offerings.
China's economic growth is expected to meet the rate of 5% in 2025, and investors are anticipating the economy to expand at a slower pace of 4.5% in 2026.
Moreover, China's jobless rate is likely to remain elevated as many companies shift production overseas and automate domestic manufacturing.
The youth jobless rate in 2026 is likely to stay above 22%, matching the rate in 2025, according to private estimates.
China Indexes and Stocks
The Hang Seng Index increased 0.8% to 26,435.12, and the mainland-focused CSI 300 index added 0.4% to 4,779.95.
Food delivery platform operators were in focus after Chinese authorities launched a market competition probe.
Meituan jumped 7.2% to HK $105.60, and Taobao mall operator Alibaba Group gained 5% to HK $154.30.
The delivery platform operator soared on expectations that the government probe would limit future price competition, helping the companies improve their operating margins.
Across Asia, benchmark indexes in Japan increased 1.6%, in India decreased 0.5%, and in Indonesia advanced 0.7%.
China Markets Extended Previous Week's Gains
Li Chen
12 Jan, 2026
Hong Kong
Stocks in mainland China and Hong Kong advanced Monday, and investors increased exposure to high-flying technology stocks.
The Hang Seng Index increased 0.8%, and the mainland-focused CSI 300 index edged up 0.4% as investors reviewed mixed inflation data released last Friday.
Investors held out for higher earnings in the fourth quarter, driving benchmark indexes to new highs as foreign investors continue to participate in initial public offerings.
China's economic growth is expected to meet the rate of 5% in 2025, and investors are anticipating the economy to expand at a slower pace of 4.5% in 2026.
Moreover, China's jobless rate is likely to remain elevated as many companies shift production overseas and automate domestic manufacturing.
The youth jobless rate in 2026 is likely to stay above 22%, matching the rate in 2025, according to private estimates.
China Indexes and Stocks
The Hang Seng Index increased 0.8% to 26,435.12, and the mainland-focused CSI 300 index added 0.4% to 4,779.95.
Food delivery platform operators were in focus after Chinese authorities launched a market competition probe.
Meituan jumped 7.2% to HK $105.60, and Taobao mall operator Alibaba Group gained 5% to HK $154.30.
The delivery platform operator soared on expectations that the government probe would limit future price competition, helping the companies improve their operating margins.
Across Asia, benchmark indexes in Japan increased 1.6%, in India decreased 0.5%, and in Indonesia advanced 0.7%.
U.S. Movers: Costco Wholesale, General Motors, Tilray Brands
Scott Peters
09 Jan, 2026
New York City
General Motors decreased 0.9% to $84.49 after the company disclosed a $7.1 billion charge in the fourth quarter of 2025 linked to its electric vehicle operations and restructuring in China.
Tilray Brands soared 10% to $10.0, and the cannabis company reported record revenue in the fiscal second quarter.
Net revenue increased 3% to $217.5 million from $211 million, net loss improved to $43.5 million from $85.3 million, and diluted loss per share improved to 41 cents from 99 cents a year ago.
Costco Wholesale Corp. extended its two-day gain to 5% and rose to $919.71 after the company's December sales rose.
U.S. core comparable store sales rose 6.3% in December, on top of 9.8% in the month a year ago, indicating solid performance over two years despite the tough comparison.
U.S. Movers: Costco Wholesale, General Motors, Tilray Brands
Scott Peters
09 Jan, 2026
New York City
General Motors decreased 0.9% to $84.49 after the company disclosed a $7.1 billion charge in the fourth quarter of 2025 linked to its electric vehicle operations and restructuring in China.
Tilray Brands soared 10% to $10.0, and the cannabis company reported record revenue in the fiscal second quarter.
Net revenue increased 3% to $217.5 million from $211 million, net loss improved to $43.5 million from $85.3 million, and diluted loss per share improved to 41 cents from 99 cents a year ago.
Costco Wholesale Corp. extended its two-day gain to 5% and rose to $919.71 after the company's December sales rose.
U.S. core comparable store sales rose 6.3% in December, on top of 9.8% in the month a year ago, indicating solid performance over two years despite the tough comparison.
U.S. Movers: Costco Wholesale, General Motor
Scott Peters
09 Jan, 2026
New York City
General Motors decreased 0.9% to $84.49 after the company disclosed a $7.1 billion charge in the fourth quarter of 2025 linked to its electric vehicle operations and restructuring in China.
Tilray Brands soared 10% to $10.0, and the cannabis company reported record revenue in the fiscal second quarter.
Net revenue increased 3% to $217.5 million from $211 million, net loss improved to $43.5 million from $85.3 million, and diluted loss per share improved to 41 cents from 99 cents a year ago.
Costco Wholesale Corp. extended its two-day gain to 5% and rose to $919.71 after the company's December sales rose.
U.S. core comparable store sales rose 6.3% in December, on top of 9.8% in the month a year ago, indicating solid performance over two years despite the tough comparison.
U.S. Labor Market Expansion Moderated In December, Supreme Court's Tariff Ruling In Focus
Barry Adams
09 Jan, 2026
New York City
Stocks on Wall Street lacked momentum on Friday ahead of a jobs report and a potential U.S. Supreme Court ruling on trade tariffs.
The S&P 500 index edged up a fraction, and the tech-heavy Nasdaq Composite inched lower as investors rotated away from high-flying artificial intelligence stocks.
U.S. Job Growth Slowed In December and 2025
December nonfarm payrolls growth slowed to 50,000 as healthcare and professional services continue to expand but showed little or no change in other industries, including mining, manufacturing, and construction.
However, payroll data were revised downwards for the months of October and November.
The change in total nonfarm payroll employment for October was revised down by 68,000, from a contraction of 105,000 to 173,000, and the change for November was revised down by 8,000, from a gain of 64,000 to 56,000.
With these revisions, employment in October and November combined is 76,000 lower than previously reported.
The jobless rate was little changed at 4.4%, and the average hourly wage gained 3.8% from a year ago to $37.02.
For the full year 2025, payroll employment increased 584,000, or about a monthly increase of 49,000, and less than the increase of 2.0 million in 2024.
The U.S. Supreme Court is likely to strike down the Trump administration's global tariffs, confirming rulings from two lower courts.
The apex court sent mixed signals during cross-examination of the U.S. solicitor, and most court trade policy analysts are hoping that the court's ruling could force the Trump administration to levy new tariffs using a different set of rules.
The adverse ruling from the court could also impact the financial position of the U.S. federal government, as most of the tariff revenue has been used for government spending and interest payments.
U.S. Movers
General Motors decreased 0.9% to $84.49 after the company disclosed a $7.1 billion charge in the fourth quarter of 2025 linked to its electric vehicle operations and restructuring in China.
Tilray Brands soared 10% to $10.0, and the cannabis company reported record revenue in the fiscal second quarter.
Net revenue increased 3% to $217.5 million from $211 million, net loss improved to $43.5 million from $85.3 million, and diluted loss per share improved to 41 cents from 99 cents a year ago.
Costco Wholesale Corp. extended its two-day gain to 5% and rose to $919.71 after the company's December sales rose.
U.S. core comparable store sales rose 6.3% in December, on top of 9.8% in the month a year ago, indicating solid performance over two years despite the tough comparison.
U.S. Labor Market Expansion Moderated In December, Supreme Court's Tariff Ruling In Focus
Barry Adams
09 Jan, 2026
New York City
Stocks on Wall Street lacked momentum on Friday ahead of a jobs report and a potential U.S. Supreme Court ruling on trade tariffs.
The S&P 500 index edged up a fraction, and the tech-heavy Nasdaq Composite inched lower as investors rotated away from high-flying artificial intelligence stocks.
December nonfarm payrolls are likely to increase between 45,000 and 50,000 as the healthcare and professional services continue to expand.
However, investors are also bracing for a sharp downward revision in November and September payrolls data as the statistical office processes a wider set of survey responses.
The U.S. Supreme Court is likely to strike down the Trump administration's global tariffs, confirming rulings from two lower courts.
The apex court sent mixed signals during cross-examination of the U.S. solicitor, and most court trade policy analysts are hoping that the court's ruling could force the Trump administration to levy new tariffs using a different set of rules.
The adverse ruling from the court could also impact the financial position of the U.S. federal government, as most of the tariff revenue has been used for government spending and interest payments.
U.S. Movers
General Motors decreased 0.9% to $84.49 after the company disclosed a $7.1 billion charge in the fourth quarter of 2025 linked to its electric vehicle operations and restructuring in China.
Tilray Brands soared 10% to $10.0, and the cannabis company reported record revenue in the fiscal second quarter.
Net revenue increased 3% to $217.5 million from $211 million, net loss improved to $43.5 million from $85.3 million, and diluted loss per share improved to 41 cents from 99 cents a year ago.
Costco Wholesale Corp. extended its two-day gain to 5% and rose to $919.71 after the company's December sales rose.
U.S. core comparable store sales rose 6.3% in December, on top of 9.8% in the month a year ago, indicating solid performance over two years despite the tough comparison.
Japan's Personal Spending Unexpectedly Advanced In November, Nikkei 225 Jumped 1.6%
Akira Ito
09 Jan, 2026
Tokyo
Stock market indexes in Tokyo extended weekly gains amid hopes that trade tensions between Japan and China are likely to ease.
The Nikkei 225 Stock Average gained 1.6%, and the broader Topix advanced 0.9% after China clarified that the latest export control on dual-use goods to Japan would not apply for civilian purposes.
China's easing of the latest trade sanctions combined with the surprise increase in household spending in November contributed to the market advance on Friday.
Japan's Household Spending Advanced In November
Japan's household spending in November unexpectedly rose despite higher food prices, the Ministry of Internal Affairs & Communications reported Friday.
Households with two or more people spent an average of 314,242 yen, or $2,000, and rose 2.9% after adjusting for inflation.
Real household spending increased 2.9% from a year ago, the first advance in two months and the largest increase since May, driven by winter purchases despite higher food prices.
Food spending, which accounts for 30% of household expenditure, inched higher 0.9%; furniture and home appliance spending advanced 10.6%; transportation and communications soared 20.4%; and utility outlays eased 1.2%.
Economists closely watch household spending data, as private consumption accounts for more than half of Japan's gross domestic product.
Household income with at least two individuals inched lower 2.2% after adjusting for inflation to 519,304 yen, the ministry added.
Japan Indexes and Stocks
The Nikkei 225 Stock Average rose 1.6% to 51,936.21, and the broader Topix Index gained 0.9% to 3,514.41.
For the week, the Nikkei 225 Stock Average advanced 0.7%, and the Topix Index increased 1.4%.
Fast Retailing Co. Ltd. soared 10.6% to ¥62,750.0 after the company raised its full-year earnings outlook.
Revenue in the quarter ending in November rose 14.8% to 1.03 trillion yen, profit attributable to shareholders increased 11.7% to 147.4 billion yen, and diluted earnings per share jumped to 479.89 from 429.51 a year ago.