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Japan's Bond Yields Traded Near 18-Year High, Stocks Lacked Direction

Akira Ito
09 Dec, 2025
Mumbai

Risk-off mood dominated trading in Tokyo on Tuesday, and bond yields hit a new 18-year high.

The Nikkei 225 Stock Average decreased 0.02%, and the broader Topix eased 0.1% as investors speculated about the Bank of Japan's next move.

Market sentiment was depressed amid a growing realization that the U.S. Federal Reserve may deliver a 25 basis-point rate cut but signal fewer rate cuts in 2026.

The so-called "hawkish cut" could inject additional market volatility amid elevated macroeconomic uncertainties and unresolved trade issues with the U.S. and rising political tensions with China.

Market sentiment has been under pressure after political tensions rose between China and Japan, and Japan said China's military planes targeted Japan's jets for fire training.

Investors turned defensive after a 7.6-magnitude earthquake struck Japan's northeast coast overnight.

Japan Indexes and Stocks

The Nikkei 225 Stock Average edged down 0.02% to 50,568.48, and the broader Topix fell 0.1% to 3,382.24. The yield on 10-year Japanese government bonds inched higher to 1.958%, a new 18-year high.

Defense-related stocks, AI-linked semiconductor equipment makers, and financial services providers dominated in trading in Tokyo.

IHI Corp. added 0.1% to ¥3,053.0, Fujikura Ltd. increased 0.3% to ¥18,500.0, and Nintendo Co. Ltd. fell 3.5% to ¥11,895.0.

Tokyo Electron added 1.1% to ¥33,540.0, Advantest Corp. added 0.03% to ¥20,255.0, and Disco Corp. jumped 4.6% to ¥49,670.0.

Japan's Bond Yields Traded Near 18-Year High, Stocks Lacked Direction

Akira Ito
09 Dec, 2025
Mumbai

Risk-off mood dominated trading in Tokyo on Tuesday, and bond yields hit a new 18-year high.

The Nikkei 225 Stock Average decreased 0.02%, and the broader Topix eased 0.1% as investors speculated about the Bank of Japan's next move.

Market sentiment was depressed amid a growing realization that the U.S. Federal Reserve may deliver a 25 basis-point rate cut but signal fewer rate cuts in 2026.

The so-called "hawkish cut" could inject additional market volatility amid elevated macroeconomic uncertainties and unresolved trade issues with the U.S. and rising political tensions with China.

Market sentiment has been under pressure after political tensions rose between China and Japan, and Japan said China's military planes targeted Japan's jets for fire training.

Investors turned defensive after a 7.6-magnitude earthquake struck Japan's northeast coast overnight.

Japan Indexes and Stocks

The Nikkei 225 Stock Average edged down 0.02% to 50,568.48, and the broader Topix fell 0.1% to 3,382.24. The yield on 10-year Japanese government bonds inched higher to 1.958%, a new 18-year high.

Defense-related stocks, AI-linked semiconductor equipment makers, and financial services providers dominated in trading in Tokyo.

IHI Corp. added 0.1% to ¥3,053.0, Fujikura Ltd. increased 0.3% to ¥18,500.0, and Nintendo Co. Ltd. fell 3.5% to ¥11,895.0.

Tokyo Electron added 1.1% to ¥33,540.0, Advantest Corp. added 0.03% to ¥20,255.0, and Disco Corp. jumped 4.6% to ¥49,670.0.

China Indexes Lacked Momentum Amid a Lack of Investor Enthusiasm

Li Chen
09 Dec, 2025
Hong Kong

Stocks in China and Hong Kong faced another wave of selling amid a lack of enthusiasm from investors.

The Hang Seng Index decreased nearly 1%, and the mainland-focused CSI 300 index eased 0.2% as investors stayed on the sidelines ahead of announcements from the annual economic conference.

Investors dialed down stimulus expectations after a statement from the December Politburo meeting showed a lack of urgency for measures to support economic expansion and few details about policy priorities for 2026.

China's annual Central Economic Work Conference is seen by investors as a platform for policymakers to set next year's economic agenda and set an economic growth target.

Investors expect China's top economic forum to set an annual economic growth target between 4.0% and 4.5%, which is lower than the 5.0% target in 2025.

Foreign investors in Hong Kong avoided adding new stock positions amid uncertainty about the number of U.S. rate cuts in 2026. The U.S. Federal Reserve is widely expected to lower interest rates at the end of its 2-day policy meeting and update economic projections for 2026.

China Indexes and Stocks

The Hang Seng Index decreased 0.8% to 25,549.94, and the mainland-focused CSI 300 index fell 0.2% to 4,615.33.

Chipmakers traded down after the Trump administration allowed Nvidia to export its H200 artificial intelligence chip to China.

SMIC dropped 2.7% to HK $70.10, Xiaomi Corp. fell 2.2% to HK $41.42, Alibaba Group Holding decreased 1.5% to HK $152.70, and Baidu Inc. declined 2.3% to HK $122.90.

Nongfu Spring Co. Ltd. declined 0.5% to HK $46.86, Pop Mart International Group fell 4.4% to HK $192.30, and Mixue Group decreased 1.6% to HK $392.60.

China Indexes Lacked Momentum Amid a Lack of Investor Enthusiasm

Li Chen
09 Dec, 2025
Hong Kong

Stocks in China and Hong Kong faced another wave of selling amid a lack of enthusiasm from investors.

The Hang Seng Index decreased nearly 1%, and the mainland-focused CSI 300 index eased 0.2% as investors stayed on the sidelines ahead of announcements from the annual economic conference.

Investors dialed down stimulus expectations after a statement from the December Politburo meeting showed a lack of urgency for measures to support economic expansion and few details about policy priorities for 2026.

China's annual Central Economic Work Conference is seen by investors as a platform for policymakers to set next year's economic agenda and set an economic growth target.

Investors expect China's top economic forum to set an annual economic growth target between 4.0% and 4.5%, which is lower than the 5.0% target in 2025.

Foreign investors in Hong Kong avoided adding new stock positions amid uncertainty about the number of U.S. rate cuts in 2026. The U.S. Federal Reserve is widely expected to lower interest rates at the end of its 2-day policy meeting and update economic projections for 2026.

China Indexes and Stocks

The Hang Seng Index decreased 0.8% to 25,549.94, and the mainland-focused CSI 300 index fell 0.2% to 4,615.33.

Chipmakers traded down after the Trump administration allowed Nvidia to export its H200 artificial intelligence chip to China.

SMIC dropped 2.7% to HK $70.10, Xiaomi Corp. fell 2.2% to HK $41.42, Alibaba Group Holding decreased 1.5% to HK $152.70, and Baidu Inc. declined 2.3% to HK $122.90.

Nongfu Spring Co. Ltd. declined 0.5% to HK $46.86, Pop Mart International Group fell 4.4% to HK $192.30, and Mixue Group decreased 1.6% to HK $392.60.

U.S. Investors Debated Future Rate Paths Amid Macroeconomic Uncertainties

Barry Adams
08 Dec, 2025
New York City

Wall Street indexes flatlined in Monday's trading, and traders held out for a possible rate cut on Wednesday.

The S&P 500 index and the Nasdaq Composite edged slightly higher, and investors debated the future U.S. rate path amid macroeconomic uncertainties.

The widely followed benchmark indexes advanced for the second week in a row and registered their seventh weekly gain in the last ten weeks.

Stock market indexes have been meandering over the last few sessions, ahead of the Fed's rate decisions on Wednesday.

The Fed's rate-setting committee is widely expected to lower the Fed funds rate range by 25 basis points, overlooking higher-for-longer inflation following the introduction of steep tariffs on imported goods by the Trump administration.

The Federal Reserve is also expected to revise higher its 2026 estimates of jobless rates and inflation at the end of its 2-day policy meeting on December 10.

This Week's Earnings and Economic Calendar

This week less than 100 companies are set to release their quarterly results, and the U.S. federal agencies catch up to release delayed macroeconomic data.

The JOLTs reports for September and October are likely to show job openings around 7.2 million, confirming businesses are reluctant to expand payrolls amid broader economic uncertainties.

September's international trade deficit is expected to widen to $66 billion, amid persistent goods imports from Asia and Europe and energy imports from Canada and the Middle East.

On the earnings front, Adobe, Oracle, Broadcom, Toll Brothers, Casey's General, Designer Brands, Chewy, and Oxford Industries are scheduled to release their quarterly results this week.

China's Goods Trade Surplus Crossed One Trillion in 2025

In Asia, China's exports rose at a faster-than-expected pace in November and jumped 5.9% to $330.3 billion, and imports advanced 1.9% to $218.7 billion.

China's goods trade surplus rose to $1.1 trillion in the first eleven months to November, confirming rising shipments to the non-U.S. markets.

Shipments to the ASEAN region soared 8.2%, to the European Union jumped 14.8%, and to Japan advanced 4.3%, but slumped by 28.6% to the U.S.

U.S. importers pulled forward orders between April and June, ahead of the implementation of steep tariffs, and avoided holiday-period disruptions. However, the shipment growth supported by the front loading appears to have run its course.

Japan's GDP and Wage Data Complicates BoJ's Rate Decisions

Japan's GDP in the third quarter contracted 0.6% from the previous quarter, faster than the 0.4% decline estimated previously.

The economy contracted on a quarterly basis for the first time since the first quarter of 2024, driven by a weakness in business spending growth.

On an annual basis, GDP growth slowed to 1.1% in the third quarter from the 2.0% annual pace in the second quarter.

Japan's real wages declined 0.7% in October and fell for the second consecutive month, according to data released by the Ministry of Health, Labor, and Welfare.

Nominal wages, which include overtime payment, rose 2.6% from a year ago to 300,141 yen and advanced for the 46th month in a row.

Despite the increase, real wages decreased after adjusting for inflation of 3.4% in the month.

U.S. Investors Debated Future Rate Paths Amid Macroeconomic Uncertainty

Barry Adams
08 Dec, 2025
New York City

Wall Street indexes flatlined in Monday's trading, and traders held out for a possible rate cut on Wednesday.

The S&P 500 index and the Nasdaq Composite edged slightly higher, and investors debated the future U.S. rate path amid macroeconomic uncertainties.

The widely followed benchmark indexes advanced for the second week in a row and registered their seventh weekly gain in the last ten weeks.

Stock market indexes have been meandering over the last few sessions, ahead of the Fed's rate decisions on Wednesday.

The Fed's rate-setting committee is widely expected to lower the Fed funds rate range by 25 basis points, overlooking higher-for-longer inflation following the introduction of steep tariffs on imported goods by the Trump administration.

The Federal Reserve is also expected to revise higher its 2026 estimates of jobless rates and inflation at the end of its 2-day policy meeting on December 10.

This Week's Earnings and Economic Calendar

This week less than 100 companies are set to release their quarterly results, and the U.S. federal agencies catch up to release delayed macroeconomic data.

The JOLTs reports for September and October are likely to show job openings around 7.2 million, confirming businesses are reluctant to expand payrolls amid broader economic uncertainties.

September's international trade deficit is expected to widen to $66 billion, amid persistent goods imports from Asia and Europe and energy imports from Canada and the Middle East.

On the earnings front, Adobe, Oracle, Broadcom, Toll Brothers, Casey's General, Designer Brands, Chewy, and Oxford Industries are scheduled to release their quarterly results this week.

China's Goods Trade Surplus Crossed One Trillion in 2025

In Asia, China's exports rose at a faster-than-expected pace in November and jumped 5.9% to $330.3 billion, and imports advanced 1.9% to $218.7 billion.

China's goods trade surplus rose to $1.1 trillion in the first eleven months to November, confirming rising shipments to the non-U.S. markets.

Shipments to the ASEAN region soared 8.2%, to the European Union jumped 14.8%, and to Japan advanced 4.3%, but slumped by 28.6% to the U.S.

U.S. importers pulled forward orders between April and June, ahead of the implementation of steep tariffs, and avoided holiday-period disruptions. However, the shipment growth supported by the front loading appears to have run its course.

Japan's GDP and Wage Data Complicates BoJ's Rate Decisions

Japan's GDP in the third quarter contracted 0.6% from the previous quarter, faster than the 0.4% decline estimated previously.

The economy contracted on a quarterly basis for the first time since the first quarter of 2024, driven by a weakness in business spending growth.

On an annual basis, GDP growth slowed to 1.1% in the third quarter from the 2.0% annual pace in the second quarter.

Japan's real wages declined 0.7% in October and fell for the second consecutive month, according to data released by the Ministry of Health, Labor, and Welfare.

Nominal wages, which include overtime payment, rose 2.6% from a year ago to 300,141 yen and advanced for the 46th month in a row.

Despite the increase, real wages decreased after adjusting for inflation of 3.4% in the month.

Japan's Nominal Wages Advanced In October, Third Quarter GDP Contraction Deeper Than Previously Estimated

Akira Ito
08 Dec, 2025
Tokyo

Stocks in Japan lacked direction in Monday's trading, and investors reviewed the latest economic updates.

The Nikkei 225 Stock Average decreased a fraction, and the broader Topix inched higher 0.6%.

Caution returned in Tokyo's trading as investors debated the future U.S. rate path amid growing uncertainty about the nation's monetary policy.

The U.S. Federal Reserve is scheduled to announce its rate decisions on Wednesday, and investors are hoping that policymakers will deliver a 25 basis-point rate cut, overlooking resurgent inflationary forces.

Moreover, China's goods exports rose at a faster-than-expected pace in November, driven by a surge in shipments to the ASEAN region and the European Union.

China's goods trade surplus rose to $1.1 trillion in the first eleven months to November, confirming rising shipments to the non-U.S. markets.

Japan's Third Quarter GDP Contraction Deeper Than Previously Estimated

Closer to home, Japan's GDP in the third quarter contracted 0.6% from the previous quarter, faster than the 0.4% decline estimated previously.

The economy contracted on a quarterly basis for the first time since the first quarter of 2024, driven by a weakness in business spending growth.

On an annual basis, GDP growth slowed to 1.1% in the third quarter from the 2.0% annual pace in the second quarter.

Japan's Real Wages Declined in October

Japan's real wages declined 0.7% in October and fell for the second consecutive month, according to data released by the Ministry of Health, Labor, and Welfare.

Nominal wages, which include overtime payment, rose 2.6% from a year ago to 300,141 yen and advanced for the 46th month in a row.

Despite the increase, real wages decreased after adjusting for inflation of 3.4% in the month.

The Bank of Japan pays close attention to wage trends, as 50% of consumer spending accounts for Japan's economic activities.

Japan Indexes and Stocks

The Nikkei 225 Stock Average increased 0.1% to 50,517.40, and the broader Topix inched higher 0.6% to 3,383.74.

Technology stocks turned lower amid rising geopolitical tensions after Japan said a Chinese fighter jet locked fire-control radar on Japanese military jets.

Softbank Group decreased 3.3% to ¥18,655.0, Tokyo Electron inched up 0.01% to ¥33,160.0, and Advantest Corp. edged up 0.2% to ¥20,250.0.

Japan's Nominal Wages Advanced In October, Third Quarter GDP Contraction Deeper Than Previously Estimated

Akira Ito
08 Dec, 2025
Tokyo

Stocks in Japan lacked direction in Monday's trading, and investors reviewed the latest economic updates.

The Nikkei 225 Stock Average decreased a fraction, and the broader Topix inched higher 0.6%.

Caution returned in Tokyo's trading as investors debated the future U.S. rate path amid growing uncertainty about the nation's monetary policy.

The U.S. Federal Reserve is scheduled to announce its rate decisions on Wednesday, and investors are hoping that policymakers will deliver a 25 basis-point rate cut, overlooking resurgent inflationary forces.

Moreover, China's goods exports rose at a faster-than-expected pace in November, driven by a surge in shipments to the ASEAN region and the European Union.

China's goods trade surplus rose to $1.1 trillion in the first eleven months to November, confirming rising shipments to the non-U.S. markets.

Japan's Third Quarter GDP Contraction Deeper Than Previously Estimated

Closer to home, Japan's GDP in the third quarter contracted 0.6% from the previous quarter, faster than the 0.4% decline estimated previously.

The economy contracted on a quarterly basis for the first time since the first quarter of 2024, driven by a weakness in business spending growth.

On an annual basis, GDP growth slowed to 1.1% in the third quarter from the 2.0% annual pace in the second quarter.

Japan's Real Wages Declined in October

Japan's real wages declined 0.7% in October and fell for the second consecutive month, according to data released by the Ministry of Health, Labor, and Welfare.

Nominal wages, which include overtime payment, rose 2.6% from a year ago to 300,141 yen and advanced for the 46th month in a row.

Despite the increase, real wages decreased after adjusting for inflation of 3.4% in the month.

The Bank of Japan pays close attention to wage trends, as 50% of consumer spending accounts for Japan's economic activities.

Japan Indexes and Stocks

The Nikkei 225 Stock Average increased 0.1% to 50,517.40, and the broader Topix inched higher 0.6% to 3,383.74.

Technology stocks turned lower amid rising geopolitical tensions after Japan said a Chinese fighter jet locked fire-control radar on Japanese military jets.

Softbank Group decreased 3.3% to ¥18,655.0, Tokyo Electron inched up 0.01% to ¥33,160.0, and Advantest Corp. edged up 0.2% to ¥20,250.0.

China's Goods Trade Surplus Surpassed $1 Trillion as Exports Returned to Growth

Li Chen
08 Dec, 2025
Hong Kong

Stock market indexes in China and Hong Kong diverged, and investors awaited signals on 2026 economic priorities from top policymakers.

The Hang Seng Index declined 1%, and the mainland-focused CSI 300 index increased 1.1% amid cautious market sentiment at the start of a new week.

Broader markets in China and Hong Kong struggled to advance last week and traded sideways as investors debated the U.S. rate path and possible stimulus measures focusing on consumption, technology, and the residential property market in China.

China's Central Economic Work Conference, chaired by President Xi Jinping, is an annual platform where policymakers announce social and economic priorities for the next year.

President Xi is expected to announce policy outlines and economic goals for the 15th five-year plan ending in 2030, as the world's second-largest economy battles slowing economic growth, persistent weakness in the residential property market, and weakening consumer spending growth.

China's Goods Exports Growth Rebounded In November, ASEAN Shipments Surged 8%.

China's exports rose at a faster-than-expected pace in November, and the trade surplus soared to $1 trillion for the first time.

Exports advanced 5.9% to $330.3 billion in November, reversing a 1.1% decline from the previous month, as exports to non-U.S. markets continued to rise.

Shipments to the ASEAN region soared 8.2%, to the European Union jumped 14.8%, and to Japan advanced 4.3%, but slumped by 28.6% to the U.S.

U.S. importers pulled forward orders between April and June, ahead of the implementation of steep tariffs, and avoided holiday-period disruptions. However, the shipment growth supported by the front loading appears to have run its course.

Imports increased to $218.7 billion, an annual increase of 1.9% compared to 1% in the previous month.

The international goods trade surplus expanded to $111.7 billion from $90.1 billion, as weakening prices of crude oil dampened the overall imports bill.

In the first eleven months to November, China's goods exports increased 5.4% to $3.4 trillion, driving the trade surplus to $1.1 billion.

China Indexes and Stocks

The Hang Seng Index declined 1% to 25,797.95, and the CSI 300 index advanced 1% to 4,632.29.

Suzhou Novosense Microelectronics plunged more than 7.5% to HK $108.10, and the company listed its stock on the Hong Kong Stock Exchange.

The fabless designer of advanced chips for automotive and industrial applications priced its initial public offering at HK $116.0 per share, sold 19.1 million shares, and raised gross proceeds of HK $2.2 billion.

Shanghai Able Digital Science & Tech soared 29% to HK $86.30, and the company completed its initial public offering in Hong Kong.

The educational content and services provider priced its offering at HK $67.50 per share, sold 6.7 million shares, and raised gross proceeds of HK $450 million.

China's Goods Trade Surplus Surpassed $1 Trillion as Exports Returned to Growth

Li Chen
08 Dec, 2025
Hong Kong

Stock market indexes in China and Hong Kong diverged, and investors awaited signals on 2026 economic priorities from top policymakers.

The Hang Seng Index declined 1%, and the mainland-focused CSI 300 index increased 1.1% amid cautious market sentiment at the start of a new week.

Broader markets in China and Hong Kong struggled to advance last week and traded sideways as investors debated the U.S. rate path and possible stimulus measures focusing on consumption, technology, and the residential property market in China.

China's Central Economic Work Conference, chaired by President Xi Jinping, is an annual platform where policymakers announce social and economic priorities for the next year.

President Xi is expected to announce policy outlines and economic goals for the 15th five-year plan ending in 2030, as the world's second-largest economy battles slowing economic growth, persistent weakness in the residential property market, and weakening consumer spending growth.

China's Goods Exports Growth Rebounded In November, ASEAN Shipments Surged 8%.

China's exports rose at a faster-than-expected pace in November, and the trade surplus soared to $1 trillion for the first time.

Exports advanced 5.9% to $330.3 billion in November, reversing a 1.1% decline from the previous month, as exports to non-U.S. markets continued to rise.

Shipments to the ASEAN region soared 8.2%, to the European Union jumped 14.8%, and to Japan advanced 4.3%, but slumped by 28.6% to the U.S.

U.S. importers pulled forward orders between April and June, ahead of the implementation of steep tariffs, and avoided holiday-period disruptions. However, the shipment growth supported by the front loading appears to have run its course.

Imports increased to $218.7 billion, an annual increase of 1.9% compared to 1% in the previous month.

The international goods trade surplus expanded to $111.7 billion from $90.1 billion, as weakening prices of crude oil dampened the overall imports bill.

In the first eleven months to November, China's goods exports increased 5.4% to $3.4 trillion, driving the trade surplus to $1.1 billion.

China Indexes and Stocks

The Hang Seng Index declined 1% to 25,797.95, and the CSI 300 index advanced 1% to 4,632.29.

Suzhou Novosense Microelectronics plunged more than 7.5% to HK $108.10, and the company listed its stock on the Hong Kong Stock Exchange.

The fabless designer of advanced chips for automotive and industrial applications priced its initial public offering at HK $116.0 per share, sold 19.1 million shares, and raised gross proceeds of HK $2.2 billion.

Shanghai Able Digital Science & Tech soared 29% to HK $86.30, and the company completed its initial public offering in Hong Kong.

The educational content and services provider priced its offering at HK $67.50 per share, sold 6.7 million shares, and raised gross proceeds of HK $450 million.

U.S. Movers: Hewlett Packard Enterprise, SoFi Technologies, Ulta Beauty

Scott Peters
05 Dec, 2025
New York City

Ulta Beauty soared 5.6% to $564.03 after the beauty salon operator and cosmetic retailer reported better-than-expected fiscal third-quarter results.

Revenue increased 12.9% to $2.9 billion from $2.5 billion, net income decreased to $230.8 million from $242.2 million, and diluted earnings per share was steady at $5.14.

Comparable sales, which include online sales, increased 6.3% compared to 0.6% from a year ago, driven by a 3.8% rise in average ticket price and a 2.4% increase in transactions.

During the fiscal third quarter ending on November 1, the beauty retailer repurchased 426,914 shares of its common stock at a cost of $224.7 million.

During the first nine months of fiscal 2025, the company repurchased 1.7 million shares of its common stock at a cost of $693.0 million, and as of November 1, $2.0 billion remained available under the $3.0 billion share repurchase program announced in October 2024.

The company revised its fiscal 2025 sales guidance to $12.3 billion from the previously estimated range between $12.0 billion and $12.1 billion. The comparable sales estimate was revised higher to between 4.4% and 4.7% from the previous estimated range of 2.5% to 3.5%.

Ulta Beauty revised the higher diluted earnings per share range in fiscal 2025 to between $25.20 and $25.50, from the previous estimate of between $23.85 and $24.30.

SoFi Technologies dropped 7% to $27.4, and the company announced its plans to raise $1.5 billion through a common stock offering.

Hewlett Packard Enterprise plunged 9.4% to $20.75 after the cloud computing company's fiscal fourth-quarter results fell short of market expectations.

Revenue increased 14% to $9.7 billion from $7.8 billion, net income dropped to $146 million from $1.3 billion, and diluted earnings per share fell to 11 cents from 99 cents a year ago.

The HPE Board of Directors declared a regular cash dividend of $0.1425 per share, payable on January 16, 2026, to stockholders of record as of the close of December 19, 2025.

HPE estimated fiscal 2026 first quarter revenue to be in the range of $9 billion to $9.4 billion, diluted earnings per share to be in the range of $0.09 to $0.13, and adjusted diluted earnings per share to be in the range of $0.57 to $0.61.