Market Update
Japan's Real Household Spending Declined for the Seventh Consecutive Month, Intervention Data In Focus
Akira Ito
07 Aug, 2026
Tokyo
Japan's indexes traded down for the second consecutive session on Friday amid persistent worries over the artificial intelligence trade.
The Nikkei 225 Stock Average edged down 0.5%, the broader TOPIX inched higher by 0.3%, and the yen weakened to 158.39 against the U.S. dollar.
The renewed violence in the Middle East stoked worries of prolonged disruptions in energy products through the Red Sea and the Strait of Hormuz.
The Brent crude oil price increased 1.8% to $83.92 per barrel after Houthi rebels stepped up their attacks targeting Saudi shipments in the Red Sea.
The Japanese yen resumed its downward slide despite threats of verbal interventions from the Japanese authorities, as currency traders focused on structural impediments and the lagging response from the Bank of Japan in adjusting interest rates.
Japanese authorities spent a single-day record 6.28 trillion yen on April 30 to prop up the yen, according to the latest data released by the Ministry of Finance on Friday.
The authorities carried out two additional maneuvers in the week, driving the currency from the 163 level to the 155 level in a span of three days.
Japan spent 11.73 trillion yen between April 28 and May 27, confirming the intervention efforts for the first time since 2024.
The recent decline in the yen prompted another market intervention, coordinated with the U.S. Treasury, by the Japanese authorities during operating hours in New York on July 31.
Japan's real household spending declined for the seventh consecutive month in June, partly because of difficult weather conditions.
The average monthly income of two or more salaried households increased, inflation-adjusted, 2.0% to 1.02 million yen or $64,441.00, according to the government data.
A household of two or more spent an average of 290,886 yen, or $1,840, a decline of 3.3% from a year ago after adjusting for inflation, the Ministry of Internal Affairs and Communications said on Friday.
Spending on food and beverages dropped 2.5% from a year ago, driven by a fall in tea and sports drinks due to lower temperatures than a year ago.
Spending for restaurant dining decreased 2.9% from a year ago due to poor weather conditions and one fewer Sunday than a year earlier.
Spending on transportation and communication dropped 5.7% from a year ago, partly because of lower air and rail fares.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 0.5% to 65,326.90, and the broader TOPIX added 0.3% to 4,069.50.
For the week the Nikkei 225 stock average advanced 3.3%, and the TOPIX gained 3.2%.
Softbank dropped as much as 6% before recovering to a decline of 2% to ¥5,569.0, despite reporting stronger-than-expected results in the June quarter.
The technology investing company's holdings in Intel delivered gains, which overshadowed the weakness in the UK-based Arm Holdings PLC.
Net sales rose 10% to 2.08 trillion yen from 1.82 trillion yen, comprehensive net income swung to a profit of 988.5 billion yen from a loss of 96.7 billion yen, and diluted earnings per share edged lower to 59.85 yen from 72.82 a year ago.
Japan's Real Household Spending Declined for the Seventh Consecutive Month, Intervention Data In Focus
Akira Ito
07 Aug, 2026
Tokyo
Japan's indexes traded down for the second consecutive session on Friday amid persistent worries over the artificial intelligence trade.
The Nikkei 225 Stock Average edged down 0.5%, the broader TOPIX inched higher by 0.3%, and the yen weakened to 158.39 against the U.S. dollar.
The renewed violence in the Middle East stoked worries of prolonged disruptions in energy products through the Red Sea and the Strait of Hormuz.
The Brent crude oil price increased 1.8% to $83.92 per barrel after Houthi rebels stepped up their attacks targeting Saudi shipments in the Red Sea.
The Japanese yen resumed its downward slide despite threats of verbal interventions from the Japanese authorities, as currency traders focused on structural impediments and the lagging response from the Bank of Japan in adjusting interest rates.
Japanese authorities spent a single-day record 6.28 trillion yen on April 30 to prop up the yen, according to the latest data released by the Ministry of Finance on Friday.
The authorities carried out two additional maneuvers in the week, driving the currency from the 163 level to the 155 level in a span of three days.
Japan spent 11.73 trillion yen between April 28 and May 27, confirming the intervention efforts for the first time since 2024.
The recent decline in the yen prompted another market intervention, coordinated with the U.S. Treasury, by the Japanese authorities during operating hours in New York on July 31.
Japan's real household spending declined for the seventh consecutive month in June, partly because of difficult weather conditions.
The average monthly income of two or more salaried households increased, inflation-adjusted, 2.0% to 1.02 million yen or $64,441.00, according to the government data.
A household of two or more spent an average of 290,886 yen, or $1,840, a decline of 3.3% from a year ago after adjusting for inflation, the Ministry of Internal Affairs and Communications said on Friday.
Spending on food and beverages dropped 2.5% from a year ago, driven by a fall in tea and sports drinks due to lower temperatures than a year ago.
Spending for restaurant dining decreased 2.9% from a year ago due to poor weather conditions and one fewer Sunday than a year earlier.
Spending on transportation and communication dropped 5.7% from a year ago, partly because of lower air and rail fares.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 0.5% to 65,326.90, and the broader TOPIX added 0.3% to 4,069.50.
For the week the Nikkei 225 stock average advanced 3.3%, and the TOPIX gained 3.2%.
Softbank dropped as much as 6% before recovering to a decline of 2% to ¥5,569.0, despite reporting stronger-than-expected results in the June quarter.
The technology investing company's holdings in Intel delivered gains, which overshadowed the weakness in the UK-based Arm Holdings PLC.
Net sales rose 10% to 2.08 trillion yen from 1.82 trillion yen, comprehensive net income swung to a profit of 988.5 billion yen from a loss of 96.7 billion yen, and diluted earnings per share edged lower to 59.85 yen from 72.82 a year ago.
China's Exports Growth Defies Geopolitical Tensions and Trade Headwinds
Li Chen
07 Aug, 2026
Hong Kong
Stocks across exchanges in China advanced in Friday's trading as investors reviewed the latest international trade data.
The Hang Seng index increased 0.01% and the mainland-focused CSI 300 Index 0.8% as investors debated possible policy support for stocks.
China's Exports, Imports and Trade Surplus Expanded In July
China's exports continued to expand at a solid pace in July, keeping the recent momentum despite geopolitical uncertainties and increasing trade headwinds.
Exports soared 23.9% to $397.9 billion, imports advanced 27.5% to $285.6 billion, and the trade surplus widened to $112.5 billion from $97.7 billion a year ago, respectively.
However, trade surplus eased from $125.6 billion in June amid higher cost of energy products.
The global race to build artificial intelligence infrastructure and the rise in demand for renewable energy products sustained the momentum for shipments, said the Customs Bureau.
Exports to the ASEAN region soared 38.3% and to the European Union advanced 16%.
Direct shipments to the U.S. surged 17%, largely because of the demand for electronic components and electrical subsystems used by data centers.
China's trade surplus with the U.S. slightly declined to $28.03 billion from $228.9 billion in June.
In the first seven months to July, China's trade surplus edged up to $687.5 billion from $683.5 billion a year ago, and exports advanced 18.5%, while imports soared 26.7% in the period, respectively.
China Indexes and Stocks
The Hang Seng Index increased 0.01% to 25,532.36, and the mainland-focused CSI 300 Index advanced 0.8% to 4,689.96.
For the week, the Hang Seng Index decreased 1.6%, and the CSI 300 Index advanced 2.8%.
Banks and financial services providers led decliners in Shanghai and Hong Kong, and residential property developers lacked direction.
ICBC fell 0.9%, China Construction Bank decreased 1.3%, and Agriculture Bank of China eased 0.9%.
Eoptolink Technology jumped 4.4% to ¥440.23, Zhongji Innolight edged up 2.6% to ¥977.45, and NAURA Technology increased 0.9% to ¥749.02.
China's Exports Growth Defies Geopolitical Tensions and Trade Headwinds
Li Chen
07 Aug, 2026
Hong Kong
Stocks across exchanges in China advanced in Friday's trading as investors reviewed the latest international trade data.
The Hang Seng index increased 0.01% and the mainland-focused CSI 300 Index 0.8% as investors debated possible policy support for stocks.
China's Exports, Imports and Trade Surplus Expanded In July
China's exports continued to expand at a solid pace in July, keeping the recent momentum despite geopolitical uncertainties and increasing trade headwinds.
Exports soared 23.9% to $397.9 billion, imports advanced 27.5% to $285.6 billion, and the trade surplus widened to $112.5 billion from $97.7 billion a year ago, respectively.
However, trade surplus eased from $125.6 billion in June amid higher cost of energy products.
The global race to build artificial intelligence infrastructure and the rise in demand for renewable energy products sustained the momentum for shipments, said the Customs Bureau.
Exports to the ASEAN region soared 38.3% and to the European Union advanced 16%.
Direct shipments to the U.S. surged 17%, largely because of the demand for electronic components and electrical subsystems used by data centers.
China's trade surplus with the U.S. slightly declined to $28.03 billion from $228.9 billion in June.
In the first seven months to July, China's trade surplus edged up to $687.5 billion from $683.5 billion a year ago, and exports advanced 18.5%, while imports soared 26.7% in the period, respectively.
China Indexes and Stocks
The Hang Seng Index increased 0.01% to 25,532.36, and the mainland-focused CSI 300 Index advanced 0.8% to 4,689.96.
For the week, the Hang Seng Index decreased 1.6%, and the CSI 300 Index advanced 2.8%.
Banks and financial services providers led decliners in Shanghai and Hong Kong, and residential property developers lacked direction.
ICBC fell 0.9%, China Construction Bank decreased 1.3%, and Agriculture Bank of China eased 0.9%.
Eoptolink Technology jumped 4.4% to ¥440.23, Zhongji Innolight edged up 2.6% to ¥977.45, and NAURA Technology increased 0.9% to ¥749.02.
Mixed Trading on Wall Street as Mid-East Tensions, Earnings Results and SpaceX Lock-Up Expiry Weighed
Barry Adams
06 Aug, 2026
New York City
Stocks in New York edged higher a day after benchmark indexes closed down as investors took profit in high-flying AI-related stocks.
The S&P 500 Index increased 0.2%, and the tech-heavy Nasdaq Composite advanced 0.4% as investors reviewed the latest batch of earnings.
SanDisk Corp., Western Digital, Figma Corp., SoftBank Group, SpaceX, Honeywell Aerospace, and Restaurants Brands International were in focus after the release of their quarterly results.
The West Texas Intermediate crude oil price increased 0.9% to $79.91 a barrel after Iran and Oman signaled an understanding to pause attacks in the Strait of Hormuz.
The temporary signs of easing tensions in the Middle East, improved investor sentiment, and extended recent cooling of crude oil.
Investors are looking ahead to the release of July's nonfarm payrolls data on Friday, and the U.S. economy is likely to slow net new hirings to close to 40,000.
U.S. Movers
SpaceX increased 1.5% to $109.98 as the lock-up expiry kicks in for 900 million shares.
The first tranche of stocks held by insiders is set to expire on Thursday, allowing the market to understand how the stock performs with the newly available shares for trading.
SanDisk Corp. dropped 10% to $1,222.45 after the company's muted guidance for the current quarter disappointed investors.
Revenue in the fiscal fourth quarter ending in June jumped to $8.9 billion from $1.9 billion, net income swung to a profit of $6.9 billion from a loss of $23 million, and diluted earnings per share were $43.97 compared to a loss of 16 cents a year ago.
For the fiscal year 2026, revenue jumped 175% to $20.25 billion from $7.4 billion, net income soared to $11.4 billion from a loss of $1.6 billion, and diluted earnings per share advanced to $73.76 from a loss of $11.32 a year ago.
Higher pricing, a mix shift to higher-value customers, and more than a fourfold increase in demand from data centers powered the revenue surge.
The company guided fiscal first quarter 2027 revenue in the range between $10.30 billion and $10.80, and adjusted diluted earnings per share to range between $44.0 and $46.0.
Western Digital Corp. dropped 15.8% to $436.80 after the data storage company's current quarter slightly exceeded investors' lofty expectations, despite delivering solid quarterly results.
Revenue in the fiscal fourth quarter ending in June increased 44% to $3.7 billion from $2.6 billion, net income soared twelve fold to $3.2 billion from $243 million, and diluted earnings per share advanced to $8.21 from 67 cents a year ago.
The company guided fiscal first quarter 2027 revenue of $4.1 billion, non-GAAP gross margin of 55%, and non-GAAP diluted earning per share of $4.0.
Mixed Trading on Wall Street as Mid-East Tensions, Earnings Results and SpaceX Lock-Up Expiry Weighed
Barry Adams
06 Aug, 2026
New York City
Stocks in New York edged higher a day after benchmark indexes closed down as investors took profit in high-flying AI-related stocks.
The S&P 500 Index increased 0.2%, and the tech-heavy Nasdaq Composite advanced 0.4% as investors reviewed the latest batch of earnings.
SanDisk Corp., Western Digital, Figma Corp., SoftBank Group, SpaceX, Honeywell Aerospace, and Restaurants Brands International were in focus after the release of their quarterly results.
The West Texas Intermediate crude oil price increased 0.9% to $79.91 a barrel after Iran and Oman signaled an understanding to pause attacks in the Strait of Hormuz.
The temporary signs of easing tensions in the Middle East, improved investor sentiment, and extended recent cooling of crude oil.
Investors are looking ahead to the release of July's nonfarm payrolls data on Friday, and the U.S. economy is likely to slow net new hirings to close to 40,000.
U.S. Movers
SpaceX increased 1.5% to $109.98 as the lock-up expiry kicks in for 900 million shares.
The first tranche of stocks held by insiders is set to expire on Thursday, allowing the market to understand how the stock performs with the newly available shares for trading.
SanDisk Corp. dropped 10% to $1,222.45 after the company's muted guidance for the current quarter disappointed investors.
Revenue in the fiscal fourth quarter ending in June jumped to $8.9 billion from $1.9 billion, net income swung to a profit of $6.9 billion from a loss of $23 million, and diluted earnings per share were $43.97 compared to a loss of 16 cents a year ago.
For the fiscal year 2026, revenue jumped 175% to $20.25 billion from $7.4 billion, net income soared to $11.4 billion from a loss of $1.6 billion, and diluted earnings per share advanced to $73.76 from a loss of $11.32 a year ago.
Higher pricing, a mix shift to higher-value customers, and more than a fourfold increase in demand from data centers powered the revenue surge.
The company guided fiscal first quarter 2027 revenue in the range between $10.30 billion and $10.80, and adjusted diluted earnings per share to range between $44.0 and $46.0.
Western Digital Corp. dropped 15.8% to $436.80 after the data storage company's current quarter slightly exceeded investors' lofty expectations, despite delivering solid quarterly results.
Revenue in the fiscal fourth quarter ending in June increased 44% to $3.7 billion from $2.6 billion, net income soared twelve fold to $3.2 billion from $243 million, and diluted earnings per share advanced to $8.21 from 67 cents a year ago.
The company guided fiscal first quarter 2027 revenue of $4.1 billion, non-GAAP gross margin of 55%, and non-GAAP diluted earning per share of $4.0.
Japan Stock Rally Halted Amid AI Valuation and Yen Level Worries
Akira Ito
06 Aug, 2026
Tokyo
Japan's indexes reversed the previous session's gains as weakness on Wall Street weighed on market sentiment and semiconductor- and AI-related stocks scaled back.
The Nikkei 225 Stock Average decreased more than 1%, and the broader TOPIX inched lower, and the yen weakened to 157.78 against the U.S. dollar.
Japanese exporters tied to the global AI infrastructure boom posted steep losses after rebounding from the previous month's lows.
The price of Brent crude oil decreased by 0.4% to $79.14 a barrel after Iran and Oman struck an understanding to partially open the Strait of Hormuz and halt strikes in the Red Sea targeting Saudi tankers.
Japan's economy is heavily dependent on imported energy products from the Middle East, and lower crude oil prices lessens the pressure on the Bank of Japan to raise rates.
The Japanese yen hovered near the 157 level against the U.S. dollar, as the joint Japan-U.S. intervention strengthened the currency 5% over the four previous trading sessions.
The joint intervention staved off additional declines in the currency, but it came at the cost of at least $30 billion.
Despite the latest efforts by the Ministry of Finance and the Bank of Japan, the yen is likely to resume its slide and stabilize near the 168 level as the interest rate differential with the U.S. and the growing fiscal deficit weigh on it.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 1.2% to 65,549.88, and the broader TOPIX edged down 0.1% to 4,043.15.
Kioxia Holdings decreased 8.4% to ¥49,740.0, Taiyo Yuden dropped 10.8% to ¥9,959.0; Murata Manufacturing declined 3.6% to ¥7,542.0, and Ibiden Co. Ltd fell 5.1% to ¥19,305.0.
Fast Retailing Co. Ltd increased 1.9%; Aeon Co. Ltd advanced 1.4% to ¥1,341.0, Takashimaya Co. Ltd gained 2.4% to ¥2,300.0, and Seven and I Holdings edged up 2.2% to ¥2,032.50.
Japan Stock Rally Halted Amid AI Valuation and Yen Level Worries
Akira Ito
06 Aug, 2026
Tokyo
Japan's indexes reversed the previous session's gains as weakness on Wall Street weighed on market sentiment and semiconductor- and AI-related stocks scaled back.
The Nikkei 225 Stock Average decreased more than 1%, and the broader TOPIX inched lower, and the yen weakened to 157.78 against the U.S. dollar.
Japanese exporters tied to the global AI infrastructure boom posted steep losses after rebounding from the previous month's lows.
The price of Brent crude oil decreased by 0.4% to $79.14 a barrel after Iran and Oman struck an understanding to partially open the Strait of Hormuz and halt strikes in the Red Sea targeting Saudi tankers.
Japan's economy is heavily dependent on imported energy products from the Middle East, and lower crude oil prices lessens the pressure on the Bank of Japan to raise rates.
The Japanese yen hovered near the 157 level against the U.S. dollar, as the joint Japan-U.S. intervention strengthened the currency 5% over the four previous trading sessions.
The joint intervention staved off additional declines in the currency, but it came at the cost of at least $30 billion.
Despite the latest efforts by the Ministry of Finance and the Bank of Japan, the yen is likely to resume its slide and stabilize near the 168 level as the interest rate differential with the U.S. and the growing fiscal deficit weigh on it.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 1.2% to 65,549.88, and the broader TOPIX edged down 0.1% to 4,043.15.
Kioxia Holdings decreased 8.4% to ¥49,740.0, Taiyo Yuden dropped 10.8% to ¥9,959.0; Murata Manufacturing declined 3.6% to ¥7,542.0, and Ibiden Co. Ltd fell 5.1% to ¥19,305.0.
Fast Retailing Co. Ltd increased 1.9%; Aeon Co. Ltd advanced 1.4% to ¥1,341.0, Takashimaya Co. Ltd gained 2.4% to ¥2,300.0, and Seven and I Holdings edged up 2.2% to ¥2,032.50.
China's Indexes Traded Down After AI-Trade Lost Momentum
Li Chen
06 Aug, 2026
Hong Kong
China's stocks turned lower and halted a two-day advance as a rally in technology and semiconductor stocks lost momentum.
The Hang Seng Index decreased nearly 2%, and the mainland-focused CSI 300 Index declined 0.4% as investors booked profit and reassessed valuations as AI-related stocks rebounded sharply from the last month's lows.
Electronic and computer component makers led decliners in Shanghai and Hong Kong, tracking declines in overnight trading in New York.
The price of Brent crude oil decreased by 0.4% to $79.14 a barrel after Iran and Oman struck an understanding to halt strikes in the Red Sea targeting Saudi tankers.
Investors are awaiting the release of international trade data and inflation updates later this week, and resilient exports are likely to advance more than 10% in July.
China Indexes and Stocks
The Hang Seng Index decreased 1.8% to 25,463.51, and the mainland-focused CSI 300 Index dropped 0.4% to 4,637.89.
SMIC, Eoptolink Technology, NAURA Technology, Zhongji Innolight, and Hygon Information Technology fell between 2% and 5%.
China's Indexes Traded Down After AI-Trade Lost Momentum
Li Chen
06 Aug, 2026
Hong Kong
China's stocks turned lower and halted a two-day advance as a rally in technology and semiconductor stocks lost momentum.
The Hang Seng Index decreased nearly 2%, and the mainland-focused CSI 300 Index declined 0.4% as investors booked profit and reassessed valuations as AI-related stocks rebounded sharply from the last month's lows.
Electronic and computer component makers led decliners in Shanghai and Hong Kong, tracking declines in overnight trading in New York.
The price of Brent crude oil decreased by 0.4% to $79.14 a barrel after Iran and Oman struck an understanding to halt strikes in the Red Sea targeting Saudi tankers.
Investors are awaiting the release of international trade data and inflation updates later this week, and resilient exports are likely to advance more than 10% in July.
China Indexes and Stocks
The Hang Seng Index decreased 1.8% to 25,463.51, and the mainland-focused CSI 300 Index dropped 0.4% to 4,637.89.
SMIC, Eoptolink Technology, NAURA Technology, Zhongji Innolight, and Hygon Information Technology fell between 2% and 5%.
Wall Street Rally Extended Gains Amid Improving Sentiment and Solid Earnings
Barry Adams
05 Aug, 2026
New York City
U.S. stocks advanced on Wednesday and extended gains from the previous three sessions.
The S&P 500 Index increased 0.2%, and the tech-heavy Nasdaq Composite advanced 0.4% as investors reviewed the latest batch of earnings.
In Tuesday's trading, the S&P500 index increased 1.8%, and the tech-focused Nasdaq Composite advanced 2.6% as global risk sentiment improved.
The West Texas Intermediate crude oil price increased 0.3% to $76 a barrel, and the Brent crude oil price advanced 0.7% to $79.81 a barrel amid renewed worries of violence in the Red Sea.
Investor sentiment stayed positive following the release of earnings from Arista Networks, AMD, SpaceX, Eli Lilly, and Merck.
SpaceX reported better-than-expected revenue in the second quarter, and losses narrowed, but the massive surge in artificial intelligence infrastructure investment rattled investors.
U.S. private businesses expanded payrolls at a slower pace in July, according to the monthly report released by ADP.
Private businesses added 44,000 net new jobs in July, following a downwardly revised 95,000 increase in June. The service sector added 47,000, the manufacturing sector expanded by 2,000, the construction sector added 1,000, and the mining sector shed 6,000.
U.S. Movers
Arista Networks increased 12.6% to $214.52 after the data networking equipment company reported better-than-expected second quarter results.
Total revenue increased 38% to $3.3 billion from $2.0 billion, net income advanced to $1.2 billion from $888 million, and diluted earnings per share rose to 95 cents from 70 cents a year ago.
The company guided third-quarter revenue to $3.3 billion, adjusted operating margin to be between 48% and 49%, and adjusted diluted earnings per share to range between $1.06 and $1.08.
AMD declined 8.5% to $474.45 after the advanced semiconductor company's second quarter results fell short of market expectations.
Revenue soared 50% to $11.5 billion from $7.7 billion, net income surged 163% to $2.3 billion from $872 million, and diluted earnings per share increased 156% to $1.66 from 48 cents a year ago.
The continued investment in data centers supported the business momentum in the latest quarter.
Data center segment revenue soared 107% to $6.7 billion, client and gaming segment revenue increased 6% to $3.8 billion, and embedded segment revenue jumped 19% to $977 million.
Chief Financial Officer Jean Hu highlighted that data center growth powered the performance, representing 58% of total revenue, and projected further sales acceleration in the second half of the year.
AMD expects third-quarter 2026 revenue to be approximately $13 billion, give or take $300 million. While the midpoint beats Wall Street's average consensus of roughly $12.5 billion, some investor expectations had priced in even higher outcomes, leading to a muted market reaction.
The midpoint of the revenue range represents a 41% increase in revenue from a year ago and a sequential increase of 13% and a non-GAAP gross margin of 56%.
SpaceX decreased 10.8% to $111.76 after the recently listed rocket launch and connectivity company released its second quarter results.
The stock plunged after the massive surge in capital expenditures to $18.4 billion from $2.8 billion, driven by AI infrastructure investments, rattled investors.
Total revenue jumped to $7.8 billion from $4.1 billion, net loss shrank to $541 million from $1.0 billion, and diluted loss per share eased to 9 cents from 34 cents a year ago.