Market Update
Japan Indexes Extended 3-Day Rally, Sony and Toyota Motor In Focus
Akira Ito
07 Aug, 2025
Tokyo
Japan's stock market indexes advanced for the third consecutive session on Thursday, as investors reacted to domestic corporate news.
The Nikkei 225 Stock Average increased 0.5%, and the broader Topix advanced 0.6%, as investors worry that the U.S. trade policy will negatively impact corporate earnings in the second half.
The Bank of Japan is more likely to raise rates in the near future, but policymakers are taking a wait-and-see approach in assessing the impact of U.S. tariffs on Japan's exports.
Pharmaceutical companies are bracing for 250% U.S. tariffs, and automobile makers are likely to face higher tariffs despite the 25% level agreed upon during the latest negotiations between Japan and the U.S.
Moreover, China is likely to face additional tariffs of 25%, mirroring the similar duties on India, after the U.S. president slapped secondary tariffs on countries importing Russian oil.
Japan Indexes and Stocks
The Nikkei 225 Stock Average increased 0.5% to 40,995.93, and the broader Topix index added 0.6% to 2,983.61.
Toyota Motor Corp. declined 1.4% to ¥2,680.0, and the vehicle maker reported a 37% decline in net profit in the fiscal first quarter ending in June.
The company lowered its annual operating profit to 3.2 trillion yen, or $21.7 billion, from the previous estimate of 3.8 trillion yen.
Sony Group Corporation increased 4.2% to ¥3,860.0, after the diversified company reported a 36% increase in profit in the latest quarter.
Revenue increased 2.2% to 2.62 trillion yen from 2.56 trillion yen, net income surged 22.6% to 262.8 billion yen from 214.3 billion yen, and diluted earnings per share rose to 42.84 yen from 34.37 a year ago.
The company guided fiscal year revenue to decline 2.8% to 11.7 trillion yen, operating income to increase 4.2% to 1.33 trillion yen, and net income attributable to shareholders to fall 9.1% to 970 billion yen.
China's Global Exports Growth In July Defy U.S. Tariff Headwinds
Li Chen
07 Aug, 2025
Hong Kong
China and Hong Kong stocks fluctuated as investors reviewed the latest international trade data and awaited corporate results.
The Hang Seng index increased 0.5%, and the mainland-focused CSI 300 index edged up a fraction in a busy week of economic releases.
China's Export Growth Accelerated in July
China's exports accelerated in July, driven by an increase in non-U.S. demand, and imports advanced at a faster-than-expected pace.
Exports increased 7.2% to $321.8 billion, and imports advanced 4.1% to $223.6 billion, driving the trade surplus higher by 15% to $98.2 billion.
For the first seven months of 2025, China's total trade surplus increased to $683.5 billion, with exports up 6.1%, while imports declined by 2.7% compared to the same period a year ago.
Higher U.S. tariffs continue to negatively impact shipments, and exports to the U.S. fell 21.7% in July, after falling 16.1% in June.
Chinese goods are facing an average of 51% U.S. import taxes, forcing many suppliers to seek alternative markets in Europe, Africa, and Latin America.
Exports to the ASEAN region advanced by 16.6%, matching the 16.8% in the previous month; to the European Union accelerated to 9.2% from 7.6%; to Africa soared 42%; and to Latin America advanced 7.7%, respectively.
China Indexes and Stocks
The Hang Seng index increased 0.5% to 25,038.90, and the mainland-focused CSI 300 index edged up 0.1% to 4,115.54.
Ahead of earnings, Semiconductor Manufacturing International advanced 3.4% to HK $54.20, and China Mobile decreased 0.1% to HK $85.50.
ZTO Express increased 5% to HK $164.40, Alibaba Group Holding 2.4% to HK $119.50, and Tencent Holdings decreased 0.6% to HK $565.50.
China's Global Exports Growth In July Defy U.S. Tariff Headwinds,
Li Chen
07 Aug, 2025
Hong Kong
China and Hong Kong stocks fluctuated as investors reviewed the latest international trade data and awaited corporate results.
The Hang Seng index increased 0.5%, and the mainland-focused CSI 300 index edged up a fraction in a busy week of economic releases.
China's Export Growth Accelerated in July
China's exports accelerated in July, driven by an increase in non-U.S. demand, and imports advanced at a faster-than-expected pace.
Exports increased 7.2% to $321.8 billion, and imports advanced 4.1% to $223.6 billion, driving the trade surplus higher by 15% to $98.2 billion.
For the first seven months of 2025, China's total trade surplus increased to $683.5 billion, with exports up 6.1%, while imports declined by 2.7% compared to the same period a year ago.
Higher U.S. tariffs continue to negatively impact shipments, and exports to the U.S. fell 21.7% in July, after falling 16.1% in June.
Chinese goods are facing an average of 51% U.S. import taxes, forcing many suppliers to seek alternative markets in Europe, Africa, and Latin America.
Exports to the ASEAN region advanced by 16.6%, matching the 16.8% in the previous month; to the European Union accelerated to 9.2% from 7.6%; to Africa soared 42%; and to Latin America advanced 7.7%, respectively.
China Indexes and Stocks
The Hang Seng index increased 0.5% to 25,038.90, and the mainland-focused CSI 300 index edged up 0.1% to 4,115.54.
Ahead of earnings, Semiconductor Manufacturing International advanced 3.4% to HK $54.20, and China Mobile decreased 0.1% to HK $85.50.
ZTO Express increased 5% to HK $164.40, Alibaba Group Holding 2.4% to HK $119.50, and Tencent Holdings decreased 0.6% to HK $565.50.
Earnings Dominated Wall Street Trading On Wednesday
Barry Adams
06 Aug, 2025
New York City
U.S. investors reacted to the latest batch of earnings as corporate results piled up on Wednesday.
The S&P 500 index edged up 0.1%, and the tech-focused Nasdaq Composite advanced 0.2%, as investors reviewed quarterly updates from Uber Technologies, Disney, and McDonald's.
Investor sentiment has remained cautiously optimistic this week, supported by a steady flow of positive earnings, despite the ongoing Trump administration's tariff chaos.
The sharp escalation of tariffs on goods has slowly started filtering down to consumers, as automakers, apparel retailers, farm equipment markers, and electronic chip and device makers struggle to adjust to high import taxes.
Donald Trump threatened to increase import tax on pharmaceuticals to as high as 250% and announce new tariffs on India in the next 24 hours.
Moreover, the constantly changing tariff rules and rates are weighing on businesses, as corporations delay investments and avoid making critical investment decisions in the face of economic uncertainty rooted in the Trump administration's lack of stable policies.
U.S. Stock Movers
Uber Technologies advanced 1.5% to $90.70, and the ridesharing company reported mixed quarterly results.
In the second quarter, the company earned 63 cents on revenue of $12.65 billion, and the company announced a $20 billion stock repurchase program.
Walt Disney Company declined 2.5% to $115.20 after the company reported mixed quarterly results.
Revenue in the fiscal third quarter rose 2% to $23.7 billion, and operating income advanced 8% to $4.6 billion.
In the quarter, the company added 2.6 million net new subscribers, with essentially all growth coming from international markets.
The company revised higher its adjusted earnings per share estimate for the full year to $5.85 from $5.75 released in the previous quarter.
ESPN, the company's sports network, is set to release its full-featured streaming service in the coming weeks.
Advanced Micro Devices Inc. dropped 5.6% to $165.18 after the advanced chipmaker reported a weaker-than-expected profit of 48 cents on revenue of $7.69 billion.
McDonald's Corp. jumped 3.8% to $310.10, and the fast food restaurant chain's quarterly results surpassed market expectations.
The global chain reported adjusted earnings per share of $3.19 on revenue of $6.84 billion.
Earnings Dominated Wall Street Trading On Wednesday
Barry Adams
06 Aug, 2025
New York City
U.S. investors reacted to the latest batch of earnings as corporate results piled up on Wednesday.
The S&P 500 index edged up 0.1%, and the tech-focused Nasdaq Composite advanced 0.2%, as investors reviewed quarterly updates from Uber Technologies, Disney, and McDonald's.
Investor sentiment has remained cautiously optimistic this week, supported by a steady flow of positive earnings, despite the ongoing Trump administration's tariff chaos.
The sharp escalation of tariffs on goods has slowly started filtering down to consumers, as automakers, apparel retailers, farm equipment markers, and electronic chip and device makers struggle to adjust to high import taxes.
Donald Trump threatened to increase import tax on pharmaceuticals to as high as 250% and announce new tariffs on India in the next 24 hours.
Moreover, the constantly changing tariff rules and rates are weighing on businesses, as corporations delay investments and avoid making critical investment decisions in the face of economic uncertainty rooted in the Trump administration's lack of stable policies.
U.S. Stock Movers
Uber Technologies advanced 1.5% to $90.70, and the ridesharing company reported mixed quarterly results.
In the second quarter, the company earned 63 cents on revenue of $12.65 billion, and the company announced a $20 billion stock repurchase program.
Walt Disney Company declined 2.5% to $115.20 after the company reported mixed quarterly results.
Revenue in the fiscal third quarter rose 2% to $23.7 billion, and operating income advanced 8% to $4.6 billion.
In the quarter, the company added 2.6 million net new subscribers, with essentially all growth coming from international markets.
The company revised higher its adjusted earnings per share estimate for the full year to $5.85 from $5.75 released in the previous quarter.
ESPN, the company's sports network, is set to release its full-featured streaming service in the coming weeks.
Advanced Micro Devices Inc. dropped 5.6% to $165.18 after the advanced chipmaker reported a weaker-than-expected profit of 48 cents on revenue of $7.69 billion.
McDonald's Corp. jumped 3.8% to $310.10, and the fast food restaurant chain's quarterly results surpassed market expectations.
The global chain reported adjusted earnings per share of $3.19 on revenue of $6.84 billion.
Stock Movers: Arista Networks, AMD, Marriott, McDonald's
Scott Peters
06 Aug, 2025
New York City
Arista Networks Inc. jumped 12.6% to $132.99 after the computer networking company reported a 30% increase in net income in the June quarter.
Revenue increased to $2.2 billion from $1.7 billion, net income jumped to $888.8 billion from $665.4 million, and diluted earnings per share rose to 70 cents from 52 cents a year ago.
For the six-month period, revenue advanced to $4.2 billion from $3.2 billion, net income soared to $1.7 billion from $1.3 billion, and diluted earnings per share edged higher to $1.34 from $1.02 a year ago.
During the second quarter, the company repurchased $983 million of its common stock during the quarter as part of its stock repurchase program.
The company guided net sales in the next quarter to approximately $2.25 billion compared to $2.2 billion a quarter earlier, respectively.
The company expects to deliver a non-GAAP gross margin of approximately 64% and a non-GAAP operating margin of approximately 47% for the third quarter.
Chantelle Breithaupt, Arista’s CFO, said, "Non-GAAP operating income crossed $1 billion for the first time at Arista, highlighting the strength of our business model and the momentum of customer demand across our portfolio.
Our ability to scale efficiently while maintaining financial discipline continues to deliver value for our shareholders."
Advanced Micro Devices Inc. dropped 6.2% to $100.32 despite the advanced semiconductor chip company reporting more than a threefold jump in earnings in the second quarter.
Revenue increased to $4.6 billion from $3 billion, net income jumped to $872 million from $265 million, and diluted earnings per share rose to 54 cents from 16 cents a year ago.
For the six-month period, revenue climbed to $8.3 billion from $5.9 billion, net income soared to $1.5 billion from $388 million, and diluted earnings per share advanced to 97 cents from 24 cents a year ago.
Operating income swung to a loss of $134 million from a profit of $269 million. Operating expenses soared 23% to $3.2 billion from $2.6 billion.
Operating cash flow climbed nearly three-and-a-half-fold to $2 billion from $593 million, while free cash flow jumped more than two-and-a-half-fold to $1.2 billion from $439 million a year ago.
During the second quarter, the company returned $478 million to its shareholders through share repurchases.
Marriott International surged 0.2% to $259.72 after the hotel chain operator reported an increase in revenue and earnings in the latest quarter.
Revenue increased to $6.7 billion from $6.4 billion, net income inched lower to $763 million from $772 million, and diluted earnings per share rose to $2.78 from $2.69 a year ago.
During the second quarter, the company returned $700 million to shareholders through the repurchase of 2.8 million shares of common stock.
In the year-to-date to July 30, the company has returned approximately $2.1 billion to shareholders through dividends and share repurchases.
The company added roughly 17,300 net rooms during the quarter, an increase of 4.7% from a year ago.
At the end of the quarter, Marriott's worldwide development pipeline reached a new record, totaling approximately 3,900 properties and over 590,000 rooms.
McDonald’s Corp. jumped 2.5% to $306.11 after the fast-food restaurant chain reported a muted increase in sales and earnings in the latest quarter.
Revenue increased to $6.8 billion from $6.4 billion, net income inched higher to $2.2 billion from $2 billion, and diluted earnings per share rose to $3.14 from $2.80 a year ago.
For the six-month period, revenue advanced to $12.8 billion from $12.6 billion, net income edged up to $4.1 billion from $4 billion, and diluted earnings per share inched higher to $5.74 from $5.46 a year ago.
The company reported a 3.8% annual increase in global comparable sales, supported by a 2.5% growth in U.S. comparable sales during the same period.
Stock Movers: Arista Networks, AMD, Marriott
Scott Peters
06 Aug, 2025
New York City
Arista Networks Inc. jumped 12.6% to $132.99 after the computer networking company reported a 30% increase in net income in the June quarter.
Revenue increased to $2.2 billion from $1.7 billion, net income jumped to $888.8 billion from $665.4 million, and diluted earnings per share rose to 70 cents from 52 cents a year ago.
For the six-month period, revenue advanced to $4.2 billion from $3.2 billion, net income soared to $1.7 billion from $1.3 billion, and diluted earnings per share edged higher to $1.34 from $1.02 a year ago.
During the second quarter, the company repurchased $983 million of its common stock during the quarter as part of its stock repurchase program.
The company guided net sales in the next quarter to approximately $2.25 billion compared to $2.2 billion a quarter earlier, respectively.
The company expects to deliver a non-GAAP gross margin of approximately 64% and a non-GAAP operating margin of approximately 47% for the third quarter.
Chantelle Breithaupt, Arista’s CFO, said, "Non-GAAP operating income crossed $1 billion for the first time at Arista, highlighting the strength of our business model and the momentum of customer demand across our portfolio.
Our ability to scale efficiently while maintaining financial discipline continues to deliver value for our shareholders."
Advanced Micro Devices Inc. dropped 6.2% to $100.32 despite the advanced semiconductor chip company reporting more than a threefold jump in earnings in the second quarter.
Revenue increased to $4.6 billion from $3 billion, net income jumped to $872 million from $265 million, and diluted earnings per share rose to 54 cents from 16 cents a year ago.
For the six-month period, revenue climbed to $8.3 billion from $5.9 billion, net income soared to $1.5 billion from $388 million, and diluted earnings per share advanced to 97 cents from 24 cents a year ago.
Operating income swung to a loss of $134 million from a profit of $269 million. Operating expenses soared 23% to $3.2 billion from $2.6 billion.
Operating cash flow climbed nearly three-and-a-half-fold to $2 billion from $593 million, while free cash flow jumped more than two-and-a-half-fold to $1.2 billion from $439 million a year ago.
During the second quarter, the company returned $478 million to its shareholders through share repurchases.
Marriott International surged 0.2% to $259.72 after the hotel chain operator reported an increase in revenue and earnings in the latest quarter.
Revenue increased to $6.7 billion from $6.4 billion, net income inched higher to $728 million from $716 million, and diluted earnings per share fell to $2.78 from $2.69 a year ago.
For the fiscal year 2025, revenue advanced to $13 billion from $12.4 billion, net income soared to $1.37 billion from $1.33 billion, and diluted earnings per share edged higher to $5.17 from $4.62 a year ago.
During the second quarter, the company returned $700 million to shareholders through the repurchase of 2.8 million shares of common stock.
In the year-to-date to July 30, the company has returned approximately $2.1 billion to shareholders through dividends and share repurchases.
The company added roughly 17,300 net rooms during the quarter, an increase of 4.7% from a year ago.
At the end of the quarter, Marriott's worldwide development pipeline reached a new record, totaling approximately 3,900 properties and over 590,000 rooms.