Market Update
China Indexes Extended Weekly Gains Led by EV Makers and Tech Stocks
Li Chen
18 Jul, 2025
Hong Kong
China stocks extended weekly gains amid improving market sentiment, and investors overlooked trade tensions.
The Hang Seng index edged up 0.8%, and the mainland-focused CSI 300 index advanced 0.7%, tracking gains in overnight trading in New York.
Investors shifted their focus to corporate results, and leading technology and electric vehicle makers led the gainers amid expectations of improved earnings.
Investors ignored trade tensions as China stocks continued their weekly gains as market sentiment improved.
For the week, the CSI 300 index gained 0.8%, and the Hang Seng index advanced 2.4% to a three-month high.
In New York, the S&P 500 index gained 0.5%, and the Nasdaq Composite advanced 0.7%, following strong earnings and robust economic data.
The jobless claims dropped for the fifth week in a row and eased to the level last seen in April, and retail and food services sales advanced, confirming resilient consumer spending.
For now, the U.S. tariff-related price hikes are not impacting consumer spending and labor market conditions.
China Indexes and Stocks
The Hang Seng index advanced 0.8% to 24,676.64, and the mainland-focused CSI 300 index added 0.7% to 4,053.39.
Li Auto Inc. decreased 1.7% to HK $122.0, Xpeng gained 0.5% to HK $71.45, and Xiaomi Corp. added 0.3% to HK $56.35.
Alibaba Group Holding Ltd. increased 2.2% to HK $115.0, Tencent Holdings Ltd. edged up 0.6% to HK $520.0, and Meituan advanced 1.4% to $127.20.
China Indexes Extended Weekly Gains Led by EV Makers and Tech Stocks
Li Chen
18 Jul, 2025
Hong Kong
China stocks extended weekly gains amid improving market sentiment, and investors overlooked trade tensions.
The Hang Seng index edged up 0.8%, and the mainland-focused CSI 300 index advanced 0.7%, tracking gains in overnight trading in New York.
Investors shifted their focus to corporate results, and leading technology and electric vehicle makers led the gainers amid expectations of improved earnings.
For the week, the CSI 300 index gained 0.8%, and the Hang Seng index advanced 2.4% to a three-month high.
In New York, the S&P 500 index gained 0.5%, and the Nasdaq Composite advanced 0.7%, following strong earnings and robust economic data.
The jobless claims dropped for the fifth week in a row and eased to the level last seen in April, and retail and food services sales advanced, confirming resilient consumer spending.
For now, the U.S. tariff-related price hikes are not impacting consumer spending and labor market conditions.
China Indexes and Stocks
The Hang Seng index advanced 0.8% to 24,676.64, and the mainland-focused CSI 300 index added 0.7% to 4,053.39.
Li Auto Inc. decreased 1.7% to HK $122.0, Xpeng gained 0.5% to HK $71.45, and Xiaomi Corp. added 0.3% to HK $56.35.
Alibaba Group Holding Ltd. increased 2.2% to HK $115.0, Tencent Holdings Ltd. edged up 0.6% to HK $520.0, and Meituan advanced 1.4% to $127.20.
U.S. Movers: GE Aerospace, TSMC
Scott Peters
17 Jul, 2025
New York City
Taiwan Semiconductor Manufacturing Company increased 3.1% to $244.96 after the chip manufacturer reported sharply higher sales and earnings in the second quarter.
The company's sales surged more than 38%, and net income advanced 61%, driven in large part because of solid demand for its advanced chips used in artificial intelligence applications.
Revenue climbed to NT$933.8 billion from NT$673.5 billion, net earnings soared to NT$398.3 billion from NT$247.8 billion, and diluted earnings per share increased to NT$15.36 from NT$9.56 a year ago.
TSMC guided third-quarter revenues to be between $31.8 billion and $33.0 billion, an increase of 38% from a year ago and a rise of 8% from the second quarter.
The company estimated a gross profit margin between 55.5% and 57.5% and an operating profit margin between 45.5% and 47.5%.
GE Aerospace advanced 0.6% to $267.77 after the industrial engineering company reported a 54% increase in net income in the June quarter.
Consolidated revenue in the quarter increased to $11 billion from $9.1 billion, net income jumped to $2 billion from $1.3 billion, and diluted earnings per share rose to $1.89 from $1.15 a year ago.
For the six-month period, revenue advanced to $21 billion from $18 billion, net income soared to $4 billion from $3.1 billion, and diluted earnings per share edged higher to $3.73 from $2.55 a year ago.
The company plans to increase its capital return to shareholders by 20% between 2024 and 2026, reaching around $24 billion.
After 2026, it expects to keep returning at least 70% of its free cash flow to shareholders through dividends and stock buybacks.
GE Aerospace guided full-year revenue to be between $7.8 billion and $8.5 billion and diluted earnings per share between $5.10 and $5.80.
GE Aerospace Chairman and CEO H. Lawrence Culp, Jr., said, “The GE Aerospace team delivered an excellent second quarter with free cash flow nearly doubling and more than 20% growth in orders, revenue, operating profit, and EPS. We are raising our 2025 guidance."
The company's order backlog at the end of the quarter increased to $175 billion.
U.S. Movers: GE Aerospace, TSMC
Scott Peters
17 Jul, 2025
New York City
Taiwan Semiconductor Manufacturing Company increased 3.1% to $244.96 after the chip manufacturer reported sharply higher sales and earnings in the second quarter.
The company's sales surged more than 38%, and net income advanced 61%, driven in large part because of solid demand for its advanced chips used in artificial intelligence applications.
Revenue climbed to NT$933.8 billion from NT$673.5 billion, net earnings soared to NT$398.3 billion from NT$247.8 billion, and diluted earnings per share increased to NT$15.36 from NT$9.56 a year ago.
TSMC guided third-quarter revenues to be between $31.8 billion and $33.0 billion, an increase of 38% from a year ago and a rise of 8% from the second quarter.
The company estimated a gross profit margin between 55.5% and 57.5% and an operating profit margin between 45.5% and 47.5%.
GE Aerospace advanced 0.6% to $267.77 after the industrial engineering company reported a 54% increase in net income in the June quarter.
Consolidated revenue in the quarter increased to $11 billion from $9.1 billion, net income jumped to $2 billion from $1.3 billion, and diluted earnings per share rose to $1.89 from $1.15 a year ago.
For the six-month period, revenue advanced to $21 billion from $18 billion, net income soared to $4 billion from $3.1 billion, and diluted earnings per share edged higher to $3.73 from $2.55 a year ago.
The company plans to increase its capital return to shareholders by 20% between 2024 and 2026, reaching around $24 billion.
After 2026, it expects to keep returning at least 70% of its free cash flow to shareholders through dividends and stock buybacks.
GE Aerospace guided full-year revenue to be between $7.8 billion and $8.5 billion and diluted earnings per share between $5.10 and $5.80.
GE Aerospace Chairman and CEO H. Lawrence Culp, Jr., said, “The GE Aerospace team delivered an excellent second quarter with free cash flow nearly doubling and more than 20% growth in orders, revenue, operating profit, and EPS. We are raising our 2025 guidance."
The company's order backlog at the end of the quarter increased to $175 billion.
Wall Street Stocks in Favor After Strong Earnings and Jobless Claims and Retail Sales Data
Barry Adams
17 Jul, 2025
New York City
Wall Street indexes edged higher as investors reviewed the latest batch of positive earnings.
The S&P 500 index advanced 0.2%, and the tech-heavy Nasdaq Composite inched up 0.4%, following better-than-expected earnings from leading corporations.
GE Aerospace, United Airlines, PepsiCo, Taiwan Semiconductor, ABB Ltd., and Novartis AG reported better-than-expected earnings, supporting the improving market enthusiasm for riskier assets.
Labor Market Stays Resilient Despite Tariff Woes
Initial jobless claims adjusted for seasonal factors decreased by 7,000 from the previous week to 221,000 in the week ending on July 12, the U.S. Department of Labor reported on Thursday.
The jobless claims are suggesting that the labor market remains resilient, despite the ongoing business disruptions brought on by Trump's tariffs.
Continuing claims, which lag by one week, were nearly unchanged at 1.956 million and stayed near the 2021 high reached in June.
Retail Sales Growth Exceeds Expectations In June
The seasonally adjusted, but not for inflation, retail and food services sales edged up 3.9% in June from a year ago.
On a monthly basis, sales inched up 0.6%, after falling 0.9% in the previous month.
Meanwhile, sales excluding food services, building materials stores, auto dealers and gasoline stations, which are used to calculate gross domestic product, inched up 0.5%, following a downwardly revised 0.2% rise in the previous month.
U.S. Stock Movers
United Airlines Holdings Inc. advanced 3% to $90.95, and the international carrier reported better-than-expected second-quarter earnings.
However, the company lowered its annual earnings per share outlook range to between $9 and $11, from the previous estimate of between $11.50 and $13.50.
The company guided that the travel demand is picking up after turmoil in the first half and disrupting the global economic environment of the previous year.
Taiwan Semiconductor Manufacturing advanced 3.3% to $245.61, and the advanced chipmaker said revenue in the second quarter soared 38% and profit jumped 61% from a year ago, respectively.
The company boosted its annual outlook amid strong AI demand.
GE Aerospace jumped 2.8% to $271.75, and the aircraft engine maker reported better-than-expected quarterly results.
Revenue increased 21% to $11.0 billion from $9.1 billion, net income advanced 64% to $2.4 billion from $1.4 billion, and diluted earnings per share surged 56% to $1.87 from $1.20 a year ago.
The commercial aircraft engine maker lowered its revenue and earnings outlook for the full-year, and adjusted revenue is expected to increase in "low-double-digits" from the previous "mid-teens" estimate.
In addition, adjusted earnings per share is now estimated in the range between $5.10 and $5.45 compared to the previous range between $5.60 and $5.80.
PepsiCo Inc. jumped 5.1% to $142.25 after the snack and beverage company's second-quarter results surpassed market expectations, despite the decline in sales in the U.S.
The company delivered an adjusted earnings per share of $2.12 on revenue of $22.7 billion.
Wall Street Stocks in Favor After Strong Earnings and Jobless Claims and Retail Sales Data
Barry Adams
17 Jul, 2025
New York City
Wall Street indexes edged higher as investors reviewed the latest batch of positive earnings.
The S&P 500 index advanced 0.2%, and the tech-heavy Nasdaq Composite inched up 0.4%, following better-than-expected earnings from leading corporations.
GE Aerospace, United Airlines, PepsiCo, Taiwan Semiconductor, ABB Ltd., and Novartis AG reported better-than-expected earnings, supporting the improving market enthusiasm for riskier assets.
Labor Market Stays Resilient Despite Tariff Woes
Initial jobless claims adjusted for seasonal factors decreased by 7,000 from the previous week to 221,000 in the week ending on July 12, the U.S. Department of Labor reported on Thursday.
The jobless claims are suggesting that the labor market remains resilient, despite the ongoing business disruptions brought on by Trump's tariffs.
Continuing claims, which lag by one week, were nearly unchanged at 1.956 million and stayed near the 2021 high reached in June.
Retail Sales Growth Exceeds Expectations In June
The seasonally adjusted, but not for inflation, retail and food services sales edged up 3.9% in June from a year ago.
On a monthly basis, sales inched up 0.6%, after falling 0.9% in the previous month.
Meanwhile, sales excluding food services, building materials stores, auto dealers and gasoline stations, which are used to calculate gross domestic product, inched up 0.5%, following a downwardly revised 0.2% rise in the previous month.
U.S. Stock Movers
United Airlines Holdings Inc. advanced 3% to $90.95, and the international carrier reported better-than-expected second-quarter earnings.
However, the company lowered its annual earnings per share outlook range to between $9 and $11, from the previous estimate of between $11.50 and $13.50.
The company guided that the travel demand is picking up after turmoil in the first half and disrupting the global economic environment of the previous year.
Taiwan Semiconductor Manufacturing advanced 3.3% to $245.61, and the advanced chipmaker said revenue in the second quarter soared 38% and profit jumped 61% from a year ago, respectively.
The company boosted its annual outlook amid strong AI demand.
GE Aerospace jumped 2.8% to $271.75, and the aircraft engine maker reported better-than-expected quarterly results.
Revenue increased 21% to $11.0 billion from $9.1 billion, net income advanced 64% to $2.4 billion from $1.4 billion, and diluted earnings per share surged 56% to $1.87 from $1.20 a year ago.
The commercial aircraft engine maker lowered its revenue and earnings outlook for the full-year, and adjusted revenue is expected to increase in "low-double-digits" from the previous "mid-teens" estimate.
In addition, adjusted earnings per share is now estimated in the range between $5.10 and $5.45 compared to the previous range between $5.60 and $5.80.
PepsiCo Inc. jumped 5.1% to $142.25 after the snack and beverage company's second-quarter results surpassed market expectations, despite the decline in sales in the U.S.
The company delivered an adjusted earnings per share of $2.12 on revenue of $22.7 billion.
European Markets Rebounded, UK Wage Growth Eased and Jobless Rate Inched Higher
Bridgette Randall
17 Jul, 2025
London
Stock market indexes across Europe rebounded after struggling over the last six consecutive sessions, as investors focused on the fresh batch of corporate results.
Benchmark indexes in Frankfurt, Paris, Milan, and London edged higher, and advanced semiconductor-linked stocks led the charge after TSMC reported better-than-expected earnings.
On the economic front, the UK's wage growth slowed and the jobless rate edged up in the three-month period to May, according to the latest data released by the Office for National Statistics.
Wage growth eased to 5.0% from 5.3%, and the jobless rate inched up 4.7% from 4.6% in the previous three-month period to April, respectively.
The labor market continues to "weaken," according to the ONS director of economic statistics, Liz McKeown.
Europe Indexes and Stocks
The DAX index in Frankfurt advanced 0.9% to 24,228.32, the CAC-40 index in Paris added 0.8% to 7,789.60, and the FTSE 100 index in London gained 0.4% to 8,962.82.
ASML Holding NV gained 1.1% to €633.70, Infineon Technologies jumped 1% to €37.77, and STMicroelectronics NV advanced 3.1% to €27.70.
ABB Ltd. jumped 7% to CHF 50.70, and the Swiss engineering group reported an increase in earnings and a rise in new orders.
Revenue in the second quarter increased 8% to $8.9 billion from $8.2 billion, net income advanced 5% to $1.15 billion from $1.09 billion, and basic earnings per share rose 6% to 63 cents from 59 cents a year ago.
New total orders surged 16% to $9.8 billion from $8.4 billion, driven by a strong demand in the U.S.
The company said it makes about 80% of what it needs in the U.S., easing tariff pressures.
The company said orders in the U.S., which represents the largest market, surged 37% in the quarter, surpassing the comparable orders increase of 14% from a year ago.
Novartis AG decreased 0.2% to CHF 94.96, despite the Swiss pharmaceutical company reporting better-than-expected quarterly results and announcing a $10 billion stock repurchase program.
European Markets Rebounded, UK Wage Growth Eased and Jobless Rate Inched Higher
Bridgette Randall
17 Jul, 2025
London
Stock market indexes across Europe rebounded after struggling over the last six consecutive sessions, as investors focused on the fresh batch of corporate results.
Benchmark indexes in Frankfurt, Paris, Milan, and London edged higher, and advanced semiconductor-linked stocks led the charge after TSMC reported better-than-expected earnings.
On the economic front, the UK's wage growth slowed and the jobless rate edged up in the three-month period to May, according to the latest data released by the Office for National Statistics.
Wage growth eased to 5.0% from 5.3%, and the jobless rate inched up 4.7% from 4.6% in the previous three-month period to April, respectively.
The labor market continues to "weaken," according to the ONS director of economic statistics, Liz McKeown.
Europe Indexes and Stocks
The DAX index in Frankfurt advanced 0.9% to 24,228.32, the CAC-40 index in Paris added 0.8% to 7,789.60, and the FTSE 100 index in London gained 0.4% to 8,962.82.
ASML Holding NV gained 1.1% to €633.70, Infineon Technologies jumped 1% to €37.77, and STMicroelectronics NV advanced 3.1% to €27.70.
ABB Ltd. jumped 7% to CHF 50.70, and the Swiss engineering group reported an increase in earnings and a rise in new orders.
Revenue in the second quarter increased 8% to $8.9 billion from $8.2 billion, net income advanced 5% to $1.15 billion from $1.09 billion, and basic earnings per share rose 6% to 63 cents from 59 cents a year ago.
New total orders surged 16% to $9.8 billion from $8.4 billion, driven by a strong demand in the U.S.
The company said it makes about 80% of what it needs in the U.S., easing tariff pressures.
The company said orders in the U.S., which represents the largest market, surged 37% in the quarter, surpassing the comparable orders increase of 14% from a year ago.
Novartis AG decreased 0.2% to CHF 94.96, despite the Swiss pharmaceutical company reporting better-than-expected quarterly results and announcing a $10 billion stock repurchase program.
Japan's Trade Surplus Shrank In June, Couche Tard Abandons Seven & I Bid
Akira Ito
17 Jul, 2025
Tokyo
Stock market indexes in Japan rebounded from morning losses and hovered near three-week lows ahead of the Upper House election.
The Nikkei 225 Stock Average edged up 0.4%, the Topix gained 0.6%, and investors stayed cautious ahead of the House of Councilors election on Sunday.
Ahead of the election, caution prevailed in Tokyo trading, as the ruling coalition is expected to lose its majority.
Moreover, investors are worried that the increase in fiscal spending is likely to exacerbate the already high government debt.
Japan's Annual Trade Surplus Narrowed in June
Japan's exports declined for the second consecutive month in June, according to the latest data from the Ministry of Finance.
Exports fell 0.5% from a year ago to 9.2 trillion yen, driven by an 11.4% decline in exports to the U.S. due to the weakness in exports of automobiles, parts, and pharmaceuticals.
Shipments to China declined 4.7% but rose 3.6% to the European Union and advanced 4.9% to the ASEAN region.
So far, Japanese exporters have been avoiding a sharp increase in price hikes by discounting exports and absorbing high tariff costs.
Imports advanced 0.2% to 9.0 trillion yen from 8.8 trillion yen in the previous month, reflecting the impact of stimulus measures announced ahead of Sunday's elections.
The trade surplus in June narrowed to 153.1 billion yen from 221.3 billion yen a year ago and rebounded from the deficit of 638.6 billion yen in the previous month.
Japan Indexes and Stocks
The Nikkei 225 Stock Average edged up 0.4% to 39,799.85, and the broader Topix advanced 0.6% to 2,836.13.
Seven & I Holdings declined 9.2% to ¥2,007.50 after the Canada-based Alimentation Couche-Tard abandoned its $47 billion hostile offer.
The hostile offer was not welcomed by key shareholders of Seven & I, and the parent of Circle K operator struggled to win support from other shareholders.
“There has been no sincere or constructive engagement from 7&i that would facilitate the advancement of any proposal, contrary to comments made publicly by 7&i representatives,” Couche-Tard said in a note issued to the Japanese retailer.
Seven & I rejected the Canadian company's allegations and "disagreed with their numerous mischaracterizations."
Japan's Trade Surplus Shrank In June, Couche Tard Abandons Seven & I Bid
Akira Ito
17 Jul, 2025
Tokyo
Stock market indexes in Japan rebounded from morning losses and hovered near three-week lows ahead of the Upper House election.
The Nikkei 225 Stock Average edged up 0.4%, the Topix gained 0.6%, and investors stayed cautious ahead of the House of Councilors election on Sunday.
Ahead of the election, caution prevailed in Tokyo trading, as the ruling coalition is expected to lose its majority.
Moreover, investors are worried that the increase in fiscal spending is likely to exacerbate the already high government debt.
Japan's Annual Trade Surplus Narrowed in June
Japan's exports declined for the second consecutive month in June, according to the latest data from the Ministry of Finance.
Exports fell 0.5% from a year ago to 9.2 trillion yen, driven by an 11.4% decline in exports to the U.S. due to the weakness in exports of automobiles, parts, and pharmaceuticals.
Shipments to China declined 4.7% but rose 3.6% to the European Union and advanced 4.9% to the ASEAN region.
So far, Japanese exporters have been avoiding a sharp increase in price hikes by discounting exports and absorbing high tariff costs.
Imports advanced 0.2% to 9.0 trillion yen from 8.8 trillion yen in the previous month, reflecting the impact of stimulus measures announced ahead of Sunday's elections.
The trade surplus in June narrowed to 153.1 billion yen from 221.3 billion yen a year ago and rebounded from the deficit of 638.6 billion yen in the previous month.
Japan Indexes and Stocks
The Nikkei 225 Stock Average edged up 0.4% to 39,799.85, and the broader Topix advanced 0.6% to 2,836.13.
Seven & I Holdings declined 9.2% to ¥2,007.50 after the Canada-based Alimentation Couche-Tard abandoned its $47 billion hostile offer.
The hostile offer was not welcomed by key shareholders of Seven & I, and the parent of Circle K operator struggled to win support from other shareholders.
“There has been no sincere or constructive engagement from 7&i that would facilitate the advancement of any proposal, contrary to comments made publicly by 7&i representatives,” Couche-Tard said in a note issued to the Japanese retailer.
Seven & I rejected the Canadian company's allegations and "disagreed with their numerous mischaracterizations."
Chinese Leaders Pledge to Curb "Irrational" Competition in EV Market
Li Chen
17 Jul, 2025
Hong Kong
Stocks in China and Hong Kong wavered around the flatline amid a lack of market-moving news and events.
The Hang Seng index edged up 0.1%, and the CSI 300 index decreased 0.3%, as investors took a positive view of the latest batch of mixed economic data.
Investors debated the need for additional fiscal stimulus after the economy expanded at 5.2% in the second quarter and the new home prices continued to decline in June.
Market participants worried that Chinese goods may face additional high tariffs as early as August, as the U.S. negotiators demand higher tariffs on transshipped goods through Vietnam and Indonesia.
The Indonesian goods may face as high as a 19% U.S. import tax, and transshipped goods could attract at least a 40% tax.
The deal between the two countries is preliminary and lacks implementation details and exclusion lists, according to sources in Jakarta.
China Indexes and Stocks
The Hang Seng index inched up 0.01% to 24,534.84, and the mainland-focused CSI 300 index increased 0.3% to 4,019.73.
Electric vehicle makers were in focus after a statement from the State Council, chaired by Premier Li Qiang, suggested that the authorities plan to take steps to curb "irrational competition."
Li Auto Inc. increased 1.6% to HK $114.90, BYD advanced 1.3% to ¥112.70, and Xiaomi Corp. fell 1.5% to HK $56.45.
Baidu Inc. decreased 3.5% to HK $85.35 after cautious comments from Morgan Stanley signaled revenue headwinds in the current quarter.
Baidu's advertising revenue is likely to fall as much as 15% in the current quarter because of the limited revenue monetization for the AI-driven searches.