Market Update
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.
Chinese Leaders Pledge to Curb Irrational Competition in E
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.
Stock Movers: Bank of America, Goldman Sachs, Morgan Stanley
Scott Peters
16 Jul, 2025
New York City
Goldman Sachs Group Inc. increased 0.4% to $704.68, and the investment bank reported a surge in trading revenue because of the tariff-linked market volatility.
Revenue increased 15% to $14.6 billion from $12.7 billion, net income advanced to $3.7 billion from $3.0 billion, and diluted earnings per share rose to $10.91 from $8.62 a year ago.
Investment banking revenue increased to $2.1 billion from $1.7 billion, market-making revenue rose to $4.7 billion from $4.3 billion, investment management revenue jumped to $2.8 billion from $2.5 billion, and net interest income advanced to $3.1 billion from $2.0 billion a year ago, respectively.
The average annualized return on common shareholders’ equity was 12.8% for the second quarter and 14.8% for the first half of 2025.
Book value per common share increased by 1.6% during the second quarter and by 3.9% during the first half of 2025 to $349.74.
Morgan Stanley dropped 3.3% to $136.97 after the investment bank reported fiscal second quarter results ending in June.
Revenue in the quarter increased 12% to $16.8 billion from $15.0 billion, net income advanced to $3.5 billion from $3.1 billion, and diluted earnings per share rose to $2.13 from $1.82 a year ago.
Wealth management revenue surged to $7.7 billion from $6.8 billion, and institutional securities revenues advanced to $7.6 billion from $6.9 billion a year ago, respectively.
The chairman and chief executive officer said, “Wealth continues to deliver, adding $59 billion of net new assets and $43 billion of fee-based flows.
Total client assets across Wealth and Investment Management reached $8.2 trillion.
The firm repurchased $1.0 billion of its outstanding common stock during the quarter as part of its Share Repurchase Program.
The Board of Directors reauthorized a multi-year common equity share repurchase program of up to $20 billion, without a set expiration date, beginning in the third quarter of 2025.
The company declared a $1.00 quarterly dividend per share, an increase of 7.5 cents, payable on August 15 to shareholders of record on July 31.
Bank of America declined 0.6% to $45.49 after the financial service provider reported better-than-expected earnings.
Revenue in the second quarter advanced 4% to $26.5 billion from $25.4 billion, net income rose 3% to $7.1 billion from $6.9 billion, and diluted earnings per share soared 7% to 89 cents from 83 cents a year ago.
The company returned $7.3 billion to shareholders, $2.0 billion through common stock dividends and $5.3 billion in share repurchases, and announced plans to increase the quarterly common stock dividend 8% beginning in the third quarter.
Book value per common share rose 8% to $37.13; tangible book value per common share rose 9% to $27.71.
In the quarter, the return on average common shareholders' equity ratio was 10.0%; the return on average tangible common shareholders' equity ratio was 13.4%.
“We delivered another solid quarter, with earnings per share up seven percent from last year.
Net interest income grew for the fourth straight quarter, reflecting eight consecutive quarters of deposit growth and seven percent year-over-year loan growth," Chairman and CEO Brian Moynihan said in a statement to investors.
"Consumers remained resilient, with healthy spending and asset quality, and commercial borrower utilization rates rose," he added.
"So far this year, we have supplied more capital to our businesses and returned 40 percent more capital to shareholders in the first half of this year than last year,” reiterating the company's commitment to return capital to shareholders.
Stock Movers: Bank of America, Goldman Sachs, Morgan Stanley
Scott Peters
16 Jul, 2025
New York City