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China Stocks Halt 4-day Losses, Industrial Profits Rebound In April

Li Chen
27 May, 2024
Hong Kong

Stocks in Shanghai and Hong Kong edged higher in Monday's trading after a week of sharp selloffs.

Benchmark indexes in Shanghai and Hong Kong gained more than 0.3% after profits at industrial companies rose in April, the National Bureau of Statistics reported Monday.

Profits for industrial companies advanced 4% from the previous month in April, reversing the 3.5% decline in the previous month.

The government's data weighs heavily on large state-owned companies and has fewer small- and medium-sized private companies.

The statistical bureau is also scheduled to release the manufacturing sector's May activities on Friday, and economists are anticipating the sector to show positive growth.

The Hang Seng index has trimmed its gains by more than 5% in the previous week after rallying for more than 20% in the previous six weeks.

Market sentiment has been cautious in the last five trading sessions on the worry that the inadequate policy response, lack of consumer demand, and inflated home prices are likely to prolong the property market malaise.

Moreover, fragile economic recovery and weaker-than-expected corporate earnings so far in the earnings season also weighed heavily on market sentiment.

China Stock Movers

The CSI 300 index increased 0.3% to 3,613.76, and the Hang Seng index added 0.4% to 18,677.42.

Property developers extended last week's losses on the worry that the government's attempt to improve market liquidity may fall short of expectations.

Longfor Group edged down 0.1% to HK$13.52, China Vanke fell 1.6% to HK$6.13, and China Resources Land eased 0.2% to HK$30.50.

Leading technology companies advanced in Monday's trading in the hopes that export revenue growth may overcome domestic market weakness.

Lenovo Group increased 8.5% to HK$12.02, Xiaomi added 0.6% to HK$18.40, and Semiconductor Manufacturing International Corp increased 5.8% to HK$16.24.

Alibaba Group advanced 1.1% to HK$78.95, JD.com fell 1.6% to HK$117.70, and Meituan added 1.4% to HK$117.90.

BYD fell 1.2% to HK$205.40, Li Auto advanced 3.1% to $80.65, Xpeng advanced 1.3% to HK$32.20, and Nio advanced 3.1% to HK$38.35.

India Movers: Divi's Labs, Glenmark Pharma, Hindustan Copper, Kolte-Patil, NTPC, Torrent Pharmaceuticals, United Spirits

Arun Goswami
27 May, 2024
Mumbai

Stocks in Mumbai advanced in Monday's trading as investors looked forward to the release of March quarter GDP growth, the central government's deficit, and infrastructure spending.

The Sensex index decreased by 0.1% to 75,368.18, and the Nifty index fell by 0.1% to 22,946.05.

On the Mumbai stock exchange, 141 stocks traded at their 52-week highs, and 34 stocks traded at their 52-week lows.

The yield on the 10-year Indian government bonds inched lower to 6.99%, and the Indian rupee edged lower at ₹83.07 against the U.S. dollar.

Divi's Laboratories increased 4.3% to ₹4,298.75 after the company reported a sharp rise in revenue and earnings in the March quarter.

Revenue increased 118% to ₹2,303 crore from ₹1,951 crore, and net income soared 67.6% to ₹538 crore from ₹321 crore a year ago, respectively.

Operating earnings soared 50.1% to ₹731 crore from ₹487 crore, and operating margin improved to 32% from 25% a year ago.

Torrent Pharmaceuticals jumped 3.3% to ₹2,724.85 after the company reported rising sales and earnings in the March quarter.

Consolidated revenue in the quarter rose 10.2% to ₹2,745 crore, and net profit soared 56.4% to ₹449 crore from a year ago, respectively.

The company's management proposed a final cash dividend of ₹6 per share, and the company said it plans to raise ₹500 crore.

United Spirits increased 1.2% to ₹1,192.50 after the alcohol beverage company reported a rise in revenue and earnings in the March quarter.

Revenue increased 11.2% to ₹2,783 crore, and net income soared 136% to ₹241 crore. The company's management proposed a final dividend of ₹5 per share.

Kolte Patil decreased 5.7% to ₹486.05 after the Pune-based real estate developer reported weaker-than-expected quarterly results.

Revenue in the March quarter dropped 34% to ₹486.05 to 526 crore, and net profit swung to a net loss of 26 crore.

Hindustan Copper declined 1.3% to ₹367.0 after the mining company reported a decline in net income in its latest quarter.

Revenue in the March quarter rose 1% to 565 crore and net income decreased 6% to 124 crore from a year ago, respectively.

NTPC increased 0.2% to ₹376.15 after the power generation company reported a rise in revenue and earnings in the March quarter.

Revenue rose 7.6% to ₹47.6222 crore, and net income increased 33.2% to ₹6,490 crore. The company's board recommended a final dividend of ₹3.25 per share.

Glenmark Pharmaceuticals rose 6.6% to ₹1,103.45 after the generic pharmaceutical company reported muted quarterly results.

Revenue in the March quarter increased by 2.1% to ₹3,063 crore, and net income swung to a loss of ₹1,218 crore because of a one-time charge of ₹447 crore.

U.S. Major Averages Halt 4-week Rally, Durable Goods Orders Unexpectedly Advance In April

Barry Adams
24 May, 2024
New York City

Stocks headed higher in Friday's trading, and the yield on Treasury notes held firm amid growing interest rate anxieties and the steady push back of the start of rate cuts.

The S&P 500 index and the Nasdaq Composite advanced in Friday's trading, and tech stocks extended declines for the second day in a row on the ongoing rate jitters.

The broader market failed to participate in the rally sparked by the over-the-top earnings from Nvidia as investors kept worrying about the future direction of interest rates.

Nvidia reported a fourfold increase in its revenue and a five-fold jump in earnings in its latest quarter, sparking a rally in artificial intelligence technology-related companies, including Microsoft, Google parent Alphabet, and Facebook parent Meta Platforms.

But the enthusiasm failed to lift other technology stocks, and the market rally in Thursday's morning turned to losses by the end of the session.

Moreover, investors are estimating that the Federal Reserve may cut interest rates only once, and that cut may happen after the last meeting of policymakers on December 18, 2024.

Durable Goods Orders Rise Third Consecutive Month in April

New orders for manufactured durable goods in April increased $1.9 billion, or 0.7%, from the previous month to $284.1 billion, the U.S. Census Bureau announced today.

This followed a downwardly revised 0.8% increase in March.

Excluding transportation, new orders increased by 0.4%, and excluding defense, new orders were nearly unchanged.

Orders for durable goods rose 1.2% on an annual basis.

The increase in new orders for durable goods was primarily driven by the 1.2% increase in transportation orders.

Non-defense capital goods, excluding aircraft, the proxy for business spending, increased 0.3% in April after falling 0.1% in March.

U.S. Indexes and Treasury Yields

The S&P 500 index rose 0.4% to 5,288.17, and the Nasdaq Composite jumped 0.5% to 16,819.89.

The yield on 2-year Treasury notes edged lower to 4.95%, 10-year Treasury notes decreased to 4.49%, and 30-year Treasury bonds edged higher to 4.59%.

WTI crude oil increased $0.60 to $77.45 a barrel, and natural gas prices declined 8 cents to $2.57 a thermal unit.

Gold increased by $7.61 to $2,339.58 an ounce, and silver rose 26 cents to $30.65.

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 104.81.

U.S. Stock Movers

Ross Stores increased 8.4% to $142.78 after the discount apparel retailer reported better-than-expected quarterly results.

Intuit declined 8% to $609.37 after the tax software company estimated weaker-than-expected revenue in the fiscal fourth quarter.

Workday declined 11.6% to $230.56 after the enterprise management company lowered its subscription revenue estimate for the full year to $1.895 billion.

German First Quarter Economic Growth Confirmed, Poor Weather Dampen UK Retail Sales

Bridgette Randall
24 May, 2024
Frankfurt

European market indexes declined in Friday's trading after China stepped up military drills to intimidate Taiwan.

Market sentiment was also sapped by the ongoing U.S. interest rate uncertainty.

Benchmark indexes in London, Paris, and Frankfurt fell between 0.3% and 0.4%, and investors turned cautious amid a mixed batch of economic data.

German Economic Growth Confirmed in the First Quarter

Germany's GDP expanded 0.2% sequentially in the first quarter after falling 0.5% in the previous quarter, the Federal Statistical Office, or destatis, reported Friday.

The German economy expanded as initially estimated, driven by a rebound in exports and investment, the statistical office confirmed today.

On an annual basis, adjusted for the calendar effect, GDP expanded by 0.2%, as previously estimated, and matched the rate in the fourth quarter.

Poor Weather and High Prices Dampen UK Retail Sales

U.K. retail sales declined more than expected in April, the Office for National Statistics reported Friday.

Retail sales volume decreased 2.3% on a monthly basis following a revised 0.2% fall in March.

Poor weather negatively impacted retail sales, and elevated prices also kept consumers limiting their purchases to basic items.

Non-food store sales eased 4.1% from the previous month after weaker consumer traffic and poor weather dampened sales at apparel stores, toy and game stores, sports equipment stores, and furniture stores.

Food store sales declined for the third month in a row, and gasoline sales at pump stations dropped the most since October 2021.

On a yearly basis, retail sales decreased 2.7% compared to a 0.4% increase in March.

French manufacturing Confidence Dropped to a 4-month Low

Confidence among French manufacturers declined and dropped below its long-term average in April, France's statistical office, INSEE, reported Friday.

The index measuring confidence among manufacturing companies declined to 99 in May from 100 in April and fell to a 4-month low.

The index for the expected trend in selling price weakened (-1 from 3 in April), general production weakened (-9 from -7), the workforce fell (3 from 4), and personal production dropped (1 from 8).

Europe Indexes and Yields

The DAX index decreased by 0.3% to 18,629.16; the CAC-40 index fell by 0.2% to 8,088.82; and the FTSE 100 index inched lower by 0.4% to 8,307.20.

The yield on 10-year German bonds edged up to 2.58%; French bonds inched higher to 3.07%; the UK gilts edged higher to 4.25%; and Italian bonds inched lower to 3.89%.

The euro edged higher to $1.084; the British pound inched higher to $1.272; and the U.S. dollar gained to 91.47 Swiss cents.

Brent crude decreased $0.57 to $80.78 a barrel, and the Dutch TTF natural gas fell by €1.0 to €34.36 per MWh.

Europe Stock Movers

Acciona SA dropped 8.5% to €114.20 after the Spanish renewable energy and construction company issued a profit alert.

Intertek Group increased by 0.9% to 4,998.36 pence after the product testing and certification company reiterated its full-year estimate.

The company said revenue in the first four months to April increased 7.5% to £1.08 billion, driven by overall comparable sales growth of 7%.

The company reiterated its full-year comparable revenue growth in the "mid-single digit," improvement in margin, and "strong" free cash flow.

Rheinmetall AG decreased 0.8% to €529.40 despite the fact that the fact that the German automotive and arms maker said it won an order from NATO for 155 mm artillery ammunition.

Japan's Core Inflation Stays Above 2% Rate for 25th Month, Nikkei 225 Extend Weekly Losses to 1%

Akira Ito
24 May, 2024
Tokyo

Market indexes in Tokyo extended weekly losses, tracking the market decline in New York in overnight trading.

The Nikkei 225 and the Topix index fell more than 0.6% on the worry that U.S. interest rates are likely to stay higher than previously anticipated.

Closer to home, investors overlooked the decline in inflation and core inflation, and the yen weakened to a one-week low.

Consumer price inflation in April eased to 2.5% in April from 2.7% in March, the Ministry of Internal Affairs and Communication reported Friday.

Inflation eased for the second month in a row after food prices advanced at a slower pace, and core inflation, which excludes food prices but does not exclude energy prices, eased to 2.2% from 2.6% in March.

Despite the easing of inflation in recent months, consumer prices are still rising at a faster than 2% annual rate since March 2022.

The yen weakened to 157.05 against the U.S. dollar in late afternoon trading, and the Japanese government bond yield topped 1% for the first time since May 2013.

Bond traders have been betting that the Bank of Japan is likely to increase rates later in the year amid elevated inflation and narrow the bond yield gap with the U.S. Treasury notes.

Japan Indexes and Stock Movers

The Nikkei 225 Stock Average declined 1.3% to 38,590.19, and the Topix index dropped 0.6% to 2,738.78.

Tech stocks dropped sharply following the weakness in New York, despite Nvidia reporting a sharp jump in revenue and earnings in its latest quarter.

Tokyo Electron, Advantest, Screen Holdings, SoftBank, Lasrtec, and Socionext fell between 2.5% and 4.5%.

Bank stocks were also down after the Japanese government bond yield jumped above 1% for the first time since 2013.

Mizuho Financial, Mitsubishi UFJ, and Sumitomo Mitsui declined between 0.3% and 0.7%.

Kawasaki Heavy Industries, Shiseido, and Fujikura gained more than 3%.

Fuji Electric plunged 11.1% to ¥8,814.0, Yamaha Corp. fell 2.9% to ¥3,372.0, and Tokyo Tatemono fell 2.4% to ¥2,442.50.

Weak Earnings Outlook and Piecemeal Policy Response Drag China Indexes Down, Hang Seng Drops 5%

Li Chen
24 May, 2024
Hong Kong

Benchmark indexes in Shanghai and Hong Kong traded down in Friday's trading and extended weekly losses amid a lack of economic catalysts and widespread disappointment with earnings growth.

Market indexes fell for the fourth day in a row on the worry that the latest policy measures announced by regulators and the People's Bank of China are not likely to be enough to revive the property market.

Moreover, weak earnings from industrial companies, technology leaders, capital equipment makers, and electric vehicle makers suggested continued price pressure and elevated costs.

Market indexes in Hong Kong and Shanghai dropped more than 0.7% after stocks of technology companies and property developers fell on worries of higher interest in staying longer in the U.S.

The U.S. Federal Reserve's latest policy meeting minutes showed that policymakers are unhappy with the lack of progress on inflation in recent months.

Moreover, policymakers said more solid evidence is needed that inflation is on a sustained path towards the 2% target level before rate cuts are put in place.

The three-month market rally appears to have lost its momentum following the earnings growth weakness and lack of additional buying by state-controlled financial institutions.

The Hang Seng market index is down 5% in the week and up 11% in the year so far, and the CSI 300 index is down 2.5% and up 7.0%, respectively.

China Indexes and Movers

The CSI 300 index declined 0.7% to 3,616.22, and the Hang Seng Index dropped 1.4% to 18,619.13.

Property developers extended weekly losses after China Vanke decided to borrow US$1.1 billion from its two real estate subsidiaries a day after Fitch Ratings lowered the company's local and foreign debt rating to BB- from BB+.

China Vanke plunged 8.8% to HK$6.26, China Resources Land decreased 4.5% to HK$30.30, and Henderson Development dropped 2.5% to HK$25.50.

Tech stocks were also among the leading decliners, and Baidu, JD.com, Tencent Holdings, and Meituan declined between 1.5% and 3.5%.

Alibaba Group Holding dropped 0.6% to HK$78.10 after the company announced its plans to raise US$4.5 billion through a convertible note offering and fund its stock repurchase plan.

India Movers: Bikaji Foods, CESC, Precision Camshafts, Mangalore Chemicals, Time Technoplast

Arun Goswami
24 May, 2024
Mumbai

Stocks in Mumbai struggled to advance in Friday's trading, and market indexes are set to close higher by 2% after a week of choppy trading..

The Sensex index decreased by 0.1% to 75,368.18, and the Nifty index fell by 0.1% to 22,946.05.

On the Mumbai stock exchange, 108 stocks traded at their 52-week highs, and 10 stocks traded at their 52-week lows.

The yield on the 10-year Indian government bonds inched lower to 6.99%, and the Indian rupee edged lower at ₹83.22 against the U.S. dollar.

Bikaji Foods soared 6.6% to ₹569.0 after the packaged food product maker reported a surge in earnings in the March quarter.

Revenue in the quarter increased by 33% to ₹614.4 crore from ₹462.3 crore, and net income soared by 200% to ₹116.3 crore from ₹38.7 crore a year ago.

Mangalore Chemicals & Fertilizers declined 3.1% to ₹108.30 after the company reported a sharp decline in net profit in the March quarter.

Net income in the quarter plunged 93% to ₹4.8 crore from ₹67.9 crore, and revenue dropped to ₹799.2 crore from ₹1,174.97 crore a year ago, respectively.

Diluted earnings per share dropped to 41 paisa from ₹5.73 a year ago.

The company recommended ₹1.50 per share as the final and total dividend for the fiscal year 2024.

CESC declined 1.7% to ₹143.60 after the electric utility in Kolkata reported a decline in profit in the March quarter.

Revenue in the quarter rose 9.2% to ₹3,387 crore from ₹3,102 crore, and net income fell 6.7% to ₹415 crore from ₹455 crore a year ago.

Precision Camshafts dropped 6.1% to ₹203.65 after the automotive products maker reported a decline in revenue and earnings in the March quarter.

Revenue fell 8% to ₹256.2 crore from ₹278.6 crore, and net income dropped 70% to ₹3.35 crore from ₹11.1 crore a year ago.

Time Technolplast Ltd. dropped by 1.4% to ₹283.50 despite the molded plastic product maker reporting an increase in revenue and earnings in the March quarter.

Revenue in the quarter increased 17% to 1,394.3 crore from 1,192.4 crore, and net income soared 44.5% to 94.3 crore from 65.2 crore a year ago, respectively.

New Home Sales Fall as Home Inventories Rise

Brian Turner
23 May, 2024
Washington, D.C.

Sales of single-family houses fell in April as buyers struggled with elevated home prices and rising mortgage rates.

Single-family home sales declined 4.7% from the previous month to a seasonally adjusted annual rate of 634,000 from the downwardly revised 664,000 in March, the U.S. Census Bureau reported Thursday.

Home sales declined 7.4% from the April 2023 estimate of 687,000.

The median sales price of new houses sold in April was $433,500, and the average sales price was $505,700, higher than $417,200 and $500,900, respectively, a year ago.

Homes listed for sale during the period increased to 480,000, about 9.1 months of supply at the current rate of annual sale, higher than 428,000 and 7.5 months of supply from a year ago, respectively.

Nvidia Sparked Tech Rally Failed to Expand to Broader Market

Alexander Garcia
23 May, 2024
Miami

Benchmark indexes on Wall Street rallied after Nvidia surpassed elevated market expectations, but the rally failed to broaden beyond tech stocks after an early morning bounce.

In morning trading, the S&P 500 index and the Nasdaq Composite advanced more than 0.8% after Nvidia said it sees no slowdown in demand for its chips to support artificial intelligence applications.

Nvidia, at the center of the artificial intelligence boom, lived up to the market hype and raised its sales estimate in the current quarter.

Initial claims of jobless benefits slowed after rising to elevated levels early in the month, stoking fears that the labor market may be heading for a softer patch.

Initial claims for jobless benefits fell by 8,000 to 215,000 for the week ended May 18, the U.S. Department of Labor reported on Thursday.

Initial jobless claims rose to 232,000 in the week ending on May 4, a high not seen since the third week in August 2023.

Continuing claims, which run one week behind, also rose by 8,000 to 1.794 million. the highest level in five weeks.

New Home Sales Fall as Home Inventories Rise

Sales of single-family houses fell in April as buyers struggled with elevated home prices and rising mortgage rates.

Single-family home sales declined 4.7% from the previous month to a seasonally adjusted annual rate of 634,000 from the downwardly revised 664,000 in March, the U.S. Census Bureau reported Thursday.

Home sales declined 7.4% from the April 2023 estimate of 687,000.

The median sales price of new houses sold in April was $433,500, and the average sales price was $505,700, higher than $417,200 and $500,900, respectively, a year ago.

Homes listed for sale during the period increased to 480,000, about 9.1 months of supply at the current rate of annual sale, higher than 428,000 and 7.5 months of supply from a year ago, respectively.

U.S. Indexes and Treasury Yields

The S&P 500 index rose 0.2% to 5,316.24, and the Nasdaq Composite jumped 0.8% to 16,927.95.

The yield on 2-year Treasury notes edged lower to 4.88%, 10-year Treasury notes decreased to 4.42%, and 30-year Treasury bonds edged higher to 4.54%.

WTI crude oil increased $0.58 to $78.20 a barrel, and natural gas prices declined 1 cent to $2.83 a thermal unit.

Gold decreased by $38.05 to $2,343.14 an ounce, and silver fell 53 cents to $30.35.

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 104.84.

U.S. Stock Movers

Nvidia Corp. soared 6.7% to $1,013.0 after the advanced chipmaker reported better-than-expected quarterly results and lifted its revenue outlook for the current year, driven by strong data center revenue growth.

The company also announced 10-for-1 stock.

Snowflake jumped 4.6% to $170.80 after the cloud computing company reported better-than-expected revenue in its fiscal first quarter.

VF Corp. dropped 8.5% to $11.28 after the apparel and footwear maker reported weaker-than-expected revenue and unexpectedly swung to a loss.

LiveRamp Holdings soared 17.8% to $38.09 after the advertising technology company exceeded earnings expectations and lifted revenue guidance for the current quarter and full year.

European Indexes Rebound, Private Sector Activity Growth Gains Momentum

Market indexes in Europe advanced, bond yields in the region gained, and the euro held firm against major currencies.

Benchmark indexes in London, Paris, and Frankfurt rose in early trading following a surge in tech stocks after the leading artificial intelligence chip maker Nvidia reported strong quarterly results.

The rise in private sector activities to the highest level in a year also lifted market sentiment in European trading.

The HCOB Eurozone Composite PMI increased to 52.3 in May from 51.7 in April after new orders, business activity, and employment levels picked up pace. Business confidence in the region advanced to a 27-month high amid steady improvements in new orders and demand.

Europe Indexes and Yields

The DAX index increased by 0.06% to 18,691.32; the CAC-40 index rose by 0.1% to 8,102.33; and the FTSE 100 index inched lower by 0.4% to 8,339.75.

The yield on 10-year German bonds edged up to 2.54%; French bonds inched higher to 3.02%; the UK gilts edged higher to 4.21%; and Italian bonds inched lower to 3.82%.

The euro edged higher to $1.084; the British pound inched higher to $1.272; and the U.S. dollar gained to 91.36 Swiss cents.

Brent crude increased $0.30 to $81.59 a barrel, and the Dutch TTF natural gas rose by €0.70 to €35.38 per MWh.

Europe Stock Movers

Hargreaves Lansdown PLC soared 10.9% to 1,086.0 pence after the investment platform rejected a surprise takeover approach from a consortium of private equity buyers.

Aviva plc decreased 0.8% to 492.30 pence, despite the UK-based insurance company reporting better-than-expected results in the first quarter.

Wizz Air Holdings soared 6.9% to 2,099.77 pence after the low-cost carrier returned to profitability in fiscal year 2024.

E.ON declined 1.7% to €12.40 after the electric utility company reported mixed quarterly results.

Revenue in the first quarter decreased 20% to €27.2 billion, net income swung to a profit of €584 million from a loss of €143 million, and earnings per share were 22 cents from a loss of 55 cents a year ago.

National Grid plunged 9.9% to 1,016.0 pence after the electricity and gas utility announced its plans to raise £7 billion, or $8.9 billion, through a secondary offering of 1.09 billion shares.

United Utilities declined 3.7% to 1,034.50 pence, and Drax Group plunged 8.2% to 510.50 pence after utilities companies faced selling pressure.

Gerresheimer AG soared 11.8% to €104.20 after Germany packaging products maker agreed to acquire Blitz LuxCo sarl, the holding company of the Bormioli Pharma Group, for €800 million, or $865.92 million.

CTS Eventim AG jumped 10% to €88.80 after the event ticketing platform operator reported better-than-expected operating income in the first quarter.

Merck KGaA gained 0.7% to €169.65 after the German pharmaceutical company agreed to acquire life science company Mirus Bio for $600 million.

Gamma Biosciences, the parent company of Mirus, is based in Madison, Wisconsin, and specializes in the development of transfection reagents, which play a critical role in viral vector-based gene therapy.

Tech Rally Lifts Indexes In Tokyo

Market indexes in Tokyo advanced and private sector activity expanded at the fastest pace in nine months.

The Nikkei 225 and the Topix indexes gained after tech stocks rallied following a stronger-than-expected earnings report from the leading artificial chip maker, Nvidia.

The AI chipmaker also estimated higher-than-expected revenue in the current quarter and announced a 10-to-1 stock split.

The Japanese yen was under pressure and traded at 156.65 against the U.S. dollar at 3:00 p.m. Tokyo time, after the latest Fed's policy meeting minutes showed policymakers are worried about the slow pace of disinflation.

The policymakers have been worried about stagnant inflation and suggested that the disinflation process is likely to take longer than previously anticipated.

Private Sector Expansion Accelerates In May

Japan's private-sector business activities accelerated for the third consecutive month in May.

The au Jibun Bank Japan Composite PMI index increased to 52.4 from 52.3 in April, S&P Global reported Thursday.

The index rose to its highest level since last August's 52.6 as private sector output accelerated for the third month in a row.

The stabilization in manufacturing output also raised hopes that the economic recovery is likely to broaden in the second half of the year.

Japan Stock Movers

The Nikkei 225 Stock Average rose 1.2% to 39,074.40, and the Topix index advanced 0.4% to 2,749.98.

Tech stocks led the gainers in Tokyo trading after Nvidia reported sharply higher earnings and announced a 10-for-1 stock split.

Disco Corp., Tokyo Electron, Advantest, and Screen Holdings gained between 1.5% and 2.7%.

SoftBank Group advanced 4.4% to ¥8,738.0 after the credit rating agency S&P upgraded the company's debt rating by one notch to BB+.

Teijin soared 10.2% to ¥1,550.0, and Renesas Electronics advanced 5.5% to ¥2,849.0.

Last week, the composite and carbon fiber maker reported weaker-than-expected annual results.

Revenue in the fiscal year 2023 ending in March increased 1.4% to 1.03 trillion yen from 1.01 trillion yen, net income swung to a profit of 10.6 billion yen from a loss of 17.7 billion yen, and basic earnings per share were 55.07 yen from a loss of 92.04 yen a year ago.

The company lowered its total dividend in the fiscal year 2023 to 30 yen from 40 yen in the previous fiscal year and guided 30 yen in the current fiscal year.

On the downside, Sumitomo Realty & Development, Sumitomo Metal Mining, and Dowa Holdings declined between 3% and 4%.

China Stock Run Hits Wall

Stocks in Shanghai and Hong Kong headed lower amid earnings worries and a lack of investor interest.

Benchmark indexes in Shanghai and Hong Kong fell around 1% after a 6-week market rally appeared to peter out amid a lack of catalysts.

Investor enthusiasm has been waning for the second week in a row after market indexes retreated from their 10-week highs as the earning season nears its end.

Most mainland Chinese companies are reporting weaker-than-expected earnings, and earnings growth for Hong Kong companies also lagged behind market expectations.

Moreover, investors are increasingly skeptical of the effectiveness of the regulatory support announced for the property market because property prices are still too high in the top 10 largest cities when compared to wages.

Property developers in Hong Kong were also under pressure after the latest minutes of the Federal Reserve's policy meeting showed policymakers are worried about the lack of progress on the inflation front.

Hong Kong's interest rates are likely to follow higher U.S. interest rates as the city's currency is pegged to the U.S. dollar.

Market indexes in Hong Kong and Shanghai are likely to revisit lows of the year reached earlier in January, with lack of economic catalysts and little improvement in earnings.

China Stock Movers

For the week, the Hang Seng index is down about 4%, and the CSI 300 index has fallen more than 1.5%.

The CSI 300 index dropped 0.9% to 3,651.79, and the Hang Seng index fell 1.4% to 18,930.02.

Henderson Land Development dropped 3.7% to HK$25.80, Sun Hung Kai Properties declined 0.8% to HK$79.25, China Vanke fell 5.6% to HK$6.62, and Longfor Group Holdings fell 3.7% to HK$14.28.

PDD Holdings gained 0.5% to $147.50 in New York after the e-commerce company reported sharply higher revenue in the March quarter.

Temu-parent said revenue soared 131% to 86.8 billion yuan, or US$12.0 billion, and net income attributable to stockholders soared 246% to 28 billion yuan, or US$3.8 billion.

Revenue from transaction services surged 327% to 44.4 billion yuan, and revenue from marketplace services increased 56% to 42.5 billion yuan.

U.S. Movers: Nvidia, LiveRamp Holdings, Snowflake, VF Corp

Scott Peters
23 May, 2024
New York City

Nvidia Corp. soared 6.7% to $1,013.0 after the advanced chipmaker reported better-than-expected quarterly results and lifted its revenue outlook for the current year, driven by strong data center revenue growth.

The company also announced 10-for-1 stock.

Snowflake jumped 4.6% to $170.80 after the cloud computing company reported better-than-expected revenue in its fiscal first quarter.

VF Corp. dropped 8.5% to $11.28 after the apparel and footwear maker reported weaker-than-expected revenue and unexpectedly swung to a loss.

LiveRamp Holdings soared 17.8% to $38.09 after the advertising technology company exceeded earnings expectations and lifted revenue guidance for the current quarter and full year.

Nvidia's Strong Earnings Pushes S&P 500 and Nasdaq Into Record Territory

Barry Adams
23 May, 2024
New York City

Benchmark indexes on Wall Street rallied after Nvidia surpassed elevated market expectations.

The S&P 500 index and the Nasdaq Composite advanced more than 0.6% after Nvidia said it sees no slowdown in demand for its chips to support artificial intelligence applications.

Initial claims of jobless benefits slowed after rising to elevated levels early in the month, stoking fears that the labor market may be heading for a softer patch.

Initial claims for jobless benefits fell by 8,000 to 215,000 for the week ended May 18, the U.S. Department of Labor reported on Thursday.

Initial jobless claims rose to 232,000 in the week ending on May 4, a high not seen since the third week in August 2023.

Continuing claims, which run one week behind, also rose by 8,000 to 1.794 million. the highest level in five weeks.

U.S. Indexes and Treasury Yields

The S&P 500 index rose 0.4% to 5,329.36, and the Nasdaq Composite jumped 1.1% to 16,971.75.

The yield on 2-year Treasury notes edged lower to 4.88%, 10-year Treasury notes decreased to 4.42%, and 30-year Treasury bonds edged higher to 4.54%.

WTI crude oil increased $0.58 to $78.20 a barrel, and natural gas prices declined 1 cent to $2.83 a thermal unit.

Gold decreased by $15.09 to $2,367.59 an ounce, and silver fell 24 cents to $30.65.

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 104.84.

U.S. Stock Movers

Nvidia Corp. soared 6.7% to $1,013.0 after the advanced chipmaker reported better-than-expected quarterly results and lifted its revenue outlook for the current year, driven by strong data center revenue growth.

The company also announced 10-for-1 stock.

Snowflake jumped 4.6% to $170.80 after the cloud computing company reported better-than-expected revenue in its fiscal first quarter.

VF Corp. dropped 8.5% to $11.28 after the apparel and footwear maker reported weaker-than-expected revenue and unexpectedly swung to a loss.

LiveRamp Holdings soared 17.8% to $38.09 after the advertising technology company exceeded earnings expectations and lifted revenue guidance for the current quarter and full year.

Europe Movers: Aviva, CTS Eventim, Gerrsheimer, E.ON, Hargraves Lansdown, Merck, National Grid, Wizz Air

Inga Muller
23 May, 2024
Frankfurt

European market indexes rebounded from lackluster morning trading after Nvidia earnings soared and private sector activity in the eurozone gained momentum.

The DAX index increased by 0.3% to 18,732.76; the CAC-40 index rose by 0.2% to 8,107.94; and the FTSE 100 index inched higher by 0.05% to 8,375.05.

The yield on 10-year German bonds edged up to 2.54%; French bonds inched higher to 3.02%; the UK gilts edged higher to 4.21%; and Italian bonds inched lower to 3.82%.

Hargreaves Lansdown PLC soared 10.9% to 1,086.0 pence after the investment platform rejected a surprise takeover approach from a consortium of private equity buyers.

Aviva plc decreased 0.8% to 492.30 pence, despite the UK-based insurance company reporting better-than-expected results in the first quarter.

Wizz Air Holdings soared 6.9% to 2,099.77 pence after the low-cost carrier returned to profitability in fiscal year 2024.

E.ON declined 1.7% to €12.40 after the electric utility company reported mixed quarterly results.

Revenue in the first quarter decreased 20% to €27.2 billion, net income swung to a profit of €584 million from a loss of €143 million, and earnings per share were 22 cents from a loss of 55 cents a year ago.

National Grid plunged 9.9% to 1,016.0 pence after the electricity and gas utility announced its plans to raise £7 billion, or $8.9 billion, through a secondary offering of 1.09 billion shares.

United Utilities declined 3.7% to 1,034.50 pence, and Drax Group plunged 8.2% to 510.50 pence after utilities companies faced selling pressure.

Gerresheimer AG soared 11.8% to €104.20 after Germany packaging products maker agreed to acquire Blitz LuxCo sarl, the holding company of the Bormioli Pharma Group, for €800 million, or $865.92 million.

CTS Eventim AG jumped 10% to €88.80 after the event ticketing platform operator reported better-than-expected operating income in the first quarter.

Merck KGaA gained 0.7% to €169.65 after the German pharmaceutical company agreed to acquire life science company Mirus Bio for $600 million.

Gamma Biosciences, the parent company of Mirus, is based in Madison, Wisconsin, and specializes in the development of transfection reagents, which play a critical role in viral vector-based gene therapy.

European Indexes Rebound After Private Sector Activity Growth Gains Momentum

Bridgette Randall
23 May, 2024
Frankfurt

Market indexes in Europe advanced, bond yields in the region gained, and the euro held firm against major currencies.

Benchmark indexes in London, Paris, and Frankfurt rose in early trading following a surge in tech stocks after the leading artificial intelligence chip maker Nvidia reported strong quarterly results.

The rise in private sector activities to the highest level in a year also lifted market sentiment in European trading.

The HCOB Eurozone Composite PMI increased to 52.3 in May from 51.7 in April after new orders, business activity, and employment levels picked up pace. Business confidence in the region advanced to a 27-month high amid steady improvements in new orders and demand.

Europe Indexes and Yields

The DAX index increased by 0.3% to 18,732.76; the CAC-40 index rose by 0.2% to 8,107.94; and the FTSE 100 index inched higher by 0.05% to 8,375.05.

The yield on 10-year German bonds edged up to 2.54%; French bonds inched higher to 3.02%; the UK gilts edged higher to 4.21%; and Italian bonds inched lower to 3.82%.

The euro edged higher to $1.084; the British pound inched higher to $1.272; and the U.S. dollar gained to 91.36 Swiss cents.

Brent crude increased $0.66 to $82.56 a barrel, and the Dutch TTF natural gas rose by €0.91 to €35.58 per MWh.