Market Update
China FRIDAY
Li Chen
11 Jul, 2025
Hong Kong
Stocks in Hong Kong and mainland China advanced on Friday, and extended weekly gains amid hopes of improved earnings and policy support.
The Hang Seng index gained more than 1.5%, and the mainland-focused CSI 300 index advanced more than 1%, amid expectations of improving earnings in the manufacturing sector and Internet-based platform operators.
For the week, the Hang Seng index and the CSI index advanced to new three-month highs as investors moved on from constantly changing U.S. trade policy and arbitrary threats from the U.S. president.
The key U.S. trade partners - China, Japan, the European Union, Canada, and Mexico - have resisted aggressive import taxes announced by the Trump administration.
But the ensuing business uncertainty has disrupted international traded and roiled global financial markets.
Investors in China are dialing down expectations for economic growth in the second half, as exporters face headwinds and reduced profitability.
Investors are hoping that a Politburo meeting later in the month may provide additional fiscal stimulus, but for now policymakers are resisting the move.
China Indexes and Stocks
The Hang Seng index increased 1.6% to 24,408.41, and the CSI 300 index rose 1.1% to 4,053.58.
China Mengniu Dairy Company Ltd. jumped 3.5% to HK $16.48 after the company confirmed it repurchased HK$6.35 million worth of its own shares on Thursday.
Alibaba Group Holding advanced 3.3% to HK $106.70, Tencent Holding 1.5% to HK $505.00, and Meituan edged down 1.2% to HK $122.40.
Traders In New York Overlook New and Expanding Tariff Threats
Barry Adams
10 Jul, 2025
New York City
Stocks in New York fluctuated around the flatline, and investors awaited the start of earnings season next week.
The S&P 500 index edged down 0.1%, and the tech-heavy Nasdaq Composite inched higher 0.2%, following a rebound in the previous session.
Investors are increasingly looking beyond the ongoing Trump administration's efforts to prolong the trade negotiations with key trading partners.
The latest combination of threats to Japan and South Korea and a new wave of sector-specific tariffs did little to sway the market's opinion about the U.S. president: "Trump always chickens out."
Trump announced a 50% tariff on imported copper and slapped a 50% tariff on Brazil, largely in retaliation for the current trial against the former president Jair Bolsonaro for his role in an alleged plot to overturn his loss in the 2022 presidential election.
U.S. Stock Movers
Delta Air Lines jumped 13.1% to $57.33 after the company reinstated its 2025 earnings outlook.
The international carrier said full-year earnings per share are expected to range between $5.35 and $6.25, and estimated cash flow between $3 billion and $4 billion.
Bassett Furniture Industries incorporated gained 7.4% to $18.27 after the furniture maker’s net income swung to a profit in the fiscal second quarter.
Consolidated revenue in the quarter inched higher to $84.3 million from $83.4 million, net income swung to a profit of $1.9 million from a loss of $7.2 million, and diluted income per share swung to a profit of 22 cents from a loss of 82 cents a year ago.
For the fiscal year 2025, revenue decreased to $166.5 million from $170 million, net income swung to a profit of $3.7 million from a loss of $8.3 million, and diluted income per share swung to a profit of 43 cents from a loss of 96 cents a year ago.
Traders In New York Overlook New and Expanding Tariff Threats
Barry Adams
10 Jul, 2025
New York City
Stocks in New York fluctuated around the flatline, and investors awaited the start of earnings season next week.
The S&P 500 index edged down 0.1%, and the tech-heavy Nasdaq Composite inched higher 0.2%, following a rebound in the previous session.
Investors are increasingly looking beyond the ongoing Trump administration's efforts to prolong the trade negotiations with key trading partners.
The latest combination of threats to Japan and South Korea and a new wave of sector-specific tariffs did little to sway the market's opinion about the U.S. president: "Trump always chickens out."
Trump announced a 50% tariff on imported copper and slapped a 50% tariff on Brazil, largely in retaliation for the current trial against the former president Jair Bolsonaro for his role in an alleged plot to overturn his loss in the 2022 presidential election.
U.S. Stock Movers
Delta Air Lines jumped 13.1% to $57.33 after the company reinstated its 2025 earnings outlook.
The international carrier said full-year earnings per share are expected to range between $5.35 and $6.25, and estimated cash flow between $3 billion and $4 billion.
Bassett Furniture Industries incorporated gained 7.4% to $18.27 after the furniture maker’s net income swung to a profit in the fiscal second quarter.
Consolidated revenue in the quarter inched higher to $84.3 million from $83.4 million, net income swung to a profit of $1.9 million from a loss of $7.2 million, and diluted income per share swung to a profit of 22 cents from a loss of 82 cents a year ago.
For the fiscal year 2025, revenue decreased to $166.5 million from $170 million, net income swung to a profit of $3.7 million from a loss of $8.3 million, and diluted income per share swung to a profit of 43 cents from a loss of 96 cents a year ago.
U.S. Movers: Bassett Furniture, Delta Air Lines
Scott Peters
10 Jul, 2025
New York City
Bassett Furniture Industries incorporated gained 7.4% to $18.27 after the furniture maker’s net income swung to a profit in the fiscal second quarter ending in May.
Consolidated revenue in the quarter inched higher to $84.3 million from $83.4 million, net income swung to a profit of $1.9 million from a loss of $7.2 million, and diluted income per share swung to a profit of 22 cents from a loss of 82 cents a year ago.
For the six-month period ending in May, revenue decreased to $166.5 million from $170 million, net income swung to a profit of $3.7 million from a loss of $8.3 million, and diluted income per share swung to a profit of 43 cents from a loss of 96 cents a year ago.
Delta Air Lines Inc. gained 12.4% to $56.81 after the international air carrier reported a 62% jump in its earnings in the fiscal second quarter ending in June.
Revenue decreased to $16.6 billion from $16.7 billion, net income jumped to $2.1 billion from $1.3 billion, and diluted earnings per share rose to $3.27 from $2.1 a year ago.
For the six-month period, revenue edged higher to $30.7 billion from $30.4 billion, net income soared to $2.4 billion from $1.3 billion, and diluted earnings per share advanced to $3.63 from $2.08 a year ago.
The Delta Air Lines estimated full-year earnings per share to range between $5.25 and $6.25 and free cash flow between $3 billion and $4 billion.
"For the September quarter, we expect total revenue to be flat to up 4% compared to the prior year, with unit revenue trends expected to improve through the second half of the year as we continue to adjust capacity and the industry further rationalizes supply," the company said in a statement to investors.
U.S. Movers: Bassett Furniture
Scott Peters
10 Jul, 2025
New York City
Bassett Furniture Industries incorporated gained 7.4% to $18.27 after the furniture maker’s net income swung to a profit in the fiscal second quarter.
Consolidated revenue in the quarter inched higher to $84.3 million from $83.4 million, net income swung to a profit of $1.9 million from a loss of $7.2 million, and diluted income per share swung to a profit of 22 cents from a loss of 82 cents a year ago.
For the fiscal year 2025, revenue decreased to $166.5 million from $170 million, net income swung to a profit of $3.7 million from a loss of $8.3 million, and diluted income per share swung to a profit of 43 cents from a loss of 96 cents a year ago.
China Deflation and Volatile U.S. Trade Policy Keep China Markets In Check
Li Chen
10 Jul, 2025
Hong Kong
China's stock market indexes fluctuated on Thursday as investors reviewed the latest inflation reports and awaited the progress on tariff negotiations.
The Hang Seng index edged up 0.1%, and the CSI 300 index decreased 0.3%, ahead of the fast-approaching deadline for the U.S. tariffs.
The producer and consumer inflation reports confirmed the persistent deflation trend for the last three years, and investors lowered economic growth expectations for the second half.
Moreover, the U.S. and China remain far from an agreement on the additional tariffs on Chinese goods.
The Trump administration is looking to impose at least 40% additional duty on Chinese goods and seeking duty-free access for agricultural exports from the U.S.
Chinese consumer and industrial goods makers are expanding overseas and seeking new markets in the ASEAN region, South America, and the Middle East.
The volatile and disruptive U.S. trade policy has pushed thousands of small and medium-sized businesses on the brink of closure.
China Indexes and Stocks
The Hang Seng Index increased 0.1% to 23,918.76, and the mainland-focused CSI 300 index decreased 0.3% to 4,003.32.
Sunny Optical Technology Group advanced 6.5% to HK $75.55, Baidu Inc. decreased 1.4% to HK $86.70, and Xiaomi Corp. fell 1% to HK $56.85.
Alibaba Group Holding fell 0.9% to HK $102.0, Meituan decreased 0.8% to HK $118.30, and Tencent Holdings eased 0.4% to HK $495.40.
China Deflation and Volatile U.S. Trade Policy Keep China Markets In
Li Chen
10 Jul, 2025
Hong Kong
China's stock market indexes fluctuated on Thursday as investors reviewed the latest inflation reports and awaited the progress on tariff negotiations.
The Hang Seng index edged up 0.1%, and the CSI 300 index decreased 0.3%, ahead of the fast-approaching deadline for the U.S. tariffs.
The producer and consumer inflation reports confirmed the persistent deflation trend for the last three years, and investors lowered economic growth expectations for the second half.
Moreover, the U.S. and China remain far from an agreement on the additional tariffs on Chinese goods.
The Trump administration is looking to impose at least 40% additional duty on Chinese goods and seeking duty-free access for agricultural exports from the U.S.
Chinese consumer and industrial goods makers are expanding overseas and seeking new markets in the ASEAN region, South America, and the Middle East.
The volatile and disruptive U.S. trade policy has pushed thousands of small and medium-sized businesses on the brink of closure.
China Indexes and Stocks
The Hang Seng Index increased 0.1% to 23,918.76, and the mainland-focused CSI 300 index decreased 0.3% to 4,003.32.
Sunny Optical Technology Group advanced 6.5% to HK $75.55, Baidu Inc. decreased 1.4% to HK $86.70, and Xiaomi Corp. fell 1% to HK $56.85.
Alibaba Group Holding fell 0.9% to HK $102.0, Meituan decreased 0.8% to HK $118.30, and Tencent Holdings eased 0.4% to HK $495.40.