Market Update
China WEDNESDAY
Li Chen
09 Jul, 2025
Select
Stocks in China lacked direction amid ongoing trade uncertainty and persistent worries of deflation.
The Hang Seng index decreased 0.8%, and the mainland-focused CSI 300 index edged slightly higher as investors reviewed the latest reports on inflation.
China's CPI and PPI Confirm Ongoing Deflation Trends
Consumer price inflation edged up unexpectedly 0.1% in June, reversing the decline by the same amount in the previous month, the National Bureau of Statistics reported Wednesday.
Prices of goods decreased 0.2%, services increased 0.5%, and food edged down 0.3% from a year ago, respectively.
The overall price inflation rose for the first time in five months, but demand remained weak despite government subsidy programs to encourage the purchase of household goods and consumer electronics.
Core prices, which exclude volatile food and energy prices, advanced 0.7% from a year ago, their highest level in 14 months.
The producer price index, the measure of prices charged by suppliers, edged down for the 33rd consecutive month and extended the 3.3% decrease in the previous month, the National Bureau of Statistics said in a separate report.
Producer prices fell 2.6% in the first half, and the outlook for prices in the second half is weaker because of the persistent weak domestic demand and uncertain outlook for exports.
China Indexes and Stocks
The Hang Seng Index decreased 0.8% to 23,960.34, and the mainland-focused CSI 300 index gained 0.4% to 4,012.14.
Five companies listed their shares on the Hong Kong Stock Exchange, as more mainland companies seek capital for international expansion.
Wuhan Dazhong Medical jumped 17% to HK $23.20, and the dental company priced its initial public offering at HK $20 per share.
The dental services provider sold 10.8 million shares and raised gross proceeds of HK$217.4 million.
Fortior Technology gained 10% to HK $132.60, and the company priced its public offering at HK $120 per share.
The advanced chip designer for electric motor control and drivers sold 18.7 million and raised a total of HK $2.8 billion.
Lens Technology Co. Ltd. jumped 6% to HK $19.12, and the lens sensor provider for Apple priced its initial public offering at HK $18.18 per share.
The precision manufacturing company for consumer electronics and electric vehicles raised a total of HK $4.7 billion.
Beijing Geekplus Technology traded unchanged at HK $16.81, and the company priced its public offering at HK $16.80 per share.
The autonomous mobile robot maker for warehouses sold 161.45 million shares and raised a total of HK $2.7 billion.
Beijing Xunzhong Communication decreased a fraction to HK $13.46, and the company priced its public offering at HK $13.55 per share.
The cloud-based communication provider in China, with a market share of 1.8%, sold 30.4 million shares and raised a total of HK $412.5 million.
With Earnings in Focus, Trump Administration's Tariff Threats Lack Punch
Barry Adams
08 Jul, 2025
New York City
Wall Street indexes attempted to rebound from Monday's sell-off, and investors shifted their focus to the start of the earnings season.
The S&P 500 index increased 0.1%, and the tech-heavy Nasdaq Composite inched higher 0.2% amid growing consensus that the Trump administration's threats are not likely to derail international trade.
Over the last six weeks, investors have realized that the Trump administration's threats are rarely followed through, and negotiators in China, Japan, Mexico, Canada, and the European Union have an upper hand.
In the latest iteration of Trump's threat, 14 countries are targeted with rates between 25% and 40% starting from August 1.
The Trump administration's bungling of tariff revision has hit small and independent businesses that rely on intermediary or consumer goods made in Asia and Europe.
Donald Trump's erratic trade policy, lack of clarity on the level of tariffs paid at the U.S. ports of arrival, and on-again-off-again ban on artificial intelligence-linked tech products and software have forced U.S. businesses to halt international commerce.
U.S. Stock Movers
Solar energy stocks turned lower after the U.S. president issued an executive order to roll back green energy subsidies.
Sunrun Inc. dropped 10.7% to $9.92, Enphase Energy Inc. decreased 5.4% to $40.15, and First Solar Inc. fell 4.6% to $168.42.
With Earnings in Focus, Trump Administration's Tariff Threats Lack Punch
Barry Adams
08 Jul, 2025
New York City
Wall Street indexes attempted to rebound from Monday's sell-off, and investors shifted their focus to the start of the earnings season.
The S&P 500 index increased 0.1%, and the tech-heavy Nasdaq Composite inched higher 0.2% amid growing consensus that the Trump administration's threats are not likely to derail international trade.
Over the last six weeks, investors have realized that the Trump administration's threats are rarely followed through, and negotiators in China, Japan, Mexico, Canada, and the European Union have an upper hand.
In the latest iteration of Trump's threat, 14 countries are targeted with rates between 25% and 40% starting from August 1.
The Trump administration's bungling of tariff revision has hit small and independent businesses that rely on intermediary or consumer goods made in Asia and Europe.
Donald Trump's erratic trade policy, lack of clarity on the level of tariffs paid at the U.S. ports of arrival, and on-again-off-again ban on artificial intelligence-linked tech products and software have forced U.S. businesses to halt international commerce.
U.S. Stock Movers
Solar energy stocks turned lower after the U.S. president issued an executive order to roll back green energy subsidies.
Sunrun Inc. dropped 10.7% to $9.92, Enphase Energy Inc. decreased 5.4% to $40.15, and First Solar Inc. fell 4.6% to $168.42.
European Markets Ignore Latest Trump Threats, German Trade Surplus Shrank
Bridgette Randall
08 Jul, 2025
London
European market indexes lacked direction but retained an upward bias, as investors reviewed the latest change in the U.S. trade policy.
Benchmark indexes in Frankfurt, Paris, Milan, and London struggled to stay above the flatline.
The Trump administration delayed the aggressive tariff deadline to August 1 from the July 9 deadline and warned Japan and South Korea to face 25% tariffs if negotiations are not wrapped up by the end of the month.
The European Union is looking to strike a trade framework with the U.S. that would avoid steep tariffs on vehicles, pharmaceuticals, and steel and aluminum products.
However, agriculture and food and beverage product shipments from the European Union may avoid excessive tariffs of 25%.
The constantly changing trade policy of the Trump administration has put businesses on alert, and the European Union has ramped up its trade negotiations with China, India, and Brazil.
German Trade Surplus Shrank In May
Germany's May exports increased 0.4% to €129.4 billion, imports advanced 4.2% to €111.1 billion, and the trade surplus shrank to €18.4 billion from €22.3 billion a year ago, respectively.
Exports to the U.S. decreased 7.7% to €12.1 billion, to China declined 2.9% to €6.8 billion, and to the U.K. rose 15.1% to €3.1 billion, according to the latest data available from the Federal Statistical Office, or Destatis.
Europe Stock Movers
Vehicle makers extended their losses of the previous month, and defense stocks turned volatile in Tuesday's trading.
Volkswagen Group AG decreased 0.9% to €90.0, Mercedes-Benz Group AG declined 0.4% to €49.72, Renault SA fell 1.4% to €39.86, and Stellantis NV edged up 0.4% to €8.42.
Rheinmetall AG increased 1.1% to €1,823.0, MTU Aero Engines AG added 1% to €1,823.0, Safran SA inched higher 0.4% to €275.70, and Rolls-Royce Holdings PLC eased 0.8% to 962.0.
European Markets Ignore Latest Trump Threats, German Trade Surplus Shrank
Bridgette Randall
08 Jul, 2025
London
European market indexes lacked direction but retained an upward bias, as investors reviewed the latest change in the U.S. trade policy.
Benchmark indexes in Frankfurt, Paris, Milan, and London struggled to stay above the flatline.
The Trump administration delayed the aggressive tariff deadline to August 1 from the July 9 deadline and warned Japan and South Korea to face 25% tariffs if negotiations are not wrapped up by the end of the month.
The European Union is looking to strike a trade framework with the U.S. that would avoid steep tariffs on vehicles, pharmaceuticals, and steel and aluminum products.
However, agriculture and food and beverage product shipments from the European Union may avoid excessive tariffs of 25%.
The constantly changing trade policy of the Trump administration has put businesses on alert, and the European Union has ramped up its trade negotiations with China, India, and Brazil.
German Trade Surplus Shrank In May
Germany's May exports increased 0.4% to €129.4 billion, imports advanced 4.2% to €111.1 billion, and the trade surplus shrank to €18.4 billion from €22.3 billion a year ago, respectively.
Exports to the U.S. decreased 7.7% to €12.1 billion, to China declined 2.9% to €6.8 billion, and to the U.K. rose 15.1% to €3.1 billion, according to the latest data available from the Federal Statistical Office, or Destatis.
Europe Stock Movers
Vehicle makers extended their losses of the previous month, and defense stocks turned volatile in Tuesday's trading.
Volkswagen Group AG decreased 0.9% to €90.0, Mercedes-Benz Group AG declined 0.4% to €49.72, Renault SA fell 1.4% to €39.86, and Stellantis NV edged up 0.4% to €8.42.
Rheinmetall AG increased 1.1% to €1,823.0, MTU Aero Engines AG added 1% to €1,823.0, Safran SA inched higher 0.4% to €275.70, and Rolls-Royce Holdings PLC eased 0.8% to 962.0.
Tokyo Stocks Edged Higher as Japan Holds Firm Against U.S. Tariff Pressure
Akira Ito
08 Jul, 2025
Tokyo
Stocks in Japan advanced after the U.S. agreed to delay the previously announced high tariffs, easing market anxieties.
The Nikkei 225 Stock Average gained 0.2%, and the broader Topix inched higher 0.1%, as investors welcomed the extension of the so-called reciprocal tariff deadline by three weeks to August 1.
In a separate announcement, Trump alerted Japan and South Korea to the possible 25% tariff, lower than the previously announced 35% rate, if trade negotiations fail by the end of July.
Japan is reluctant to agree to any level of tariff, and Japanese negotiators have held a firm stance against the tariff, despite the shrill rhetoric from the White House.
The constant shift in the U.S. trade policy and the lack of clarity and stability on tariffs have kept exporters on the defensive and searching for other markets in South America, India, and the ASEAN region.
On the economic front, Japan's current account surplus surpassed market expectations in May, providing additional support to market sentiment.
The current account surplus expanded to 3.44 trillion yen from 2.95 trillion yen, driven by the swinging of the service account to a surplus of 201.1 billion yen from a deficit of 51.6 billion a year ago, respectively.
For the fiscal year 2024, the current account surplus widened to a record high of 30.4 trillion yen from 26.2 trillion yen a year ago, the Ministry of Finance reported Tuesday.
Japan Indexes and Stocks
The Nikkei 225 Stock Average edged up 0.2% to 39,672.14, and the broader Topix inched higher 0.1% to 2,814.78.
Electrical machinery and equipment makers and artificial intelligence-linked stocks led gainers in Tokyo trading.
Fujikura Ltd. advanced 4.3% to 2,814.78, Furukawa Electric Co. Ltd. jumped 6.2% to ¥7,398.0, Advantest Corp. gained 2.4% to ¥10,945.0, and Tokyo Electron Ltd. edged up 1% to ¥27,395.0.
Marubeni Corp. inched higher 0.6% to ¥2,976.50, Itochu Corp. edged up 0.3% to ¥7,597.0, Mitsui & Company gained 0.5% to ¥3,011.0, and Sumitomo Corp. advanced 0.4% to ¥3,691.0.
Tokyo Stocks Edged Higher as Japan Holds Firm Against U.S. Tariff Pressure,
Akira Ito
08 Jul, 2025
Tokyo
Stocks in Japan advanced after the U.S. agreed to delay the previously announced high tariffs, easing market anxieties.
The Nikkei 225 Stock Average gained 0.2%, and the broader Topix inched higher 0.1%, as investors welcomed the extension of the so-called reciprocal tariff deadline by three weeks to August 1.
In a separate announcement, Trump alerted Japan and South Korea to the possible 25% tariff, lower than the previously announced 35% rate, if trade negotiations fail by the end of July.
Japan is reluctant to agree to any level of tariff, and Japanese negotiators have held a firm stance against the tariff, despite the shrill rhetoric from the White House.
The constant shift in the U.S. trade policy and the lack of clarity and stability on tariffs have kept exporters on the defensive and searching for other markets in South America, India, and the ASEAN region.
On the economic front, Japan's current account surplus surpassed market expectations in May, providing additional support to market sentiment.
The current account surplus expanded to 3.44 trillion yen from 2.95 trillion yen, driven by the swinging of the service account to a surplus of 201.1 billion yen from a deficit of 51.6 billion a year ago, respectively.
For the fiscal year 2024, the current account surplus widened to a record high of 30.4 trillion yen from 26.2 trillion yen a year ago, the Ministry of Finance reported Tuesday.
Japan Indexes and Stocks
The Nikkei 225 Stock Average edged up 0.2% to 39,672.14, and the broader Topix inched higher 0.1% to 2,814.78.
Electrical machinery and equipment makers and artificial intelligence-linked stocks led gainers in Tokyo trading.
Fujikura Ltd. advanced 4.3% to 2,814.78, Furukawa Electric Co. Ltd. jumped 6.2% to ¥7,398.0, Advantest Corp. gained 2.4% to ¥10,945.0, and Tokyo Electron Ltd. edged up 1% to ¥27,395.0.
Marubeni Corp. inched higher 0.6% to ¥2,976.50, Itochu Corp. edged up 0.3% to ¥7,597.0, Mitsui & Company gained 0.5% to ¥3,011.0, and Sumitomo Corp. advanced 0.4% to ¥3,691.0.
China Markets Approached 3-Month Highs Amid Protracted Tariff Uncertainty
Li Chen
08 Jul, 2025
Hong Kong
Stock market indexes in China and Hong Kong rebounded ahead of the release of key inflation reports on Wednesday.
The Hang Seng Index edged up 0.8%, and the mainland-focused CSI 300 index advanced nearly 1% as investors reviewed the latest iteration of change in the U.S. trade policy.
The Trump administration delayed the start of additional tariffs on 14 trading partners but threatened to impose a 25% import tax on Japan and South Korea in the event of a lack of an agreement.
Investors bid up stocks, hoping that Donald Trump will back down at the last minute and agree on a lower rate of tariff, as in the past.
The Hang Seng index traded near a three-month high and recouped all the losses after the Trump administration launched a global tariff war to finance tax cuts for the wealthy.
The constant shift in the U.S. trade policy and ongoing uncertainty have wreaked havoc on small and medium-sized manufacturing companies in China and Asia, pushing thousands of U.S. independent retailers and businesses to the brink of collapse.
At least three million jobs are impacted in China, Vietnam, and Japan, and as many as 95,000 U.S. small businesses are likely to face closure this year.
Moreover, U.S. consumers are facing higher prices as most businesses pass the cost of tariffs to consumers.
The average U.S. tariff on imported goods across all industries is likely to jump from less than 5% to close to 20%, which could raise as much as $150 billion for the U.S. federal government, too little to make a dent in the annual fiscal deficit.
China's overall consumer price inflation is expected to inch higher by 0.1%, and the producer price is likely to extend its decline for the 33rd month in a row and fall more than 3%.
The National Bureau of Statistics is scheduled to release two inflation reports on Wednesday.
China Indexes and Stocks
The Hang Seng index increased 0.8% to 24,098.71, and the mainland-focused CSI 300 index advanced 0.9% to 3,994.36.
Baidu Inc. jumped 3.3% to HK $88.50, Xiaomi Corp. gained 2.1% to HK $58.55, and Kuaishou Technology jumped 3.4% to HK $65.20.
Alibaba Group Holding advanced 1% to HK $106.50, Tencent Holdings Ltd. decreased 0.2% to HK $501.0, and Meituan edged up 0.2% to HK $119.60.
China Markets Approached 3-Month Highs Amid Protracted Tariff Uncertainty
Li Chen
08 Jul, 2025
Hong Kong
Stock market indexes in China and Hong Kong rebounded ahead of the release of key inflation reports on Wednesday.
The Hang Seng Index edged up 0.8%, and the mainland-focused CSI 300 index advanced nearly 1% as investors reviewed the latest iteration of change in the U.S. trade policy.
The Trump administration delayed the start of additional tariffs on 14 trading partners but threatened to impose a 25% import tax on Japan and South Korea in the event of a lack of an agreement.
Investors bid up stocks, hoping that Donald Trump will back down at the last minute and agree on a lower rate of tariff, as in the past.
The Hang Seng index traded near a three-month high and recouped all the losses after the Trump administration launched a global tariff war to finance tax cuts for the wealthy.
The constant shift in the U.S. trade policy and ongoing uncertainty have wreaked havoc on small and medium-sized manufacturing companies in China and Asia, pushing thousands of U.S. independent retailers and businesses to the brink of collapse.
At least three million jobs are impacted in China, Vietnam, and Japan, and as many as 95,000 U.S. small businesses are likely to face closure this year.
Moreover, U.S. consumers are facing higher prices as most businesses pass the cost of tariffs to consumers.
The average U.S. tariff on imported goods across all industries is likely to jump from less than 5% to close to 20%, which could raise as much as $150 billion for the U.S. federal government, too little to make a dent in the annual fiscal deficit.
China's overall consumer price inflation is expected to inch higher by 0.1%, and the producer price is likely to extend its decline for the 33rd month in a row and fall more than 3%.
The National Bureau of Statistics is scheduled to release two inflation reports on Wednesday.
China Indexes and Stocks
The Hang Seng index increased 0.8% to 24,098.71, and the mainland-focused CSI 300 index advanced 0.9% to 3,994.36.
Baidu Inc. jumped 3.3% to HK $88.50, Xiaomi Corp. gained 2.1% to HK $58.55, and Kuaishou Technology jumped 3.4% to HK $65.20.
Alibaba Group Holding advanced 1% to HK $106.50, Tencent Holdings Ltd. decreased 0.2% to HK $501.0, and Meituan edged up 0.2% to HK $119.60.
Trump Administration Postpones Severe Tariffs Deadline Again, Wall Street Stocks Turned Lower
Barry Adams
07 Jul, 2025
New York City
Stock market indexes wavered around the flatline as investors reviewed yet another change in tariff policy.
The S&P 500 index decreased 0.2%, and the tech-heavy Nasdaq Composite eased 0.5% after the Trump administration struggled to sign key deals before the self-imposed deadline on July 9.
The U.S. president postponed the deadline to August 1, as key trading partners resisted the administration's plans for severe import duties.
The Trump administration led investors to believe that key trading partners—China, Mexico, Canada, the European Union, and Japan—are eager to accept aggressive tariffs to gain access to the largest market in the world.
However, the administration's strong-arm tactics have so far yielded few results and caused severe business disruptions that are likely to drive at least 100,000 small firms out of business.
Last week, Wall Street indexes extended two months of gains to new record highs, but markets in Europe and Asia struggled after a week of choppy trading.
Optimism prevailed amid expectations that stability will return to international trade, and key U.S. trade partners will finalize agreements ending months of uncertainties and chaos unleashed by the Trump administration.
In the week ahead, investors in the U.S. are looking forward to the release of the consumer inflation expectation survey, monthly wholesale inventories, and jobless claims data.
The Fed’s minutes and balance sheet announcement and the monthly budget statement are also on schedule.
On the earnings front, markets expect results from Costco, Delta Air Lines, Levi Strauss, PriceSmart, WD-40, First Bancshares, AEHR Test Systems, Conagra Brands, and Progressive Corp.
U.S. Movers
Tesla Inc. dropped 7.8% to $290.84, and the company's chief executive said he plans to start a new political party, which will further divide his attention from the business.
Trump Administration Postpones Severe Tariffs Deadline Again, Wall Street Stocks Turned
Barry Adams
07 Jul, 2025
New York City
Stock market indexes wavered around the flatline as investors reviewed yet another change in tariff policy.
The S&P 500 index decreased 0.2%, and the tech-heavy Nasdaq Composite eased 0.5% after the Trump administration struggled to sign key deals before the self-imposed deadline on July 9.
The U.S. president postponed the deadline to August 1, as key trading partners resisted the administration's plans for severe import duties.
The Trump administration led investors to believe that key trading partners—China, Mexico, Canada, the European Union, and Japan—are eager to accept aggressive tariffs to gain access to the largest market in the world.
However, the administration's strong-arm tactics have so far yielded few results and caused severe business disruptions that are likely to drive at least 100,000 small firms out of business.
Last week, Wall Street indexes extended two months of gains to new record highs, but markets in Europe and Asia struggled after a week of choppy trading.
Optimism prevailed amid expectations that stability will return to international trade, and key U.S. trade partners will finalize agreements ending months of uncertainties and chaos unleashed by the Trump administration.
In the week ahead, investors in the U.S. are looking forward to the release of the consumer inflation expectation survey, monthly wholesale inventories, and jobless claims data.
The Fed’s minutes and balance sheet announcement and the monthly budget statement are also on schedule.
On the earnings front, markets expect results from Costco, Delta Air Lines, Levi Strauss, PriceSmart, WD-40, First Bancshares, AEHR Test Systems, Conagra Brands, and Progressive Corp.
U.S. Movers
Tesla Inc. dropped 7.8% to $290.84, and the company's chief executive said he plans to start a new political party, which will further divide his attention from the business.