Market Update
China Indexes Diverge as Businesses Explore Markets Beyond U.S.
Li Chen
17 Apr, 2025
Hong Kong
Stocks in China and Hong Kong advanced in the hopes of progress in trade negotiations between China and the U.S.
The Hang Seng index increased 1.6%, and the mainland-focused CSI 300 index eased 0.3% as investors speculated that the U.S. may pause tariffs on China's exports.
Despite the positive sentiment in trading in Hong Kong, trade tensions between the U.S. and China showed no signs of easing.
China has halted shipments of key rare earth minerals to the U.S. and asked domestic airlines to cancel orders for Boeing aircraft and parts.
China's move comes after the Trump administration slapped additional tariffs on China's exports that could increase to as high as 245%.
Market sentiment was on the rise after China's first-quarter GDP growth at an annual pace of 5.4%, ahead of market expectations, and investors speculated that buyers will return to the property market amid stimulus measures.
The Hang Seng index rebounded from the 2% decline in yesterday's trading, as China's small manufacturing companies investigate how to reorient supply chains amid constantly changing U.S. trade policy.
China Indexes and Stocks
The Hang Seng index advanced 1.6% to 21,400.58, and the mainland-focused CSI 300 index eased 0.0.3%.
Alibaba Group Holding jumped 3% to HK $108.60, Tencent Holdings gained 2.6% to HK $459.60, and Meituan edged up 0.2% to HK $135.10.
HSBC Holdings plc advanced 1.1% to HK $80.40, Bank of China edged up 0.7% to HK $4.43, and China Construction Bank gained 1.3% to HK $6.63.
BYD jumped 0.8% to HK $366.60, Li Auto Inc. advanced 3.4% to HK $89.80, and Xpeng Inc. jumped 2.3% to HK $75.05.
China Markets THURS
Li Chen
17 Apr, 2025
Hong Kong
Stocks in China and Hong Kong advanced in the hopes of a progress in trade negotiations between China and the U.S.
The Hang Seng index increased 1.6% and the mainland-focused CSI 300 index eased 0.3% as investors speculated that the U.S. may pause tariffs on China's exports.
Despite the positive sentiment in trading in Hong Kong, trade tensions between the U.S. and China showed no signs of easing.
China has haled shipments of key rare earth minerals to the U.S. and asked domestic airlines to cancel orders for Boeing aircrafts and parts.
The China's move comes after the Trump administration slapped additional tariffs on China's exports that could increase to as high as 245%.
Market sentiment was on the rise after China's first quarter GDP growth at an annual pace of 5.4%, ahead of market expectations, and investors speculated that buyers will return to the property market amid stimulus measures.
The Hang Seng index rebounded from the 2% decline in yesterday's trading, as China's small manufacturing companies look for ways to reorient supply chains amid constantly changing U.S. trade policy.
China Indexes and Stocks
The Hang Seng index advanced 1.6% to 21,400.58 and the mainland-focused CSI 300 index eased 0.0.3%.
Alibaba Group Holding jumped 3% to HK $108.60, Tencent Holdings gained 2.6% to HK $459.60, and Meituan edged up 0.2% to HK $135.10.
HSBC Holdings plc advanced 1.1% to HK $80.40, Bank of China edged up 0.7% to HK $4.43, and China Construction Bank gained 1.3% to HK $6.63.
BYD jumped 0.8% to HK $366.60, Li Auto Inc advanced 3.4% to HK $89.80, and Xpeng Inc jumped 2.3% to HK $$75.05.
Escalating Trade Tensions Drag Tech Stocks, Surge In Vehicle Sales Lifts Retail Sales
Barry Adams
16 Apr, 2025
New York City
Wall Street indexes lacked direction on Wednesday as investors focused on the fresh batch of corporate results amid elevated tariff turmoil.
The S&P 500 index decreased 1%, and the Nasdaq Composite declined 2% as investors reacted positively to earnings from Bank of America, Citigroup, Goldman Sachs, United Airlines, and CSX.
Nvidia came under pressure after the company was restricted from selling its H2O chip to China amid new trade barriers on trade with China set by the Trump administration.
Global investor sentiment has turned cautious following the Trump administration's constant trade policy changes and escalating threats to key allies.
Investors have soured on the U.S. dollar-denominated assets, driving down the value of the U.S. dollar and pushing the yield on the 10-year U.S. Treasury notes by 50 basis points.
Japan, China, the UK, and Luxembourg own about $3 trillion of U.S. Treasury notes, and a total of $8.5 trillion worth of U.S. Treasury notes are held by foreign governments or entities, according to the latest data available from the U.S. Department of the Treasury.
Investors are increasingly considering the possibility of a yield on 10-year Treasury notes surging close to 6.5%, driven by the combined effect of panic selling by foreign investors and a fresh bout of inflation.
Commodities, Currencies, Indexes, Yields
The S&P 500 index decreased 1.1% to 5,338.83, the Nasdaq Composite edged down 1.9% to 16,496.05, and the Russell 2000 index was down 0.5% to 1,870.98.
The yield on 2-year Treasury notes edged lower to 3.81%, 10-year Treasury notes decreased to 4.34%, and 30-year Treasury bonds advanced to 4.79%.
WTI crude oil increased $0.68 to $62.01 a barrel, and natural gas prices edged lower by $0.06 to $3.27 a thermal unit.
Gold increased by $56.84 to 3,307.85 an ounce, and silver edged up by $0.41 to $32.80.
The dollar index, which weighs the US currency against a basket of foreign currencies, decreased by 0.60 to 99.62, and it traded at the lowest level since April 2022.
U.S. Retail Sales Surged In March
On the economic front, retail and food services sales in March, adjusted for seasonal and calendar effects but not for inflation, jumped 4.6% from a year ago to $734.9 billion.
On a monthly basis, sales advanced 1.4%, the U.S. Census Bureau reported today.
Total sales for the January through March period were up 4.1% from the same period a year ago, and the January to February percent change was unrevised from up 0.2%.
Retail trade sales in March were up 1.4% from February and up 4.6% from last year.
Motor vehicle and parts dealers sales surged 8.8%, while nonstore retailers sales advanced 4.8% from a year ago, respectively.
U.S. Movers
Bank of America edged up 0.4% to $37.85 after the bank reported better-than-expected quarterly results amid a steady flow of assets and stable deposits.
Citigroup edged up 0.3% to $63.48 after the bank's quarterly results surpassed market expectations because of higher revenue in its equity and fixed-income trading businesses.
HP Enterprise Co. decreased 0.4% to $14.90, and activist investor Elliott Management has taken a $1.5 billion stake in the cloud services provider.
United Airlines soared 6.4% to $14.90, and the international carrier reported strong quarterly results amid rising demand for premium international air travel.
The airline said it reiterated its annual adjusted earnings per share to range between $11.50 and $13.50, but recession could drive down earnings to between $7.0 and $9.0.
Nvidia Corp. dropped 6.4% to $104.97, and the advanced semiconductor maker said it plans to take a one-time charge of $5.5 billion after the Trump administration banned the company from selling H2O chips to China.
Escalating Trade Tensions Drag Tech Stocks Lower, Surge In Vehicle Sales Lifts Retail Sales
Barry Adams
16 Apr, 2025
New York City
Wall Street indexes lacked direction on Wednesday as investors focused on the fresh batch of corporate results amid elevated tariff turmoil.
The S&P 500 index decreased 0.1%, and the Nasdaq Composite declined 0.2% as investors reacted positively to earnings from Bank of America, Citigroup, Goldman Sachs, United Airlines, and CSX.
Nvidia came under pressure after the company was restricted from selling its H2O chip to China amid new trade barriers on trade with China set by the Trump administration.
Global investor sentiment has turned cautious following the Trump administration's constant trade policy changes and escalating threats to key allies.
Investors have soured on the U.S. dollar-denominated assets, driving down the value of the U.S. dollar and pushing the yield on the 10-year U.S. Treasury notes by 50 basis points.
Japan, China, the UK, and Luxembourg own about $3 trillion of U.S. Treasury notes, and a total of $8.5 trillion worth of U.S. Treasury notes are held by foreign governments or entities, according to the latest data available from the U.S. Department of the Treasury.
Investors are increasingly considering the possibility of a yield on 10-year Treasury notes surging close to 6.5%, driven by the combined effect of panic selling by foreign investors and a fresh bout of inflation.
U.S. Retail Sales Surged In March
On the economic front, retail and food services sales in March, adjusted for seasonal and calendar effects but not for inflation, jumped 4.6% from a year ago to $734.9 billion.
On a monthly basis, sales advanced 1.4%, the U.S. Census Bureau reported today.
Total sales for the January through March period were up 4.1% from the same period a year ago, and the January to February percent change was unrevised from up 0.2%.
Retail trade sales in March were up 1.4% from February and up 4.6% from last year.
Motor vehicle and parts dealers sales surged 8.8%, while nonstore retailers sales advanced 4.8% from a year ago, respectively.
U.S. Movers
Bank of America edged up 0.4% to $37.85 after the bank reported better-than-expected quarterly results amid a steady flow of assets and stable deposits.
Citigroup edged up 0.3% to $63.48 after the bank's quarterly results surpassed market expectations because of higher revenue in its equity and fixed-income trading businesses.
HP Enterprise Co. decreased 0.4% to $14.90, and activist investor Elliott Management has taken a $1.5 billion stake in the cloud services provider.
United Airlines soared 6.4% to $14.90, and the international carrier reported strong quarterly results amid rising demand for premium international air travel.
The airline said it reiterated its annual adjusted earnings per share to range between $11.50 and $13.50, but recession could drive down earnings to between $7.0 and $9.0.
Nvidia Corp. dropped 6.4% to $104.97, and the advanced semiconductor maker said it plans to take a one-time charge of $5.5 billion after the Trump administration banned the company from selling H2O chips to China.
Europe Stock Indexes Turned Lower, UK Consumer Price Inflation Eased In March
Bridgette Randall
16 Apr, 2025
London
European markets traded down amid renewed growth and trade barriers in the semiconductor-linked stocks.
Benchmark indexes in Frankfurt, Paris, Milan, and London fell between 0.7% and 1.3% amid ongoing trade uncertainty and geopolitical tensions.
On a light day of economic releases, the UK's consumer price inflation in March slowed to 2.6% from 2.8% in February.
The largest downward contribution came from recreation and culture inflation easing to 2.4% from 3.4%, data processing equipment prices falling 5.1%, and transportation equipment inflation easing to 1.2% from 1.8% a year ago, respectively.
Core inflation, which excludes volatile food and energy prices, slowed to 3.4% from 3.5% a year ago.
The euro continued to trade higher against the U.S. as investors and traders shifted allocation away from the U.S.-denominated assets because of incoherent and chaotic U.S. trade policy.
Europe Indexes and Yields
The DAX index decreased by 0.9% to 21,057.56, the CAC-40 index edged lower by 0.9% to 7,271.34, and the FTSE 100 index declined by 0.7% to 8,191.10.
The yield on 10-year German bonds inched lower to 2.48%, French bonds decreased to 3.26%, UK gilts moved down to 4.59%, and Italian bonds edged lower to 3.69%.
The euro increased to $1.14; the British pound was higher at $1.33; and the U.S. dollar was lower and traded at 81.40 Swiss cents.
Brent crude decreased $0.38 to $64.29 a barrel, and the Dutch TTF natural gas was higher by €0.11 to €34.40 per MWh.
Europe Movers
ASML fell 4.6% to €576.40 after the Dutch supplier to the semiconductor industry reported first quarter 2025 results.
Net sales edged up to €7.74 billion from €5.29 billion, net income jumped to €2.35 billion from €1.22 billion, and diluted earnings per share rose to €6.00 from €3.11 a year ago.
However, first-quarter order bookings of €3.94 billion fell short of analysts' expectations amid tariff uncertainties.
Infineon Technologies declined 1.8% to €26.52 after the U.S. placed additional restrictions on the sale of advanced equipment to China.
Heineken NV increased 3.2% to €77.40 after the company reported better-than-expected quarterly results and reaffirmed its annual outlook.
Revenue decreased 4.9% to €7.78 billion from €8.18 billion a year ago.
The company guided operating profit in the full year to "grow organically between 4% and 8%," according to a statement released to investors.
"In the first quarter, we delivered a 0.9% organic increase in net revenue. As anticipated, primarily due to calendar-related factors, organic beer volume declined by 2.1%.
Despite volatile consumer and geopolitical trends, we are performing within the range of expectations," said Dolf van den Brink, Chairman of the Executive Board and CEO.
Sartorius AG jumped 4.4% to €168.40, and the company posted better-than-expected first-quarter results.
In addition, the pharmaceutical equipment supplier said it is targeting higher profits in 2025.
Ipsen SA declined 2.8% to €96.35 despite the specialty-care pharmaceutical company delivering strong sales in the first quarter of 2025 and confirming its full-year outlook.
Europe Stock Indexes Turned Lower, UK Consumer Price Inflation Eased In March
Bridgette Randall
16 Apr, 2025
London
European markets traded down amid renewed growth and trade barriers in the semiconductor-linked stocks.
Benchmark indexes in Frankfurt, Paris, Milan, and London fell between 0.7% and 1.3% amid ongoing trade uncertainty and geopolitical tensions.
On a light day of economic releases, the UK's consumer price inflation in March slowed to 2.6% from 2.8% in February.
The largest downward contribution came from recreation and culture inflation easing to 2.4% from 3.4%, data processing equipment prices falling 5.1%, and transportation equipment inflation easing to 1.2% from 1.8% a year ago, respectively.
Core inflation, which excludes volatile food and energy prices, slowed to 3.4% from 3.5% a year ago.
The euro continued to trade higher against the U.S. as investors and traders shifted allocation away from the U.S.-denominated assets because of incoherent and chaotic U.S. trade policy.
Europe Indexes and Yields
The DAX index decreased by 0.9% to 21,057.56, the CAC-40 index edged lower by 0.9% to 7,271.34, and the FTSE 100 index declined by 0.7% to 8,191.10.
The yield on 10-year German bonds inched lower to 2.48%, French bonds decreased to 3.26%, UK gilts moved down to 4.59%, and Italian bonds edged lower to 3.69%.
The euro increased to $1.14; the British pound was higher at $1.33; and the U.S. dollar was lower and traded at 81.40 Swiss cents.
Brent crude decreased $0.38 to $64.29 a barrel, and the Dutch TTF natural gas was higher by €0.11 to €34.40 per MWh.
Europe Movers
ASML fell 4.6% to €576.40 after the Dutch supplier to the semiconductor industry reported first quarter 2025 results.
Net sales edged up to €7.74 billion from €5.29 billion, net income jumped to €2.35 billion from €1.22 billion, and diluted earnings per share rose to €6.00 from €3.11 a year ago.
However, first-quarter order bookings of €3.94 billion fell short of analysts' expectations amid tariff uncertainties.
Infineon Technologies declined 1.8% to €26.52 after the U.S. placed additional restrictions on the sale of advanced equipment to China.
Heineken NV increased 3.2% to €77.40 after the company reported better-than-expected quarterly results and reaffirmed its annual outlook.
Revenue decreased 4.9% to €7.78 billion from €8.18 billion a year ago.
The company guided operating profit in the full year to "grow organically between 4% and 8%," according to a statement released to investors.
"In the first quarter, we delivered a 0.9% organic increase in net revenue. As anticipated, primarily due to calendar-related factors, organic beer volume declined by 2.1%.
Despite volatile consumer and geopolitical trends, we are performing within the range of expectations," said Dolf van den Brink, Chairman of the Executive Board and CEO.
Sartorius AG jumped 4.4% to €168.40, and the company posted better-than-expected first-quarter results.
In addition, the pharmaceutical equipment supplier said it is targeting higher profits in 2025.
Ipsen SA declined 2.8% to €96.35 despite the specialty-care pharmaceutical company delivering strong sales in the first quarter of 2025 and confirming its full-year outlook.
U.S. Movers: Bank of America, Interactive Brokers, JB Hunt, United Airlines
Scott Peters
16 Apr, 2025
New York City
Bank of America eased 0.4% to $37.82 after the company reported first quarter 2025 results.
Revenue climbed to $27.34 billion from $25.82 billion, net income edged up to $6.99 billion from $6.14 billion, and diluted earnings per share rose to 90 cents from 76 cents a year ago.
The company paid dividends of 26 cents per share in the quarter, compared to 24 cents a year earlier.
Net interest income came in at $14.4 billion, a full-time equivalent to $14.6 billion, an increase of 3% from the same quarter in 2024.
Provision for credit losses increased to $1.3 billion from $1.2 billion a year ago in the consumer banking business, and average deposit in the quarter eased to $947.6 billion from $952.5 billion, a year ago.
The company reported $4.2 trillion in assets under management, an increase of 5% from a year ago, driven by positive net client flows and higher market valuations.
Net asset inflow in the quarter was $24 billion, compared o $24.7 billion in the quarter a year ago.
Total global market sales and trading revenue increased to $5.66 billion from $5.09 billion a year earlier.
United Airlines Holdings Inc. surged 6.1% to $71.10 after the company reported first quarter 2025 results.
Revenue edged up 5.4% to $13.21 billion from $12.54 billion, net income swung to a profit of $387 million from a loss of $124 million, and diluted earnings per share came in at $1.16 compared to a loss of 38 cents a year ago.
The results in the first quarter represent the best operational performance since 2021, as capacity increased by 4.9%, the company said in a release to investors.
The company plans to invest in six additional gates at Chicago O’Hare International Airport in the fall season and also plans to expand at San Francisco.
The airline said it will have a Wi-Fi connection with Starlink installed on its entire fleet by the end of this year.
The company carried a record of over 450,000 customers per day on average during the quarter and cut its seat cancellation rate in half compared to the same quarter in 2024.
Interactive Brokers Group plunged 9.8% to $156.35 after the global electronic broker reported first quarter 2025 results.
Revenue increased to $1.43 billion from $1.20 billion, net income jumped to $213 million from $175 million, and diluted earnings per share rose to $1.94 from $1.61 a year ago.
Net interest income edged up 3% to $770 million on higher average customer margin loans and customer credit balances.
Commissions revenue increased 36% to $514 million on higher customer trading volumes.
Total customer accounts were 3.62 million in the quarter, a 32% increase from 2.75 million a year earlier.
Customer equity amounted to $573.5 billion, a 23% increase from $465.9 billion a year ago.
Customer daily average return trade was 3.52 million in the quarter, a 50% increase from 2.35 million in the prior year.
The company proposed a quarterly cash dividend of 32 cents per share, up from 25 cents a year ago, payable on June 13 to shareholders on record as of May 30.
JB Hunt Transport Services Inc. declined 6% $127.0 after the freight transportation services provider reported first quarter 2025 results.
Revenue declined to $2.92 billion from $2.94 billion, net earnings dropped to $117.74 million from $127.49 million, and diluted earnings per share edged down to $1.17 from $1.22 a year ago.
U.S. Movers: Bank of America, Interactive Brokers, JB Hunt, United Airlines
Scott Peters
16 Apr, 2025
New York City
Bank of America eased 0.4% to $37.82 after the company reported first quarter 2025 results.
Revenue climbed to $27.34 billion from $25.82 billion, net income edged up to $6.99 billion from $6.14 billion, and diluted earnings per share rose to 90 cents from 76 cents a year ago.
The company paid dividends of 26 cents per share in the quarter, compared to 24 cents a year earlier.
Net interest income came in at $14.4 billion, a full-time equivalent to $14.6 billion, an increase of 3% from the same quarter in 2024.
Provision for credit losses increased to $1.3 billion from $1.2 billion a year ago in the consumer banking business, and average deposit in the quarter eased to $947.6 billion from $952.5 billion, a year ago.
The company reported $4.2 trillion in assets under management, an increase of 5% from a year ago, driven by positive net client flows and higher market valuations.
Net asset inflow in the quarter was $24 billion, compared o $24.7 billion in the quarter a year ago.
Total global market sales and trading revenue increased to $5.66 billion from $5.09 billion a year earlier.
United Airlines Holdings Inc. surged 6.1% to $71.10 after the company reported first quarter 2025 results.
Revenue edged up 5.4% to $13.21 billion from $12.54 billion, net income swung to a profit of $387 million from a loss of $124 million, and diluted earnings per share came in at $1.16 compared to a loss of 38 cents a year ago.
The results in the first quarter represent the best operational performance since 2021, as capacity increased by 4.9%, the company said in a release to investors.
The company plans to invest in six additional gates at Chicago O’Hare International Airport in the fall season and also plans to expand at San Francisco.
The airline said it will have a Wi-Fi connection with Starlink installed on its entire fleet by the end of this year.
The company carried a record of over 450,000 customers per day on average during the quarter and cut its seat cancellation rate in half compared to the same quarter in 2024.
Interactive Brokers Group plunged 9.8% to $156.35 after the global electronic broker reported first quarter 2025 results.
Revenue increased to $1.43 billion from $1.20 billion, net income jumped to $213 million from $175 million, and diluted earnings per share rose to $1.94 from $1.61 a year ago.
Net interest income edged up 3% to $770 million on higher average customer margin loans and customer credit balances.
Commissions revenue increased 36% to $514 million on higher customer trading volumes.
Total customer accounts were 3.62 million in the quarter, a 32% increase from 2.75 million a year earlier.
Customer equity amounted to $573.5 billion, a 23% increase from $465.9 billion a year ago.
Customer daily average return trade was 3.52 million in the quarter, a 50% increase from 2.35 million in the prior year.
The company proposed a quarterly cash dividend of 32 cents per share, up from 25 cents a year ago, payable on June 13 to shareholders on record as of May 30.
JB Hunt Transport Services Inc. declined 6% $127.0 after the freight transportation services provider reported first quarter 2025 results.
Revenue declined to $2.92 billion from $2.94 billion, net earnings dropped to $117.74 million from $127.49 million, and diluted earnings per share edged down to $1.17 from $1.22 a year ago.
Europe Movers: ASML, Heineken
Inga Muller
16 Apr, 2025
Frankfurt
ASML surged 2.6% to €605.40 after the Dutch supplier to the semiconductor industry reported first quarter 2025 results.
Net sales edged up to €7.74 billion from €5.29 billion, net income jumped to €2.35 billion from €1.22 billion, and diluted earnings per share rose to €6.00 from €3.11 a year ago.
The company guided 2025 net sales to be between €30 billion and €35 billion, compared to €28.26 billion in 2024, with a gross margin between 51% and 53%, compared to 51.3% a year earlier.
However, first-quarter order bookings of €3.94 billion fell short of analysts' expectations amid tariff uncertainties.
The company estimated second-quarter net sales between €7.2 billion and €7.7 billion, compared to €6.2 billion a year ago, with a gross margin between 50% and 53%, compared to 51.5% in the second quarter of 2024.
In the first quarter, ASML purchased around €2.7 billion worth of shares under the current 2022-2025 share buyback program.
The company proposed a dividend for the year of €6.40 per share, a 4.9% increase compared to 2023.
Recognizing the three interim dividends of €1.52 per share paid in 2024 and 2025, the final dividend amounts to €1.84 per share.
Heineken N.V. surged 2.9% to €77.36 after the Dutch beer maker reported first quarter 2025 results.
Revenue decreased 4.9% to €7.78 billion from €8.18 billion a year ago.
The company guided operating profit in the full year to grow organically between 4% and 8%.
“In our business-to-business digital platforms, we captured €3.1 billion in gross merchandise value, an organic increase of 16% versus last year,” the company said in a release to investors.
“We are now connecting 686,000 active customers in fragmented, traditional channels,” the company added in the statement.
The Heineken volume in the quarter edged up 4.6% to 14.4 mhl from 13.8 mhl a year earlier, with double-digit growth in 25 markets, including Vietnam, China, and Nigeria.
Europe Movers: ASML
Inga Muller
16 Apr, 2025
Frankfurt
ASML surged 2.6% to €605.40 after the Dutch supplier to the semiconductor industry reported first quarter 2025 results.
Net sales edged up to €7.74 billion from €5.29 billion, net income jumped to €2.35 billion from €1.22 billion, and diluted earnings per share rose to €6.00 from €3.11 a year ago.
The company guided 2025 net sales to be between €30 billion and €35 billion, compared to €28.26 billion in 2024, with a gross margin between 51% and 53%, compared to 51.3% a year earlier.
However, first-quarter order bookings of €3.94 billion fell short of analysts' expectations amid tariff uncertainties.
The company estimated second-quarter net sales between €7.2 billion and €7.7 billion, compared to €6.2 billion a year ago, with a gross margin between 50% and 53%, compared to 51.5% in the second quarter of 2024.
In the first quarter, ASML purchased around €2.7 billion worth of shares under the current 2022-2025 share buyback program.
The company proposed a dividend for the year of €6.40 per share, a 4.9% increase compared to 2023.
Recognizing the three interim dividends of €1.52 per share paid in 2024 and 2025, the final dividend amounts to €1.84 per share.
Japan's Core Machinery Orders Growth Slowed, Nikkei 225 Stock Average Dropped 1%
Akira Ito
16 Apr, 2025
Tokyo
Japan market indexes fell and halted a two-day rally, and investors stayed cautious following a decline in overnight trading in New York.
The Nikkei 225 Stock Average declined 1.3%, and the broader TOPIX fell about 1%, ahead of the start of the US-Japan trade negotiations.
Earnings jitters and ongoing U.S. tariff turmoil weighed on the market sentiment as manufacturer sentiment rose to an eight-month high in April.
The Reuters Tankan sentiment index for manufacturers jumped to +9 in April from -1 in March, the highest level since August.
Despite the improvement in the current sentiment, the forward-looking index suggested challenges ahead amid the U.S. tariff uncertainty.
The index is expected to fall to zero as Japan's exports to the U.S. could face tariffs as high as 25%.
Japan’s core machinery orders rebounded in February, accelerating to a 4.3% monthly rate to ¥894.7 billion, marking the highest level in a year from January’s 3.5% fall.
On an annual basis, core machinery orders advanced 1.5%, slower than 4.4% in January, the Cabinet Office reported Wednesday.
Japan Indexes and Stocks
The Nikkei 225 Stock Average declined 1.3% to 33,846.94, and the broader TOPIX index fell 1% to 2,489.39.
Toyota Motor Corp. declined 1% to ¥2,473.0, Honda Motor Corp. decreased 1.3% to ¥1,350.0, and Nissan Motor Corp. fell 1.8% to ¥312.40.
Panasonic Holding Corp. declined 3.3% to ¥1,469.0, Canon dropped 2% to ¥4,214.0, Fanuc Corp. eased 3.1% to ¥3,336.0, and Yaskawa Electric Corp. fell 4% to ¥2,627.0.
Japan's Core Machinery Orders Growth Slowed, Nikkei 225 Stock Average Dropped1%
Akira Ito
16 Apr, 2025
Tokyo
Japan market indexes fell and halted a two-day rally, and investors stayed cautious following a decline in overnight trading in New York.
The Nikkei 225 Stock Average declined 1.3%, and the broader TOPIX fell about 1%, ahead of the start of the US-Japan trade negotiations.
Earnings jitters and ongoing U.S. tariff turmoil weighed on the market sentiment as manufacturer sentiment rose to an eight-month high in April.
The Reuters Tankan sentiment index for manufacturers jumped to +9 in April from -1 in March, the highest level since August.
Despite the improvement in the current sentiment, the forward-looking index suggested challenges ahead amid the U.S. tariff uncertainty.
The index is expected to fall to zero as Japan's exports to the U.S. could face tariffs as high as 25%.
Japan’s core machinery orders rebounded in February, accelerating to a 4.3% monthly rate to ¥894.7 billion, marking the highest level in a year from January’s 3.5% fall.
On an annual basis, core machinery orders advanced 1.5%, slower than 4.4% in January, the Cabinet Office reported Wednesday.
Japan Indexes and Stocks
The Nikkei 225 Stock Average declined 1.3% to 33,846.94, and the broader TOPIX index fell 1% to 2,489.39.
Toyota Motor Corp. declined 1% to ¥2,473.0, Honda Motor Corp. decreased 1.3% to ¥1,350.0, and Nissan Motor Corp. fell 1.8% to ¥312.40.
Panasonic Holding Corp. declined 3.3% to ¥1,469.0, Canon dropped 2% to ¥4,214.0, Fanuc Corp. eased 3.1% to ¥3,336.0, and Yaskawa Electric Corp. fell 4% to ¥2,627.0.
China's GDP Growth Maintained 5.4% Pace, Industrial production Surged and Property Market Slump Continued
Li Chen
16 Apr, 2025
Hong Kong
Stock market indexes in China and Hong Kong fell sharply amid escalating trade between the two largest economies, and investors were disappointed after weak property market data.
The Hang Seng index decreased 2.5%, and the mainland-focused CSI 300 index dropped 1% as the US-China trade war shows no sign of easing.
Investors reacted positively to GDP growth data, but the weakness in the property market overwhelmed the market sentiment.
China's GDP in the first quarter increased at an annual pace of 5.4%, surpassing the market expectation of 5.2% and ahead of the government's target of 5%.
The front-loading by U.S. importers drove the bulk of the rise in economic activities, and the growth rate matched the pace in the December quarter.
Meanwhile, China's property sector continued to struggle, with prices for new and existing homes declining from the previous month and a year ago amid a lack of demand in 70 mainland cities.
New home prices across 70 largest mainland cities declined 4.5% in March, easing from 4.8% fall in the previous month, the National Bureau of Statistics reported Wednesday.
New home prices in Shanghai rose 5.7% compared to 5.6%, but the pace of decline accelerated in Beijing to 5.7% from 5.5%, and slowed in Guangzhou to 7.2% from 7,6% in the previous month, respectively.
China's industrial production growth accelerated to 7.7% annual pace in March from 5.9% in the January-February period, according to the statistical bureau.
The industrial production expanded at the fastest pace since June 2021, and activities expanded at an annual pace of 6.5% in the first quarter compared to an increase of 5.8% in the previous quarter.
Market sentiment weakened as investors priced in slower economic growth, weakening consumer demand, and expectations of earnings revision for the year.
China Indexes and Stocks
The Hang Seng index dropped 2.5% to 20,941.70, and the mainland-focused CSI 300 index decreased 1% to 3,726.17.
Tech stocks led decliners in Hong Kong, and electric vehicle makers
Alibaba Group dropped 5% to HK $104.40, Tencent Holdings decreased 3.20% to HK $441.40, and Baidu Inc. fell 2.9% to HK $79.90.
CK Hutchison Holding decreased 0.3% to HK $41.75, and HSBC Holding rose 0.8% to HK $79.40.
Kente Catalysts soared 281% to 57.51 yuan on the first day of trading, and the maker of ammonium phosphate products sold 22.6 million shares priced at 15 yuan per share.
China's GDP Growth Maintained 5.4% Pace, Industrial production Surged and Property Market Slump Continued
Li Chen
16 Apr, 2025
Hong Kong
Stock market indexes in China and Hong Kong fell sharply amid escalating trade between the two largest economies, and investors were disappointed after weak property market data.
The Hang Seng index decreased 2.5%, and the mainland-focused CSI 300 index dropped 1% as the US-China trade war shows no sign of easing.
Investors reacted positively to GDP growth data, but the weakness in the property market overwhelmed the market sentiment.
China's GDP in the first quarter increased at an annual pace of 5.4%, surpassing the market expectation of 5.2% and ahead of the government's target of 5%.
The front-loading by U.S. importers drove the bulk of the rise in economic activities, and the growth rate matched the pace in the December quarter.
Meanwhile, China's property sector continued to struggle, with prices for new and existing homes declining from the previous month and a year ago amid a lack of demand in 70 mainland cities.
New home prices across 70 largest mainland cities declined 4.5% in March, easing from 4.8% fall in the previous month, the National Bureau of Statistics reported Wednesday.
New home prices in Shanghai rose 5.7% compared to 5.6%, but the pace of decline accelerated in Beijing to 5.7% from 5.5%, and slowed in Guangzhou to 7.2% from 7,6% in the previous month, respectively.
China's industrial production
Market sentiment weakened as investors priced in slower economic growth, weakening consumer demand, and expectations of earnings revision for the year.
China Indexes and Stocks
The Hang Seng index dropped 2.5% to 20,941.70, and the mainland-focused CSI 300 index decreased 1% to 3,726.17.
Tech stocks led decliners in Hong Kong, and electric vehicle makers
Alibaba Group dropped 5% to HK $104.40, Tencent Holdings decreased 3.20% to HK $441.40, and Baidu Inc. fell 2.9% to HK $79.90.
CK Hutchison Holding decreased 0.3% to HK $41.75, and HSBC Holding rose 0.8% to HK $79.40.
Kente Catalysts soared 281% to 57.51 yuan on the first day of trading, and the maker of ammonium phosphate products sold 22.6 million shares priced at 15 yuan per share.