Sell Japan Trend Persisted After Investors Returned from 3-Day Holiday

Akira Ito
25 Nov, 2025
Tokyo

Japan's benchmark indexes rebounded on Tuesday, recouping some of the losses on Friday after investors returned from a three-day holiday.

The Nikkei 225 Stock Average struggled to stay above the flatline, and the broader Topix lacked momentum as investors debated Japan's monetary policy and the yen's future. 

The yen edged higher to 156.54 against the U.S. dollar after verbal interventions by officials arrested the decline in the currency.

The yield on 10-year Japanese government bonds hovered at a 17-year high of 1.78%, and last week the cabinet approved a 21.3 trillion yen stimulus plan supporting economic growth and extending energy subsidies to ease inflation pain on households.  

"Sell Japan" trade gathered pace after the extra budget amplified concerns about Japan's fiscal health, pressuring both bonds and the yen.  

Japan Indexes and Stocks 

The Nikkei 225 Stock Average edged up 0.1% to 48,664.69, and the broader Topix index decreased 0.1% to 3,295.28. 

AI-linked stocks rebounded on Tuesday, reflecting a tech-powered market advance in overnight trading in New York. 

Tokyo Electron advanced 3.3% to ¥31,220.0, Advantest Corp. gained 3.5% to ¥18,995.0, and Lasertec Corp. increased 1% to ¥26,720.0. 

Sumitomo Mitsui Financial Group edged up 0.2% to ¥4,458.0, Mizuho Financial Group increased 1.2% to ¥5,235.0, and Mitsubishi UFJ Financial Group decreased 0.1% to ¥2,382.50. 

Trump-Xi Talks and Renewed Hopes of U.S. Rate Actions Powered Rebound In China Stocks

Li Chen
25 Nov, 2025
Hong Kong

Stocks in China and Hong Kong advanced on Tuesday, reflecting Wall Street's advance in overnight trading in New York.

The Hang Seng index increased 1%, and the CSI 300 index edged up 1.2% after tech stocks staged a reversal in Shanghai and Hong Kong. 

Market sentiment recovered after three key policymakers voiced their support for a possible rate at the end of the next policy meeting in early December. 

Investors bid up stocks after leaders of the U.S. and China held a conference call, raising hopes of improving trade ties. 

Investor enthusiasm has been waning over the last five weeks amid worries about the stretched valuations and unresolved trade issues. The decline in AI-linked stocks contributed to a broader market weakness compounded by uncertain U.S. monetary policy. 

For now, investors are renewing expectations for at least a 25-basis-point rate cut at the end of a two-day Fed policy meeting on December 10.  

China Stock Movers 

The Hang Seng Index increased 1% to 25,978.06, and the CSI 300 index edged up 1.3% to 4,504.16. 

Alibaba Group increased 2.8% to HK $158.70, and the e-commerce platform operator is scheduled to report quarterly results later in the day.

Meituan decreased 0.3% to HK $97.90, and the operator of the food delivery platform is scheduled to release its quarterly results on Friday. 

Trump-Xi Talks and Renewed Hopes of U.S. Rate Actions Powered Rebound In China Stocks

Li Chen
25 Nov, 2025
Hong Kong

Stocks in China and Hong Kong advanced on Tuesday, reflecting Wall Street's advance in overnight trading in New York.

The Hang Seng index increased 1%, and the CSI 300 index edged up 1.2% after tech stocks staged a reversal in Shanghai and Hong Kong. 

Market sentiment recovered after three key policymakers voiced their support for a possible rate at the end of the next policy meeting in early December. 

Investors bid up stocks after leaders of the U.S. and China held a conference call, raising hopes of improving trade ties. 

Investor enthusiasm has been waning over the last five weeks amid worries about the stretched valuations and unresolved trade issues. The decline in AI-linked stocks contributed to a broader market weakness compounded by uncertain U.S. monetary policy. 

For now, investors are renewing expectations for at least a 25-basis-point rate cut at the end of a two-day Fed policy meeting on December 10.  

China Stock Movers 

The Hang Seng Index increased 1% to 25,978.06, and the CSI 300 index edged up 1.3% to 4,504.16. 

Alibaba Group increased 2.8% to HK $158.70, and the e-commerce platform operator is scheduled to report quarterly results later in the day.

Meituan decreased 0.3% to HK $97.90, and the operator of the food delivery platform is scheduled to release its quarterly results on Friday. 

Monday's Rebound May Not Trim November Losses On Wall Street

Barry Adams
24 Nov, 2025
New York City

Stocks on Wall Street attempted to rebound on Monday after another wave of sell-offs in high-priced AI-linked stocks last week dragged down global markets. 

The S&P 500 index inched higher 0.2%, and the tech-heavy Nasdaq Composite advanced 0.8% at the start of the holiday-shortened week. 

Stocks are likely to face additional volatility as trading volume thins out on account of the Thanksgiving holiday and a lack of catalysts ahead of the Fed's rate decisions on December 10.

Major averages have lost ground since the start of November, and the S&P 500 index has fallen 3.5%, and the Nasdaq Composite has lost 6.1%. 

Global investor sentiment is likely to stay bearish over the next six weeks as investors avoid taking additional exposure to riskier assets and have an uncertain outlook for holiday season shopping. 

A frozen housing market, a low-hire and low-fire job market, and elevated food and consumer goods prices are keeping U.S. consumers on the defensive. Moreover, steep tariffs and constantly changing trade policy are decimating small businesses at a rapid clip. 

At the same time, investors are shying away from circular AI-trade-driven stocks as debt-fueled data center buildout faces increased scrutiny and resistance from local communities.

The Federal Reserve's decision to leave rates unchanged in December could unleash another wave of global sell-off covering stocks, bonds, and precious metals. 

In the week ahead, as earnings season winds down, investors and the U.S. government agencies catch up to release delayed economic data. 

In the holiday-shortened week, statistical agencies are set to release producer price inflation, retail sales, and durable goods data. 

The annual rate of producer price inflation in September is estimated to accelerate to 2.7% from 2.6% in the previous month, nominal retail sales to accelerate to 5.4% from 5.0%, and monthly durable goods orders are likely to slow down to 0.3% following a 2.9% surge in August.  

U.S. Stock Movers 

Nvidia Corp. edged up 0.8% to $179.55, Alphabet Inc. advanced 3.3% to $307.37, and Meta Platforms inched higher 0.6% to $597.73. 

GE Vernova Inc. advanced 0.6% to $559.21, Eaton Corp. edged up 1% to $335.0, and Johnson Controls advanced 0.5% to $113.55.  

Monday's Rebound May Not Trim November Losses On Wall Street

Barry Adams
24 Nov, 2025
New York City

Stocks on Wall Street attempted to rebound on Monday after another wave of sell-offs in high-priced AI-linked stocks last week dragged down global markets. 

The S&P 500 index inched higher 0.2%, and the tech-heavy Nasdaq Composite advanced 0.8% at the start of the holiday-shortened week. 

Stocks are likely to face additional volatility as trading volume thins out on account of the Thanksgiving holiday and a lack of catalysts ahead of the Fed's rate decisions on December 10.

Major averages have lost ground since the start of November, and the S&P 500 index has fallen 3.5%, and the Nasdaq Composite has lost 6.1%. 

Global investor sentiment is likely to stay bearish over the next six weeks as investors avoid taking additional exposure to riskier assets and have an uncertain outlook for holiday season shopping. 

A frozen housing market, a low-hire and low-fire job market, and elevated food and consumer goods prices are keeping U.S. consumers on the defensive. Moreover, steep tariffs and constantly changing trade policy are decimating small businesses at a rapid clip. 

At the same time, investors are shying away from circular AI-trade-driven stocks as debt-fueled data center buildout faces increased scrutiny and resistance from local communities.

The Federal Reserve's decision to leave rates unchanged in December could unleash another wave of global sell-off covering stocks, bonds, and precious metals. 

In the week ahead, as earnings season winds down, investors and the U.S. government agencies catch up to release delayed economic data. 

In the holiday-shortened week, statistical agencies are set to release producer price inflation, retail sales, and durable goods data. 

The annual rate of producer price inflation in September is estimated to accelerate to 2.7% from 2.6% in the previous month, nominal retail sales to accelerate to 5.4% from 5.0%, and monthly durable goods orders are likely to slow down to 0.3% following a 2.9% surge in August.  

U.S. Stock Movers 

Nvidia Corp. edged up 0.8% to $179.55, Alphabet Inc. advanced 3.3% to $307.37, and Meta Platforms inched higher 0.6% to $597.73. 

GE Vernova Inc. advanced 0.6% to $559.21, Eaton Corp. edged up 1% to $335.0, and Johnson Controls advanced 0.5% to $113.55.  

China and Hong Kong Markets Diverged Ahead of Key Earnings

Li Chen
24 Nov, 2025
Hong Kong

China and Hong Kong stocks rebounded from a sharp sell-off in the previous week, and investors prepared to review a flood of domestic corporate results.

The Hang Seng Index increased 1.4%, and the mainland-focused CSI 300 index fell 0.6% on Monday following losses of more than 3% in benchmark indexes in the previous week.

The weakness in U.S. tech stocks, coupled with a declining appetite for riskier assets such as stocks, cryptocurrencies, and precious metals, led to heavy selling pressure on global financial markets.

The AI-stock rally over the last seven months came to a screeching halt in early November amid growing worries about the lofty valuations, durability of aggressive capital spending by leading tech companies, and uncertainty about the U.S. economic outlook.

Closer to home, investors prepared to review a flood of quarterly results, including updates from Meituan and Alibaba Group Holding.

Market sentiment in China and Hong Kong remained negative following sluggish economic data, weaker-than-expected retail sales, and a persistent decline in home prices in urban areas. 

China Indexes and Stocks 

The Hang Seng Index advanced 1.3% to 25,547.46, and the mainland-focused CSI 300 index dropped 0.6% to 4,427.55. 

Alibaba Group soared 4.3% to HK $153.90 ahead of the company's quarterly results on Tuesday.

Meituan advanced 2% to HK $97.55, and the food delivery company is scheduled to release its quarterly results later in the week. 

Property developers edged higher for the second consecutive week on optimism that policymakers are likely to provide additional incentives to first-time home buyers.

China Vanke Group added 1% to HK $4.23, Longfor Group Holdings increased 2.3% to HK $10.13, and Henderson Land Development Company edged up 0.6% to HK $29.48. 

China and Hong Kong Markets Diverged Ahead of Key Earnings

Li Chen
24 Nov, 2025
Hong Kong

China and Hong Kong stocks rebounded from a sharp sell-off in the previous week, and investors prepared to review a flood of domestic corporate results.

The Hang Seng Index increased 1.4%, and the mainland-focused CSI 300 index fell 0.6% on Monday following losses of more than 3% in benchmark indexes in the previous week.

The weakness in U.S. tech stocks, coupled with a declining appetite for riskier assets such as stocks, cryptocurrencies, and precious metals, led to heavy selling pressure on global financial markets.

The AI-stock rally over the last seven months came to a screeching halt in early November amid growing worries about the lofty valuations, durability of aggressive capital spending by leading tech companies, and uncertainty about the U.S. economic outlook.

Closer to home, investors prepared to review a flood of quarterly results, including updates from Meituan and Alibaba Group Holding.

Market sentiment in China and Hong Kong remained negative following sluggish economic data, weaker-than-expected retail sales, and a persistent decline in home prices in urban areas. 

China Indexes and Stocks 

The Hang Seng Index advanced 1.3% to 25,547.46, and the mainland-focused CSI 300 index dropped 0.6% to 4,427.55. 

Alibaba Group soared 4.3% to HK $153.90 ahead of the company's quarterly results on Tuesday.

Meituan advanced 2% to HK $97.55, and the food delivery company is scheduled to release its quarterly results later in the week. 

Property developers edged higher for the second consecutive week on optimism that policymakers are likely to provide additional incentives to first-time home buyers.

China Vanke Group added 1% to HK $4.23, Longfor Group Holdings increased 2.3% to HK $10.13, and Henderson Land Development Company edged up 0.6% to HK $29.48. 

Macroeconomic Anxieties and Lofty AI Valuation Worries Keep U.S. Indexes Under Pressure

Barry Adams
21 Nov, 2025
New York City

Stocks attempted to rebound on Friday from sharp sell-offs on Thursday as investors lightened exposure to expensive tech stocks. 

The S&P 500 index increased 0.2%, and the tech-heavy Nasdaq Composite edged up 0.3%, and benchmark indexes could face another day of selling towards the close of the regular session. 

Benchmark indexes soared as much as 2% in early trading on Thursday after Nvidia reported record sales and earnings in its latest quarter but managed to close down around 2% amid waves of stock selling. 

However, a broad sell-off in the market weighed on indexes amid uncertainty about the Fed's rate decision in two weeks after September's nonfarm payrolls rose more than expected. 

The U.S. private businesses added 119,000 net new jobs in September, as employment continued to trend up in healthcare, food services and drinking places, and social assistance. 

Employers in transportation and warehousing and the federal government trimmed positions, according to the long-delayed nonfarm payrolls data released by the Bureau of Labor Statistics.  

September data was delayed by more than six weeks because of the federal shutdown, and the BLS will not publish an October Employment Situation news release. 

However, the Establishment survey data for October will be published with the November data.

Both the employment rate, at 4.4%, and the number of unemployed people, at 7.6 million, changed little in September. 

Average hourly earnings for all employees on private nonfarm payrolls inched up by 9 cents, or 0.2%, from the previous month, to $36.67 in September. 

The average hourly earnings advanced by 3.8% from a year ago, tracking the inflation level over the period. 

The agency revised lower net job gains in July and August, and after the revisions, total non-farm payrolls are at the same levels as in April. 

The change in total nonfarm payroll employment for July was revised down by 7,000 to 72,000, and the change for August was revised down from 22,000 to -4,000, trimming the net gains by 33,000 over the two-month period.

U.S. Stock Movers 

Gap Inc. rose 5.4% to $24.32 after the company's fiscal third-quarter results surpassed market expectations. 

Comparable sales increased 5% from a year ago, driven by a 3% rise in store sales and a 2% jump in online sales, which accounted for 40% of total sales in the quarter. 

Ross Stores increased 2.5% to $164.55 after the company announced its fiscal third-quarter results. 

The retailer revised the higher comparable store sales estimate to between 3% and 4% and diluted earnings per share in the range of $1.77 to $1.85. 

In addition, the company said tariff-related costs "to be negligible in the fourth quarter." 

Intuit Inc. increased 3.3% to $658.0, and the software company delivered better-than-expected results in the fiscal first quarter ending in October.  

Walmart soared 6.6% to $107.40 after the company reported better-than-expected sales and earnings in the fiscal third quarter. 

The general retailer attracted new customers across all household income levels as shoppers searched for bargains amid a sustained increase in tariff-driven food prices.  

Macroeconomic Anxieties and Lofty AI Valuation Worries Keep U.S. Indexes Under Pressure

Barry Adams
21 Nov, 2025
New York City

Stocks attempted to rebound on Friday from sharp sell-offs on Thursday as investors lightened exposure to expensive tech stocks. 

The S&P 500 index increased 0.2%, and the tech-heavy Nasdaq Composite edged up 0.3%, and benchmark indexes could face another day of selling towards the close of the regular session. 

Benchmark indexes soared as much as 2% in early trading on Thursday after Nvidia reported record sales and earnings in its latest quarter but managed to close down around 2% amid waves of stock selling. 

However, a broad sell-off in the market weighed on indexes amid uncertainty about the Fed's rate decision in two weeks after September's nonfarm payrolls rose more than expected. 

The U.S. private businesses added 119,000 net new jobs in September, as employment continued to trend up in healthcare, food services and drinking places, and social assistance. 

Employers in transportation and warehousing and the federal government trimmed positions, according to the long-delayed nonfarm payrolls data released by the Bureau of Labor Statistics.  

September data was delayed by more than six weeks because of the federal shutdown, and the BLS will not publish an October Employment Situation news release. 

However, the Establishment survey data for October will be published with the November data.

Both the employment rate, at 4.4%, and the number of unemployed people, at 7.6 million, changed little in September. 

Average hourly earnings for all employees on private nonfarm payrolls inched up by 9 cents, or 0.2%, from the previous month, to $36.67 in September. 

The average hourly earnings advanced by 3.8% from a year ago, tracking the inflation level over the period. 

U.S. Stock Movers 

Gap Inc. rose 5.4% to $24.32 after the company's fiscal third-quarter results surpassed market expectations. 

Comparable sales increased 5% from a year ago, driven by a 3% rise in store sales and a 2% jump in online sales, which accounted for 40% of total sales in the quarter. 

Ross Stores increased 2.5% to $164.55 after the company announced its fiscal third-quarter results. 

The retailer revised the higher comparable store sales estimate to between 3% and 4% and diluted earnings per share in the range of $1.77 to $1.85. 

In addition, the company said tariff-related costs "to be negligible in the fourth quarter." 

Intuit Inc. increased 3.3% to $658.0, and the software company delivered better-than-expected results in the fiscal first quarter ending in October.  

Walmart soared 6.6% to $107.40 after the company reported better-than-expected sales and earnings in the fiscal third quarter. 

The general retailer attracted new customers across all household income levels as shoppers searched for bargains amid a sustained increase in tariff-driven food prices.  

U.S. Movers: Gap, Intuit, Ross Stores

Scott Peters
20 Nov, 2025
New York City

Gap Inc. rose 5.4% to $24.32 after the company's fiscal third-quarter results surpassed market expectations. 

Revenue in the quarter ending in October increased 3% to $3.9 billion from $3.8 billion, net income decreased $236 million from $274 million, and diluted earnings per share eased to 62 cents from 72 cents a year ago. 

Comparable sales increased 5% from a year ago, driven by a 3% rise in store sales and a 2% jump in online sales, which accounted for 40% of total sales in the quarter. 

Comparable sales for the Old Navy brand rose 6%, Gap advanced 7%, Banana Republic jumped 4%, and Athleta dropped 11%. 

The specialty apparel retailer tightened its fiscal 2025 sales outlook range to between 1.7% and 2%, compared to the previous estimate of between 1.0% and 2.0%. 

Despite the sharp surge in tariffs, merchandise margin decreased 70 basis points from a year ago, inclusive of an estimated net tariff impact of 190 basis points. 

Gap estimated operating margin to rise to 7.2%, compared to the previous estimated range between 6.7% and 7.0%, including an estimated 100 to 110 basis points of net tariff impact. 

Ross Stores increased 2.5% to $164.55 after the company announced its fiscal third-quarter results. 

Revenue increased 10% to $5.6 billion from $5.1 billion, net income advanced $511.9 million from $488.8 million, and diluted earnings per share rose to $1.58 from $1.48.

Comparable store sales in the quarter increased 7% from a year ago, largely because of higher prices and increased store traffic. 

The company said it repurchased 1.7 million shares for $262 million in the third quarter, and it is on track to buy back $1.05 billion of stock in fiscal year 2025.

The retailer revised the higher comparable store sales estimate to between 3% and 4% and diluted earnings per share in the range of $1.77 to $1.85. 

In addition, the company said tariff-related costs "to be negligible in the fourth quarter." 

“Based on our year-to-date results and updated fourth-quarter forecast, we are increasing our earnings per share guidance for fiscal 2025 to be in the range of $6.38 to $6.46, which includes approximately $0.16 per share negative impact from tariff-related costs. 

In addition, and as a reminder, the 2024 fourth-quarter and full-year earnings per share of $1.79 and $6.32, respectively, included an approximate $0.14 earnings per share benefit related to the sale of a packaway facility,” said CEO Jim Conroy in a statement released to investors. 

Intuit Inc. increased 3.3% to $658.0, and the software company delivered better-than-expected results in the fiscal first quarter ending in October.  

Revenue increased 18% to $3.9 billion from $3.3 billion, net income rose to $446 million from $167 million, and diluted earnings per share rose to $1.60 from 70 cents. 

The company guided full-year fiscal 2026 revenue to range between $21.0 billion and $21.2 billion, an increase between 12% and 13% from a year ago. 

Intuit estimated diluted earnings per share in the full year to range between $15.49 and $15.69, an increase between 14% and 15%. 

U.S. Movers: Gap, Intuit, Ross Stores

Scott Peters
20 Nov, 2025
New York City

Gap Inc. rose 5.4% to $24.32 after the company's fiscal third-quarter results surpassed market expectations. 

Revenue in the quarter ending in October increased 3% to $3.9 billion from $3.8 billion, net income decreased $236 million from $274 million, and diluted earnings per share eased to 62 cents from 72 cents a year ago. 

Comparable sales increased 5% from a year ago, driven by a 3% rise in store sales and a 2% jump in online sales, which accounted for 40% of total sales in the quarter. 

Comparable sales for the Old Navy brand rose 6%, Gap advanced 7%, Banana Republic jumped 4%, and Athleta dropped 11%. 

The specialty apparel retailer tightened its fiscal 2025 sales outlook range to between 1.7% and 2%, compared to the previous estimate of between 1.0% and 2.0%. 

Despite the sharp surge in tariffs, merchandise margin decreased 70 basis points from a year ago, inclusive of an estimated net tariff impact of 190 basis points. 

Gap estimated operating margin to rise to 7.2%, compared to the previous estimated range between 6.7% and 7.0%, including an estimated 100 to 110 basis points of net tariff impact. 

Ross Stores increased 2.5% to $164.55 after the company announced its fiscal third-quarter results. 

Revenue increased 10% to $5.6 billion from $5.1 billion, net income advanced $511.9 million from $488.8 million, and diluted earnings per share rose to $1.58 from $1.48.

Comparable store sales in the quarter increased 7% from a year ago, largely because of higher prices and increased store traffic. 

The company said it repurchased 1.7 million shares for $262 million in the third quarter, and it is on track to buy back $1.05 billion of stock in fiscal year 2025.

The retailer revised the higher comparable store sales estimate to between 3% and 4% and diluted earnings per share in the range of $1.77 to $1.85. 

In addition, the company said tariff-related costs "to be negligible in the fourth quarter." 

“Based on our year-to-date results and updated fourth-quarter forecast, we are increasing our earnings per share guidance for fiscal 2025 to be in the range of $6.38 to $6.46, which includes approximately $0.16 per share negative impact from tariff-related costs. 

In addition, and as a reminder, the 2024 fourth-quarter and full-year earnings per share of $1.79 and $6.32, respectively, included an approximate $0.14 earnings per share benefit related to the sale of a packaway facility,” said CEO Jim Conroy in a statement released to investors. 

Intuit Inc. increased 3.3% to $658.0, and the software company delivered better-than-expected results in the fiscal first quarter ending in October.  

Revenue increased 18% to $3.9 billion from $3.3 billion, net income rose to $446 million from $167 million, and diluted earnings per share rose to $1.60 from 70 cents. 

The company guided full-year fiscal 2026 revenue to range between $21.0 billion and $21.2 billion, an increase between 12% and 13% from a year ago. 

Intuit estimated diluted earnings per share in the full year to range between $15.49 and $15.69, an increase between 14% and 15%. 

Japan's Inflation Accelerated and Trade Deficit Shrank In October, Nikkei 225 Index Plunged 3%

Akira Ito
21 Nov, 2025
Tokyo

Japan's stock market indexes reversed the previous session's gains, mirroring another tech-driven sell-off on Wall Street overnight. 

The Nikkei 225 Stock Average dropped 2.4%, and the broader Topix decreased 0.2%, and they booked weekly losses of 3% and 2%, respectively. 

AI-linked stocks extended weekly losses in Friday's trading as investors avoided high-flying semiconductor equipment stocks amid growing fears of an AI bubble.

The yen hovered at 157.45 against the U.S. dollar after Prime Minister Takaichi announced a 21.5 trillion, or $135 billion, stimulus budget. 

The widely anticipated stimulus package, which is smaller than the estimated 25 trillion budget, will aim to finance defense-related spending, provide greater relief to consumers, and strengthen the broader economy. 

Yen's Weakness Contributed to Japan's Persistent Inflationary Pressures in October

Japan's annual overall and core inflation edged up in October, the Ministry of Internal Affairs and Communications said on Friday. 

Overall inflation accelerated to 3.0% from 2.9% in September, driven by higher electricity charges after the government ended the subsidy and persistent housing inflation. 

Core inflation, which excludes food but not fuel, edged up to 3.0% from 2.9% in September and advanced to a three-month high. 

Food prices, excluding fresh items, rose 6.4% from a year ago, largely because of a slowdown in the increase in the price of rice to 40%. 

The rise in overall inflation confirmed the negative impact of a weaker yen on import prices, fueling speculation that the Bank of Japan will be forced to raise rates in the near future.  

Core-core inflation, which excludes both fresh food and energy, advanced 3.1%, confirming underlying inflation supported by the weakness in yen.

Japan Logged Trade Deficit for Fourth Consecutive Month In October

Japan's exports and imports advanced for the second consecutive month in October and reached a seven-month high, according to the Ministry of Finance. 

Overall exports increased 3.6% to 9.77 trillion yen, and imports edged up 0.7% to 10.0 trillion yen, resulting in a trade deficit decline of 53.6% to 231.8 billion yen from a year ago. 

Japan's exports to the U.S. declined for the seventh consecutive month, driven by the weakness in shipment of automobiles, pharmaceuticals, and chip-making equipment. 

Exports to the U.S. decreased 3.1% to 17.5 trillion yen, or $11.1 billion; imports rose 20.9% to 1.22 trillion yen, shrinking the trade surplus by 33.6% to 529.4 billion yen. 

Japan's vehicle exports struggled to rebound even after the U.S. lowered its import duties to 15% from 27.5%, effective mid-September. 

Vehicle shipments to the U.S. decreased 7.5% from a year ago in September, the smallest decline in four months, and semiconductor equipment exports plunged 50%, and pharmaceutical shipments dropped 30.8%. 

Japan's exports to Asia advanced 4.2% to 5.3 trillion yen, and imports rose 0.6% to 5.1 trillion yen, pushing the trade surplus higher by eightfold to 209.1 billion yen. 

Shipments to the European Union increased 9.2% to 907.1 billion yen, and imports dropped 9% to 1.0 trillion yen, resulting in a trade deficit of 96.8 billion yen. 

Japan recorded a goods trade deficit with the European Union for the 21st month in a row, driven by a depressed increase in imports for the second consecutive year.  

Japan Indexes and Stocks 

The Nikkei 225 Stock Average dropped 2.4% to 48,626.69, and the broader Topix declined 0.2% to 3,292.14. 

Semiconductor equipment makers and AI supply chain-driven stocks led decliners in Tokyo on Friday. 

SoftBank Group plunged 11% to ¥17,090.0, Tokyo Electron decreased 7% to ¥30,180.0, Advantest Corp. dropped 11% to ¥18,525.0, and Disco Corp. fell 7% to ¥43,950.0. 

Japan's Inflation Accelerated and Trade Deficit Shrank In October, Nikkei 225 Index Plunged 3%

Akira Ito
21 Nov, 2025
Tokyo

Japan's stock market indexes reversed the previous session's gains, mirroring another tech-driven sell-off on Wall Street overnight. 

The Nikkei 225 Stock Average dropped 2.4%, and the broader Topix decreased 0.2%, and they booked weekly losses of 3% and 2%, respectively. 

AI-linked stocks extended weekly losses in Friday's trading as investors avoided high-flying semiconductor equipment stocks amid growing fears of an AI bubble.

The yen hovered at 157.45 against the U.S. dollar after Prime Minister Takaichi announced a 21.5 trillion, or $135 billion, stimulus budget. 

The widely anticipated stimulus package, which is smaller than the estimated 25 trillion budget, will aim to finance defense-related spending, provide greater relief to consumers, and strengthen the broader economy. 

Yen's Weakness Contributed to Japan's Persistent Inflationary Pressures in October

Japan's annual overall and core inflation edged up in October, the Ministry of Internal Affairs and Communications said on Friday. 

Overall inflation accelerated to 3.0% from 2.9% in September, driven by higher electricity charges after the government ended the subsidy and persistent housing inflation. 

Core inflation, which excludes food but not fuel, edged up to 3.0% from 2.9% in September and advanced to a three-month high. 

Food prices, excluding fresh items, rose 6.4% from a year ago, largely because of a slowdown in the increase in the price of rice to 40%. 

The rise in overall inflation confirmed the negative impact of a weaker yen on import prices, fueling speculation that the Bank of Japan will be forced to raise rates in the near future.  

Core-core inflation, which excludes both fresh food and energy, advanced 3.1%, confirming underlying inflation supported by the weakness in yen.

Japan Logged Trade Deficit for Fourth Consecutive Month In October

Japan's exports and imports advanced for the second consecutive month in October and reached a seven-month high, according to the Ministry of Finance. 

Overall exports increased 3.6% to 9.77 trillion yen, and imports edged up 0.7% to 10.0 trillion yen, resulting in a trade deficit decline of 53.6% to 231.8 billion yen from a year ago. 

Japan's exports to the U.S. declined for the seventh consecutive month, driven by the weakness in shipment of automobiles, pharmaceuticals, and chip-making equipment. 

Exports to the U.S. decreased 3.1% to 17.5 trillion yen, or $11.1 billion; imports rose 20.9% to 1.22 trillion yen, shrinking the trade surplus by 33.6% to 529.4 billion yen. 

Japan's vehicle exports struggled to rebound even after the U.S. lowered its import duties to 15% from 27.5%, effective mid-September. 

Vehicle shipments to the U.S. decreased 7.5% from a year ago in September, the smallest decline in four months, and semiconductor equipment exports plunged 50%, and pharmaceutical shipments dropped 30.8%. 

Japan's exports to Asia advanced 4.2% to 5.3 trillion yen, and imports rose 0.6% to 5.1 trillion yen, pushing the trade surplus higher by eightfold to 209.1 billion yen. 

Shipments to the European Union increased 9.2% to 907.1 billion yen, and imports dropped 9% to 1.0 trillion yen, resulting in a trade deficit of 96.8 billion yen. 

Japan recorded a goods trade deficit with the European Union for the 21st month in a row, driven by a depressed increase in imports for the second consecutive year.  

Japan Indexes and Stocks 

The Nikkei 225 Stock Average dropped 2.4% to 48,626.69, and the broader Topix declined 0.2% to 3,292.14. 

Semiconductor equipment makers and AI supply chain-driven stocks led decliners in Tokyo on Friday. 

SoftBank Group plunged 11% to ¥17,090.0, Tokyo Electron decreased 7% to ¥30,180.0, Advantest Corp. dropped 11% to ¥18,525.0, and Disco Corp. fell 7% to ¥43,950.0. 

China and Asia Markets Extended Weekly Losses as AI Bubble Worries Gripped Investors

Li Chen
21 Nov, 2025
Hong Kong

Stocks in China, Hong Kong, and Asia fell sharply, reflecting weakness in overnight trading on Wall Street. 

The Hang Seng Index dropped 2%, and the mainland-focused CSI 300 index declined 1% amid renewed worries about AI sector valuation and a lackluster U.S. jobs report. 

Markets in Japan fell as much as 3%, and in South Korea, they plunged 4%, dragged down by steep declines in semiconductor-related stocks, as investors reassessed valuations and growth outlook over the next two years. 

For the week, the Hang Seng Index closed down 4%, and the mainland-focused CSI 300 index fell 3%, and they registered their worst weekly losses since early April.  

Global market sentiment is turning negative as investors step back from riskier bets amid persistent uncertainty linked to the U.S. monetary policy. 

Investors have dialed down expectations of a U.S. rate cut at the next policy meeting in three weeks, as inflation risks outweigh labor market weakness. 

China Indexes and Stocks 

The Hang Seng Index decreased 2% to 25,300.28, and the mainland-focused CSI 300 index declined 1% to 4,476.40. 

Property stocks advanced on speculation that the central government is likely to announce additional measures to support home sales for first-time buyers. 

China Vanke increased 0.5% to HK $4.23, Longfor Group jumped 3.4% to HK $10.09, and China Overseas Land & Investment edged up 0.2% to HK $13.74. 

Alibaba Group Holding decreased 4% to HK $148.50, Tencent Holdings dropped 1.6% to HK $611.0, and Baidu Inc. plunged 6% to HK $106.40. 

China and Asia Markets Extended Weekly Losses as AI Bubble Worries Gripped Investors

Li Chen
21 Nov, 2025
Hong Kong

Stocks in China, Hong Kong, and Asia fell sharply, reflecting weakness in overnight trading on Wall Street. 

The Hang Seng Index dropped 2%, and the mainland-focused CSI 300 index declined 1% amid renewed worries about AI sector valuation and a lackluster U.S. jobs report. 

Markets in Japan fell as much as 3%, and in South Korea, they plunged 4%, dragged down by steep declines in semiconductor-related stocks, as investors reassessed valuations and growth outlook over the next two years. 

For the week, the Hang Seng Index closed down 4%, and the mainland-focused CSI 300 index fell 3%, and they registered their worst weekly losses since early April.  

Global market sentiment is turning negative as investors step back from riskier bets amid persistent uncertainty linked to the U.S. monetary policy. 

Investors have dialed down expectations of a U.S. rate cut at the next policy meeting in three weeks, as inflation risks outweigh labor market weakness. 

China Indexes and Stocks 

The Hang Seng Index decreased 2% to 25,300.28, and the mainland-focused CSI 300 index declined 1% to 4,476.40. 

Property stocks advanced on speculation that the central government is likely to announce additional measures to support home sales for first-time buyers. 

China Vanke increased 0.5% to HK $4.23, Longfor Group jumped 3.4% to HK $10.09, and China Overseas Land & Investment edged up 0.2% to HK $13.74. 

Alibaba Group Holding decreased 4% to HK $148.50, Tencent Holdings dropped 1.6% to HK $611.0, and Baidu Inc. plunged 6% to HK $106.40.