Market Update
Tech Stocks Led China Sell-Off as Global AI Bubble Worries Swirled Markets
Li Chen
18 Dec, 2025
Hong Kong
Concerns about the AI bubble drove market sentiment in Hong Kong and the mainland, as investors wondered if the global boom in the advanced technology could turn into overcapacity.
The Hang Seng Index decreased 0.4%, and the mainland-focused CSI 300 index fell 0.6% amid growing anxieties about the durability of elevated investment in data centers.
High-flying chipmakers, application developers, platform operators, and AI infrastructure companies faced another down day as investors questioned the investment case and the level of returns.
Oracle dropped more than 5% in New York after its longtime partner pulled out of a $10 billion deal to build a data center in Michigan, U.S.A.
Blue Owl Capital's decision spilled over and dragged down Nvidia, Broadcom, and other AI-related stocks between 2% and 5%.
Oracle disputed the Financial Times report and confirmed that the database and cloud computing company is continuing with its plans to build a large facility in Michigan.
China Indexes and Stocks
The Hang Seng Index decreased 0.4% to 25,370.47, and the mainland-focused CSI 300 index declined 0.6% to 4,554.12.
Despite the lingering market worries about AI valuations, for the year so far the Hang Seng Index is up 29%, and the CSI 300 index is higher by 19%.
Xiaomi Corp. declined 3% to HK $39.96, Baidu Inc. fell 2% to HK $116.50, Alibaba Group decreased 1.4% to HK $143.90, and Tencent Holding decreased 1% to HK $602.50.
China THURSDAY
Li Chen
18 Dec, 2025
Hong Kong
China Indexes and Stocks
The Hang Seng Index decreased 0.4% to 25,370.47, and the mainland-focused CSI 300 index declined 0.6
China THURSDAY
Li Chen
18 Dec, 2025
Hong Kong
China Indexes and Stocks
The Hang Seng Index decreased 0.4% to 25,370.47, and the mainland-focused CSI 300 index declined
China THURSDAY
Li Chen
18 Dec, 2025
Hong Kong
China Indexes and Stocks
The Hang Seng Index decreased 0.4% to 25,370.47, and the mainl
China THURSDAY
Li Chen
18 Dec, 2025
Hong Kong
China Indexes and Stocks
The Hang Seng Index decreased
China THURSDAY
Li Chen
18 Dec, 2025
Hong Kong
China Indexes and Stocks
The Hang Seng Index decreased
China THURSDAY
Li Chen
18 Dec, 2025
Hong Kong
China Indexes and Stocks
The Hang Seng Index decreased
U.S. Movers: Lennar
Scott Peters
17 Dec, 2025
New York City
Lennar Corp. decreased 4% to $112.98 after the Miami-based homebuilder reported weaker-than-estimated quarterly results and a lukewarm outlook for the current quarter.
Total revenues in the fiscal fourth quarter ending in November decreased to $9.4 billion from $9.9 billion, net earnings dropped to $497.9 million from $1.1 billion, and diluted earnings per share eased to $1.93 from $4.06 a year ago.
Lennar said new orders in the quarter increased 18% to $20,018, and the backlog was 13,936 homes worth $5.2 billion.
The home builder estimated home deliveries between 17,000 and 18,000 in the fiscal first quarter and a gross margin of 15% to 16%, disappointing some investors.
U.S. Movers: Lennar
Scott Peters
17 Dec, 2025
New York City
Lennar Corp. decreased 4% to $112.98 after the Miami-based homebuilder reported weaker-than-estimated quarterly results and a lukewarm outlook for the current quarter.
Total revenues in the fiscal fourth quarter ending in November decreased to $9.4 billion from $9.9 billion, net earnings dropped to $497.9 million from $1.1 billion, and diluted earnings per share eased to $1.93 from $4.06 a year ago.
Lennar said new orders in the quarter increased 18% to $20,018, and the backlog was 13,936 homes worth $5.2 billion.
The home builder estimated home deliveries between 17,000 and 18,000 in the fiscal first quarter and a gross margin of 15% to 16%, disappointing some investors.
Low-Hire, Low-Fire Job Market Signals Rising Recession Risks
Barry Adams
17 Dec, 2025
New York City
Stocks on Wall Street faced headwinds for the third consecutive session as investors reviewed labor market and consumer spending updates.
The S&P 500 index decreased 0.2%, and the Nasdaq Composite dropped 0.3% after the release of November and October payroll data.
The uneven hirings in October and November confirmed the ongoing pattern over the last seven months, as businesses of all sizes struggle with macroeconomic uncertainty.
The U.S. economy added 64,000 net new jobs in November, and payrolls shrank by 105,000 in October, the U.S. Bureau of Labor Statistics said on Tuesday.
In addition, the jobless rate increased to a four-year high of 4.6%, as employers focus on restructuring businesses and more people seek employment as they face affordability issues.
The U.S. job market has stagnated since April, as employers avoid increasing staff and hold on to increasing current employees amid economic uncertainty and a steep increase in goods tariffs.
The weakness in the broader economy has been overshadowed by investment in data centers to facilitate the use of artificial intelligence, but consumers have turned cautious amid elevated food prices and cost of shelter.
At least 500,000 small and medium businesses are likely to disappear in 2025, and the number of job seekers expanded to 7.8 million at the end of November.
U.S. Movers
Lennar Corp. decreased 4% to $112.98 after the Miami-based homebuilder reported weaker-than-estimated quarterly results and a lukewarm outlook for the current quarter.
Total revenues in the fiscal fourth quarter ending in November decreased to $9.4 billion from $9.9 billion, net earnings dropped to $497.9 million from $1.1 billion, and diluted earnings per share eased to $1.93 from $4.06 a year ago.
Lennar said new orders in the quarter increased 18% to $20,018, and the backlog was 13,936 homes worth $5.2 billion.
The home builder estimated home deliveries between 17,000 and 18,000 in the fiscal first quarter and a gross margin of 15% to 16%, disappointing some investors.
Low-Hire, Low-Fire Job Market Signals Rising Recession Risks
Barry Adams
17 Dec, 2025
New York City
Stocks on Wall Street faced headwinds for the third consecutive session as investors reviewed labor market and consumer spending updates.
The S&P 500 index decreased 0.2%, and the Nasdaq Composite dropped 0.3% after the release of November and October payroll data.
The uneven hirings in October and November confirmed the ongoing pattern over the last seven months, as businesses of all sizes struggle with macroeconomic uncertainty.
The U.S. economy added 64,000 net new jobs in November, and payrolls shrank by 105,000 in October, the U.S. Bureau of Labor Statistics said on Tuesday.
In addition, the jobless rate increased to a four-year high of 4.6%, as employers focus on restructuring businesses and more people seek employment as they face affordability issues.
The U.S. job market has stagnated since April, as employers avoid increasing staff and hold on to increasing current employees amid economic uncertainty and a steep increase in goods tariffs.
The weakness in the broader economy has been overshadowed by investment in data centers to facilitate the use of artificial intelligence, but consumers have turned cautious amid elevated food prices and cost of shelter.
At least 500,000 small and medium businesses are likely to disappear in 2025, and the number of job seekers expanded to 7.8 million at the end of November.
U.S. Movers
Lennar Corp. decreased 4% to $112.98 after the Miami-based homebuilder reported weaker-than-estimated quarterly results and a lukewarm outlook for the current quarter.
Total revenues in the fiscal fourth quarter ending in November decreased to $9.4 billion from $9.9 billion, net earnings dropped to $497.9 million from $1.1 billion, and diluted earnings per share eased to $1.93 from $4.06 a year ago.
Lennar said new orders in the quarter increased 18% to $20,018, and the backlog was 13,936 homes worth $5.2 billion.
The home builder estimated home deliveries between 17,000 and 18,000 in the fiscal first quarter and a gross margin of 15% to 16%, disappointing some investors.
Japan's Rebound In Exports Swung International Balance to Surplus In November
Akira Ito
17 Dec, 2025
Tokyo
Stocks in Tokyo extended losses from the previous session, and investors reviewed the latest update on international trade.
The Nikkei 225 Stock Average decreased 0.2%, the Topix fell 0.3%, and the yen hovered just above the 155-level against the Japanese yen.
Japan Records Trade Surplus In November, Driven by U.S. Export Rebound
Japan logged its first trade surplus in five months in November, amid a rebound in exports to the U.S., according to the latest data released by the Ministry of Japan.
Exports jumped 6.1% to 9.7 trillion yen, and imports advanced 1.3% to 9.3 trillion yen, resulting in an overall trade surplus of 322.3 billion yen.
U.S. shipments increased 8.8% to 1.8 trillion yen, driven by a rise in automobile shipments as the impact of higher tariffs failed to dent the demand.
Imports from the U.S. increased 7.1% to 1.1 trillion yen, driving the trade surplus higher by 11.3% to 739.8 billion yen in November.
The U.S. lowered its tariffs on Japanese automobiles from 27.5% and on other goods from 25% to a uniform rate of 15%, effective September.
Exports to the European Union jumped by 19.6%, the ASEAN region by 4.6%, Vietnam by 14%, and Taiwan by 16.8%.
However, exports to China decreased 2.4%, generating a trade deficit with the second-largest economy for the 56th consecutive month in November of 777.9 billion yen.
Japan's Core Machinery Orders Accelerated In November
Japan's core machinery orders in October rose for the second month in a row, driven by a sharp rebound in non-manufacturing orders.
Core machinery orders, which exclude volatile ship and power plant orders, rose 7% to ¥992.9 billion, accelerating from a 4.2% rise in September.
Orders in the non-manufacturing sector advanced 28.8% to 551.7 billion yen, while manufacturing orders fell 13.3% to 446.5 billion yen from a year ago.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 0.2% to 49,300.30, and the broader Topix dropped 0.3% to 3,359.84.
Semiconductor equipment makers, retailers, and financial services sector stocks dominated in today's trading in Tokyo.
Softbank Group jumped 1.3% to ¥16,750.0, Tokyo Electron advanced 0.7% to ¥31,170.0, and Lasertec Corp. fell 0.4% to ¥29,320.0.
Kawasaki Heavy Industries decreased 0.4% to ¥11,630.0, IHI Corp. fell 1.4% to ¥2,828.0, and Mitsubishi Heavy Industries declined 1.7% to ¥3,902.0.
Fast Retailing Co. Ltd. added 0.6% to ¥56,850.0, Takashimaya Co. Ltd. fell 1.6% to ¥1,644.50, and Seven & I Holdings decreased 0.5% to ¥2,189.50.