Market Update
Japan's Tech Stocks Edged Higher After Nvidia Signaled AI-Driven Demand Surge to Extend Into 2028
Akira Ito
27 Aug, 2026
Tokyo
Japan's indexes traded higher after Nvidia's earnings confirmed the sustainability of AI spending.
The Nikkei 225 stock average inched higher 0.3%, the TOPIX edged up 0.2%, and the yen hovered at 159.35 against the U.S. dollar.
The company at the heart of the AI boom and the bellwether for the AI spending frenzy is benefitting from the data center investments by a few large players, including Alphabet, Amazon, Microsoft, and Meta.
Moreover, Japanese technology companies are deeply involved in the U.S. AI infrastructure buildout, which has been a key driver of the country's equity rally over the last eighteen months.
Nvidia said second-quarter revenue more than doubled to $96.2 billion, and the company guided revenue in the current quarter to surpass $108 billion.
Nvidia's current quarter revenue outlook signaled that the company sees no near-term slowdown in AI spending.
The Data Center segment revenue reached $89.0 billion, which is an increase of 117% compared to a year ago.
Net income jumped 126% to $59.7 billion from $26.4 billion, and diluted earnings per share rose to $2.46 from $1.08 a year ago.
Nvidia's portfolio of stakes in AI companies boosted net profit by $7.8 billion.
Adjusted earnings per share rose $2.22, sharply higher than the consensus estimate of $2.09.
Meanwhile, the U.S. measure of inflation stayed well above the Federal Reserve's target rate, reinforcing the hawkish expectations for U.S. interest rates.
The alternative measure of U.S. inflation, which tracks changes in prices of goods and services, rose an annual 3.7% and monthly 0.2% in July, compared to June's annual rise of 3.7% and monthly decrease of 0.1%.
The core rate of inflation, which excludes volatile food and energy prices, held at an annual 3.3% and advanced at a monthly rate of 0.2%, according to the report released by the U.S. Bureau of Economic Analysis.
The bond market is in focus as the yield on a 30-year Treasury bond jumped to a 19-year high last week, forcing the Treasury Department to announce steps to cool long-term yields.
The yield on 10-year Japanese government bonds edged up to 2.89%, amid rising expectations that the Bank of Japan is ready to raise rates at the end of the next policy meeting.
Japan Indexes and Stocks
The Nikkei 225 Stock Average advanced 0.3% to 66,451.08, and the broader TOPIX increased 0.2% to 4,121.94.
Kioxia Holdings increased 4.8% to ¥52,390.0, Tokyo Electron jumped 1.3% to ¥56,170.0, Advantest Corp. decreased 2.3% to ¥34,880.0, and SoftBank Group Corp. edged up 0.1% to ¥5,165.0.
China's Industrial Profit Growth Cooled In July, Benchmark Indexes Diverged
Li Chen
27 Aug, 2026
Hong Kong
China's indexes diverged as investors reviewed the latest update on industrial profits and Nvidia Corp.'s earnings.
The Hang Seng Index decreased 0.5%, and the mainland-focused CSI 300 Index inched higher 0.3% as investors debated the economic growth outlook.
China's industrial profits increased 17.6% to 4.6 trillion yuan in the first seven months of 2026, slowing from an 18.7% rise in the January-June period.
Industrial profit growth slowed to an annual 11.2% in July, as broader slowdown in the economy weighed on manufacturers.
Despite slowing economic growth, the latest data confirmed that industrial activity remained resilient, according to the National Bureau of Statistics.
Profits at state-owned enterprises increased 16.3% to 1.49 trillion yuan, private firms posted a 10.9% rise to 1.14 trillion yuan, and joint-stock companies registered a stronger 23.6% gain to 3.6 trillion yuan.
By industry, profits in communication and other electronic equipment recorded the strongest gain of 110%, non-ferrous metal smelting and rolling advanced 92%, and chemicals increased 56.6%.
The hopes for additional stimulus strengthened at the conclusion of the National People's Congress Standing Committee on Friday, as the latest data confirmed the slowing macroeconomic growth outlook.
Earlier in the month, China's retail sales, jobless rate, fixed-asset investment, and new home prices confirmed a two-speed economy and weakening domestic growth momentum.
China Indexes and Stocks
The Hang Seng Index decreased 0.5% to 25,530.83, and the mainland-focused CSI 300 Index rose 0.3% to 4,605.41.
Semiconductor- and AI-related stocks led gainers in Shanghai and Hong Kong trading following the release of Nvidia Corp.'s quarterly results.
Nvidia said second-quarter revenue more than doubled to $96.2 billion, and the company guided revenue in the current quarter to surpass $108 billion.
Nvidia's current quarter revenue outlook signaled that the company sees no near-term slowdown in AI spending.
The Data Center segment revenue reached $89.0 billion, which is an increase of 117% compared to a year ago.
Net income jumped 126% to $59.7 billion from $26.4 billion, and diluted earnings per share rose to $2.46 from $1.08 a year ago.
Net profit was boosted by $7.8 billion in gains from Nvidia’s portfolio of stakes in AI companies.
Adjusted earnings per share rose $2.22, sharply higher than the consensus estimate of $2.09.
The company at the heart of the AI boom and the bellwether for the AI spending frenzy is benefitting from the data center investments by a few large players, including Alphabet, Amazon, Microsoft, and Meta.
Cambricon Technologies gained 3.3% to ¥1,053.11, Zhongji Innolight advanced 4.6% to HK $1,062.0, and Eoptolink Technology added 3.6% to ¥413.20.
China's Industrial Profit Growth Cooled In July, Benchmark Indexes Diver
Li Chen
27 Aug, 2026
Hong Kong
China's indexes diverged as investors reviewed the latest update on industrial profits and Nvidia Corp.'s earnings.
The Hang Seng Index decreased 0.5%, and the mainland-focused CSI 300 Index inched higher 0.3% as investors debated the economic growth outlook.
China's industrial profits increased 17.6% to 4.6 trillion yuan in the first seven months of 2026, slowing from an 18.7% rise in the January-June period.
Industrial profit growth slowed to an annual 11.2% in July, as broader slowdown in the economy weighed on manufacturers.
Despite slowing economic growth, the latest data confirmed that industrial activity remained resilient, according to the National Bureau of Statistics.
Profits at state-owned enterprises increased 16.3% to 1.49 trillion yuan, private firms posted a 10.9% rise to 1.14 trillion yuan, and joint-stock companies registered a stronger 23.6% gain to 3.6 trillion yuan.
By industry, profits in communication and other electronic equipment recorded the strongest gain of 110%, non-ferrous metal smelting and rolling advanced 92%, and chemicals increased 56.6%.
The hopes for additional stimulus strengthened at the conclusion of the National People's Congress Standing Committee on Friday, as the latest data confirmed the slowing macroeconomic growth outlook.
Earlier in the month, China's retail sales, jobless rate, fixed-asset investment, and new home prices confirmed a two-speed economy and weakening domestic growth momentum.
China Indexes and Stocks
The Hang Seng Index decreased 0.5% to 25,530.83, and the mainland-focused CSI 300 Index rose 0.3% to 4,605.41.
Semiconductor- and AI-related stocks led gainers in Shanghai and Hong Kong trading following the release of Nvidia Corp.'s quarterly results.
Nvidia said second-quarter revenue more than doubled to $96.2 billion, and the company guided revenue in the current quarter to surpass $108 billion.
Nvidia's current quarter revenue outlook signaled that the company sees no near-term slowdown in AI spending.
The Data Center segment revenue reached $89.0 billion, which is an increase of 117% compared to a year ago.
Net income jumped 126% to $59.7 billion from $26.4 billion, and diluted earnings per share rose to $2.46 from $1.08 a year ago.
Net profit was boosted by $7.8 billion in gains from Nvidia’s portfolio of stakes in AI companies.
Adjusted earnings per share rose $2.22, sharply higher than the consensus estimate of $2.09.
The company at the heart of the AI boom and the bellwether for the AI spending frenzy is benefitting from the data center investments by a few large players, including Alphabet, Amazon, Microsoft, and Meta.
Cambricon Technologies gained 3.3% to ¥1,053.11, Zhongji Innolight advanced 4.6% to HK $1,062.0, and Eoptolink Technology added 3.6% to ¥413.20.
U.S. Stocks Meandered Ahead of Nvidia's Results and Fed's Inflation Update
Barry Adams
26 Aug, 2026
New York City
Wall Street meandered in early trading on Wednesday ahead of the release of key earnings reports and inflation data.
The S&P 500 Index decreased 0.06%, and the tech-focused Nasdaq Composite edged down 0.2% as investors debated the future of AI trade ahead of the release of Nvidia's earnings.
Nvidia is scheduled to release its second quarter results after the close of the regular trading session on Wednesday, and analysts are estimating $2.07 diluted earnings per share on revenue of $92.0 billion, according to an informal survey of three tech analysts conducted by Ticker.com.
Nvidia's earnings are closely monitored by global investors, as the computer chipmaker is the largest member of the S&P 500 Index with 7.43% weight.
Moreover, the company's revenue growth is also indicative of the capex plans of the hyperscalers and data center operators.
Investors also reviewed the release of July's personal consumption expenditures price index, the Federal Reserve's preferred measure of overall inflation, which generally understates inflation.
The alternative measure of inflation, which tracks changes in prices of goods and services, rose an annual 3.7% and monthly 0.2%, compared to June's annual rise of 3.7% and monthly decrease of 0.1%.
The core rate of inflation, which excludes volatile food and energy prices, held at an annual 3.3% and advanced at a monthly rate of 0.2%, according to the report released by the U.S. Bureau of Economic Analysis.
The bond market is in focus as the yield on a 30-year Treasury bond jumped to a 19-year high last week, forcing the Treasury Department to announce steps to cool long-term yields.
U.S. Movers
Zoom Communications decreased 6.3% to $94.61 after the company's current quarter guidance fell short of investor expectations.
Revenue in the fiscal second quarter ending in July increased to $1.28 billion from $1.22 billion, net income soared to $1.54 billion from $358.6 million, and diluted earnings per share advanced to $5.15 from $1.16 a year ago.
The latest quarter's net income included net gains from strategic investments of $1.6 billion compared to $45.1 million, and operating income decreased to $314.3 million from $321.7 million a year ago, respectively.
Enterprise revenue increased 7.8% to $787.5 million from a year ago, and the number of customers contributing $100,000 over the last four quarters increased 8.2%.
Zoom estimated total revenue in the fiscal third quarter to be between $1.275 billion and $1.280 billion, adjusted operating income to be between $510 million and $515 million, and adjusted diluted earnings per share to range between $1.46 and $1.48.
Zoom forecast full-year fiscal 2027 revenue to be between $5.085 billion and $5.095 billion, adjusted income from operations to be between $2.065 billion and $2.075 billion, and adjusted diluted earnings per share to be between $6.08 and $6.12.
Despite the revenue and earnings beats for the quarter, Zoom's stock dropped nearly 7% in after-hours trading due to investor concern over the weak outlook for the current quarter.
U.S. Stocks Meandered Ahead of Nvidia's Results and Fed's Inflation Update
Barry Adams
26 Aug, 2026
New York City
Wall Street meandered in early trading on Wednesday ahead of the release of key earnings reports and inflation data.
The S&P 500 Index decreased 0.06%, and the tech-focused Nasdaq Composite edged down 0.2% as investors debated the future of AI trade ahead of the release of Nvidia's earnings.
Nvidia is scheduled to release its second quarter results after the close of the regular trading session on Wednesday, and analysts are estimating $2.07 diluted earnings per share on revenue of $92.0 billion, according to an informal survey of three tech analysts conducted by Ticker.com.
Nvidia's earnings are closely monitored by global investors, as the computer chipmaker is the largest member of the S&P 500 Index with 7.43% weight.
Moreover, the company's revenue growth is also indicative of the capex plans of the hyperscalers and data center operators.
Investors are also awaiting the release of July's personal consumption expenditures price index, the Federal Reserve's preferred measure of overall inflation, which generally understates inflation, at 8:30 a.m. ET.
The alternative measure of inflation, which tracks changes in prices of goods and services, rose an annual 3.6% and monthly 0.1%, compared to June's annual rise of 3.7% and monthly decrease of 0.1%.
The bond market is in focus as the yield on a 30-year Treasury bond jumped to a 19-year high last week, forcing the Treasury Department to announce steps to cool long-term yields.
U.S. Movers
Zoom Communications decreased 6.3% to $94.61 after the company's current quarter guidance fell short of investor expectations.
Revenue in the fiscal second quarter ending in July increased to $1.28 billion from $1.22 billion, net income soared to $1.54 billion from $358.6 million, and diluted earnings per share advanced to $5.15 from $1.16 a year ago.
The latest quarter's net income included net gains from strategic investments of $1.6 billion compared to $45.1 million, and operating income decreased to $314.3 million from $321.7 million a year ago, respectively.
Enterprise revenue increased 7.8% to $787.5 million from a year ago, and the number of customers contributing $100,000 over the last four quarters increased 8.2%.
Zoom estimated total revenue in the fiscal third quarter to be between $1.275 billion and $1.280 billion, adjusted operating income to be between $510 million and $515 million, and adjusted diluted earnings per share to range between $1.46 and $1.48.
Zoom forecast full-year fiscal 2027 revenue to be between $5.085 billion and $5.095 billion, adjusted income from operations to be between $2.065 billion and $2.075 billion, and adjusted diluted earnings per share to be between $6.08 and $6.12.
Despite the revenue and earnings beats for the quarter, Zoom's stock dropped nearly 7% in after-hours trading due to investor concern over the weak outlook for the current quarter.
Volatile Crude Oil Prices Supported Gains In Japan's Indexes
Akira Ito
26 Aug, 2026
Tokyo
Japan's indexes rose on Wednesday and extended weekly advance amid easing crude oil prices and weakening bond yields.
The Nikkei 225 Stock Average increased 0.7%, the broader TOPIX edged higher 0.4%, and the yen hovered at 159.01 against the U.S. dollar.
The yield on 10-year Japanese government bonds edged lower to 2.88%, tracking lower global yields as investors awaited greater clarity on the U.S. government's fiscal reform plans.
The Brent crude oil prices decreased 2% to $86.91 a barrel amid hopes that the U.S. and Iran could find a diplomatic solution and avert another showdown over the Strait of Hormuz.
Japan Indexes and Stocks
The Nikkei 225 Stock Average increased 0.7% to 66,304.76, and the broader TOPIX advanced 0.4% to 4,110.99.
Terra Drone Corp. soared 22% to ¥17,050.0 after Japan's Acquisition, Technology & Logistics Agency selected the aviation company to supply interceptor drones under a fast-track program.
Semiconductor-linked stocks advanced tracking gains in technology stocks in overnight trading in New York.
Tokyo Electron increased 0.3% to ¥55,530.0, Advantest Corp. gained 3.5% to ¥35,670.0, and Softbank Group advanced 2.1% to ¥5,194.0.
Mitsubishi UFJ Financial Group added 1% to ¥3,567.0, Sumitomo Mitsui Financial Group increased 1.1% to ¥6,706.0, and Mizuho Financial Group edged up 0.8% to ¥8,270.0.
Volatile Crude Oil Prices Supported Gains In Japan's Inde
Akira Ito
26 Aug, 2026
Tokyo
Japan's indexes rose on Wednesday and extended weekly advance amid easing crude oil prices and weakening bond yields.
The Nikkei 225 Stock Average increased 0.7%, the broader TOPIX edged higher 0.4%, and the yen hovered at 159.01 against the U.S. dollar.
The yield on 10-year Japanese government bonds edged lower to 2.88%, tracking lower global yields as investors awaited greater clarity on the U.S. government's fiscal reform plans.
The Brent crude oil prices decreased 2% to $86.91 a barrel amid hopes that the U.S. and Iran could find a diplomatic solution and avert another showdown over the Strait of Hormuz.
Japan Indexes and Stocks
The Nikkei 225 Stock Average increased 0.7% to 66,304.76, and the broader TOPIX advanced 0.4% to 4,110.99.
Terra Drone Corp. soared 22% to ¥17,050.0 after Japan's Acquisition, Technology & Logistics Agency selected the aviation company to supply interceptor drones under a fast-track program.
Semiconductor-linked stocks advanced tracking gains in technology stocks in overnight trading in New York.
Tokyo Electron increased 0.3% to ¥55,530.0, Advantest Corp. gained 3.5% to ¥35,670.0, and Softbank Group advanced 2.1% to ¥5,194.0.
Mitsubishi UFJ Financial Group added 1% to ¥3,567.0, Sumitomo Mitsui Financial Group increased 1.1% to ¥6,706.0, and Mizuho Financial Group edged up 0.8% to ¥8,270.0.
China's Indexes Rebounded Ahead of NPCSC Announcements
Li Chen
26 Aug, 2026
Hong Kong
China's indexes edged higher as investors held out for policy announcements that could revive broader economic growth.
The Hang Seng Index increased 0.7%, and the mainland-focused CSI 300 Index gained 1% as investors shifted focus on a recent string of positive earnings results.
Global bond yields stayed elevated for the second consecutive week amid persistent geopolitical tensions in the Middle East and rapidly growing U.S. federal deficit, which now surpassed $40 trillion.
Benchmark indexes in Japan advanced 0.7%, and in South Korea jumped 1.7% amid a rebound in semiconductor-linked stocks.
China Indexes and Stocks
The Hang Seng Index increased 0.7% to 25,689.96, and the mainland-focused CSI 300 Index advanced 1% to 4,600.77.
China Merchants rose 0.4% to HK $49.56 after the bank announced its plan to issue a 3-year floating-rate note linked to the overnight bond repurchase rate, the first domestic lender to do so.
BYD decreased 02% to $93.45, Victory Giant advanced 2.4% to HK $239.0, and Wus Printed Circuit Kunshan Co. soared 5.3% to ¥120.30.
China's Indexes Rebounded Ahead of NPCSC Announcements
Li Chen
26 Aug, 2026
Hong Kong
China's indexes edged higher as investors held out for policy announcements that could revive broader economic growth.
The Hang Seng Index increased 0.7%, and the mainland-focused CSI 300 Index gained 1% as investors shifted focus on a recent string of positive earnings results.
Global bond yields stayed elevated for the second consecutive week amid persistent geopolitical tensions in the Middle East and rapidly growing U.S. federal deficit, which now surpassed $40 trillion.
Benchmark indexes in Japan advanced 0.7%, and in South Korea jumped 1.7% amid a rebound in semiconductor-linked stocks.
China Indexes and Stocks
The Hang Seng Index increased 0.7% to 25,689.96, and the mainland-focused CSI 300 Index advanced 1% to 4,600.77.
China Merchants rose 0.4% to HK $49.56 after the bank announced its plan to issue a 3-year floating-rate note linked to the overnight bond repurchase rate, the first domestic lender to do so.
BYD decreased 02% to $93.45, Victory Giant advanced 2.4% to HK $239.0, and Wus Printed Circuit Kunshan Co. soared 5.3% to ¥120.30.
Wall Street Indexes Retains Downward Bias as U.S. Treasury Expands Short-Term Debt Issuance
Barry Adams
25 Aug, 2026
New York City
Wall Street indexes traded slightly higher ahead of key earnings and inflation reports later in the week.
The S&P 500 Index increased 0.3%, and the tech-focused Nasdaq Composite advanced 0.6% ahead of the release of quarterly reports from Nvidia Corp., Dick's Sporting Goods, Box, and Intuit.
The yield on 10-year U.S. Treasury notes held near 4.67% as investors reassessed the U.S. Treasury Secretary Scott Bessant's plan to buy long-term bonds to lower rising interest rates and reduce the cost of borrowing.
The Secretary Bessent's plan landed on jittery investors, and most traders discounted the move as a sleight of hand with little impact on the overall size of the federal government's debt and new issuance.
The plan focuses on increasing the issuance of shorter-term debt, also known as Treasury bills, but raises the sensitivity to interest rate volatility, which could cause larger and frequent spikes in interest rates.
The yield on 30-year U.S. Treasury bonds hovered at 5.20%, not too far from the 19-year peak of 5.32% before the announcement of the Treasury's plan.
The West Texas Intermediate crude oil price edged down 3.02% to $82.44 per barrel, and the Brent crude oil price eased 3.1% to $89.30 a barrel.
Geopolitical tensions in the Middle East ratcheted up after the U.S. and Iran exchanged hostile messages and vowed to control energy product traffic through the Strait of Hormuz.
Bessent announced plans to isolate Iran through sanctions targeting countries that continue doing business with the Islamic Republic.
However, markets remained skeptical about whether the U.S. measures will accelerate or delay a potential deal with Iran and the full reopening of the Strait of Hormuz.
Meanwhile, risks to oil tankers through the Middle East remain elevated, with the Iran-backed Houthi rebels saying they had fired on a Saudi Arabian supertanker sailing through the Red Sea, while the UK Navy reported that an oil tanker was struck and disabled near Oman.
U.S. Movers
Dick's Sporting Goods declined 14% to $155.90 after the company released its fiscal second quarter results.
Net revenue soared 53% to $5.6 billion from $3.5 billion, net income decreased 17% to $315 million from $381 million, and diluted earnings per share dropped 26% to $3.50 from $4.71 billion.
The prior-year results exclude the recently acquired Foot Locker, and current-year results include the dilutive impact of the 9.6 million shares issued in connection with the Foot Locker acquisition.
The company said comparable sales rose 4.9% from a year ago, driven by broad-based growth across categories, including strong results from the 2026 FIFA World Cup and growth in average tickets and transactions.
However, comparable sales in Foot Locker declined 3.6%, "impacted by challenging conditions in the athletic footwear marketplace."
The specialty retailer retained Dick's business comparable sales outlook of 2.5% to 4.0% growth, lowered Foot Locker's comparable sales outlook to between -2.0% and 0%, and lowered the operating income outlook for both businesses.
Zoom Communications decreased 0.3% to $104.50 ahead of the company's release of its quarterly results after the close of the regular trading session.
Intuit decreased 0.4% to $368.38 ahead of the software company's release of its fiscal fourth quarter results.