Market Update
Japan Releases Stockpiled Rice Ahead of Summer Election
Akira Ito
03 Jun, 2025
Tokyo
Japan's stock market indexes rebounded after easing in the previous two sessions despite rising global trade tensions.
The Nikkei 225 Stock Average edged up a fraction, and the Topix index decreased 0.2% amid worries about the lack of progress in the U.S.-Japan trade talks.
Steel stocks traded down after the U.S. president announced he would impose a 50% import tax on steel imports from the European Union, raising the prospects of potential ripple effects on Japan's steel industry.
Japan's government finally released 201,000 tons of rice to stem the surge in price over the last year.
The government expedited the sale of 5 kg rice bags for 2,000 yen to a network of stores across the nation after the bag's price shot up to 4,285 yen, or about $30, in mid-May.
The move is likely to ease financial stress on families, but the government may have to release at least an additional 150,000 tons of rice over the next three months.
Rice prices shot up in 2024 after a record heat wave damaged rice crops, and record tourism and the fear of a megaquake contributed to a demand surge over the last nine months.
The average price eased to 4,260 yen for a 5 kg bag in the week through May 25, down 25 yen from the previous week.
In the absence of major economic news, investors focused on global developments, and rising trade tensions between the U.S. and China dampened the prospect of a trade agreement in the immediate future.
Japan Indexes and Stocks
The Nikkei 225 Stock Average edged up 0.1% to 37,491.06, and the broader Topix index decreased 0.2% to 37,491.06.
Seven & I Holdings increased 1.5% to ¥2,226.50, and the company's subsidiary Ito-Yokado secured about 5,000 tons of rice from the government to distribute over the next two months.
AEON Co. Ltd. declined 0.4% to ¥4,396.0, and Pan Pacific International Holdings Corp. decreased 0.8% to ¥4,693.0.
China's Manufacturing Index Reflects Ongoing Demand Growth Challenges
Li Chen
03 Jun, 2025
Hong Kong
Stocks in China and Hong Kong rose, and investors reviewed the latest update on the manufacturing sector.
The Hang Seng index added more than 1%, and the mainland-focused CSI 300 index edged higher by 0.5%.
Mainland investors returned from a three-day holiday, and investors pinned their hopes on the possible talks between leaders of China and the U.S., which could expedite a trade agreement.
Financial markets have been whiplashed over the last four trading sessions after the U.S. placed additional visa restrictions on Chinese students and limited the exports of advanced artificial intelligence chips.
China retaliated with a control on rare earth mineral exports to the U.S., souring the trade environment between the two largest economies.
Investors reviewed the latest updates on the manufacturing sector, and the private survey, which has a larger group of exporters, confirmed ongoing weakness.
The Caixin manufacturing purchasing managers' index eased to 48.3 in May from 50.4 in April, S&P Global reported on Tuesday.
The index of manufacturing activities decreased to the lowest since September 2022, as the U.S.-focused exporters struggle to adjust to a constantly changing U.S. trade policy.
The official manufacturing purchasing managers' index released over the weekend showed a contraction for the second consecutive month.
The PMI edged up to 49.5 in May compared to 49.0 in April, indicating activities declined at a slower pace.
China Indexes and Stocks
The Hang Seng index increased 1.1% to 23,408.32, and the CSI 300 index rose 0.5% to 3,858.78.
Electric vehicle makers advanced in active trading in the hopes of a boost in exports to Mexico, Russia, and Brazil.
Li Auto jumped 6.7% to $117.10, BYD increased 1.7% to HK $392.0, and Xpeng Inc. increased 0.7% to HK $75.60.
China Merchants Bank added 2.6% to $49.35, Bank of China advanced 2.7% to HK $4.62, and China Construction Bank advanced 2.8% to HK $7.11.
HSBC increased by 1% to HK$93.45.
China's Manufacturing Index Reflects Ongoing Demand Growth Challenges
Li Chen
03 Jun, 2025
Hong Kong
Stocks in China and Hong Kong rose, and investors reviewed the latest update on the manufacturing sector.
The Hang Seng index added more than 1%, and the mainland-focused CSI 300 index edged higher by 0.5%.
Mainland investors returned from a three-day holiday, and investors pinned their hopes on the possible talks between leaders of China and the U.S., which could expedite a trade agreement.
Financial markets have been whiplashed over the last four trading sessions after the U.S. placed additional visa restrictions on Chinese students and limited the exports of advanced artificial intelligence chips.
China retaliated with a control on rare earth mineral exports to the U.S., souring the trade environment between the two largest economies.
Investors reviewed the latest updates on the manufacturing sector, and the private survey, which has a larger group of exporters, confirmed ongoing weakness.
The Caixin manufacturing purchasing managers' index eased to 48.3 in May from 50.4 in April, S&P Global reported on Tuesday.
The index of manufacturing activities decreased to the lowest since September 2022, as the U.S.-focused exporters struggle to adjust to a constantly changing U.S. trade policy.
The official manufacturing purchasing managers' index released over the weekend showed a contraction for the second consecutive month.
The PMI edged up to 49.5 in May compared to 49.0 in April, indicating activities declined at a slower pace.
China Indexes and Stocks
The Hang Seng index increased 1.1% to 23,408.32, and the CSI 300 index rose 0.5% to 3,858.78.
Electric vehicle makers advanced in active trading in the hopes of a boost in exports to Mexico, Russia, and Brazil.
Li Auto jumped 6.7% to $117.10, BYD increased 1.7% to HK $392.0, and Xpeng Inc. increased 0.7% to HK $75.60.
China Merchants Bank added 2.6% to $49.35, Bank of China advanced 2.7% to HK $4.62, and China Construction Bank advanced 2.8% to HK $7.11.
HSBC increased by 1% to HK$93.45.
U.S. Movers: Ulta Beauty
Scott Peters
02 Jun, 2025
New York City
Ulta Beauty Inc. traded down 1.0% to $466.76 despite the cosmetics retailer reporting higher revenue in the first quarter of 2025.
Net sales jumped to $2.8 billion from $2.7 billion, net income fell to $305.1 million from $313.1 million, and diluted earnings per share rose to $6.70 from $6.47 a year ago.
Comparable sales, which include sales from stores open for at least 14 months and e-commerce transactions, rose 2.9%, driven by a 2.3% rise in average ticket and a 0.6% increase in transaction volume.
The company anticipates net sales for the year to range between $11.5 billion and $11.7 billion, compared to $11.3 billion a year ago, with comparable sales growth estimated between flat and 1.5%.
During the first quarter, the beauty product retailer opened six stores, remodeled four stores, and relocated two stores.
The company plans to open 60 new stores in fiscal 2025, along with 40 to 45 store remodeling and relocation projects.
The stock has gained 15.1% in the past three months compared with the industry’s growth of 2.9%.
U.S. Movers: Ulta Beauty
Scott Peters
02 Jun, 2025
New York City
Ulta Beauty Inc. traded down 1.0% to $466.76 despite the cosmetics retailer reporting higher revenue in the first quarter of 2025.
Net sales jumped to $2.8 billion from $2.7 billion, net income fell to $305.1 million from $313.1 million, and diluted earnings per share rose to $6.70 from $6.47 a year ago.
Comparable sales, which include sales from stores open for at least 14 months and e-commerce transactions, rose 2.9%, driven by a 2.3% rise in average ticket and a 0.6% increase in transaction volume.
The company anticipates net sales for the year to range between $11.5 billion and $11.7 billion, compared to $11.3 billion a year ago, with comparable sales growth estimated between flat and 1.5%.
During the first quarter, the beauty product retailer opened six stores, remodeled four stores, and relocated two stores.
The company plans to open 60 new stores in fiscal 2025, along with 40 to 45 store remodeling and relocation projects.
The stock has gained 15.1% in the past three months compared with the industry’s growth of 2.9%.
Wall Street Indexes Decline Amid New U.S. Tariff Threats, Steel Stocks Soar
Barry Adams
02 Jun, 2025
New York City
Stocks on Wall Street declined amid worries after the U.S. president reignited trade tensions with the European Union and China.
The S&P 500 index decreased as much as 0.8%, and the Nasdaq Composite declined as much as 0.6% in early trading after Donald Trump announced additional levies on imported steel.
Investors were rattled after China sharply rejected the president's accusation that it violated the consensus achieved in Geneva, Switzerland, last month.
The rising level of rhetoric signaled that the two sides were far from reaching an agreement in the near term, as negotiators raced to beat the deadline in two months.
Trump threatened to impose an additional import tax of 50% on imported steel from June 4, prompting the European Union's reply that the move undermines the "negotiated solution."
The European market dropped on the worries that higher steel tariffs will negatively impact vehicle makers and industrial companies.
Last week, the S&P 500 index and the Nasdaq Composite edged higher and supported the advance in May.
In May, the S&P 500 index gained about 6%, and the Nasdaq Composite jumped more than 9%, but those gains are likely to be wiped off in June amid elevated trade tensions.
In the week ahead, investors in the U.S. are anticipating the release of construction spending, business activity, and international trade balance updates.
The labor market updates, including non-farm payrolls and JOLT surveys, are scheduled later in the week as well.
On the earnings front, investors anticipate results from Hewlett Packard, CrowdStrike, NIO Inc., Dollar Tree, Five Below, PVH Corp., Broadcom Inc., Fastenal Co., DocuSign Inc., and Ciena Corp.
The European Central Bank is expected to announce its interest rate decision on Thursday.
Commodities, Currencies, Indexes, Yields
The S&P 500 index decreased 0.2% to 5,901.90, the Nasdaq Composite edged up 0.04% to 19,122.02, and the Russell 2000 index declined 0.5% to 2,055.21.
The yield on 2-year Treasury notes edged higher to 3.94%, 10-year Treasury notes increased to 4.44%, and 30-year Treasury bonds advanced to 4.98%.
WTI crude oil increased $3.08 to $63.86 a barrel, and natural gas prices edged higher by $0.28 to $3.73 a thermal unit.
Gold increased by $67.34 to 3,356.81 an ounce, and silver edged up by $0.96 to $33.94.
The dollar index, which weighs the US currency against a basket of foreign currencies, decreased by 0.43 to 98.90 and traded at the lowest level since April 2022.
U.S. Stock Movers
DraftKings and Flutter Entertainment declined after Illinois lawmakers approved a tax increase on sports betting over the weekend.
Flutter Entertainment PLC declined 3.6% to $243.56, and DraftKings dropped 7.1% to $243.56.
Nucor Corp soared 11.5% to $121.89, Cleveland-Cliffs Inc catapulted 28% to $7.50, and U.S. Steel Corp decreased 0.4% to $53.62.
Wall Street Indexes Decline Amid New U.S. Tariff Threats, Steel Stocks Soar
Barry Adams
02 Jun, 2025
New York City
Stocks on Wall Street declined amid worries after the U.S. president reignited trade tensions with the European Union and China.
The S&P 500 index decreased as much as 0.8%, and the Nasdaq Composite declined as much as 0.6% in early trading after Donald Trump announced additional levies on imported steel.
Investors were rattled after China sharply rejected the president's accusation that it violated the consensus achieved in Geneva, Switzerland, last month.
The rising level of rhetoric signaled that the two sides were far from reaching an agreement in the near term, as negotiators raced to beat the deadline in two months.
Trump threatened to impose an additional import tax of 50% on imported steel from June 4, prompting the European Union's reply that the move undermines the "negotiated solution."
The European market dropped on the worries that higher steel tariffs will negatively impact vehicle makers and industrial companies.
Last week, the S&P 500 index and the Nasdaq Composite edged higher and supported the advance in May.
In May, the S&P 500 index gained about 6%, and the Nasdaq Composite jumped more than 9%, but those gains are likely to be wiped off in June amid elevated trade tensions.
In the week ahead, investors in the U.S. are anticipating the release of construction spending, business activity, and international trade balance updates.
The labor market updates, including non-farm payrolls and JOLT surveys, are scheduled later in the week as well.
On the earnings front, investors anticipate results from Hewlett Packard, CrowdStrike, NIO Inc., Dollar Tree, Five Below, PVH Corp., Broadcom Inc., Fastenal Co., DocuSign Inc., and Ciena Corp.
The European Central Bank is expected to announce its interest rate decision on Thursday.
Commodities, Currencies, Indexes, Yields
The S&P 500 index decreased 0.4% to 5,889.22, the Nasdaq Composite edged down 0.1% to 19,086.99, and the Russell 2000 index advanced 0.1% to 2,069.12.
The yield on 2-year Treasury notes edged higher to 3.94%, 10-year Treasury notes increased to 4.44%, and 30-year Treasury bonds advanced to 4.98%.
WTI crude oil increased $3.08 to $63.86 a barrel, and natural gas prices edged higher by $0.28 to $3.73 a thermal unit.
Gold increased by $67.34 to $3,356.81 an ounce, and silver edged up by $0.96 to $33.94.
The dollar index, which weighs the US currency against a basket of foreign currencies, decreased by 0.43 to 98.90 and traded at the lowest level since April 2022.
U.S. Stock Movers
DraftKings and Flutter Entertainment declined after Illinois lawmakers approved a tax increase on sports betting over the weekend.
Flutter Entertainment PLC declined 3.6% to $243.56, and DraftKings dropped 7.1% to $243.56.
Nucor Corp soared 11.5% to $121.89, Cleveland-Cliffs Inc catapulted 28% to $7.50, and U.S. Steel Corp decreased 0.4% to $53.62.
European Markets Fall Amid Renewed U.S. Tariff Threats
Bridgette Randall
02 Jun, 2025
London
European stock market indexes turned lower amid renewed trade tensions with the U.S.
Benchmark indexes in Frankfurt, Paris, Milan, and London decreased amid dimming prospects of a trade agreement in the near future.
The U.S. president reignited trade tensions after Donald Trump announced he would impose a 50% duty on steel imports from key partners from June 4.
The European Union criticized the proposed duty undermines the efforts to reach a "negotiated solution."
In addition, the U.S. president accused China of violating a verbal agreement struck last month in Geneva without offering any concrete evidence.
Constantly changing U.S. trade policy has disrupted global supply chains, and companies in Europe fear that the Chinese suppliers will accelerate dumping of unsold goods into world markets.
Europe Indexes and Yields
The DAX index decreased by 0.1% to 23,978.66, the CAC-40 index edged lower 0.2% to 7,737.43, and the FTSE 100 index advanced 0.1% to 8,780.12.
The yield on 10-year German bonds inched higher to 2.53%, French bonds increased to 3.19%, UK gilts moved up to 4.68%, and Italian bonds edged higher to 3.53%.
The euro increased to $1.14; the British pound was higher at $1.35; and the U.S. dollar was lower and traded at 81.91 Swiss cents.
Brent crude increased $1.65 to $64.43 a barrel, and the Dutch TTF natural gas was higher by €0.44 to €34.30 per MWh.
Europe Stock Movers
Salzgitter AG declined 0.9% to €20.82, and ThyssenKrupp AG dropped 2.5% to €8.37.
Defense and security-related stocks advanced for the ninth week in a row after Ukraine stepped up drone attacks deep inside Russia.
Rheinmetall AG gained 0.8% to €1,922.0, MTU Aero Engines rose 0.3% to €350.20, Dassault Aviation SA added 1.4% to €323.40, and Rolls-Royce Holdings PLC added 0.2% to 868.60 pence.
European Markets Fall Amid Renewed U.S. Tariff Threats
Bridgette Randall
02 Jun, 2025
London
European stock market indexes turned lower amid renewed trade tensions with the U.S.
Benchmark indexes in Frankfurt, Paris, Milan, and London decreased amid dimming prospects of a trade agreement in the near future.
The U.S. president reignited trade tensions after Donald Trump announced he would impose a 50% duty on steel imports from key partners from June 4.
The European Union criticized the proposed duty undermines the efforts to reach a "negotiated solution."
In addition, the U.S. president accused China of violating a verbal agreement struck last month in Geneva without offering any concrete evidence.
Constantly changing U.S. trade policy has disrupted global supply chains, and companies in Europe fear that the Chinese suppliers will accelerate dumping of unsold goods into world markets.
Europe Indexes and Yields
The DAX index decreased by 0.1% to 23,978.66, the CAC-40 index edged lower 0.2% to 7,737.43, and the FTSE 100 index advanced 0.1% to 8,780.12.
The yield on 10-year German bonds inched higher to 2.53%, French bonds increased to 3.19%, UK gilts moved up to 4.68%, and Italian bonds edged higher to 3.53%.
The euro increased to $1.14; the British pound was higher at $1.35; and the U.S. dollar was lower and traded at 81.91 Swiss cents.
Brent crude increased $1.65 to $64.43 a barrel, and the Dutch TTF natural gas was higher by €0.44 to €34.30 per MWh.
Europe Stock Movers
Salzgitter AG declined 0.9% to €20.82, and ThyssenKrupp AG dropped 2.5% to €8.37.
Defense and security-related stocks advanced for the ninth week in a row after Ukraine stepped up drone attacks deep inside Russia.
Rheinmetall AG gained 0.8% to €1,922.0, MTU Aero Engines rose 0.3% to €350.20, Dassault Aviation SA added 1.4% to €323.40, and Rolls-Royce Holdings PLC added 0.2% to 868.60 pence.
Europe Mar
Bridgette Randall
02 Jun, 2025
London
European stock market indexes turned lower amid renewed trade tensions with the U.S.
Benchmark indexes in Frankfurt, Paris, Milan, and London decreased amid dimming prospects of a trade agreement in the near future.
The U.S. president reignited trade tensions after Donald Trump announced he would impose a 50% duty on steel imports from key partners from June 4.
The European Union criticized the proposed duty undermines the efforts to reach a "negotiated solution."
In addition, the U.S. president accused China of violating a verbal agreement struck last month in Geneva without offering any concrete evidence.
Constantly changing U.S. trade policy has disrupted global supply chains, and companies in Europe fear that the Chinese suppliers will accelerate dumping of unsold goods into world markets.
Europe Indexes and Yields
The DAX index decreased by 0.1% to 23,978.66, the CAC-40 index edged lower 0.2% to 7,737.43, and the FTSE 100 index advanced 0.1% to 8,780.12.
The yield on 10-year German bonds inched higher to 2.53%, French bonds increased to 3.19%, UK gilts moved up to 4.68%, and Italian bonds edged higher to 3.53%.
The euro increased to $1.14; the British pound was higher at $1.35; and the U.S. dollar was lower and traded at 81.91 Swiss cents.
Brent crude increased $1.65 to $64.43 a barrel, and the Dutch TTF natural gas was higher by €0.44 to €34.30 per MWh.
Europe Stock Movers
Salzgitter AG declined 0.9% to €20.82, and ThyssenKrupp AG dropped 2.5% to €8.37.
Defense and security-related stocks advanced for the ninth week in a row after Ukraine stepped up drone attacks deep inside Russia.
Rheinmetall AG gained 0.8% to €1,922.0, MTU Aero Engines rose 0.3% to €350.20, Dassault Aviation SA added 1.4% to €323.40, and Rolls-Royce Holdings PLC added 0.2% to 868.60 pence.
Hang Seng Index Dropped 2% Amid Renewed Trade Tensions and Weak New Home Sales In May
Li Chen
02 Jun, 2025
Hong Kong
Stock market indexes in Hong Kong dropped at the fastest pace in two months following the weaker-than-expected home sales and renewed trade tensions with the U.S.
The Hang Seng index decreased 2% after the U.S. president accused China of violating a verbal agreement in Switzerland without offering any concrete evidence.
Mainland China's financial markets were closed to celebrate the Dragon Boat Festival, and trading is scheduled to resume on Tuesday.
Moreover, markets were on the defensive after residential property sales for the largest 100 developers rose 3.5% in May, according to data released by China Real Estate Information Corporation.
Real estate sales generally pick up in May, but the increase was sharply lower than expected amid ongoing property market malaise and weak consumer sentiment.
China Indexes and Stocks
The Hang Seng index decreased 2.0% to 22,831.01, and the mainland China markets were closed for a holiday.
The Dragon Boat Festival and Children's Day converged on the same weekend for the first time since 2014, lifting domestic travel by more than 100% for certain popular destinations.
Sands China increased 2.6% to HK $15.82, and Galaxy Entertainment advanced 1.2% to HK $33.80.
Gambling revenue in Macau jumped 5% in May to a record high since January 2020, according to local authorities.
Hang Seng Index Dropped 2% Amid Renewed Trade Tensions and Weak New Home Sales In May
Li Chen
02 Jun, 2025
Hong Kong
Stock market indexes in Hong Kong dropped at the fastest pace in two months following the weaker-than-expected home sales and renewed trade tensions with the U.S.
The Hang Seng index decreased 2% after the U.S. president accused China of violating a verbal agreement in Switzerland without offering any concrete evidence.
Mainland China's financial markets were closed to celebrate the Dragon Boat Festival, and trading is scheduled to resume on Tuesday.
Moreover, markets were on the defensive after residential property sales for the largest 100 developers rose 3.5% in May, according to data released by China Real Estate Information Corporation.
Real estate sales generally pick up in May, but the increase was sharply lower than expected amid ongoing property market malaise and weak consumer sentiment.
China Indexes and Stocks
The Hang Seng index decreased 2.0% to 22,831.01, and the mainland China markets were closed for a holiday.
The Dragon Boat Festival and Children's Day converged on the same weekend for the first time since 2014, lifting domestic travel by more than 100% for certain popular destinations.
Sands China increased 2.6% to HK $15.82, and Galaxy Entertainment advanced 1.2% to HK $33.80.
Gambling revenue in Macau jumped 5% in May to a record high since January 2020, according to local authorities.