Market Update
Tokyo Stocks Trade Sideways, Japan Records Current Account Surplus in Fiscal 2024
Akira Ito
12 May, 2025
Tokyo
Japan's stock market indexes struggled to advance on Monday, and they hovered near six-week highs as investors awaited the release of financial results from leading companies this week.
The Nikkei 225 Stock Average and broader Topix indexes inched slightly higher as earnings season gathered momentum, and financial stocks led the most actively traded stocks in Tokyo.
The trade negotiators sent cautiously optimistic signals at the conclusion of the first official talks on Sunday in Switzerland.
Despite the two sides sending positive signals after the two days of intense talks led by Chinese Vice Premier He Lifeng and U.S. Secretary of State Scott Bessent and U.S. Trade Representative Jamieson Greer, the two sides remain far apart from an agreement.
The U.S. and China are set to release a joint statement later on Monday, and the statement is likely to focus broad framework for future trade discussions.
Japan's Annual Current Account Surplus Widened In Fiscal 2024
Japan's current account surplus advanced to 3.678 trillion yen in April from 3.448 trillion yen a year ago, the Ministry of Finance reported Monday.
The goods account surplus expanded to 516.5 billion yen from 463.5 billion yen from a year ago, driven by a faster increase in exports compared to imports.
The primary income account increased to 3.92 trillion yen from 3.607 trillion yen, while the secondary income deficit expanded to 739.4 billion yen from 618.6 billion yen from a year ago, respectively.
For the full fiscal year ending in March 2024, the current account surplus widened to 30.38 trillion yen from 26.17 trillion yen in the previous year, reflecting strong gains in primary income and continued gains in international trade.
Japan Indexes and Stocks
The Nikkei 225 Stock Average edged up 0.001% to 37,518.10, and the broader Topix index inched down 0.02% to 2,732.99.
The yen weakened to 146.08 against the U.S. dollar amid growing speculation that the Bank of Japan is likely to hold rates steady at the end of the next two-day meeting on June 17.
Export-sensitive stocks and financial services providers led gainers in Tokyo trading.
Kawasaki Heavy Industries Ltd. advanced 4.4% to ¥8,637.0, IHI Corp. gained 0.2% to ¥12,525.0, and Mitsubishi Heavy Industries decreased 0.3% to ¥2,722.50.
Mitsubishi UFJ Financial Group added 1.3% to ¥1,834.0. Sumitomo Mitsui Financial Group increased 0.6% to ¥3,448.0. Mizuho Financial Group edged up 0.6% to ¥3,691.0.
Hong Kong Markets Extended Rally to Eighth Day Ahead of US-China Joint Statement
Li Chen
12 May, 2025
Hong Kong
Stock market indexes in China and Hong Kong advanced amid hopes of a positive outcome of the US-China trade talks in Switzerland.
The Hang Seng index gained 0.8%, and the mainland-focused CSI 300 index inched higher 0.6%, as investors looked forward to details of the framework of US-China trade talks.
The talks in Geneva followed weeks of tensions and global financial market chaos after the U.S. slapped unilateral country-specific tariffs on all imports, with the heaviest burden on shipments arriving from China.
The two sides issued positive comments after two days of talks ending on late Sunday, but it is not clear what the U.S. and China have agreed upon.
The U.S. and China "have taken important steps to resolve important differences through equal dialogue and consultation," the state news agency Xinhua reported.
Despite positive spin by trade negotiators, investors are skeptical that the two sides could reach an agreement in such a short time, as China is looking to lower tariffs to less than 10% from the current proposed level of as high as 250%.
Negotiators in Geneva said that the two sides will release a joint statement on early Monday New York time, and the statement is likely to focus on the trade negotiation framework and set an outline of discussion topics.
Two sides are far apart in their demands, and an agreement is not likely to be reached before the year's end, as the Chinese government ramps up imports of agricultural products from South America and restricts the sale of rare earth minerals to the U.S., according to three Chinese trade negotiators contacted by ticker.com.
The trade discussions are fluid and at an early stage, and the possible outcome is likely to focus on an interim deal covering the next three months to de-escalate tensions and continue the flow of direct shipments from China to the U.S. West Coast ports.
China Indexes and Stocks
The Hang Seng index advanced 0.8% to 23,049.61, and the mainland-focused CSI 300 index edged up 0.6% to 3,869.78.
Contemporary Amperex Technology Co. Ltd. rose 2.6% to 254.69 yuan, ahead of the electric vehicle battery maker's public offering on the Hong Kong Stock Exchange.
The company is set to sell at least 117.9 million shares and raise as much as HK $41 billion, or US $5.3 billion, at the top end of its offering price of HK $263.
Export-sensitive stocks advanced in Hong Kong trading after the US and China sent positive signals after the ending of trade talks in Switzerland.
Haier Smart Home Co. jumped 4.4% to HK $23.80, Techtronic Industries advanced 3.9% to HK $89.75, and Sunny Optical Technology Group soared 10.5% to HK $70.95.
Hong Kong Markets Extended Rally to Eighth Day Ahead of US-China Joint Statement
Li Chen
12 May, 2025
Hong Kong
Stock market indexes in China and Hong Kong advanced amid hopes of a positive outcome of the US-China trade talks in Switzerland.
The Hang Seng index gained 0.8%, and the mainland-focused CSI 300 index inched higher 0.6%, as investors looked forward to details of the framework of US-China trade talks.
The talks in Geneva followed weeks of tensions and global financial market chaos after the U.S. slapped unilateral country-specific tariffs on all imports, with the heaviest burden on shipments arriving from China.
The two sides issued positive comments after two days of talks ending on late Sunday, but it is not clear what the U.S. and China have agreed upon.
The U.S. and China "have taken important steps to resolve important differences through equal dialogue and consultation," the state news agency Xinhua reported.
Despite positive spin by trade negotiators, investors are skeptical that the two sides could reach an agreement in such a short time, as China is looking to lower tariffs to less than 10% from the current proposed level of as high as 250%.
Negotiators in Geneva said that the two sides will release a joint statement on early Monday New York time, and the statement is likely to focus on the trade negotiation framework and set an outline of discussion topics.
Two sides are far apart in their demands, and an agreement is not likely to be reached before the year's end, as the Chinese government ramps up imports of agricultural products from South America and restricts the sale of rare earth minerals to the U.S., according to three Chinese trade negotiators contacted by ticker.com.
The trade discussions are fluid and at an early stage, and the possible outcome is likely to focus on an interim deal covering the next three months to de-escalate tensions and continue the flow of direct shipments from China to the U.S. West Coast ports.
China Indexes and Stocks
The Hang Seng index advanced 0.8% to 23,049.61, and the mainland-focused CSI 300 index edged up 0.6% to 3,869.78.
Contemporary Amperex Technology Co. Ltd. rose 2.6% to 254.69 yuan, ahead of the electric vehicle battery maker's public offering on the Hong Kong Stock Exchange.
The company is set to sell at least 117.9 million shares and raise as much as HK $41 billion, or US $5.3 billion, at the top end of its offering price of HK $263.
Export-sensitive stocks advanced in Hong Kong trading after the US and China sent positive signals after the ending of trade talks in Switzerland.
Haier Smart Home Co. jumped 4.4% to HK $23.80, Techtronic Industries advanced 3.9% to HK $89.75, and Sunny Optical Technology Group soared 10.5% to HK $70.95.
U.S. Market Rally Halts Amid Growing Skepticism About US-China Trade Talks
Scott Peters
09 May, 2025
New York City
Wall Street indexes lacked direction in Friday's trading as investors reviewed the latest batch of earnings.
The S&P 500 index edged down 0.1%, and the Nasdaq Composite inched lower 0.2% ahead of US-China trade talks this weekend in Switzerland.
Investors are anticipating talks to yield results, reflecting a view that China has sharply reduced its reliance on the U.S. market over the last ten years.
Despite the increase in tariffs during the first Trump administration, China's exports jumped more than 50% between 2016 and 2020. Moreover, the share of direct shipments to the U.S. declined from as high as 25% to below 19% in the period.
China's manufacturing companies have expanded their production bases to Mexico, Vietnam, Thailand, Bangladesh, and ASEAN-member nations, avoiding high tariffs on direct shipments from China.
However, that strategy of diversifying the supply base by the Chinese companies is under severe strain under the new tariff regime proposed by the current Trump administration.
If a trade agreement is not struck by the end of June, investors fear that as many as 100,000 small businesses could fold by the end of this year, and consumers are likely to face higher prices and fewer choices as early as July.
Week Ahead
In the week ahead, investors are looking ahead to the monthly budget statement, inflation data, and housing market activity reports.
Producer prices, retail sales, jobless claims, industrial production, and business inventories are on tap to be released on Thursday.
Building permits, housing starts, export and import prices, and foreign bond investment are scheduled to be released on Friday.
On the earnings front, investors are anticipating quarterly updates from more than 300 companies, including results from Cisco Systems, NRG Energy, Simon Property, JD.com, Walmart, Alibaba Group, Deere & Co., Applied Materials, Ross Stores, and Bath & Body Works.
Commodities, Currencies, Indexes, Yields
The S&P 500 index increased 0.3% to 5,681.39, the Nasdaq Composite edged up 0.6% to 18,035.09, and the Russell 2000 index advanced 0.3% to 2,032.94.
The yield on 2-year Treasury notes edged lower to 3.88%, 10-year Treasury notes decreased to 4.37%, and 30-year Treasury bonds advanced to 4.86%.
WTI crude oil increased $0.68 to $60.60 a barrel, and natural gas prices edged higher by $0.14 to $3.73 a thermal unit.
Gold increased by $15.01 to $3,331.42 an ounce, and silver edged up by $0.11 to $32.54.
The dollar index, which weighs the US currency against a basket of foreign currencies, decreased by 0.28 to 100.36, and it traded at the lowest level since April 2022.
U.S. Movers
Lyft Inc. soared 21.4% to $15.83, and the ride-hailing service provider said net income swung to a profit in the latest quarter.
Revenue in the first quarter increased 14% to $1.45 billion, net income was $2.57 million from a loss of $31.54 million, and diluted earnings per share swung to a profit of 1 cent from a loss of 8 cents.
The company's board authorized expanding the stock buyback program to $750 million from $500 million.
Expedia Group Inc. declined 8.2% to $155.09, and the travel and booking platform operator reported mixed results in the first quarter.
Revenue edged up to $2.99 billion from $2.89 billion, net loss widened to $200 million from a loss of $135 million, and diluted loss per share expanded to $1.56 from a loss of 99 cents a year ago.
Adjusted earnings, after excluding certain one-time items, were 40 cents per share, ahead of market expectations of 32 cents.
The company repurchased approximately 1.7 million shares for $330 million during the quarter and paid a quarterly dividend of 40 cents per share on March 27.
Monster Beverage Corp. increased 1.8% to $61.23, and the energy drink maker reported weaker-than-expected quarterly results.
Revenue in the first quarter declined 2.3% to $1.85 billion from $1.9 billion, net income was nearly flat at $442.9 million, and diluted earnings per share eased to $8.51 from $8.59 a year ago.
The beverage company said energy drink case sales increased to $213,100 from $211,430 a year ago.
U.S. Market Rally Halts Amid Growing Skepticism About US-China Trade Talks
Scott Peters
09 May, 2025
New York City
Wall Street indexes lacked direction in Friday's trading as investors reviewed the latest batch of earnings.
The S&P 500 index edged down 0.1%, and the Nasdaq Composite inched lower 0.2% ahead of US-China trade talks this weekend in Switzerland.
Investors are anticipating talks to yield results, reflecting a view that China has sharply reduced its reliance on the U.S. market over the last ten years.
Despite the increase in tariffs during the first Trump administration, China's exports jumped more than 50% between 2016 and 2020. Moreover, the share of direct shipments to the U.S. declined from as high as 25% to below 19% in the period.
China's manufacturing companies have expanded their production bases to Mexico, Vietnam, Thailand, Bangladesh, and ASEAN-member nations, avoiding high tariffs on direct shipments from China.
However, that strategy of diversifying the supply base by the Chinese companies is under severe strain under the new tariff regime proposed by the current Trump administration.
If a trade agreement is not struck by the end of June, investors fear that as many as 100,000 small businesses could fold by the end of this year, and consumers are likely to face higher prices and fewer choices as early as July.
Week Ahead
In the week ahead, investors are looking ahead to the monthly budget statement, inflation data, and housing market activity reports.
Producer prices, retail sales, jobless claims, industrial production, and business inventories are on tap to be released on Thursday.
Building permits, housing starts, export and import prices, and foreign bond investment are scheduled to be released on Friday.
On the earnings front, investors are anticipating quarterly updates from more than 300 companies, including results from Cisco Systems, NRG Energy, Simon Property, JD.com, Walmart, Alibaba Group, Deere & Co., Applied Materials, Ross Stores, and Bath & Body Works.
Commodities, Currencies, Indexes, Yields
The S&P 500 index increased 0.3% to 5,681.39, the Nasdaq Composite edged up 0.6% to 18,035.09, and the Russell 2000 index advanced 0.3% to 2,032.94.
The yield on 2-year Treasury notes edged lower to 3.88%, 10-year Treasury notes decreased to 4.37%, and 30-year Treasury bonds advanced to 4.86%.
WTI crude oil increased $0.68 to $60.60 a barrel, and natural gas prices edged higher by $0.14 to $3.73 a thermal unit.
Gold increased by $15.01 to $3,331.42 an ounce, and silver edged up by $0.11 to $32.54.
The dollar index, which weighs the US currency against a basket of foreign currencies, decreased by 0.28 to 100.36, and it traded at the lowest level since April 2022.
U.S. Movers
Lyft Inc. soared 21.4% to $15.83, and the ride-hailing service provider said net income swung to a profit in the latest quarter.
Revenue in the first quarter increased 14% to $1.45 billion, net income was $2.57 million from a loss of $31.54 million, and diluted earnings per share swung to a profit of 1 cent from a loss of 8 cents.
The company's board authorized expanding the stock buyback program to $750 million from $500 million.
Expedia Group Inc. declined 8.2% to $155.09, and the travel and booking platform operator reported mixed results in the first quarter.
Revenue edged up to $2.99 billion from $2.89 billion, net loss widened to $200 million from a loss of $135 million, and diluted loss per share expanded to $1.56 from a loss of 99 cents a year ago.
Adjusted earnings, after excluding certain one-time items, were 40 cents per share, ahead of market expectations of 32 cents.
The company repurchased approximately 1.7 million shares for $330 million during the quarter and paid a quarterly dividend of 40 cents per share on March 27.
Monster Beverage Corp. increased 1.8% to $61.23, and the energy drink maker reported weaker-than-expected quarterly results.
Revenue in the first quarter declined 2.3% to $1.85 billion from $1.9 billion, net income was nearly flat at $442.9 million, and diluted earnings per share eased to $8.51 from $8.59 a year ago.
The beverage company said energy drink case sales increased to $213,100 from $211,430 a year ago.
Positive Earnings Support Weekly Advances In Europe, Investors Look for Details of US-UK Trade Deal
Bridgette Randall
09 May, 2025
London
European markets extended weekly gains on Friday as investors reviewed the latest batch of positive earnings.
Benchmark indexes in Frankfurt, Paris, Milan, and London advanced amid optimism about the corporate earnings outlook.
IAG, the parent company of British Airways, reiterated its full-year outlook and cited strong demand for its premium travel services.
In addition, the Trump administration announced a "trade deal" has been struck with the UK but failed to provide details of import tax levels, scope of goods covered by the tariff program, and timetable.
After a week of choppy trading, benchmark indexes in Frankfurt advanced 1.7%, in Paris rose 0.3%, and in London edged up 0.7%.
Europe Indexes and Yields
The DAX index increased by 0.6% to 23,500.47, the CAC-40 index edged higher by 0.7% to 7,746.59, and the FTSE 100 index advanced 0.4% to 8,562.13.
The yield on 10-year German bonds inched higher to 2.57%, French bonds increased to 3.27%, the UK gilts moved up to 4.59%, and Italian bonds edged higher to 3.62%.
The euro increased to $1.12; the British pound was higher at $1.32; and the U.S. dollar was lower and traded at 83.04 Swiss cents.
Brent crude increased $0.52 to $63.36 a barrel, and the Dutch TTF natural gas was higher by €0.09 to €35.72 per MWh.
Europe Movers
Krones AG rose 3.8% to €139.60, and the packaging and bottling machine maker reported a 15% jump in profit in the first quarter.
Sonova Holding AG jumped 3.5% to CHF 259.40, and the Switzerland-based hearing care product maker estimated higher sales and earnings in the fiscal year 2026.
Commerzbank AG advanced 2% to €24.80 after the German bank reported a record quarterly profit.
International Consolidated Airlines Group soared 3.4% to 300.10 pence, and the parent company of British Airways and Iberia Airlines reported better-than-expected results in the first quarter and reiterated its full-year outlook, citing strong demand for its premium services.
Revenue in the first quarter increased 9.6%, and operating profit before exceptional items increased by €130 million to €198 million, and lower fuel prices offset the other cost increases.
In addition, the company said it ordered 71 new wide-body aircraft.