Market Update
Japan Stock Indexes Hover Near 6-Week Highs, PPI Extends Positive Streak In April
Akira Ito
14 May, 2025
Tokyo
Japan's stock market indexes declined and trimmed this week's gains as investors worried about the U.S. trade policy.
The Nikkei 225 Stock Average declined 0.4%, and the broader Topix index fell 0.6% amid uncertainties about the U.S.-Japan trade negotiations.
Asia's stock market indexes traded sideways after the initial enthusiasm surrounding the U.S.-China tariff pause faded.
The Topix index has rebounded about 25%, and the Nikkei 225 Stock Average retraced more than 20% from the tariff lows reached on April 7.
Producer Price Inflation Extends Positive Streak In April
Japan's producer prices rose for the 35th consecutive month in April, the Bank of Japan reported Wednesday.
The producer price index increased at an annual pace of 4.2% in April, from the downwardly revised 4.0% in March.
The measure of wholesale inflation rose at the slowest pace since December.
The increase in the measure of wholesale inflation was driven by the slower annual increase in coal and petroleum inflation to 6.6% from 8.8% and in transportation equipment to 1.6% from 1.8% in the previous month, respectively.
Japan Indexes and Stocks
The Nikkei 225 Stock Average declined 0.4% to 38,019.76, and the broader Topix index decreased 0.6% to 38,019.76.
Vehicle exporters and semiconductor equipment makers led decliners in Tokyo trading.
Advantest Corp. jumped 4.5% to ¥7,506.0, Tokyo Electron gained 0.8% to ¥24,195.0, and Disco Corp. soared 11% to ¥37,000.0.
Marubeni Corp. decreased 0.7% to ¥2,770.50, Itochu Corp. fell 1.7% to ¥7,487.0, and Mitsui & Company fell 0.2% to ¥2,928.0.
Nippon Yusen KK fell 1.2% to ¥5,070.0, Mitsui O.S.K. Ltd. decreased 1.7% to ¥4,992.0, and Kawasaki Kisen Kaisha Ltd. declined 0.2% to ¥2,110.50.
Hong Kong Stocks Extend Rebound to 20% from Tariff Lows, JD.com's Earnings Lift Sentiment
Li Chen
14 May, 2025
Hong Kong
China and Hong Kong stock market indexes advanced to two-month highs as investors shifted their focus to corporate earnings.
The Hang Seng index increased 1.4%, and the mainland-focused CSI 300 index advanced 0.3% after JD.com reported a sharp jump in earnings and sales in the latest quarter.
The Hang Seng index has rebounded 20% from the April 7 low and reached the level last seen on March 28.
In 2025, the Hang Seng index has advanced 19.4%, and the mainland-focused CSI 300 index has gained 2.3%.
Investors are awaiting results from Alibaba Group Holding and Tencent Holdings later in the week.
Optimism returned in early trading on Wednesday, as investors remained confident about the earnings outlook for large technology companies.
The pause in tariffs for 90 days has swung the manufacturing sector back into full swing for now, but trade relations with the U.S. are likely to be rocky in the years ahead.
Manufacturers are ramping up production and are looking to warehouse goods in Vietnam and Mexico amid an uncertain tariff outlook and the turbulent policies of the Trump administration.
The makers of toys, consumer goods, office products, apparel and accessories, and electrical appliances are looking to reduce their reliance on the U.S. market.
The U.S. accounts for 14.5% of total Chinese exports, compared to 19% in 2020, as companies build sales in the ASEAN region, in the Middle East, and in South America.
China Indexes and Stocks
The Hang Seng index increased 1.4% to 23,425.47, and the mainland-focused CSI 300 index added 0.3% to 3,907.26.
JD.com jumped 2.9% to HK $140.70 after the e-commerce company reported a 16% increase in sales in the first quarter.
Tencent Holdings Ltd. advanced 2% to HK $516.0 ahead of the company's first-quarter results on Wednesday.
Alibaba Group Holding gained 1.6% to HK $128.10 ahead of the company's results on Thursday and extended its five-week advance to 32%.
Hong Kong Stocks Extend Rebound to 20% from Tariff Lows, JD.com's Earnings Lift Sentiment
Li Chen
14 May, 2025
Hong Kong
China and Hong Kong stock market indexes advanced to two-month highs as investors shifted their focus to corporate earnings.
The Hang Seng index increased 1.4%, and the mainland-focused CSI 300 index advanced 0.3% after JD.com reported a sharp jump in earnings and sales in the latest quarter.
The Hang Seng index has rebounded 20% from the April 7 low and reached the level last seen on March 28.
In 2025, the Hang Seng index has advanced 19.4%, and the mainland-focused CSI 300 index has gained 2.3%.
Investors are awaiting results from Alibaba Group Holding and Tencent Holdings later in the week.
Optimism returned in early trading on Wednesday, as investors remained confident about the earnings outlook for large technology companies.
The pause in tariffs for 90 days has swung the manufacturing sector back into full swing for now, but trade relations with the U.S. are likely to be rocky in the years ahead.
Manufacturers are ramping up production and are looking to warehouse goods in Vietnam and Mexico amid an uncertain tariff outlook and the turbulent policies of the Trump administration.
The makers of toys, consumer goods, office products, apparel and accessories, and electrical appliances are looking to reduce their reliance on the U.S. market.
The U.S. accounts for 14.5% of total Chinese exports, compared to 19% in 2020, as companies build sales in the ASEAN region, in the Middle East, and in South America.
China Indexes and Stocks
The Hang Seng index increased 1.4% to 23,425.47, and the mainland-focused CSI 300 index added 0.3% to 3,907.26.
JD.com jumped 2.9% to HK $140.70 after the e-commerce company reported a 16% increase in sales in the first quarter.
Tencent Holdings Ltd. advanced 2% to HK $516.0 ahead of the company's first-quarter results on Wednesday.
Alibaba Group Holding gained 1.6% to HK $128.10 ahead of the company's results on Thursday and extended its five-week advance to 32%.
S&P 500 and Nasdaq Extend Rally After Consumer Inflation Unexpectedly Eased In April
Barry Adams
13 May, 2025
New York City
Wall Street indexes inched higher in early trading after consumer price inflation eased for the third consecutive month.
The S&P 500 index edged up 0.3%, and the Nasdaq Composite advanced 0.6% after consumer price inflation unexpectedly fell in April.
The annual consumer price inflation in April edged lower to 2.3% from 2.4% in March, according to the latest data released by the U.S. Bureau of Labor Statistics.
The core rate of inflation, which excludes volatile food and energy prices, held steady at an annual pace of 2.8%.
The decline in overall inflation was driven by the 3.7% decrease in energy prices, but the food price index increased 2.8%, and the shelter index held steady at 4%.
Gasoline prices fell at a faster annual pace of 11.8% compared to the 9.8% decline in the previous month, but natural gas prices accelerated to 15.7% from the 9.4% annual pace in the previous month.
In Monday's trading, the S&P 500 index and the Nasdaq Composite indexes soared 4% after the U.S. backed down from its proposed sky-high tariffs in early April, and China agreed to lower its retaliatory tariffs.
The two sides agreed to pause tariffs for 90 days and search for a longer-term agreement.
Chinese negotiators held firm on their demands and forced the Trump administration to roll back the 145% proposed in early April to the 30% level announced on March 4.
Commodities, Currencies, Indexes, Yields
The S&P 500 index increased 0.3% to 5,859.38, the Nasdaq Composite edged up 0.6% to 18,823.49, and the Russell 2000 index advanced 4.0% to 2,103.97.
The yield on 2-year Treasury notes edged lower to 3.99%, 10-year Treasury notes decreased to 4.45%, and 30-year Treasury bonds declined to 4.90%.
WTI crude oil increased $0.78 to $62.73 a barrel, and natural gas prices edged higher by $0.04 to $3.69 a thermal unit. Gold increased by $4.32 to 3,240.35 an ounce, and silver edged up by $0.05 to $32.62.
The dollar index, which weighs the US currency against a basket of foreign currencies, decreased by 0.44 to 101.35 and traded at a two-year high.
U.S. Stock Movers
Coinbase Global Inc. soared 10% to 227.90, and the cryptocurrency trading platform operator was selected to be included in the S&P 500 index.
Discover Financial Services declined 2.6% to $197.24, and the credit card company was selected to be dropped from the S&P 500 index before the start of trading on May 19.
UnitedHealth Group plunged 9.5% to $343.80 after the company suspended its 2025 outlook because of the higher-than-expected medical expenditures.
Meanwhile, the company said Chief Executive Andrew Witty has decided to step down from the office, effective immediately, for personal reasons.
S&P 500 and Nasdaq Extend Rally After Consumer Inflation Unexpectedly Eased
Barry Adams
13 May, 2025
New York City
Wall Street indexes inched higher in early trading after consumer price inflation eased for the third consecutive month.
The S&P 500 index edged up 0.1%, and the Nasdaq Composite advanced 0.2% after consumer price inflation unexpectedly fell in April.
The annual consumer price inflation in April edged lower to 2.3% from 2.4% in March, according to the latest data released by the U.S. Bureau of Labor Statistics.
The core rate of inflation, which excludes volatile food and energy prices, held steady at an annual pace of 2.8%.
The decline in overall inflation was driven by the 3.7% decrease in energy prices, but the food price index increased 2.8%, and the shelter index held steady at 4%.
Gasoline prices fell at a faster annual pace of 11.8% compared to the 9.8% decline in the previous month, but natural gas prices accelerated to 15.7% from the 9.4% annual pace in the previous month.
In Monday's trading, the S&P 500 index and the Nasdaq Composite indexes soared 4% after the U.S. backed down from its proposed sky-high tariffs in early April, and China agreed to lower its retaliatory tariffs.
The two sides agreed to pause tariffs for 90 days and search for a longer-term agreement.
Chinese negotiators held firm on their demands and forced the Trump administration to roll back the 145% proposed in early April to the 30% level announced on March 4.
U.S. Stock Movers
Coinbase Global Inc. soared 10% to 227.90, and the cryptocurrency trading platform operator was selected to be included in the S&P 500 index.
Discover Financial Services declined 2.6% to $197.24, and the credit card company was selected to be dropped from the S&P 500 index before the start of trading on May 19.
UnitedHealth Group plunged 9.5% to $343.80 after the company suspended its 2025 outlook because of the higher-than-expected medical expenditures.
Meanwhile, the company said Chief Executive Andrew Witty has decided to step down from the office, effective immediately, for personal reasons.
European Markets Lack Direction, Bond Yields Hold Firm
Bridgette Randall
13 May, 2025
London
European markets lacked direction on Tuesday, and investor enthusiasm waned amid worries of prolonged uncertainty about the U.S. trade policy.
Benchmark indexes in Frankfurt, Paris, London, and Milan traded in a tight range as investors awaited earnings from leading chemical and pharmaceutical companies.
Investors turned cautious a day after the U.S. and China announced a preliminary trade negotiation framework and paused the previously announced excessive tariffs for 90 days.
The de-escalation of tensions between China and the U.S. raised hopes that the two largest economies in the world may avert a wider trade war, but investors in Europe remained skeptical.
Between April 2 and 9, the U.S. president announced several tariffs, or import taxes, on all shipments but kept the highest rates for China.
Donald Trump repeatedly threatened to keep sky-high tariffs of as much as 145% on Chinese goods unless China buys more goods from the U.S. and lowers import duties.
Over the weekend, the U.S. backed down from its aggressive stance and agreed to pause the previously announced, but not implemented, for 90 days and keep tariff rates at 30%, as declared on March 4.
European investors worried that incoherent policies and the chaotic nature of the Trump administration may send another shock wave to global financial markets in the months ahead.
In addition, Donald Trump said on Monday he plans to sign an executive order demanding pharmaceutical companies lower drug prices between 30% and 80%.
Europe Indexes and Yields
The DAX index increased by 0.03% to 23,572.57, the CAC-40 index edged lower 0.1% to 7,840.93, and the FTSE 100 index advanced 0.1% to 8,617.76.
The yield on 10-year German bonds inched higher to 2.66%, French bonds increased to 3.33%, UK gilts moved up to 4.66%, and Italian bonds edged higher to 3.68%.
The euro increased to $1.11; the British pound was higher at $1.32; and the U.S. dollar was lower and traded at 84.26 Swiss cents.
Brent crude increased $0.11 to $65.07 a barrel, and the Dutch TTF natural gas was lower by €0.10 to €35.04 per MWh.
Europe Movers
Jenoptik AG dropped 3.7% to €18.74, and the Germany-based photonics company reported weaker-than-expected quarterly results.
The photonics company said profit in the first quarter plunged 35%, and the company guided flat revenue in the current year.
Carl Zeiss Meditec AG increased 0.7% to €62.95, and the German medical technology company reported stable earnings in the first half.
The company reiterated its stable earnings outlook for the fiscal second half but warned of market uncertainty rooted in the U.S. trade policy.
Bayer AG rose 9.6% to €26.38, and the German chemical and crop fertilizer company reported a smaller than expected decline in earnings.
Sales in the first quarter eased 0.2% to €13.74 billion from €13.77 billion, and net income fell to €1.3 billion from €2 billion, and diluted earnings per share declined to €1.32 from €2.04 a year ago.
"We are continuously evaluating the impacts of the current geopolitical developments, especially in relation to potential tariffs from the US government. Based on current calculations of the financial effects, we do not see a need to revise our full-year guidance.
However, there is considerable uncertainty concerning the future impacts of any potential further developments in relation to this issue, as well as with respect to exchange-rate developments," the company said in a statement to investors.
European Markets Lack Direction, Bond Yields Hold Firm
Bridgette Randall
13 May, 2025
London
European markets lacked direction on Tuesday, and investor enthusiasm waned amid worries of prolonged uncertainty about the U.S. trade policy.
Benchmark indexes in Frankfurt, Paris, London, and Milan traded in a tight range as investors awaited earnings from leading chemical and pharmaceutical companies.
Investors turned cautious a day after the U.S. and China announced a preliminary trade negotiation framework and paused the previously announced excessive tariffs for 90 days.
The de-escalation of tensions between China and the U.S. raised hopes that the two largest economies in the world may avert a wider trade war, but investors in Europe remained skeptical.
Between April 2 and 9, the U.S. president announced several tariffs, or import taxes, on all shipments but kept the highest rates for China.
Donald Trump repeatedly threatened to keep sky-high tariffs of as much as 145% on Chinese goods unless China buys more goods from the U.S. and lowers import duties.
Over the weekend, the U.S. backed down from its aggressive stance and agreed to pause the previously announced, but not implemented, for 90 days and keep tariff rates at 30%, as declared on March 4.
European investors worried that incoherent policies and the chaotic nature of the Trump administration may send another shock wave to global financial markets in the months ahead.
In addition, Donald Trump said on Monday he plans to sign an executive order demanding pharmaceutical companies lower drug prices between 30% and 80%.
Europe Indexes and Yields
The DAX index increased by 0.03% to 23,572.57, the CAC-40 index edged lower 0.1% to 7,840.93, and the FTSE 100 index advanced 0.1% to 8,617.76.
The yield on 10-year German bonds inched higher to 2.66%, French bonds increased to 3.33%, UK gilts moved up to 4.66%, and Italian bonds edged higher to 3.68%.
The euro increased to $1.11; the British pound was higher at $1.32; and the U.S. dollar was lower and traded at 84.26 Swiss cents.
Brent crude increased $0.11 to $65.07 a barrel, and the Dutch TTF natural gas was lower by €0.10 to €35.04 per MWh.
Europe Movers
Jenoptik AG dropped 3.7% to €18.74, and the Germany-based photonics company reported weaker-than-expected quarterly results.
The photonics company said profit in the first quarter plunged 35%, and the company guided flat revenue in the current year.
Carl Zeiss Meditec AG increased 0.7% to €62.95, and the German medical technology company reported stable earnings in the first half.
The company reiterated its stable earnings outlook for the fiscal second half but warned of market uncertainty rooted in the U.S. trade policy.
Bayer AG rose 9.6% to €26.38, and the German chemical and crop fertilizer company reported a smaller than expected decline in earnings.
Sales in the first quarter eased 0.2% to €13.74 billion from €13.77 billion, and net income fell to €1.3 billion from €2 billion, and diluted earnings per share declined to €1.32 from €2.04 a year ago.
"We are continuously evaluating the impacts of the current geopolitical developments, especially in relation to potential tariffs from the US government. Based on current calculations of the financial effects, we do not see a need to revise our full-year guidance.
However, there is considerable uncertainty concerning the future impacts of any potential further developments in relation to this issue, as well as with respect to exchange-rate developments," the company said in a statement to investors.
Europe Movers: Carl Zeiss Meditec, Fraport, Jenoptik
Inga Muller
13 May, 2025
Frankfurt
Fraport AG traded flat at €59.55 after the Frankfurt Airport operator reported first-quarter 2025 results.
Revenue slipped to €891.8 million from €939.8 million, net income swung to a loss of €16.3 million from a profit of €16.3 million, and diluted earnings per share swung to a loss of 18 cents from a profit of 18 cents a year ago.
During the quarter, Frankfurt Airport handled 12.4 million passengers, a 0.9% decline compared to the same period a year earlier, the company said in a release to investors.
At around 475,000 tons, Frankfurt airport slightly exceeded the previous year’s cargo tonnage in the quarter, and while traffic with China increased significantly, traffic with the U.S. was below the previous year’s level.
Carl Zeiss Meditec AG soared 3.3% to €62.50 after the German medical technology company reported half-year sales results.
Revenue increased to €1.05 billion from €647.2 million, and EBITA inched up to €113.6 million from €113.2 million a year ago.
“We saw a clear upturn in demand for refractive surgery consumables in China,” said Markus Weber, CEO of the company.
Unfortunately, uncertainties surrounding US trade tariffs and currency risks are currently weighing on the outlook, Weber added in the statement.
The company is maintaining its previous guidance of stable to slightly increasing EBITA for the remainder of the fiscal year.
Jenoptik AG soared 4.2% to €19.45 after the German photonics company reported first-quarter 2025 results.
Revenue declined 4.9% to €243.6 million from €256.1 million, EBIT edged down 35% to €16.9 million from €26.0 million, and earnings per share fell 40.7% to 16 cents from 27 cents a year ago.
The company guided full-year revenue to remain roughly flat at €1.11 billion, the EBITDA margin to be between 18% and 21%, and capital expenditure to be significantly below the prior-year level of €114.6 million.
Europe Movers: Carl Zeiss Meditec, Fraport, Jenoptik
Inga Muller
13 May, 2025
Frankfurt
Fraport AG traded flat at €59.55 after the Frankfurt Airport operator reported first-quarter 2025 results.
Revenue slipped to €891.8 million from €939.8 million, net income swung to a loss of €16.3 million from a profit of €16.3 million, and diluted earnings per share swung to a loss of 18 cents from a profit of 18 cents a year ago.
During the quarter, Frankfurt Airport handled 12.4 million passengers, a 0.9% decline compared to the same period a year earlier, the company said in a release to investors.
At around 475,000 tons, Frankfurt airport slightly exceeded the previous year’s cargo tonnage in the quarter, and while traffic with China increased significantly, traffic with the U.S. was below the previous year’s level.
Carl Zeiss Meditec AG soared 3.3% to €62.50 after the German medical technology company reported half-year sales results.
Revenue increased to €1.05 billion from €647.2 million, and EBITA inched up to €113.6 million from €113.2 million a year ago.
“We saw a clear upturn in demand for refractive surgery consumables in China,” said Markus Weber, CEO of the company.
Unfortunately, uncertainties surrounding US trade tariffs and currency risks are currently weighing on the outlook, Weber added in the statement.
The company is maintaining its previous guidance of stable to slightly increasing EBITA for the remainder of the fiscal year.
Jenoptik AG soared 4.2% to €19.45 after the German photonics company reported first-quarter 2025 results.
Revenue declined 4.9% to €243.6 million from €256.1 million, EBIT edged down 35% to €16.9 million from €26.0 million, and earnings per share fell 40.7% to 16 cents from 27 cents a year ago.
The company guided full-year revenue to remain roughly flat at €1.11 billion, the EBITDA margin to be between 18% and 21%, and capital expenditure to be significantly below the prior-year level of €114.6 million.
U.S. Movers: Monday.com, Simon Property, ZoomInfo
Scott Peters
13 May, 2025
New York City
Monday.com Ltd. eased 0.6% to $277.50 after the Israeli-based project management software service provider reported first-quarter 2025 results.
Revenue increased to $282.25 million from $216.91 million, net income soared to $27.42 million from $7.08 million, and diluted earnings per share rose to 52 cents from 14 cents a year ago.
The company guided second-quarter revenue to be between $292 million and $294 million, an increase of 24% to 25% over the previous year.
For the full year, the software company estimated revenue to be between $1.22 billion and $1.23 billion, an increase of 25% to 26% compared to the prior year.
ZoomInfo Technologies Inc. eased 0.3% to $10.28 after the contact and business company reported first-quarter 2025 results.
Revenue declined to $305.7 million from $310.1 million, net income jumped to $26.8 million from $15.1 million, and diluted earnings per share rose to 8 cents from 4 cents a year ago.
The company guided second-quarter revenue to be between $295 million and $298 million, compared to $291.5 million in 2024.
For the full year, the software company raised its forecast and now expects revenue to be between $1.19 billion and $1.20 billion, compared to $1.21 billion in 2024.
During the first quarter, the company repurchased 8,598,274 shares at an average price of $11.05 for a total of $95.0 million.
Simon Property Group Inc. advanced 0.9% to $173.0 after the real estate company reported first-quarter 2025 results.
Revenue climbed to $1.47 billion from $1.44 billion, net income dropped to $413.70 million from $731.70 million, and diluted earnings per share fell to $1.27 from $2.25 a year ago.
The company proposed a quarterly dividend of $1.05 per share payable on June 30 to shareholders on record on June 16.
The real estate company reaffirmed its full-year outlook for funds from operations to be between $12.40 and $12.65 per diluted share, compared to $12.24 per diluted share in 2024.
Net income per diluted share is estimated to be between $6.67 and $6.92, compared to $7.26 per diluted share a year ago.
U.S. Movers: Monday.com, Simon Property, ZoomInfo
Scott Peters
13 May, 2025
New York City
Monday.com Ltd. eased 0.6% to $277.50 after the Israeli-based project management software service provider reported first-quarter 2025 results.
Revenue increased to $282.25 million from $216.91 million, net income soared to $27.42 million from $7.08 million, and diluted earnings per share rose to 52 cents from 14 cents a year ago.
The company guided second-quarter revenue to be between $292 million and $294 million, an increase of 24% to 25% over the previous year.
For the full year, the software company estimated revenue to be between $1.22 billion and $1.23 billion, an increase of 25% to 26% compared to the prior year.
ZoomInfo Technologies Inc. eased 0.3% to $10.28 after the contact and business company reported first-quarter 2025 results.
Revenue declined to $305.7 million from $310.1 million, net income jumped to $26.8 million from $15.1 million, and diluted earnings per share rose to 8 cents from 4 cents a year ago.
The company guided second-quarter revenue to be between $295 million and $298 million, compared to $291.5 million in 2024.
For the full year, the software company raised its forecast and now expects revenue to be between $1.19 billion and $1.20 billion, compared to $1.21 billion in 2024.
During the first quarter, the company repurchased 8,598,274 shares at an average price of $11.05 for a total of $95.0 million.
Simon Property Group Inc. advanced 0.9% to $173.0 after the real estate company reported first-quarter 2025 results.
Revenue climbed to $1.47 billion from $1.44 billion, net income dropped to $413.70 million from $731.70 million, and diluted earnings per share fell to $1.27 from $2.25 a year ago.
The company proposed a quarterly dividend of $1.05 per share payable on June 30 to shareholders on record on June 16.
The real estate company reaffirmed its full-year outlook for funds from operations to be between $12.40 and $12.65 per diluted share, compared to $12.24 per diluted share in 2024.
Net income per diluted share is estimated to be between $6.67 and $6.92, compared to $7.26 per diluted share a year ago.
Japan Indexes Rebound 2%, Ishiba Reiterates U.S. to Remove Auto Tariffs
Akira Ito
13 May, 2025
Tokyo
Japan's stock market indexes soared following gains in overnight trading on Wall Street after the U.S. and China agreed to de-escalate trade tensions.
The Nikkei 225 Stock Average soared as much as 2%, and the broader Topix index gained more than 1% after the U.S. and China paused sky-high tariffs for 90 days amid ongoing trade talks.
The quick agreement hammered out over the weekend in Switzerland raised hopes that the two sides could work out a longer-term agreement and avoid a global economic slowdown.
Despite the repeated claims by the U.S. president to keep sky-high tariffs on China announced since April 2, the U.S. agreed to lower additional 145% tariffs announced without extracting significant concessions.
China lowered its retaliatory tariffs of 125% on U.S. imports but kept a base rate of 10% for the next 90 days.
For now, the trade tensions have deescalated, but the long-term damage is done, and foreign investors' interest in U.S. dollar-denominated assets is waning.
Prime Minister Shigeru Ishiba emphasized that Japan is not likely to agree on a comprehensive deal with the U.S. unless it includes provisions for the auto sector.
Ishiba urged Washington for the removal of the 25% tariff on automobile imports.
Japan Indexes and Stocks
The Nikkei 225 Stock Average advanced 1.8% to 38,337.11, and the broader Topix index gained 1.3% to 2,778.24.
The U.S. dollar advanced against all major currencies, and the Japanese yen weakened to 147.71.
Semiconductor equipment makers and retailers led gainers in Tokyo trading.
Tokyo Electron jumped 4.8% to ¥23,985.0, Advantest Corp. declined 0.8% to ¥7,245.0, and Disco Corp. gained 2.2% to ¥33,650.0.
Nissan Motor is looking to eliminate as many as 20,000 jobs, or 15% of its global workforce, according to local reports.
Toyota Motor added 3.9% to ¥2,862.0, Honda Motor added 0.7% to ¥2,862.0, Nissan Motor gained 3.1% to ¥357.20, and Suzuki Motor Corp. advanced 4.5% to ¥1,881.0.
Suzuki Motor's Indian subsidiary's exports soared 18% to 330,000 in the fiscal year 2024 ending in March.
But sales in India edged up 0.1% to 1.79 million, accounting for about 55% of its global sales.
Japan Indexes Rebound 2%, Ishiba Reiterates U.S. to Remove Auto Tariffs
Akira Ito
13 May, 2025
Tokyo
Japan's stock market indexes soared following gains in overnight trading on Wall Street after the U.S. and China agreed to de-escalate trade tensions.
The Nikkei 225 Stock Average soared as much as 2%, and the broader Topix index gained more than 1% after the U.S. and China paused sky-high tariffs for 90 days amid ongoing trade talks.
The quick agreement hammered out over the weekend in Switzerland raised hopes that the two sides could work out a longer-term agreement and avoid a global economic slowdown.
Despite the repeated claims by the U.S. president to keep sky-high tariffs on China announced since April 2, the U.S. agreed to lower additional 145% tariffs announced without extracting significant concessions.
China lowered its retaliatory tariffs of 125% on U.S. imports but kept a base rate of 10% for the next 90 days.
For now, the trade tensions have deescalated, but the long-term damage is done, and foreign investors' interest in U.S. dollar-denominated assets is waning.
Prime Minister Shigeru Ishiba emphasized that Japan is not likely to agree on a comprehensive deal with the U.S. unless it includes provisions for the auto sector.
Ishiba urged Washington for the removal of the 25% tariff on automobile imports.
Japan Indexes and Stocks
The Nikkei 225 Stock Average advanced 1.8% to 38,337.11, and the broader Topix index gained 1.3% to 2,778.24.
The U.S. dollar advanced against all major currencies, and the Japanese yen weakened to 147.71.
Semiconductor equipment makers and retailers led gainers in Tokyo trading.
Tokyo Electron jumped 4.8% to ¥23,985.0, Advantest Corp. declined 0.8% to ¥7,245.0, and Disco Corp. gained 2.2% to ¥33,650.0.
Nissan Motor is looking to eliminate as many as 20,000 jobs, or 15% of its global workforce, according to local reports.
Toyota Motor added 3.9% to ¥2,862.0, Honda Motor added 0.7% to ¥2,862.0, Nissan Motor gained 3.1% to ¥357.20, and Suzuki Motor Corp. advanced 4.5% to ¥1,881.0.
Suzuki Motor's Indian subsidiary's exports soared 18% to 330,000 in the fiscal year 2024 ending in March.
But sales in India edged up 0.1% to 1.79 million, accounting for about 55% of its global sales.
China Indexes Erase Monday's Gains After Tariff Uncertainty Weighed
Li Chen
13 May, 2025
Hong Kong
A day after boosting market indexes by 3%, investors took a cautious view of the US-China trade agreement a day after its announcement.
The Hang Seng index fell more than 1.5%, and the mainland-focused CSI 300 index struggled to stay above the flatline as investors reassessed the recently announced temporary pause in sky-high tariffs.
Despite the Monday's market enthusiasm, investors turned cautious and worried about the near-term impact and market uncertainties.
Moreover, investor enthusiasm faded after the forceful language in the joint statement lowered the possibilities of additional stimulus measures from Beijing's policymakers.
China and the U.S. agreed to pause sharply higher tariffs announced, but never implemented, since April 2, according to a joint statement released by both sides on Monday.
The U.S. will keep the additional 10% base tariffs and 20% fentanyl tariffs on select goods, and China will retain 10% base tariffs on all U.S. imports and between 10% and 15% additional tariffs on agriculture and mineral products and certain machinery.
The de-escalation of trade tensions between China and the US calmed market anxieties, raising hopes that a broader and longer-term agreement could be drafted before the ending of the 90-day pause.
Essentially, the U.S. president backed down from his aggressive stance without getting in return substantial concessions, and tariff levels are now set at the level announced on March 4.
Meanwhile, China ramped up its efforts to diversify sources for agriculture and seafood products and expand sourcing to South and Central America.
China Indexes and Stocks
The Hang Seng index declined 1.7% to 23,150.25, and the mainland-focused CSI 300 index inched up 0.02% to 3,891.63.
Investors turned cautious ahead of the release of earnings results this week from Alibaba Group, Tencent Holdings, NetEase, and Meituan, accounting for about 25% of the market capitalization of the Hang Seng Index.
Alibaba Group Holding declined 3.8% to HK $126.20, Tencent Holdings decreased 2% to HK $507.0, NetEase plunged 2.5% to HK $164.70, and Meituan fell 4% to $138.70.
BYD dropped 3.2% to HK $402.20, and BYD Electronic International declined 5.2% to HK $35.75.
China Indexes Erases Monday's Gains After Tariff Uncertainty Weighed
Li Chen
13 May, 2025
Hong Kong
A day after boosting market indexes by 3%, investors took a cautious view of the US-China trade agreement a day after its announcement.
The Hang Seng index fell more than 1.5%, and the mainland-focused CSI 300 index struggled to stay above the flatline as investors reassessed the recently announced temporary pause in sky-high tariffs.
Despite the Monday's market enthusiasm, investors turned cautious and worried about the near-term impact and market uncertainties.
Moreover, investor enthusiasm faded after the forceful language in the joint statement lowered the possibilities of additional stimulus measures from Beijing's policymakers.
China and the U.S. agreed to pause sharply higher tariffs announced, but never implemented, since April 2, according to a joint statement released by both sides on Monday.
The U.S. will keep the additional 10% base tariffs and 20% fentanyl tariffs on select goods, and China will retain 10% base tariffs on all U.S. imports and between 10% and 15% additional tariffs on agriculture and mineral products and certain machinery.
The de-escalation of trade tensions between China and the US calmed market anxieties, raising hopes that a broader and longer-term agreement could be drafted before the ending of the 90-day pause.
Essentially, the U.S. president backed down from his aggressive stance without getting in return substantial concessions, and tariff levels are now set at the level announced on March 4.
Meanwhile, China ramped up its efforts to diversify sources for agriculture and seafood products and expand sourcing to South and Central America.
China Indexes and Stocks
The Hang Seng index declined 1.7% to 23,150.25, and the mainland-focused CSI 300 index inched up 0.02% to 3,891.63.
Investors turned cautious ahead of the release of earnings results this week from Alibaba Group, Tencent Holdings, NetEase, and Meituan, accounting for about 25% of the market capitalization of the Hang Seng Index.
Alibaba Group Holding declined 3.8% to HK $126.20, Tencent Holdings decreased 2% to HK $507.0, NetEase plunged 2.5% to HK $164.70, and Meituan fell 4% to $138.70.
BYD dropped 3.2% to HK $402.20, and BYD Electronic International declined 5.2% to HK $35.75.