Market Update
China WEDNESDAY
Li Chen
09 Jul, 2025
Select
Stocks in China lacked direction amid ongoing trade uncertainty and persistent worries of deflation.
The Hang Seng index decreased 0.8%, and the mainland-focused CSI 300 index edged slightly higher as investors reviewed the latest reports on inflation.
China's CPI and PPI Confirm Ongoing Deflation Trends
Consumer price inflation edged up unexpectedly 0.1% in June, reversing the decline by the same amount in the previous month, the National Bureau of Statistics reported Wednesday.
Prices of goods decreased 0.2%, services increased 0.5%, and food edged down 0.3% from a year ago, respectively.
The overall price inflation rose for the first time in five months, but demand remained weak despite government subsidy programs to encourage the purchase of household goods and consumer electronics.
Core prices, which exclude volatile food and energy prices, advanced 0.7% from a year ago, their highest level in 14 months.
The producer price index, the measure of prices charged by suppliers, edged down for the 33rd consecutive month and extended the 3.3% decrease in the previous month, the National Bureau of Statistics said in a separate report.
Producer prices fell 2.6% in the first half, and the outlook for prices in the second half is weaker because of the persistent weak domestic demand and uncertain outlook for exports.
China Indexes and Stocks
The Hang Seng Index decreased 0.8% to 23,960.34, and the mainland-focused CSI 300 index gained 0.4% to 4,012.14.
Five companies listed their shares on the Hong Kong Stock Exchange, as more mainland companies seek capital for international expansion.
Wuhan Dazhong Medical jumped 17% to HK $23.20, and the dental company priced its initial public offering at HK $20 per share.
The dental services provider sold 10.8 million shares and raised gross proceeds of HK$217.4 million.
Fortior Technology gained 10% to HK $132.60, and the company priced its public offering at HK $120 per share.
The advanced chip designer for electric motor control and drivers sold 18.7 million and raised a total of HK $2.8 billion.
Lens Technology Co. Ltd. jumped 6% to HK $19.12, and the lens sensor provider for Apple priced its initial public offering at HK $18.18 per share.
The precision manufacturing company for consumer electronics and electric vehicles raised a total of HK $4.7 billion.
Beijing Geekplus Technology traded unchanged at HK $16.81, and the company priced its public offering at HK $16.80 per share.
The autonomous mobile robot maker for warehouses sold 161.45 million shares and raised a total of HK $2.7 billion.
Beijing Xunzhong Communication decreased a fraction to HK $13.46, and the company priced its public offering at HK $13.55 per share.
The cloud-based communication provider in China, with a market share of 1.8%, sold 30.4 million shares and raised a total of HK $412.5 million.
With Earnings in Focus, Trump Administration's Tariff Threats Lack Punch
Barry Adams
08 Jul, 2025
New York City
Wall Street indexes attempted to rebound from Monday's sell-off, and investors shifted their focus to the start of the earnings season.
The S&P 500 index increased 0.1%, and the tech-heavy Nasdaq Composite inched higher 0.2% amid growing consensus that the Trump administration's threats are not likely to derail international trade.
Over the last six weeks, investors have realized that the Trump administration's threats are rarely followed through, and negotiators in China, Japan, Mexico, Canada, and the European Union have an upper hand.
In the latest iteration of Trump's threat, 14 countries are targeted with rates between 25% and 40% starting from August 1.
The Trump administration's bungling of tariff revision has hit small and independent businesses that rely on intermediary or consumer goods made in Asia and Europe.
Donald Trump's erratic trade policy, lack of clarity on the level of tariffs paid at the U.S. ports of arrival, and on-again-off-again ban on artificial intelligence-linked tech products and software have forced U.S. businesses to halt international commerce.
U.S. Stock Movers
Solar energy stocks turned lower after the U.S. president issued an executive order to roll back green energy subsidies.
Sunrun Inc. dropped 10.7% to $9.92, Enphase Energy Inc. decreased 5.4% to $40.15, and First Solar Inc. fell 4.6% to $168.42.
With Earnings in Focus, Trump Administration's Tariff Threats Lack Punch
Barry Adams
08 Jul, 2025
New York City
Wall Street indexes attempted to rebound from Monday's sell-off, and investors shifted their focus to the start of the earnings season.
The S&P 500 index increased 0.1%, and the tech-heavy Nasdaq Composite inched higher 0.2% amid growing consensus that the Trump administration's threats are not likely to derail international trade.
Over the last six weeks, investors have realized that the Trump administration's threats are rarely followed through, and negotiators in China, Japan, Mexico, Canada, and the European Union have an upper hand.
In the latest iteration of Trump's threat, 14 countries are targeted with rates between 25% and 40% starting from August 1.
The Trump administration's bungling of tariff revision has hit small and independent businesses that rely on intermediary or consumer goods made in Asia and Europe.
Donald Trump's erratic trade policy, lack of clarity on the level of tariffs paid at the U.S. ports of arrival, and on-again-off-again ban on artificial intelligence-linked tech products and software have forced U.S. businesses to halt international commerce.
U.S. Stock Movers
Solar energy stocks turned lower after the U.S. president issued an executive order to roll back green energy subsidies.
Sunrun Inc. dropped 10.7% to $9.92, Enphase Energy Inc. decreased 5.4% to $40.15, and First Solar Inc. fell 4.6% to $168.42.
European Markets Ignore Latest Trump Threats, German Trade Surplus Shrank
Bridgette Randall
08 Jul, 2025
London
European market indexes lacked direction but retained an upward bias, as investors reviewed the latest change in the U.S. trade policy.
Benchmark indexes in Frankfurt, Paris, Milan, and London struggled to stay above the flatline.
The Trump administration delayed the aggressive tariff deadline to August 1 from the July 9 deadline and warned Japan and South Korea to face 25% tariffs if negotiations are not wrapped up by the end of the month.
The European Union is looking to strike a trade framework with the U.S. that would avoid steep tariffs on vehicles, pharmaceuticals, and steel and aluminum products.
However, agriculture and food and beverage product shipments from the European Union may avoid excessive tariffs of 25%.
The constantly changing trade policy of the Trump administration has put businesses on alert, and the European Union has ramped up its trade negotiations with China, India, and Brazil.
German Trade Surplus Shrank In May
Germany's May exports increased 0.4% to €129.4 billion, imports advanced 4.2% to €111.1 billion, and the trade surplus shrank to €18.4 billion from €22.3 billion a year ago, respectively.
Exports to the U.S. decreased 7.7% to €12.1 billion, to China declined 2.9% to €6.8 billion, and to the U.K. rose 15.1% to €3.1 billion, according to the latest data available from the Federal Statistical Office, or Destatis.
Europe Stock Movers
Vehicle makers extended their losses of the previous month, and defense stocks turned volatile in Tuesday's trading.
Volkswagen Group AG decreased 0.9% to €90.0, Mercedes-Benz Group AG declined 0.4% to €49.72, Renault SA fell 1.4% to €39.86, and Stellantis NV edged up 0.4% to €8.42.
Rheinmetall AG increased 1.1% to €1,823.0, MTU Aero Engines AG added 1% to €1,823.0, Safran SA inched higher 0.4% to €275.70, and Rolls-Royce Holdings PLC eased 0.8% to 962.0.
European Markets Ignore Latest Trump Threats, German Trade Surplus Shrank
Bridgette Randall
08 Jul, 2025
London
European market indexes lacked direction but retained an upward bias, as investors reviewed the latest change in the U.S. trade policy.
Benchmark indexes in Frankfurt, Paris, Milan, and London struggled to stay above the flatline.
The Trump administration delayed the aggressive tariff deadline to August 1 from the July 9 deadline and warned Japan and South Korea to face 25% tariffs if negotiations are not wrapped up by the end of the month.
The European Union is looking to strike a trade framework with the U.S. that would avoid steep tariffs on vehicles, pharmaceuticals, and steel and aluminum products.
However, agriculture and food and beverage product shipments from the European Union may avoid excessive tariffs of 25%.
The constantly changing trade policy of the Trump administration has put businesses on alert, and the European Union has ramped up its trade negotiations with China, India, and Brazil.
German Trade Surplus Shrank In May
Germany's May exports increased 0.4% to €129.4 billion, imports advanced 4.2% to €111.1 billion, and the trade surplus shrank to €18.4 billion from €22.3 billion a year ago, respectively.
Exports to the U.S. decreased 7.7% to €12.1 billion, to China declined 2.9% to €6.8 billion, and to the U.K. rose 15.1% to €3.1 billion, according to the latest data available from the Federal Statistical Office, or Destatis.
Europe Stock Movers
Vehicle makers extended their losses of the previous month, and defense stocks turned volatile in Tuesday's trading.
Volkswagen Group AG decreased 0.9% to €90.0, Mercedes-Benz Group AG declined 0.4% to €49.72, Renault SA fell 1.4% to €39.86, and Stellantis NV edged up 0.4% to €8.42.
Rheinmetall AG increased 1.1% to €1,823.0, MTU Aero Engines AG added 1% to €1,823.0, Safran SA inched higher 0.4% to €275.70, and Rolls-Royce Holdings PLC eased 0.8% to 962.0.
Tokyo Stocks Edged Higher as Japan Holds Firm Against U.S. Tariff Pressure
Akira Ito
08 Jul, 2025
Tokyo
Stocks in Japan advanced after the U.S. agreed to delay the previously announced high tariffs, easing market anxieties.
The Nikkei 225 Stock Average gained 0.2%, and the broader Topix inched higher 0.1%, as investors welcomed the extension of the so-called reciprocal tariff deadline by three weeks to August 1.
In a separate announcement, Trump alerted Japan and South Korea to the possible 25% tariff, lower than the previously announced 35% rate, if trade negotiations fail by the end of July.
Japan is reluctant to agree to any level of tariff, and Japanese negotiators have held a firm stance against the tariff, despite the shrill rhetoric from the White House.
The constant shift in the U.S. trade policy and the lack of clarity and stability on tariffs have kept exporters on the defensive and searching for other markets in South America, India, and the ASEAN region.
On the economic front, Japan's current account surplus surpassed market expectations in May, providing additional support to market sentiment.
The current account surplus expanded to 3.44 trillion yen from 2.95 trillion yen, driven by the swinging of the service account to a surplus of 201.1 billion yen from a deficit of 51.6 billion a year ago, respectively.
For the fiscal year 2024, the current account surplus widened to a record high of 30.4 trillion yen from 26.2 trillion yen a year ago, the Ministry of Finance reported Tuesday.
Japan Indexes and Stocks
The Nikkei 225 Stock Average edged up 0.2% to 39,672.14, and the broader Topix inched higher 0.1% to 2,814.78.
Electrical machinery and equipment makers and artificial intelligence-linked stocks led gainers in Tokyo trading.
Fujikura Ltd. advanced 4.3% to 2,814.78, Furukawa Electric Co. Ltd. jumped 6.2% to ¥7,398.0, Advantest Corp. gained 2.4% to ¥10,945.0, and Tokyo Electron Ltd. edged up 1% to ¥27,395.0.
Marubeni Corp. inched higher 0.6% to ¥2,976.50, Itochu Corp. edged up 0.3% to ¥7,597.0, Mitsui & Company gained 0.5% to ¥3,011.0, and Sumitomo Corp. advanced 0.4% to ¥3,691.0.
Tokyo Stocks Edged Higher as Japan Holds Firm Against U.S. Tariff Pressure,
Akira Ito
08 Jul, 2025
Tokyo
Stocks in Japan advanced after the U.S. agreed to delay the previously announced high tariffs, easing market anxieties.
The Nikkei 225 Stock Average gained 0.2%, and the broader Topix inched higher 0.1%, as investors welcomed the extension of the so-called reciprocal tariff deadline by three weeks to August 1.
In a separate announcement, Trump alerted Japan and South Korea to the possible 25% tariff, lower than the previously announced 35% rate, if trade negotiations fail by the end of July.
Japan is reluctant to agree to any level of tariff, and Japanese negotiators have held a firm stance against the tariff, despite the shrill rhetoric from the White House.
The constant shift in the U.S. trade policy and the lack of clarity and stability on tariffs have kept exporters on the defensive and searching for other markets in South America, India, and the ASEAN region.
On the economic front, Japan's current account surplus surpassed market expectations in May, providing additional support to market sentiment.
The current account surplus expanded to 3.44 trillion yen from 2.95 trillion yen, driven by the swinging of the service account to a surplus of 201.1 billion yen from a deficit of 51.6 billion a year ago, respectively.
For the fiscal year 2024, the current account surplus widened to a record high of 30.4 trillion yen from 26.2 trillion yen a year ago, the Ministry of Finance reported Tuesday.
Japan Indexes and Stocks
The Nikkei 225 Stock Average edged up 0.2% to 39,672.14, and the broader Topix inched higher 0.1% to 2,814.78.
Electrical machinery and equipment makers and artificial intelligence-linked stocks led gainers in Tokyo trading.
Fujikura Ltd. advanced 4.3% to 2,814.78, Furukawa Electric Co. Ltd. jumped 6.2% to ¥7,398.0, Advantest Corp. gained 2.4% to ¥10,945.0, and Tokyo Electron Ltd. edged up 1% to ¥27,395.0.
Marubeni Corp. inched higher 0.6% to ¥2,976.50, Itochu Corp. edged up 0.3% to ¥7,597.0, Mitsui & Company gained 0.5% to ¥3,011.0, and Sumitomo Corp. advanced 0.4% to ¥3,691.0.