Market Update
China Indexes Face Headwinds Amid Frothy Valuations and New U.S. Tariffs
Li Chen
26 Sep, 2025
Hong Kong
China indexes turned lower for the third consecutive day amid a growing list of worries, compounded by additional U.S. tariffs.
The Hang Seng Index decreased 0.7%, and the mainland-focused CSI 300 index dropped 0.72 amid worries that the stocks are ahead of fundamentals.
Market indexes in China and Hong Kong have jumped more than 30% since April's low, as investors rotated into riskier assets from low-yielding fixed-income securities.
Investors bid up stocks ahead of the U.S. Federal Reserve's cut and elevated capital spending in AI products by leading tech companies in the U.S. and China.
However, investors are increasingly worried about the lofty valuations of tech companies and the durability of the AI-driven tech rally in the months ahead.
In addition, economists are not expecting additional fiscal steps after the annual meeting of top policymakers in October, which generally provides a roadmap for social and economic development for the next five years.
China Indexes and Stocks
The Hang Seng Index decreased 0.7% to 26,296.95, and the CSI 300 index fell 0.7% to 4,574.03, and the benchmark indexes are set to register their first weekly decline in three weeks.
Pharmaceutical companies traded down after the U.S. president announced his plans to impose as much as 100% duty on branded or patented drugs.
WuXi Biologics decreased 1.4% to HK$39.40, Wuxi AppTec declined 1.6% to HK$109.50, Hansoh Pharmaceutical Group fell 2.2% to HK$34.78, and Sino Biopharmaceutical edged down 0.1% to HK$7.95.
U.S. Investors Hope Higher Highs Supported by AI-Driven Market Rally
Barry Adams
25 Sep, 2025
New York City
Stocks meandered on Thursday as investors debated future rate cuts, the looming federal government shutdown, and rising risks to the labor market slowdown.
The S&P 500 index decreased 0.1%, and the tech-heavy Nasdaq Composite eased 0.2% amid worries about circular AI trade.
The artificial intelligence-driven technology stocks—Nvidia, Oracle, and Micron Tech—fell for the third consecutive day amid worries about the rapid rise over the last four months.
Valuation worries dominated trading sentiment after Fed Chair Jerome Powell highlighted that stocks appear highly valued by several metrics.
Fed Chair Powell added that the rising risks to the labor market played a crucial role in the central bank's first rate cut this year, despite the stubborn inflation.
Investors are looking forward to the release of PCE Price Index data on Friday, which could shed more light on the future rate paths.
U.S. Stock Movers
Intel Corp. jumped 1.3% to $31.62, and a Bloomberg report suggested that the company is in discussions with Apple, which may lead to a multi-billion dollar investment in the struggling chipmaker.
A potential deal will follow a $5 billion investment from Nvidia to co-develop PC chips and data centers.
U.S. Investors Hope Higher Highs Supported by AI-Driven Market Rally
Barry Adams
25 Sep, 2025
New York City
Stocks meandered on Thursday as investors debated future rate cuts, the looming federal government shutdown, and rising risks to the labor market slowdown.
The S&P 500 index decreased 0.1%, and the tech-heavy Nasdaq Composite eased 0.2% amid worries about circular AI trade.
The artificial intelligence-driven technology stocks—Nvidia, Oracle, and Micron Tech—fell for the third consecutive day amid worries about the rapid rise over the last four months.
Valuation worries dominated trading sentiment after Fed Chair Jerome Powell highlighted that stocks appear highly valued by several metrics.
Fed Chair Powell added that the rising risks to the labor market played a crucial role in the central bank's first rate cut this year, despite the stubborn inflation.
Investors are looking forward to the release of PCE Price Index data on Friday, which could shed more light on the future rate paths.
U.S. Stock Movers
Intel Corp. jumped 1.3% to $31.62, and a Bloomberg report suggested that the company is in discussions with Apple, which may lead to a multi-billion dollar investment in the struggling chipmaker.
A potential deal will follow a $5 billion investment from Nvidia to co-develop PC chips and data centers.
Japan Indexes Struggled Amid Valuation Worries and Political Uncertainties
Akira Ito
25 Sep, 2025
Tokyo
Benchmark indexes in Tokyo lacked direction as investors turned cautious amid high valuations.
The Nikkei 225 Stock Average increased 0.2%, and the broader Topix edged up 0.3% amid worries of the AI-driven tech rally.
Market indexes hovered near record highs, but worries are rising about the stretched valuations following the run-up in stocks since April.
Moreover, the LDP leadership race is also weighing on the market sentiment amid rising voter discontent with the party and ongoing trade tensions with the U.S.
The minutes of the Bank of Japan's July meeting showed that policymakers are ready to raise rates if economic and price conditions evolve as expected.
On the economic front, investors are awaiting the release of Tokyo-area inflation, which could provide an additional signal for the future rate path.
Japan Indexes and Stocks
The Nikkei 225 Stock Average gained 0.2% to 45,731.73, and the broader Topix added 0.3% to 3,183.80.
Nippon Yusen KK added 1.1% to ¥5,361.0, Mitsui O.S.K. Lines inched higher 0.4% to ¥4,712.0, and Kawasaki Kisen Kaisha Limited added 1.2% to ¥2,248.50.
Tokyo Electron added 2.2% to ¥27,845.0, Lasertec Corp. gained 0.2% to ¥21,560.0, and Disco Corp. increased 3.3% to ¥50,320.0.
Japan Indexes Struggled Amid Valuation Worries and UncPolitical Uncertainties
Akira Ito
25 Sep, 2025
Tokyo
Benchmark indexes in Tokyo lacked direction as investors turned cautious amid high valuations.
The Nikkei 225 Stock Average increased 0.2%, and the broader Topix edged up 0.3% amid worries of the AI-driven tech rally.
Market indexes hovered near record highs, but worries are rising about the stretched valuations following the run-up in stocks since April.
Moreover, the LDP leadership race is also weighing on the market sentiment amid rising voter discontent with the party and ongoing trade tensions with the U.S.
The minutes of the Bank of Japan's July meeting showed that policymakers are ready to raise rates if economic and price conditions evolve as expected.
On the economic front, investors are awaiting the release of Tokyo-area inflation, which could provide an additional signal for the future rate path.
Japan Indexes and Stocks
The Nikkei 225 Stock Average gained 0.2% to 45,731.73, and the broader Topix added 0.3% to 3,183.80.
Nippon Yusen KK added 1.1% to ¥5,361.0, Mitsui O.S.K. Lines inched higher 0.4% to ¥4,712.0, and Kawasaki Kisen Kaisha Limited added 1.2% to ¥2,248.50.
Tokyo Electron added 2.2% to ¥27,845.0, Lasertec Corp. gained 0.2% to ¥21,560.0, and Disco Corp. increased 3.3% to ¥50,320.0.
Tech-Driven Market Rally In China Extended Gains, Alibaba Group Traded at 4-Year High
Li Chen
25 Sep, 2025
Hong Kong
Stocks in China and Hong Kong advanced as investors bid up AI-driven tech stocks on Thursday.
The Hang Seng index increased 0.4%, and the mainland-focused CSI 300 index advanced 0.35% after a super typhoon ravaged several areas in Southern China.
The Hong Kong Stock Exchange operated normal hours on Wednesday, as the most powerful storm of 2025 passed the city, but the damage was less severe than expected.
Artificial intelligence-driven stocks advanced after Alibaba rolled out new products and announced its plans to increase spending for AI projects over the next three years.
Moreover, investors altered portfolios ahead of the approaching National Day holiday on October 1.
China Indexes and Stocks
The Hang Seng Index increased 0.4% to 26,612.74, and the mainland-focused CSI 300 Index gained 0.4% to 4,608.50.
Alibaba Group increased 0.3% to HK$174.60 after the company said it plans to exceed its previously announced capital spending of 380 billion yuan over the next three years for AI projects.
Tencent Holdings advanced 1.4% to HK$658.0, Meituan added 0.5% to HK$102.80, and JD.com Inc. jumped 6.2% to HK$141.20.
Chery Automobile Co. Ltd. advanced 10% to HK33.52 after China's largest automobile exporter listed its stock on the Hong Kong Stock Exchange.
Chery sold 297.4 million shares at a price of HK$30.75 per share and raised HK$8.9 billion. The automobile maker sold 267.7 million shares to foreign investors and 29.7 million to Hong Kong-based investors.
Tech-Driven Market Rally In China Extended Gains, Alibaba Group Traded at 4-Year High
Li Chen
25 Sep, 2025
Hong Kong
Stocks in China and Hong Kong advanced as investors bid up AI-driven tech stocks on Thursday.
The Hang Seng index increased 0.4%, and the mainland-focused CSI 300 index advanced 0.35% after a super typhoon ravaged several areas in Southern China.
The Hong Kong Stock Exchange operated normal hours on Wednesday, as the most powerful storm of 2025 passed the city, but the damage was less severe than expected.
Artificial intelligence-driven stocks advanced after Alibaba rolled out new products and announced its plans to increase spending for AI projects over the next three years.
Moreover, investors altered portfolios ahead of the approaching National Day holiday on October 1.
China Indexes and Stocks
The Hang Seng Index increased 0.4% to 26,612.74, and the mainland-focused CSI 300 Index gained 0.4% to 4,608.50.
Alibaba Group increased 0.3% to HK$174.60 after the company said it plans to exceed its previously announced capital spending of 380 billion yuan over the next three years for AI projects.
Tencent Holdings advanced 1.4% to HK$658.0, Meituan added 0.5% to HK$102.80, and JD.com Inc. jumped 6.2% to HK$141.20.
Chery Automobile Co. Ltd. advanced 10% to HK33.52 after China's largest automobile exporter listed its stock on the Hong Kong Stock Exchange.
Chery sold 297.4 million shares at a price of HK$30.75 per share and raised HK$8.9 billion. The automobile maker sold 267.7 million shares to foreign investors and 29.7 million to Hong Kong-based investors.
U.S. Movers: Micron Technology, AutoZone, MillerKnoll
Scott Peters
24 Sep, 2025
New York City
Micron Technology Inc. declined 0.5% to $165.60 despite the memory and storage solution provider reporting more than a three-fold jump in earnings in the fourth quarter ending on August 28.
Consolidated revenue increased to $11.3 billion from $7.75 billion, net income jumped to $3.2 billion from $887 million, and diluted earnings per share rose to $2.83 from 79 cents a year ago.
The company's board declared a quarterly cash dividend of 11.5 cents per share, payable on October 21 to shareholders on record on October 3.
Micron guided fiscal first-quarter revenue of approximately $12.50 billion with a band of $300 million, and diluted earnings per share of $3.56 with a range of 15 cents.
AutoZone Inc. increased 0.2% to $4,120 after the retailer of aftermarket automotive parts reported a slight increase in revenue and a decline in net income in the latest quarter ending on August 30.
Overall, same-store sales increased 4.5%, driven by a 4.8% rise at domestic stores and 2.1% at international locations.
Consolidated revenue inched higher to $6.24 billion from $6.20 billion, net income declined to $836.95 million from $902.2 million, and diluted earnings per share fell to $48.71 from $51.58 a year ago.
During the fourth quarter, AutoZone returned a total of $446.7 million to shareholders through share repurchases, including the repurchase of 117,000 shares of common stock at an average price of $3,821 per share.
“Our international business also continued to deliver strong results, growing same-store sales 7.2% on a constant currency basis.
We were especially pleased to have opened 141 net new stores globally in the quarter and 304 net new stores for the year.
We expect to aggressively open stores in the new year as we continue to focus on growing our market share over time,” said Phil Daniele, President and Chief Executive Officer.
MillerKnoll Inc. gained 0.7% to $19.15 after the office furniture maker reported a 10% increase in revenue in the fiscal first quarter ending on August 30.
Consolidated revenue edged higher to $955.7 million from $861.5 million, net income swung to a profit of $21.1 million from a loss of $0.5 million, and diluted adjusted earnings per share rose to 29 cents from a loss of 2 cents a year ago.
MillerKnoll guided fiscal second-quarter revenue to be between $926 million and $966 million, and diluted earnings per share between 38 cents and 44 cents.
U.S. Movers: Micron Technology, AutoZone, MillerKnoll
Scott Peters
24 Sep, 2025
New York City
Micron Technology Inc. declined 0.5% to $165.60 despite the memory and storage solution provider reporting more than a three-fold jump in earnings in the fourth quarter ending on August 28.
Consolidated revenue increased to $11.3 billion from $7.75 billion, net income jumped to $3.2 billion from $887 million, and diluted earnings per share rose to $2.83 from 79 cents a year ago.
The company's board declared a quarterly cash dividend of 11.5 cents per share, payable on October 21 to shareholders on record on October 3.
Micron guided fiscal first-quarter revenue of approximately $12.50 billion with a band of $300 million, and diluted earnings per share of $3.56 with a range of 15 cents.
AutoZone Inc. increased 0.2% to $4,120 after the retailer of aftermarket automotive parts reported a slight increase in revenue and a decline in net income in the latest quarter ending on August 30.
Overall, same-store sales increased 4.5%, driven by a 4.8% rise at domestic stores and 2.1% at international locations.
Consolidated revenue inched higher to $6.24 billion from $6.20 billion, net income declined to $836.95 million from $902.2 million, and diluted earnings per share fell to $48.71 from $51.58 a year ago.
During the fourth quarter, AutoZone returned a total of $446.7 million to shareholders through share repurchases, including the repurchase of 117,000 shares of common stock at an average price of $3,821 per share.
“Our international business also continued to deliver strong results, growing same-store sales 7.2% on a constant currency basis.
We were especially pleased to have opened 141 net new stores globally in the quarter and 304 net new stores for the year.
We expect to aggressively open stores in the new year as we continue to focus on growing our market share over time,” said Phil Daniele, President and Chief Executive Officer.
MillerKnoll Inc. gained 0.7% to $19.15 after the office furniture maker reported a 10% increase in revenue in the fiscal first quarter ending on August 30.
Consolidated revenue edged higher to $955.7 million from $861.5 million, net income swung to a profit of $21.1 million from a loss of $0.5 million, and diluted adjusted earnings per share rose to 29 cents from a loss of 2 cents a year ago.
MillerKnoll guided fiscal second-quarter revenue to be between $926 million and $966 million, and diluted earnings per share between 38 cents and 44 cents.
Powell's Comments and Looming Federal Government Shutdown Dominated Trading Sentiment
Barry Adams
24 Sep, 2025
New York City
Stock market indexes in New York struggled to advance for the second consecutive day amid valuation worries and a looming federal government shutdown.
The S&P 500 index decreased 0.4%, and the tech-focused Nasdaq Composite declined 0.3% as investors awaited the release of PCE price index data on Friday.
The federal government could face its first shutdown in five years at the end of September, as the funding runs out, as lawmakers struggle to strike a compromise on healthcare spending.
Benchmark indexes halted a three-day rally following cautious comments from the Fed Chair Jerome Powell.
Fed policymakers are struggling to balance rising risks of inflation and weakening labor market conditions while keeping the economic growth intact.
Moreover, the fast-evolving economic backdrop impacted by the surge in import taxes, imposed by the Trump administration, is forcing the policymakers to exercise greater caution.
"Tariff increases will likely take some time to work their way through supply chains.
As a result, this one-time increase in the price level will likely be spread over several quarters and show up as somewhat higher inflation during that period," added Powell while delivering his comments at a gathering in Warwick, Rhode Island.
During a question time at a gathering in Rhode Island, the central bank's chief confirmed that policymakers review market prices.
“We do look at overall financial conditions, and we ask ourselves whether our policies are affecting financial conditions in a way that is what we’re trying to achieve,” Powell said.
“But you’re right; by many measures, for example, equity prices are fairly highly valued,” added Fed Chair Powell.
The S&P 500 index decreased 0.6%, and the Nasdaq Composite fell 1% after Powell's comments, and investors dialed down the expectations for a rate cut at the end of the next policy meeting on October 29.
U.S. Stock Movers
Alibaba Group Holding advanced 7.6% to $176.97 after the company rolled out new AI products and announced its plans to invest more in artificial intelligence.
The company plans to ramp up artificial intelligence spending from the previously announced 380 billion yuan, or $53 billion, over the next three years, CEO Eddie Wu said at the company's annual conference.
Lithium Americas Corp. jumped 67% to $5.14 after a Reuters report suggested that the Trump administration is looking to renegotiate terms of the Energy Department's loans in exchange for a 10% equity stake.
The lithium mine in Nevada, known as Thacker Pass, is expected to go live in 2028, and General Motors controls a 38% stake in the mining project.
Micron Technology decreased 1% to $164.91, and the advanced chip maker reported strong growth in revenue and adjusted earnings, and the company guided $12.5 billion in revenue in the current quarter.
Powell Comments and Looming Federal Government Shutdown Dominated Trading Sentiment
Barry Adams
24 Sep, 2025
New York City
Stock market indexes in New York struggled to advance for the second consecutive day amid valuation worries and a looming federal government shutdown.
The S&P 500 index decreased 0.4%, and the tech-focused Nasdaq Composite declined 0.3% as investors awaited the release of PCE price index data on Friday.
The federal government could face its first shutdown in five years at the end of September, as the funding runs out, as lawmakers struggle to strike a compromise on healthcare spending.
Benchmark indexes halted a three-day rally following cautious comments from the Fed Chair Jerome Powell.
Fed policymakers are struggling to balance rising risks of inflation and weakening labor market conditions while keeping the economic growth intact.
Moreover, the fast-evolving economic backdrop impacted by the surge in import taxes, imposed by the Trump administration, is forcing the policymakers to exercise greater caution.
"Tariff increases will likely take some time to work their way through supply chains.
As a result, this one-time increase in the price level will likely be spread over several quarters and show up as somewhat higher inflation during that period," added Powell while delivering his comments at a gathering in Warwick, Rhode Island.
During a question time at a gathering in Rhode Island, the central bank's chief confirmed that policymakers review market prices.
“We do look at overall financial conditions, and we ask ourselves whether our policies are affecting financial conditions in a way that is what we’re trying to achieve,” Powell said.
“But you’re right; by many measures, for example, equity prices are fairly highly valued,” added Fed Chair Powell.
The S&P 500 index decreased 0.6%, and the Nasdaq Composite fell 1% after Powell's comments, and investors dialed down the expectations for a rate cut at the end of the next policy meeting on October 29.
U.S. Stock Movers
Alibaba Group Holding advanced 7.6% to $176.97 after the company rolled out new AI products and announced its plans to invest more in artificial intelligence.
The company plans to ramp up artificial intelligence spending from the previously announced 380 billion yuan, or $53 billion, over the next three years, CEO Eddie Wu said at the company's annual conference.
Lithium Americas Corp. jumped 67% to $5.14 after a Reuters report suggested that the Trump administration is looking to renegotiate terms of the Energy Department's loans in exchange for a 10% equity stake.
The lithium mine in Nevada, known as Thacker Pass, is expected to go live in 2028, and General Motors controls a 38% stake in the mining project.
Micron Technology decreased 1% to $164.91, and the advanced chip maker reported strong growth in revenue and adjusted earnings, and the company guided $12.5 billion in revenue in the current quarter.
Tokyo Stocks Struggled After Powell's Comments, Yen In Focus On 40th Anniversary of Plaza Accord
Akira Ito
24 Sep, 2025
Tokyo
Benchmark indexes in Tokyo turned lower following the weakness in overnight trading on Wall Street, as investors booked profit after the recent run-up.
The Nikkei 225 Stock Average inched lower 0.01%, the broader Topix edged higher 0.1%, and the Japanese yen hovered near the 148 level against the U.S. dollar.
Tokyo's market sentiment remained weak following cautious comments from Fed Chair Jerome Powell noting uncertainties around the rate path amid a confusing economic backdrop.
Powell also highlighted stretched market valuations and a marked slowing in supply and demand for workers, "an unusual development in the labor market."
"Tariff increases will likely take some time to work their way through supply chains. As a result, this one-time increase in the price level will likely be spread over several quarters and show up as somewhat higher inflation during that period," added Powell while delivering his comments at a gathering in Warwick, Rhode Island.
Stocks on Wall Street turned lower following Powell's comments, and investors dialed down the expectations for a rate cut at the end of the next policy meeting on October 29.
The Japanese yen was in focus as Japan marked the 40th anniversary of the U.S.-led Plaza Accord.
On September 22, 1985, the U.S. engineered the decline of the dollar in coordination with Japan, the UK, France, and West Germany.
The U.S. dollar devaluation contributed to the bursting of the economic bubble in Japan and the start of what is known as the lost three decades.
The current U.S. tariff regime "does not align with the realities of the U.S. economy," said former Bank of Japan Governor Haruhiko Kuroda in an interview with Mainichi Shimbun.
"Unlike 40 years ago when the U.S. economy was weak, the country maintains a high growth rate today. The tariff escalation does not match the economic reality," Kuroda clarified.
Japan Indexes and Stocks
The Nikkei 225 Stock Average slipped 0.01%, and the broader Topix edged higher 0.1% to 3,166.80.
Toyota Motor Corp. decreased 1.2% to ¥2,925.0, Honda Motor fell 0.9% to ¥1,646.0, and Nissan Motor declined 0.6% to $4.98.
Seven & I Holdings gained 0.9% to ¥2,011.50, Fast Retailing decreased 2.2% to ¥45,640.0, and Isetan Mitsukoshi declined 1.1% to ¥2,896.0.
Tokyo Stocks Struggled After Powell's Comments, Yen In Focus On 40th Anniversary of Plaza Accord
Akira Ito
24 Sep, 2025
Tokyo
Benchmark indexes in Tokyo turned lower following the weakness in overnight trading on Wall Street, as investors booked profit after the recent run-up.
The Nikkei 225 Stock Average inched lower 0.01%, the broader Topix edged higher 0.1%, and the Japanese yen hovered near the 148 level against the U.S. dollar.
Tokyo's market sentiment remained weak following cautious comments from Fed Chair Jerome Powell noting uncertainties around the rate path amid a confusing economic backdrop.
Powell also highlighted stretched market valuations and a marked slowing in supply and demand for workers, "an unusual development in the labor market."
"Tariff increases will likely take some time to work their way through supply chains. As a result, this one-time increase in the price level will likely be spread over several quarters and show up as somewhat higher inflation during that period," added Powell while delivering his comments at a gathering in Warwick, Rhode Island.
Stocks on Wall Street turned lower following Powell's comments, and investors dialed down the expectations for a rate cut at the end of the next policy meeting on October 29.
The Japanese yen was in focus as Japan marked the 40th anniversary of the U.S.-led Plaza Accord.
On September 22, 1985, the U.S. engineered the decline of the dollar in coordination with Japan, the UK, France, and West Germany.
The U.S. dollar devaluation contributed to the bursting of the economic bubble in Japan and the start of what is known as the lost three decades.
The current U.S. tariff regime "does not align with the realities of the U.S. economy," said former Bank of Japan Governor Haruhiko Kuroda in an interview with Mainichi Shimbun.
"Unlike 40 years ago when the U.S. economy was weak, the country maintains a high growth rate today. The tariff escalation does not match the economic reality," Kuroda clarified.
Japan Indexes and Stocks
The Nikkei 225 Stock Average slipped 0.01%, and the broader Topix edged higher 0.1% to 3,166.80.
Toyota Motor Corp. decreased 1.2% to ¥2,925.0, Honda Motor fell 0.9% to ¥1,646.0, and Nissan Motor declined 0.6% to $4.98.
Seven & I Holdings gained 0.9% to ¥2,011.50, Fast Retailing decreased 2.2% to ¥45,640.0, and Isetan Mitsukoshi declined 1.1% to ¥2,896.0.