Market Update
BoJ Holds Rates As Expected, Japan's Inflation Rate Slows Amid High Food Prices
Akira Ito
19 Sep, 2025
Tokyo
Japan's market indexes closed down after hitting new intraday highs, and the central bank announced its rate decisions and economic outlook.
The Nikkei 225 Stock Average closed down 0.4%, and the broader Topix index eased 0.1%.
Market enthusiasm ahead of the Bank of Japan's rate decisions unraveled following the widely anticipated announcement.
BoJ Holds Rates and Announces Policy Normalization Steps
The central bank held its short-term interest rate at 0.5%, passed by a 7-2 vote, keeping the borrowing costs at their highest level since 2008.
The widely anticipated rate decision came amid political risks and uncertainties tied to the erratic U.S. trade policy.
The Bank of Japan said it plans to begin selling its holdings of exchange-traded funds worth 330 billion yen and real estate investment trusts worth 5 billion yen, unwinding years-long unusual policy maneuvers.
The policy committee acknowledged that Japan's economy has recovered despite patches of weakness.
Improving wages and employment conditions supported private consumption, and industrial output and exports remained subdued amid U.S. tariff headwinds.
Japan's Inflation Eased in August Following Energy Subsidies
Japan's annual inflation rate dropped for the fourth consecutive month in August, driven by a decline in energy prices.
Consumer price inflation eased to 2.7% from 3.1% in July, dropping to the lowest level since October 2024, according to a report released by the Ministry of Internal Affairs and Communications.
Food price inflation slowed to 7.2% from 7.6% in the previous month, and the increase in rice prices slowed to 69.7% after rising at an annual rate of 90.7% in July and 100.2% in June.
Core inflation, which excludes food prices, dropped to 2.7% from 3.1% in the previous month, and core-core inflation, which excludes food and energy prices, rebounded to 3.3%.
Core consumer prices fell for the third consecutive month in August and fell below 3% for the first time in nine months after the government reintroduced energy and electricity subsidies.
Service price inflation, which generally signals changes in wages, was at 1.5%, matching the rate in the previous month.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 0.4% to 45,121.46, and the broader Topix edged down 0.1% to 3,155.76.
For the week, the Nikkei 225 Stock Average gained 0.9%, and the Topix closed down 0.3%.
Tokyo Electron Ltd. increased 0.6% to ¥25,610.0, Advantest Corp. gained 3.3% to ¥15,020.0, and Lasertec Corp. soared 12.1% to ¥19,185.0.
Nippon Yusen KK fell 1.1% to ¥5,445.0, Mitsui O.S.K. Lines decreased 0.4% to ¥4,776.0, and Kawasaki Kisen Kaisha Ltd. declined 1.5% to ¥2,282.0.
BoJ Holds Rates As Expected, Japan's Inflation Rate Slows Amid High Food Prices
Akira Ito
19 Sep, 2025
Tokyo
Japan's market indexes closed down after hitting new intraday highs, and the central bank announced its rate decisions and economic outlook.
The Nikkei 225 Stock Average closed down 0.4%, and the broader Topix index eased 0.1%.
Market enthusiasm ahead of the Bank of Japan's rate decisions unraveled following the widely anticipated announcement.
BoJ Holds Rates and Announces Policy Normalization Steps
The central bank held its short-term interest rate at 0.5%, passed by a 7-2 vote, keeping the borrowing costs at their highest level since 2008.
The widely anticipated rate decision came amid political risks and uncertainties tied to the erratic U.S. trade policy.
The Bank of Japan said it plans to begin selling its holdings of exchange-traded funds worth 330 billion yen and real estate investment trusts worth 5 billion yen, unwinding years-long unusual policy maneuvers.
The policy committee acknowledged that Japan's economy has recovered despite patches of weakness.
Improving wages and employment conditions supported private consumption, and industrial output and exports remained subdued amid U.S. tariff headwinds.
Japan's Inflation Eased in August Following Energy Subsidies
Japan's annual inflation rate dropped for the fourth consecutive month in August, driven by a decline in energy prices.
Consumer price inflation eased to 2.7% from 3.1% in July, dropping to the lowest level since October 2024, according to a report released by the Ministry of Internal Affairs and Communications.
Food price inflation slowed to 7.2% from 7.6% in the previous month, and the increase in rice prices slowed to 69.7% after rising at an annual rate of 90.7% in July and 100.2% in June.
Core inflation, which excludes food prices, dropped to 2.7% from 3.1% in the previous month, and core-core inflation, which excludes food and energy prices, rebounded to 3.3%.
Core consumer prices fell for the third consecutive month in August and fell below 3% for the first time in nine months after the government reintroduced energy and electricity subsidies.
Service price inflation, which generally signals changes in wages, was at 1.5%, matching the rate in the previous month.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 0.4% to 45,121.46, and the broader Topix edged down 0.1% to 3,155.76.
For the week, the Nikkei 225 Stock Average gained 0.9%, and the Topix closed down 0.3%.
Tokyo Electron Ltd. increased 0.6% to ¥25,610.0, Advantest Corp. gained 3.3% to ¥15,020.0, and Lasertec Corp. soared 12.1% to ¥19,185.0.
Nippon Yusen KK fell 1.1% to ¥5,445.0, Mitsui O.S.K. Lines decreased 0.4% to ¥4,776.0, and Kawasaki Kisen Kaisha Ltd. declined 1.5% to ¥2,282.0.
China Markets Turned Cautious Ahead of Xi-Trump Call
Li Chen
19 Sep, 2025
Hong Kong
China's stock market indexes struggled to stay above the flatline, and investors turned cautious ahead of a call between the leaders of China and the U.S.
The Hang Seng index inched higher 0.1%, and the CSI 300 index increased 0.3% amid a potential disruption in trade talks between China and the U.S.
Xi Jinping and Donald Trump are set to discuss the future of TikTok, tariff levels, and engagement rules for advanced chip trade.
The call between the two leaders is set to start at 9:00 a.m. Eastern Time.
For the week, the Hang Seng index increased 1.2%, and the CSI 300 index decreased 0.5%.
Over the last three months, foreign investors have tiptoed into Chinese stocks trading on the Hong Kong Stock Exchange, driving the two benchmark indexes to multi-year highs.
China Indexes and Stocks
The Hang Seng Index increased 0.1% to 26,564.81, and the mainland-focused CSI 300 index edged up 0.3% to 4,512.77.
Anta Sports Products advanced 2.4% to HK$96.65, AIA Group Ltd. decreased 1.5% to $72.0, and Nongfu Spring Ltd. increased 1.6% to HK$54.55.
GenFleet Therapeutics Shanghai soared 116% to HK$44.04, and the biopharmaceutical company sold 89.2 million shares in a global offering and raised gross proceeds of HK$1.82 billion.
The oncology-focused biotech company priced its share at HK$20.39 and sold 81.5 million shares to international investors and 7.76 million shares to local investors.
Hebei Chichang Auto Parts soared 293% to 42.61 yuan, and the manufacturing company listed its share on the Beijing Stock Exchange.
Zijin Gold International, a subsidiary of Zijin Mining, is likely to complete its public offering in Hong Kong to raise as much as HK$25 billion, or $3.2 billion, and list its stock on September 29.
China Markets Turned Cautious Ahead of Xi-Trump Call
Li Chen
19 Sep, 2025
Hong Kong
China's stock market indexes struggled to stay above the flatline, and investors turned cautious ahead of a call between the leaders of China and the U.S.
The Hang Seng index inched higher 0.1%, and the CSI 300 index increased 0.3% amid a potential disruption in trade talks between China and the U.S.
Xi Jinping and Donald Trump are set to discuss the future of TikTok, tariff levels, and engagement rules for advanced chip trade.
The call between the two leaders is set to start at 9:00 a.m. Eastern Time.
For the week, the Hang Seng index increased 1.2%, and the CSI 300 index decreased 0.5%.
Over the last three months, foreign investors have tiptoed into Chinese stocks trading on the Hong Kong Stock Exchange, driving the two benchmark indexes to multi-year highs.
China Indexes and Stocks
The Hang Seng Index increased 0.1% to 26,564.81, and the mainland-focused CSI 300 index edged up 0.3% to 4,512.77.
Anta Sports Products advanced 2.4% to HK$96.65, AIA Group Ltd. decreased 1.5% to $72.0, and Nongfu Spring Ltd. increased 1.6% to HK$54.55.
GenFleet Therapeutics Shanghai soared 116% to HK$44.04, and the biopharmaceutical company sold 89.2 million shares in a global offering and raised gross proceeds of HK$1.82 billion.
The oncology-focused biotech company priced its share at HK$20.39 and sold 81.5 million shares to international investors and 7.76 million shares to local investors.
Hebei Chichang Auto Parts soared 293% to 42.61 yuan, and the manufacturing company listed its share on the Beijing Stock Exchange.
Zijin Gold International, a subsidiary of Zijin Mining, is likely to complete its public offering in Hong Kong to raise as much as HK$25 billion, or $3.2 billion, and list its stock on September 29.
Another Upswing In Big Tech Stocks Lifts U.S. Indexes to New highs After Rate Decisions
Barry Adams
18 Sep, 2025
New York City
Wall Street indexes attempted to rebound a day after the Federal Reserve's policymakers preferred a gradual approach in tackling its dual mandate.
The S&P 500 index increased 0.8%, and the tech-focused Nasdaq Composite advanced 1.0% after the Federal Reserve lowered its key lending rate range by 25 basis points.
Fed Chairman Jerome Powell stressed that policymakers are not sure about the future course of the rate path, but the so-called dot plot indicated two additional rate cuts in the remainder of the year.
The policymakers are also estimating only one rate cut in 2026, as the committee held its annual outlook for the jobless rate at 4.5% and inflation at 3%.
However, the GDP growth for 2025 was slightly revised higher at 1.6% from the previous estimate of 1.4% released after June's meeting.
Despite the recent market jitters, the S&P 500 and the Nasdaq Composite are still in the positive terriory in the week so far.
U.S. Stock Movers
Intel Corp. jumped 30% to $32.35 after Nvidia said it plans to invest $5 billion in the chipmaker to jointly develop PC products and data centers.
Darden Restaurants dropped 7% to $194.30 after the parent company of Olive Garden reported mixed results for the fiscal first quarter ending on August 24.
Same-store sales in the quarter increased 4.7%, driven by a 5.9% rise at Olive Garden, 5.5% at LongHorn Steakhouse, and a 0.2% decline in its fine dining segment.
Total sales increased 10% to $3.0 billion from $2.8 billion, net income advanced $257.8 million from $207.2 million, and diluted earnings per share increased to $2.19 from $1.74 a year ago.
The company guided fiscal 2026 sales to increase between 7.5% and 8.5%, including 2% growth related to the 53rd week, and same-store sales to increase between 2.5% and 3.5%.
Cracker Barrel Old Country Store, Inc., dropped 9.3% to $44.99 after the restaurant and retail chain reported a 62% drop in quarterly profit in the fourth quarter ending on August 1, 2025.
Consolidated revenue decreased to $868 million from $894 million, net income dropped to $6.8 million from $18.1 million, and diluted earnings per share fell to 30 cents from 81 cents a year ago.
The company's board declared a quarterly dividend of $0.25 per share, payable on November 12 to shareholders on record on October 17.
The company also announced a new $100 million share repurchase program.
Big Tech Rebound Lifts U.S. Indexes to New highs After Rate Decisions
Barry Adams
18 Sep, 2025
New York City
Wall Street indexes attempted to rebound a day after the Federal Reserve's policymakers preferred a gradual approach in tackling its dual mandate.
The S&P 500 index increased 0.8%, and the tech-focused Nasdaq Composite advanced 1.0% after the Federal Reserve lowered its key lending rate range by 25 basis points.
Fed Chairman Jerome Powell stressed that policymakers are not sure about the future course of the rate path, but the so-called dot plot indicated two additional rate cuts in the remainder of the year.
The policymakers are also estimating only one rate cut in 2026, as the committee held its annual outlook for the jobless rate at 4.5% and inflation at 3%.
However, the GDP growth for 2025 was slightly revised higher at 1.6% from the previous estimate of 1.4% released after June's meeting.
U.S. Stock Movers
Intel Corp. jumped 30% to $32.35 after Nvidia said it plans to invest $5 billion in the chipmaker to jointly develop PC products and data centers.
Darden Restaurants dropped 7% to $194.30 after the parent company of Olive Garden reported mixed results for the fiscal first quarter ending on August 24.
Same-store sales in the quarter increased 4.7%, driven by a 5.9% rise at Olive Garden, 5.5% at LongHorn Steakhouse, and a 0.2% decline in its fine dining segment.
Total sales increased 10% to $3.0 billion from $2.8 billion, net income advanced $257.8 million from $207.2 million, and diluted earnings per share increased to $2.19 from $1.74 a year ago.
The company guided fiscal 2026 sales to increase between 7.5% and 8.5%, including 2% growth related to the 53rd week, and same-store sales to increase between 2.5% and 3.5%.
Cracker Barrel Old Country Store, Inc., dropped 9.3% to $44.99 after the restaurant and retail chain reported a 62% drop in quarterly profit in the fourth quarter ending on August 1, 2025.
Consolidated revenue decreased to $868 million from $894 million, net income dropped to $6.8 million from $18.1 million, and diluted earnings per share fell to 30 cents from 81 cents a year ago.
The company's board declared a quarterly dividend of $0.25 per share, payable on November 12 to shareholders on record on October 17.
The company also announced a new $100 million share repurchase program.
U.S. Movers: Cracker Barrel
Scott Peters
18 Sep, 2025
Mumbai
Cracker Barrel Old Country Store, Inc., dropped 9.3% to $44.99 after the restaurant and retail chain reported a 62% drop in quarterly profit in the fourth quarter ending on August 1, 2025.
Consolidated revenue decreased to $868 million from $894 million, net income dropped to $6.8 million from $18.1 million, and diluted earnings per share fell to 30 cents from 81 cents a year ago.
The company's board declared a quarterly dividend of $0.25 per share, payable on November 12 to shareholders on record on October 17.
The company also announced a new $100 million share repurchase program.
Cracker Barrel guided full-year revenue to be between $3.35 billion and $3.45 billion, which assumes a comparable store traffic decline of 4% to 7%.
The company estimated adjusted operating income between $150 million and $190 million and anticipated commodity inflation of 2.5% to 3.5% and hourly wage inflation of 3.0% to 4.0%.
The restaurant company projected capital spending to range between $135 million and $150 million, primarily for maintenance, with no planned spending on new remodels.
The company also plans to open 2 new Cracker Barrel locations and close 14 Maple Street units.
U.S. Movers: Cracker Barrel
Scott Peters
18 Sep, 2025
Mumbai
Cracker Barrel Old Country Store, Inc., dropped 9.3% to $44.99 after the restaurant and retail chain reported a 62% drop in quarterly profit in the fourth quarter ending on August 1, 2025.
Consolidated revenue decreased to $868 million from $894 million, net income dropped to $6.8 million from $18.1 million, and diluted earnings per share fell to 30 cents from 81 cents a year ago.
The company's board declared a quarterly dividend of $0.25 per share, payable on November 12 to shareholders on record on October 17.
The company also announced a new $100 million share repurchase program.
Cracker Barrel guided full-year revenue to be between $3.35 billion and $3.45 billion, which assumes a comparable store traffic decline of 4% to 7%.
The company estimated adjusted operating income between $150 million and $190 million and anticipated commodity inflation of 2.5% to 3.5% and hourly wage inflation of 3.0% to 4.0%.
The restaurant company projected capital spending to range between $135 million and $150 million, primarily for maintenance, with no planned spending on new remodels.
The company also plans to open 2 new Cracker Barrel locations and close 14 Maple Street units.