Market Update
China's Inflation Reports Confirm Entrenched Deflationary Forces
Li Chen
15 Oct, 2025
Hong Kong
Stocks in China and Hong Kong edged higher, and investors awaited the start of earnings season and debated the prospects of additional stimulus.
The Hang Seng Index gained 1.2%, and the mainland-focused CSI 300 index inched up 0.03% after the release of two inflation reports.
Consumer price inflation slowed to an annual 0.3% in September, and producer price inflation, the National Bureau of Statistics reported Wednesday.
Prices declined at a slower pace than the annual fall of 0.4% in the previous month, but the deflationary trend is likely to persist for the foreseeable future.
Core inflation, which excludes volatile food and energy prices, accelerated to 1% from 0.9% in August, the highest in nine months.
Consumer goods prices fell 0.8%, while services prices advanced 0.8% in September.
Food price decline deepened to 4.4% from 4.3%, the sharpest fall since January 2024 amid a broad-based fall across all categories.
China's producer price inflation slowed but extended the deflationary trend to the 36th consecutive month amid overcapacity and weak consumer demand.
Producer price inflation eased to 2.3% in September from 2.9% in the previous month, as policymakers worked behind the scenes to curb excess capacity in several key manufacturing sectors.
On a monthly basis, producer prices remained flat from August, driven by a rise in demand ahead of the Golden Week holiday season.
China Indexes and Stocks
The Hang Seng index increased 1.2% to 25,754.71, and the mainland-focused CSI 300 index edged up 0.03% to 4,537.73.
Alibaba Group Holding increased 2.9% to HK $160.10, Tencent Holdings edged up 0.6% to HK $625.50, and Meituan gained 0.9% to HK $99.20.
HSBC Holdings plc added 1.8% to HK $103.70, China Life Insurance jumped 3.2% to HK $22.64, and China Merchants Bank edged up 0.8% to HK $48.56.
Xuanzhu Biopharmaceutical soared 135% to HK $26.50 after the company priced its initial public offering at HK $11.60 per share and sold 67.3 million shares.
The biopharma company focused on digestive diseases, oncology, and non-alcoholic steatohepatitis raised net proceeds of HK$701 million.
US-China Trade Tensions Overwhelmed Positive Earnings Releases
Barry Adams
14 Oct, 2025
New York City
Stock market indexes turned lower and erased gains of the previous session as US-China trade tensions escalated.
The S&P 500 index decreased 1.1%, and the tech-heavy Nasdaq Composite fell 1.4% amid worries that rapidly escalating trade tensions between the two largest economies could spiral out of control.
Gold edged up 0.2% to 4,135.60, and silver decreased 2.2% to $51.27 as investors continued to shift away into safe haven assets amid falling trust in the U.S. dollar-denominated assets.
The U.S. crude oil prices dropped to a five-year low of $57.21 per barrel amid worries about shrinking global demand as economies in the U.S., Europe, and Japan struggle to advance and China's growth slows.
U.S. Stock Movers
JPMorgan Chase & Company declined 0.8% to $305.60, and the leading financial services provider reported better-than-expected quarterly results, driven by a surge in trading and investment banking revenue.
Johnson & Johnson edged up 0.7% to $192.13, and the company's third-quarter results surpassed market expectations.
Revenue in the third quarter rose to $23.99 billion, and adjusted earnings per share were $2.80.
The drug and medical device maker raised its 2025 revenue outlook to a new range between $93.5 billion and $93.9 billion, about $300 million higher than the previous estimate.
The company said it plans to spin off its orthopedic division, which makes knee, hip, and shoulder implants, generating $9.2 billion in revenue in 2024, about 10% of total revenue.
Goldman Sachs Group decreased 1.2% to $777.0, and the investment banking and asset management services provider's third-quarter results surpassed market expectations.
Revenue increased to $15.2 billion from $14.6 billion, net income advanced to $3.86 billion from $3.47 billion, and diluted earnings per share advanced to $12.25 from $10.91 a year ago.
US-China Trade Tensions Overwhelmed Positive Earnings Releases
Barry Adams
14 Oct, 2025
New York City
Stock market indexes turned lower and erased gains of the previous session as US-China trade tensions escalated.
The S&P 500 index decreased 1.1%, and the tech-heavy Nasdaq Composite fell 1.4% amid worries that rapidly escalating trade tensions between the two largest economies could spiral out of control.
Gold edged up 0.2% to 4,135.60, and silver decreased 2.2% to $51.27 as investors continued to shift away into safe haven assets amid falling trust in the U.S. dollar-denominated assets.
The U.S. crude oil prices dropped to a five-year low of $57.21 per barrel amid worries about shrinking global demand as economies in the U.S., Europe, and Japan struggle to advance and China's growth slows.
U.S. Stock Movers
JPMorgan Chase & Company declined 0.8% to $305.60, and the leading financial services provider reported better-than-expected quarterly results, driven by a surge in trading and investment banking revenue.
Johnson & Johnson edged up 0.7% to $192.13, and the company's third-quarter results surpassed market expectations.
Revenue in the third quarter rose to $23.99 billion, and adjusted earnings per share were $2.80.
The drug and medical device maker raised its 2025 revenue outlook to a new range between $93.5 billion and $93.9 billion, about $300 million higher than the previous estimate.
The company said it plans to spin off its orthopedic division, which makes knee, hip, and shoulder implants, generating $9.2 billion in revenue in 2024, about 10% of total revenue.
Goldman Sachs Group decreased 1.2% to $777.0, and the investment banking and asset management services provider's third-quarter results surpassed market expectations.
Revenue increased to $15.2 billion from $14.6 billion, net income advanced to $3.86 billion from $3.47 billion, and diluted earnings per share advanced to $12.25 from $10.91 a year ago.
Japan's Indexes Dropped 2% as Traders Unwound Takaichi Trade
Akira Ito
14 Oct, 2025
Tokyo
Japan's market indexes fell sharply on Tuesday as traders unwound the so-called "Takaichi trade."
The Nikkei 225 Stock Average dropped 2.3%, and the broader Topix fell 2.2% amid rising political uncertainty and growing skepticism about LDP leader Sanae Takaichi's bid for the premiership.
Benchmark indexes in Tokyo soared more than 5% after the LDP elected Sanae Takaichi, and investors hoped that the newly elected leader's support for ultra-loose monetary policy and a fiscally expansionary stance would support higher highs in stocks.
However, those expectations faced a wall of reality after the Komeito Party announced its plans to leave the ruling coalition after 26 years, voicing its deep skepticism about Takaichi's policies.
Market sentiment was further dented after the U.S. president threatened additional steep tariffs on China, as both sides remained far apart in resolving differences.
The Japanese yen strengthened to 151.83 against the U.S. dollar amid rising hurdles to Takaichi's bid to become Japan's next prime minister.
Japan Indexes and Stocks
The Nikkei 225 Stock Average dropped 2.3% to 46,971.84, and the broader Topix fell 2.2% to 3,128.01.
Tech stocks extended losses amid worries about the U.S. trade policy.
Tokyo Electron Ltd. dropped 2.4% to ¥28,575.0, Advantest Corp. fell 3.3% to ¥17,235.0, and Lasertec Corp. declined 1.9% to ¥19,840.0.
Ocean freight shipping companies advanced after tensions in the Middle East eased following a ceasefire agreement between Hamas and Israel.
Kawasaki Kisen Kaisha Ltd. added 2.2% to ¥2,063.50, Mitsui O.S.K. Lines Ltd. added 0.6% to 4,373.0, and Nippon Yusen KK advanced 0.7% to ¥5,010.0.
Japan's Indexes Dropped 2% as Traders Unwound Takaichi Trade
Akira Ito
14 Oct, 2025
Tokyo
Japan's market indexes fell sharply on Tuesday as traders unwound the so-called "Takaichi trade."
The Nikkei 225 Stock Average dropped 2.3%, and the broader Topix fell 2.2% amid rising political uncertainty and growing skepticism about LDP leader Sanae Takaichi's bid for the premiership.
Benchmark indexes in Tokyo soared more than 5% after the LDP elected Sanae Takaichi, and investors hoped that the newly elected leader's support for ultra-loose monetary policy and a fiscally expansionary stance would support higher highs in stocks.
However, those expectations faced a wall of reality after the Komeito Party announced its plans to leave the ruling coalition after 26 years, voicing its deep skepticism about Takaichi's policies.
Market sentiment was further dented after the U.S. president threatened additional steep tariffs on China, as both sides remained far apart in resolving differences.
The Japanese yen strengthened to 151.83 against the U.S. dollar amid rising hurdles to Takaichi's bid to become Japan's next prime minister.
Japan Indexes and Stocks
The Nikkei 225 Stock Average dropped 2.3% to 46,971.84, and the broader Topix fell 2.2% to 3,128.01.
Tech stocks extended losses amid worries about the U.S. trade policy.
Tokyo Electron Ltd. dropped 2.4% to ¥28,575.0, Advantest Corp. fell 3.3% to ¥17,235.0, and Lasertec Corp. declined 1.9% to ¥19,840.0.
Ocean freight shipping companies advanced after tensions in the Middle East eased following a ceasefire agreement between Hamas and Israel.
Kawasaki Kisen Kaisha Ltd. added 2.2% to ¥2,063.50, Mitsui O.S.K. Lines Ltd. added 0.6% to 4,373.0, and Nippon Yusen KK advanced 0.7% to ¥5,010.0.
China Indexes Flatlined, Gold and Silver Jumped to New Record Highs
Li Chen
14 Oct, 2025
Hong Kong
In China, stocks wavered amid ongoing trade tensions with the U.S., while precious metals advanced to new record highs.
The Hang Seng Index decreased 0.5%, and the mainland-focused CSI 300 index fell 0.1% as investors hoped that the U.S. and China will find common ground on tariffs and trade restrictions before the end of this month.
Chinese goods are facing about 55% tariffs in the U.S., and overall levies could surge to as high as 145% if the two sides fail to finalize a trade deal in the next three weeks.
Moreover, China has started sourcing soybeans and other agricultural products from Argentina, Brazil, Peru, Australia, and Uganda and cut down its purchases from the U.S. by more than 90%.
The Hang Seng Index is likely to extend its recent string of losses to the seventh day, as investors worry that the latest trade spat is likely to further dent China's trade with the U.S.
In the nine months to September, China's exports to the U.S. have fallen by more than 33%, and Chinese manufacturers are developing markets in the ASEAN region, the European Union, Latin America, and Africa.
Investors in Asia dumped the U.S.-dollar-denominated assets and shifted to gold, a safe-haven asset, amid lingering anxiety over a prolonged U.S. shutdown and a 25-basis-point rate cut later this month.
Gold advanced 0.9% to $4,167.70 an ounce, and silver jumped 1.4% to $53.50 an ounce, and they reached new record highs amid rising trade tensions between the two largest economies of the world.
China Indexes and Stocks
The Hang Seng Index decreased 0.5% to 25,772.25, and the mainland-focused CSI 300 index fell 0.1% to 4,590.64.
Tech stocks wavered in Hong Kong trading as investors awaited the start of the earnings season later in the week.
Alibaba Group Holding Ltd. dropped 2% to HK $159.30, Tencent Holding decreased 1.4% to HK $630.0, and Meituan fell 0.2% to $99.65.
Pop Mart International Group dropped 2.4% to HK $267.20, Nongfu Spring Co. eased 0.1% to HK $53.95, and Zijin Mining Group declined 1.1% to HK $33.82.
China Indexes Flatlined, Gold and Silver Jumped to New Record Highs A
Barry Adams
14 Oct, 2025
Hong Kong
In China, stocks wavered amid ongoing trade tensions with the U.S., while precious metals advanced to new record highs.
The Hang Seng Index decreased 0.5%, and the mainland-focused CSI 300 index fell 0.1% as investors hoped that the U.S. and China will find common ground on tariffs and trade restrictions before the end of this month.
Chinese goods are facing about 55% tariffs in the U.S., and overall levies could surge to as high as 145% if the two sides fail to finalize a trade deal in the next three weeks.
Moreover, China has started sourcing soybeans and other agricultural products from Argentina, Brazil, Peru, Australia, and Uganda and cut down its purchases from the U.S. by more than 90%.
The Hang Seng Index is likely to extend its recent string of losses to the seventh day, as investors worry that the latest trade spat is likely to further dent China's trade with the U.S.
In the nine months to September, China's exports to the U.S. have fallen by more than 33%, and Chinese manufacturers are developing markets in the ASEAN region, the European Union, Latin America, and Africa.
Investors in Asia dumped the U.S.-dollar-denominated assets and shifted to gold, a safe-haven asset, amid lingering anxiety over a prolonged U.S. shutdown and a 25-basis-point rate cut later this month.
Gold advanced 0.9% to $4,167.70 an ounce, and silver jumped 1.4% to $53.50 an ounce, and they reached new record highs amid rising trade tensions between the two largest economies of the world.
China Indexes and Stocks
The Hang Seng Index decreased 0.5% to 25,772.25, and the mainland-focused CSI 300 index fell 0.1% to 4,590.64.
Tech stocks wavered in Hong Kong trading as investors awaited the start of the earnings season later in the week.
Alibaba Group Holding Ltd. dropped 2% to HK $159.30, Tencent Holding decreased 1.4% to HK $630.0, and Meituan fell 0.2% to $99.65.
Pop Mart International Group dropped 2.4% to HK $267.20, Nongfu Spring Co. eased 0.1% to HK $53.95, and Zijin Mining Group declined 1.1% to HK $33.82.
China TUESDAY
Barry Adams
14 Oct, 2025
Hong Kong
China Indexes and Stocks
The Hang Seng Index decreased 0.5% to 25,772.25, and the mainland-focused CSI 300 index dropped 0.4% to
China TUESDAY
Barry Adams
14 Oct, 2025
Hong Kong
China Indexes and Stocks
The Hang Seng Index decreased 0.
U.S. Movers: Bassett Furniture, Costco, Delta Air Lines, PepsiCo
Scott Peters
09 Oct, 2025
New York City
Bassett Furniture Industries decreased 1.8% to $16.50 despite the company reporting improved sales and net income swinging to a profit.
Revenue in the third quarter rose to $80.1 million from $75.6 million, and net income per share increased to a profit of 9 cents, compared to a loss of 52 cents a year ago.
PepsiCo increased 0.7% to $139.80 after the beverage and snack company reported better-than-expected results in the third quarter.
Net revenue increased 2.6% to $23.9 billion from $23.3 billion, net income attributable to shareholders eased to $2.6 billion from $2.9 billion, and diluted earnings per share decreased to $1.90 from $2.13 a year ago.
“Our reported net revenue growth accelerated and reflects the resilience of our international business, improved momentum within North America Beverages, and the benefits of our portfolio reshaping actions,” said Chairman and CEO Ramon Laguarta.
The company guided 2025 organic revenue to increase in "low single digits" and core constant currency earnings per share to match the prior year's level.
Delta Air Lines increased 5.9% to $60.50, and the international carrier's third-quarter results surpassed market expectations, and it issued a strong outlook.
Total operating revenue in the third quarter increased by 6%, reaching $16.7 billion, up from $15.7 billion; net income rose by 11% to $1.41 billion, compared to $1.27 billion; and diluted earnings per share increased to $2.17 from $1.97 a year ago.
The airline guided fourth-quarter revenue to rise between 2% and 4% from a year ago and adjusted earnings per share between $1.60 and $1.90.
Costco Wholesale Corp. advanced 1.4% to $928.10 after the membership warehouse club operator reported monthly sales data.
Sales in the five-week period ended October 5 rose 8% to $26.58 billion, and the U.S. same-store sales advanced 5.1% in the period.
U.S. Movers: Bassett Furniture, Costco, Delta Air Lines, PepsiCo
Scott Peters
09 Oct, 2025
New York City
Bassett Furniture Industries decreased 1.8% to $16.50 despite the company reporting improved sales and net income swinging to a profit.
Revenue in the third quarter rose to $80.1 million from $75.6 million, and net income per share increased to a profit of 9 cents, compared to a loss of 52 cents a year ago.
PepsiCo increased 0.7% to $139.80 after the beverage and snack company reported better-than-expected results in the third quarter.
Net revenue increased 2.6% to $23.9 billion from $23.3 billion, net income attributable to shareholders eased to $2.6 billion from $2.9 billion, and diluted earnings per share decreased to $1.90 from $2.13 a year ago.
“Our reported net revenue growth accelerated and reflects the resilience of our international business, improved momentum within North America Beverages, and the benefits of our portfolio reshaping actions,” said Chairman and CEO Ramon Laguarta.
The company guided 2025 organic revenue to increase in "low single digits" and core constant currency earnings per share to match the prior year's level.
Delta Air Lines increased 5.9% to $60.50, and the international carrier's third-quarter results surpassed market expectations, and it issued a strong outlook.
Total operating revenue in the third quarter increased by 6%, reaching $16.7 billion, up from $15.7 billion; net income rose by 11% to $1.41 billion, compared to $1.27 billion; and diluted earnings per share increased to $2.17 from $1.97 a year ago.
The airline guided fourth-quarter revenue to rise between 2% and 4% from a year ago and adjusted earnings per share between $1.60 and $1.90.
Costco Wholesale Corp. advanced 1.4% to $928.10 after the membership warehouse club operator reported monthly sales data.
Sales in the five-week period ended October 5 rose 8% to $26.58 billion, and the U.S. same-store sales advanced 5.1% in the period.
Tech Stocks Rebound from Friday's Sell-Off, Gold and Silver Scale New Record Highs
Barry Adams
13 Oct, 2025
New York City
U.S. stock indexes edged higher on Monday after registering steep losses on Friday.
The S&P 500 index advanced 1.0%, the tech-heavy Nasdaq Composite rose 1.3%, and gold inched higher into record territory to $4,070 an ounce.
The U.S. president's announcement of additional steep tariffs on China, which stoked fears of escalation in the trade war, shocked investors on Friday.
Trump's threat to impose additional 100% tariffs rattled Wall Street, and major indexes dropped 3% in New York and more than 1.5% in Europe.
The mercurial Donald Trump's move to threaten its key trading partner with aggressive tariffs reignited fears of trade uncertainty and resurgent inflation.
However, those fears receded after Trump walked back from his threats on Sunday, but not without injecting volatility into global financial markets.
Global investors have started shifting away from allocating funds to the U.S. dollar-denominated assets, including Treasury bonds and notes, as the federal government shutdown entered its third week.
The U.S. federal government debt is projected to reach $37.2 trillion by the end of the current fiscal year in September, and the annual deficit is expected to remain above 6%.
Investors have overlooked elevated U.S. debt and deficit and unresolved U.S. trade policy for months now and bid up AI stocks as traders chase returns.
Confidence in the U.S. dollar and U.S. dollar-denominated assets has been shaken by rising macroeconomic headwinds, persistent attacks on the Federal Reserve's independence, and the Trump administration's interference with economic statistical reporting.
Week Ahead
In the week ahead, U.S. investors are looking forward to earnings releases from major banks and leading financial services providers as the government shutdown enters its third week.
The economic data blackout is likely to continue next week as lawmakers of both parties struggle to strike a compromise and end the federal government shutdown.
The Labor Department plans to bring back some staff to calculate the consumer price inflation index for the third quarter, which is used by the Social Security Agency to calculate and publish annual cost of living adjustments before November 1.
However, the release of monthly reports on CPI, PPI, housing starts, retail sales, building permits, and import and export prices is likely to be delayed.
Earnings releases are scheduled to pick up, and Citigroup, JPMorgan Chase, Bank of America, Morgan Stanley, Goldman Sachs, BlackRock, American Express, and Charles Schwab are set to release their quarterly results on Tuesday and Wednesday.
U.S. Stock Movers
AI-linked tech stocks rebounded from Friday's sell-off, but market anxieties stayed elevated.
Nvidia Corp. jumped 2.4% to $187.88, AMD gained 3.2% to $221.72, Alphabet increased 1.1% to $240.85, and Microsoft gained 1.1% to $516.99.
Tech Stocks Rebound from Friday's Sell-Off, Gold and Silver Scale New Record Highs
Barry Adams
13 Oct, 2025
New York City
U.S. stock indexes edged higher on Monday after registering steep losses on Friday.
The S&P 500 index advanced 1.0%, the tech-heavy Nasdaq Composite rose 1.3%, and gold inched higher into record territory to $4,070 an ounce.
The U.S. president's announcement of additional steep tariffs on China, which stoked fears of escalation in the trade war, shocked investors on Friday.
Trump's threat to impose additional 100% tariffs rattled Wall Street, and major indexes dropped 3% in New York and more than 1.5% in Europe.
The mercurial Donald Trump's move to threaten its key trading partner with aggressive tariffs reignited fears of trade uncertainty and resurgent inflation.
However, those fears receded after Trump walked back from his threats on Sunday, but not without injecting volatility into global financial markets.
Global investors have started shifting away from allocating funds to the U.S. dollar-denominated assets, including Treasury bonds and notes, as the federal government shutdown entered its third week.
The U.S. federal government debt is projected to reach $37.2 trillion by the end of the current fiscal year in September, and the annual deficit is expected to remain above 6%.
Investors have overlooked elevated U.S. debt and deficit and unresolved U.S. trade policy for months now and bid up AI stocks as traders chase returns.
Confidence in the U.S. dollar and U.S. dollar-denominated assets has been shaken by rising macroeconomic headwinds, persistent attacks on the Federal Reserve's independence, and the Trump administration's interference with economic statistical reporting.
Week Ahead
In the week ahead, U.S. investors are looking forward to earnings releases from major banks and leading financial services providers as the government shutdown enters its third week.
The economic data blackout is likely to continue next week as lawmakers of both parties struggle to strike a compromise and end the federal government shutdown.
The Labor Department plans to bring back some staff to calculate the consumer price inflation index for the third quarter, which is used by the Social Security Agency to calculate and publish annual cost of living adjustments before November 1.
However, the release of monthly reports on CPI, PPI, housing starts, retail sales, building permits, and import and export prices is likely to be delayed.
Earnings releases are scheduled to pick up, and Citigroup, JPMorgan Chase, Bank of America, Morgan Stanley, Goldman Sachs, BlackRock, American Express, and Charles Schwab are set to release their quarterly results on Tuesday and Wednesday.
U.S. Stock Movers
AI-linked tech stocks rebounded from Friday's sell-off, but market anxieties stayed elevated.
Nvidia Corp. jumped 2.4% to $187.88, AMD gained 3.2% to $221.72, Alphabet increased 1.1% to $240.85, and Microsoft gained 1.1% to $516.99.
Hong Kong Indexes Plunged 3%, China's Exports and Trade Surplus Rebounded
Li Chen
13 Oct, 2025
Hong Kong
Stock market indexes in China and Hong Kong plunged on Monday after a rapid escalation of trade tensions reignited fears of a prolonged trade war.
The Hang Seng index dropped 3%, and the mainland-focused CSI 300 index fell nearly 2% as investors reviewed the latest salvo of U.S. tariff threats.
The U.S. president threatened to impose additional 100% tariffs on China's goods and services from November 1, after China tightened restrictions on rare earth mineral shipments.
The group of critical minerals are used in the manufacturing of electronics, semiconductors, and battery-powered vehicles, and China's sweeping restrictions could sharply curtail advanced electronics output and supply chains in Japan, Taiwan, and South Korea.
China's Exports Show Resilience Amid U.S. Headwinds
China's exports rebounded in September as producers diversified to new markets amid ongoing trade tensions with the U.S.
Exports soared 8.3% to $328.6 billion, and imports advanced 7.4% to $238.1 billion, driving the trade surplus up by 11% to $90.45 billion, the General Administration of Customs reported on Monday.
Overseas buyers front-loaded orders ahead of the Golden Week holiday in October, driving exports to a seven-month high.
China's exports to the U.S. accounted for 10.4% of total goods exports in September, after shipments to the world's largest economy fell 27% from a year ago compared to an annual decrease of 33.1% in the previous month.
Despite the shrinking trade with the U.S., China's trade surplus edged higher to $20.9 billion from $20.3 billion in August.
Chinese manufacturers diversified their shipments to other destinations, and shipments to the ASEAN region increased 15.6%, to the European Union rose 14.2%, to Latin America 15.2%, and to Africa by 56.4%.
Year-to-date At the end of September, China's goods trade surplus rose 6.1% to $875.1 billion, reflecting a 6.1% increase in exports and 1.1% in imports in the period.
China Indexes and Stocks
The Hang Seng index dropped 3% to 25,503.98, and the CSI 300 index decreased 1.8% to 4,535.78.
Alibaba Group Holding Ltd. decreased 5.5% to HK $156.30, Tencent Holdings dropped 4.4% to HK $624.50, and Meituan fell 4% to HK $97.65.
HSBC Holdings plc decreased 1.9% to HK $101.30, China Merchants Bank eased 1.9% to HK $45.40, and China Life Insurance fell 4.2% to HK $21.14.
Hong Kong Indexes Plunged 3%, China's Exports and Trade Surplus Rebounded
Li Chen
13 Oct, 2025
Hong Kong
Stock market indexes in China and Hong Kong plunged on Monday after a rapid escalation of trade tensions reignited fears of a prolonged trade war.
The Hang Seng index dropped 3%, and the mainland-focused CSI 300 index fell nearly 2% as investors reviewed the latest salvo of U.S. tariff threats.
The U.S. president threatened to impose additional 100% tariffs on China's goods and services from November 1, after China tightened restrictions on rare earth mineral shipments.
The group of critical minerals are used in the manufacturing of electronics, semiconductors, and battery-powered vehicles, and China's sweeping restrictions could sharply curtail advanced electronics output and supply chains in Japan, Taiwan, and South Korea.
China's Exports Show Resilience Amid U.S. Headwinds
China's exports rebounded in September as producers diversified to new markets amid ongoing trade tensions with the U.S.
Exports soared 8.3% to $328.6 billion, and imports advanced 7.4% to $238.1 billion, driving the trade surplus up by 11% to $90.45 billion, the General Administration of Customs reported on Monday.
Overseas buyers front-loaded orders ahead of the Golden Week holiday in October, driving exports to a seven-month high.
China's exports to the U.S. accounted for 10.4% of total goods exports in September, after shipments to the world's largest economy fell 27% from a year ago compared to an annual decrease of 33.1% in the previous month.
Despite the shrinking trade with the U.S., China's trade surplus edged higher to $20.9 billion from $20.3 billion in August.
Chinese manufacturers diversified their shipments to other destinations, and shipments to the ASEAN region increased 15.6%, to the European Union rose 14.2%, to Latin America 15.2%, and to Africa by 56.4%.
Year-to-date At the end of September, China's goods trade surplus rose 6.1% to $875.1 billion, reflecting a 6.1% increase in exports and 1.1% in imports in the period.
China Indexes and Stocks
The Hang Seng index dropped 3% to 25,503.98, and the CSI 300 index decreased 1.8% to 4,535.78.
Alibaba Group Holding Ltd. decreased 5.5% to HK $156.30, Tencent Holdings dropped 4.4% to HK $624.50, and Meituan fell 4% to HK $97.65.
HSBC Holdings plc decreased 1.9% to HK $101.30, China Merchants Bank eased 1.9% to HK $45.40, and China Life Insurance fell 4.2% to HK $21.14.