Market Update
Nikkei 225 Rebounded After Fed's Rate Cut, Japan's Core Machinery Orders Dropped Sharply In July
Akira Ito
18 Sep, 2025
Tokyo
Japan's key indexes rebounded from the previous session after the U.S. Federal Reserve delivered a quarter-point rate cut as widely anticipated.
The Nikkei 225 Stock Average increased 1.3%, and the broader Topix gained 0.5% ahead of the Bank of Japan's policy decision on Friday.
The U.S. Federal Reserve cut its fed funds rate range by 25 basis points to between 4.0% and 4.25% and signaled possible additional rate cuts totaling 50 basis points in 2025.
The central bank revised its 2025 GDP growth estimate to 1.6% from 1.4% but held its jobless rate estimate at 4.5%, PCE inflation at 3.0%, and core PCE rate at 3.1% compared to its previous estimate released in June.
Closer to home, the Bank of Japan is widely anticipated to hold its short-term rate at 0.5% on Friday as policymakers assess the impact of U.S. tariffs on the export-driven Japanese economy.
Volatile Core Machinery Orders Dropped Sharply in June
Japan's core machine orders declined in July from the previous month, led by the non-manufacturing sector, the Cabinet Office reported Thursday.
Core machinery orders, which exclude large and infrequent orders for ships and power plants, fell 4.6% in July to ¥898 billion yen, reversing a 3% increase in June.
Core machine orders are seen as a leading indicator of the capital spending over the next six to nine months.
The drop was led by the non-manufacturing sector, which decreased 3.9% to ¥501.1 billion, while manufacturing orders advanced 3.9% to ¥428.4 billion.
On an annual basis, core machinery orders rose at a slower pace of 4.9% compared to the 7.6% rise in June.
Japan Indexes and Stocks
The Nikkei 225 Stock Average soared 1.3% to 45,379.37, and the broader Topix advanced 0.5% to 3,161.28.
Technology stocks led gainers in Tokyo on Thursday, following the U.S. rate cut.
SoftBank Group Corp. increased 2.2% to ¥18,445.0, Tokyo Electron advanced 5.7% to ¥25,620.0, and Lasertec gained 3% to ¥17,225.0.
Sumitomo Mitsui Financial Group increased 0.6% to ¥4,074.0, Mitsubishi UFJ Financial added 0.3% to ¥2,286.50, and Mizuho Financial Group inched lower 0.04% to ¥4,774.0.
Nikkei 225 Rebounded After Fed's Rate Cut, Japan's Core Machinery Orders Dropped Sharply In July
Akira Ito
18 Sep, 2025
Tokyo
Japan's key indexes rebounded from the previous session after the U.S. Federal Reserve delivered a quarter-point rate cut as widely anticipated.
The Nikkei 225 Stock Average increased 1.3%, and the broader Topix gained 0.5% ahead of the Bank of Japan's policy decision on Friday.
The U.S. Federal Reserve cut its fed funds rate range by 25 basis points to between 4.0% and 4.25% and signaled possible additional rate cuts totaling 50 basis points in 2025.
The central bank revised its 2025 GDP growth estimate to 1.6% from 1.4% but held its jobless rate estimate at 4.5%, PCE inflation at 3.0%, and core PCE rate at 3.1% compared to its previous estimate released in June.
Closer to home, the Bank of Japan is widely anticipated to hold its short-term rate at 0.5% on Friday as policymakers assess the impact of U.S. tariffs on the export-driven Japanese economy.
Volatile Core Machinery Orders Dropped Sharply in June
Japan's core machine orders declined in July from the previous month, led by the non-manufacturing sector, the Cabinet Office reported Thursday.
Core machinery orders, which exclude large and infrequent orders for ships and power plants, fell 4.6% in July to ¥898 billion yen, reversing a 3% increase in June.
Core machine orders are seen as a leading indicator of the capital spending over the next six to nine months.
The drop was led by the non-manufacturing sector, which decreased 3.9% to ¥501.1 billion, while manufacturing orders advanced 3.9% to ¥428.4 billion.
On an annual basis, core machinery orders rose at a slower pace of 4.9% compared to the 7.6% rise in June.
Japan Indexes and Stocks
The Nikkei 225 Stock Average soared 1.3% to 45,379.37, and the broader Topix advanced 0.5% to 3,161.28.
Technology stocks led gainers in Tokyo on Thursday, following the U.S. rate cut.
SoftBank Group Corp. increased 2.2% to ¥18,445.0, Tokyo Electron advanced 5.7% to ¥25,620.0, and Lasertec gained 3% to ¥17,225.0.
Sumitomo Mitsui Financial Group increased 0.6% to ¥4,074.0, Mitsubishi UFJ Financial added 0.3% to ¥2,286.50, and Mizuho Financial Group inched lower 0.04% to ¥4,774.0.
PBOC Adjusted Yuan Exchange Rate and HKMA Lowered Interest Rate Following U.S. Fed's Rate Cut
Li Chen
18 Sep, 2025
Hong Kong
Benchmark stock indexes in China and Hong Kong hovered around the flatline following the U.S. Federal Reserve's rate decisions and economic projections.
The Hang Seng index decreased 0.2%, and the mainland-focused CSI 300 index gained 0.3% after the Federal Reserve lowered its key lending rate range by 25 basis points to between 4.0% and 4.25%.
The central bank estimated as many as two rate cuts of 25 basis points by the end of the year but left unrevised its inflation and jobless rate outlook for 2025.
The Fed delivered the widely anticipated 25-basis-point rate cut to support the rapidly deteriorating labor market; however, the immediate outlook for the economy remains uncertain.
Policymakers are struggling to keep inflation in check while supporting growth in the labor market, but the sharp escalation in import taxes is likely to keep it higher for longer.
The Hong Kong Monetary Authority lowered its interest rate by 25 basis points to 4.5%, matching the U.S. rate cut to preserve the HK dollar's peg to the U.S. dollar.
The new base rate is the lowest since December 2022.
“A lower interest rate would reduce the burden of mortgage borrowers and companies, which will have a positive impact on Hong Kong’s economy and property market,” announced HKMA’s chief executive Eddie Yue Wai-man following the rate cut.
After the Federal Reserve delivered its first rate cut of the year, the People's Bank of China adjusted its daily yuan rate to 7.1085 against the U.S. dollar, down from 7.1015 on Wednesday.
China Indexes and Stocks
The Hang Seng index decreased 0.2% to 26,867.65, and the mainland-focused CSI 300 index inched higher 0.3% to 4,565.65.
Chipmakers advanced on optimism that large Chinese companies are more likely to use homegrown advanced chips for their artificial intelligence applications.
SMIC advanced 5.6% to HK$71.80, Alibaba Group Holding increased 0.3% to HK$161.80, and Baidu Inc. gained 4.3% to HK$136.30.
PBOC Adjusted Yuan Exchange Rate and HKMA Lowered Interest Rate Following U.S. Fed's Rate Cut
Li Chen
18 Sep, 2025
Hong Kong
Benchmark stock indexes in China and Hong Kong hovered around the flatline following the U.S. Federal Reserve's rate decisions and economic projections.
The Hang Seng index decreased 0.2%, and the mainland-focused CSI 300 index gained 0.3% after the Federal Reserve lowered its key lending rate range by 25 basis points to between 4.0% and 4.25%.
The central bank estimated as many as two rate cuts of 25 basis points by the end of the year but left unrevised its inflation and jobless rate outlook for 2025.
The Fed delivered the widely anticipated 25-basis-point rate cut to support the rapidly deteriorating labor market; however, the immediate outlook for the economy remains uncertain.
Policymakers are struggling to keep inflation in check while supporting growth in the labor market, but the sharp escalation in import taxes is likely to keep it higher for longer.
The Hong Kong Monetary Authority lowered its interest rate by 25 basis points to 4.5%, matching the U.S. rate cut to preserve the HK dollar's peg to the U.S. dollar.
The new base rate is the lowest since December 2022.
“A lower interest rate would reduce the burden of mortgage borrowers and companies, which will have a positive impact on Hong Kong’s economy and property market,” announced HKMA’s chief executive Eddie Yue Wai-man following the rate cut.
After the Federal Reserve delivered its first rate cut of the year, the People's Bank of China adjusted its daily yuan rate to 7.1085 against the U.S. dollar, down from 7.1015 on Wednesday.
China Indexes and Stocks
The Hang Seng index decreased 0.2% to 26,867.65, and the mainland-focused CSI 300 index inched higher 0.3% to 4,565.65.
Chipmakers advanced on optimism that large Chinese companies are more likely to use homegrown advanced chips for their artificial intelligence applications.
SMIC advanced 5.6% to HK$71.80, Alibaba Group Holding increased 0.3% to HK$161.80, and Baidu Inc. gained 4.3% to HK$136.30.
Federal Reserve Lowered Rates and Retained Inflation and Unemployment Outlook
Barry Adams
17 Sep, 2025
New York City
Wall Street indexes flatlined on Wednesday ahead of the widely anticipated monetary policy decision.
The S&P 500 index decreased 0.1%, and the tech-focused Nasdaq Composite fell 0.3% as investors reviewed the Federal Reserve's rate decisions and economic projections.
The Federal Reserve, as widely anticipated, lowered the fed funds rate range by 25 basis points to between 4.0% and 4.25%, amid deteriorating labor market conditions.
The central bank lowered rates for the first time this year and signaled additional rate cuts later in the year.
The central bank revised its 2025 GDP growth estimate to 1.6% from 1.4% but held its jobless rate estimate at 4.5%, PCE inflation at 3.0%, and core PCE rate at 3.1% compared to its previous estimate released in June.
Meanwhile, consumer price inflation remains a worry for the policymakers as the sharp escalation in import taxes filters through the economy and wipes out hundreds and thousands of small businesses across the nation.
Moreover, farmers are struggling to find buyers for soybeans, wheat, and corn; China imports about half of these key crops that are heavily subsidized by the U.S. federal government.
China has been trimming its imports of U.S. agricultural products, and the world's second-largest economy has been sourcing increasing amounts from Brazil and Argentina since the start of the Trump administration's global tariff war.
Housing Starts and Building Permits Highlight Weakening Activities
The latest housing market data pointed to a mixed picture as builders struggle with challenging labor market conditions and rising costs of imported materials following the Trump administration's erratic trade policy.
August's housing completions advanced 8.4%, building permits dropped 11.1%, and housing starts decreased 6% from a year ago, respectively.
Seasonally adjusted building permits were at an annual rate of 1.31 million, 3.7% lower than the revised 1.36 million annual rate in July, according to the U.S. Census Bureau.
Housing starts in August were at an annual rate of 1.31 million, 8.5% lower than the revised annual rate of 1.43 million in July.
However, the housing completions rose 8.4% to a 1.61 million annual rate from the revised July estimate of 1.48 million.
U.S. Stock Movers
Alibaba Group Holding jumped 2.6% to $166.35, and the China-based e-commerce platform operator said China Unicom has agreed to use its AI chips.
Nvidia Corp. decreased 0.7% to $173.25 after a report claimed that China has banned its largest industrial and electronics companies from using the company's AI chips.
The U.K.-based Financial Times first reported China's ban, which could not be verified by our independent sources in Shenzhen and Beijing.
U.S. Investors Await Fed's Rate Decisions and Projections, Housing Market Activities Weaken
Barry Adams
17 Sep, 2025
New York City
Wall Street indexes flatlined on Wednesday ahead of the widely anticipated monetary policy decision.
The S&P 500 index decreased 0.1%, and the tech-focused Nasdaq Composite was nearly unchanged ahead of the Federal Reserve's rate decisions at 2:00 p.m. ET.
The Federal Reserve is widely anticipated to lower the fed funds rate range by 25 basis points to between 4.0% and 4.25%, amid deteriorating labor market conditions.
Meanwhile, consumer price inflation remains a worry for the policymakers as the sharp escalation in import taxes filters through the economy and wipes out hundreds and thousands of small businesses across the nation.
Moreover, farmers are struggling to find buyers for soybeans, wheat, and corn; China imports about half of these key crops that are heavily subsidized by the U.S. federal government.
China has been trimming its imports of U.S. agricultural products, and the world's second-largest economy has been sourcing increasing amounts from Brazil and Argentina since the start of the Trump administration's global tariff war.
Housing Starts and Building Permits Highlight Weakening Activities
The latest housing market data pointed to a mixed picture as builders struggle with challenging labor market conditions and rising costs of imported materials following the Trump administration's erratic trade policy.
August's housing completions advanced 8.4%, building permits dropped 11.1%, and housing starts decreased 6% from a year ago, respectively.
Seasonally adjusted building permits were at an annual rate of 1.31 million, 3.7% lower than the revised 1.36 million annual rate in July, according to the U.S. Census Bureau.
Housing starts in August were at an annual rate of 1.31 million, 8.5% lower than the revised annual rate of 1.43 million in July.
However, the housing completions rose 8.4% to a 1.61 million annual rate from the revised July estimate of 1.48 million.
U.S. Stock Movers
Alibaba Group Holding jumped 2.6% to $166.35, and the China-based e-commerce platform operator said China Unicom has agreed to use its AI chips.
Nvidia Corp. decreased 0.7% to $173.25 after a report claimed that China has banned its largest industrial and electronics companies from using the company's AI chips.
The U.K.-based Financial Times first reported China's ban, which could not be verified by our independent sources in Shenzhen and Beijing.
Japan's Indexes Hovered Near Record Highs, Imports Declined In August
Akira Ito
17 Sep, 2025
Tokyo
Japan's benchmark indexes turned lower and flirted near record highs after weak international trade data.
The Nikkei 225 Stock Average declined 0.01%, and the broader Topix decreased 0.6% after imports fell for the fifth month in 2025 and exports declined for the fourth consecutive month in August.
Japan's International Trade Deficit Shrank In August
Japan's imports declined 5.2% from a year ago to 8.7 trillion yen, highlighting sluggish domestic demand despite the government's efforts to support consumption and subsidize energy prices.
Japan's exports eased to 8.4 trillion yen from 9.5 trillion yen in July and were slightly below 8.43 trillion yen from a year ago, Japan's ministry of finance reported Wednesday.
The sharp escalation in U.S. tariffs continued to whiplash Japan's exports, and the U.S. lowered its tariffs to 15% on all Japanese goods from the proposed 25% and 27.5% on automobiles and auto parts.
Overall the trade deficit in August shrank sharply to 242.5 billion yen from 711.4 billion yen a year ago.
The export-driven economy of Japan is likely to face softer economic growth as businesses struggle to find new markets outside of North America.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 0.01% to 44,866.90, and the broader Topix fell 0.6% to 3,149.67.
Sanrio Co. Ltd. increased 0.6% to ¥6,947.0, SoftBank dropped 2% to ¥17,925.0, and Nintendo declined 1.7% to ¥13,535.0.
Tokyo Electron advanced 5% to ¥24,190.0, Advantest Corp. decreased 2.2% to ¥13,810.0, and Disco Corp. increased 1.2% to ¥45,010.0.
Japan's Indexes Hovered Near Record Highs, Imports Declined
Akira Ito
17 Sep, 2025
Tokyo
Japan's benchmark indexes turned lower and flirted near record highs after weak international trade data.
The Nikkei 225 Stock Average declined 0.01%, and the broader Topix decreased 0.6% after imports fell for the fifth month in 2025 and exports declined for the fourth consecutive month in August.
Japan's International Trade Deficit Shrank In August
Japan's imports declined 5.2% from a year ago to 8.7 trillion yen, highlighting sluggish domestic demand despite the government's efforts to support consumption and subsidize energy prices.
Japan's exports eased to 8.4 trillion yen from 9.5 trillion yen in July and were slightly below 8.43 trillion yen from a year ago, Japan's ministry of finance reported Wednesday.
The sharp escalation in U.S. tariffs continued to whiplash Japan's exports, and the U.S. lowered its tariffs to 15% on all Japanese goods from the proposed 25% and 27.5% on automobiles and auto parts.
Overall the trade deficit in August shrank sharply to 242.5 billion yen from 711.4 billion yen a year ago.
The export-driven economy of Japan is likely to face softer economic growth as businesses struggle to find new markets outside of North America.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 0.01% to 44,866.90, and the broader Topix fell 0.6% to 3,149.67.
Sanrio Co. Ltd. increased 0.6% to ¥6,947.0, SoftBank dropped 2% to ¥17,925.0, and Nintendo declined 1.7% to ¥13,535.0.
Tokyo Electron advanced 5% to ¥24,190.0, Advantest Corp. decreased 2.2% to ¥13,810.0, and Disco Corp. increased 1.2% to ¥45,010.0.
China Indexes Reached New 4-Year Highs Amid Flurry of Successful Public Offerings
Li Chen
17 Sep, 2025
Hong Kong
China's stock market indexes advanced, and investors snapped up technology stocks amid earnings optimism.
The Hang Seng index increased 1.4%, and the mainland-focused CSI 300 index edged higher 0.6% amid positive market sentiment following the US-China "trade framework agreement."
Despite the optimistic outlook signaled by trade negotiators, few details were released, and sources in Shanghai and Beijing confirmed that the U.S. and China have significant differences in how to lower trade barriers.
Leaders of the U.S. and China are set to talk on Friday, which could lead to finalization of the transfer of TikTok's U.S. assets and a possible announcement of China's purchase of soybeans and jet aircraft.
China Indexes and Stocks
The Hang Seng Index added 1.4% to 26,805.49, and the mainland-focused CSI 300 index increased 0.6% to 4,550.58.
Tencent Holdings increased 2% to HK$658.0, and the WeChat messaging app operator announced the completion of a 9 billion yuan, or $1.3 billion, offshore bond offering.
Alibaba Group Holding advanced 5% to HK$161.20, Meituan increased 4.4% to HK$105.50, and JD.com jumped 5.7% to HK$137.40.
Baidu Inc. jumped 15% to HK$130.50 after the search engine operator completed a 4.4 billion senior notes offering.
160 Health International soared 148% to HK$137.40, and the mainland-based company priced its initial public offering at HK$11.89 per share.
The digital healthcare matching platform operator sold 33.65 million shares and raised net proceeds of HK$316.1 million.
The company claimed to have 55.2 million registered individual users and 902,300 medical professionals on its platform.
China Indexes Reached New 4-Year Highs Amid Flurry of Successful Public Offerings
Li Chen
17 Sep, 2025
Hong Kong
China's stock market indexes advanced, and investors snapped up technology stocks amid earnings optimism.
The Hang Seng index increased 1.4%, and the mainland-focused CSI 300 index edged higher 0.6% amid positive market sentiment following the US-China "trade framework agreement."
Despite the optimistic outlook signaled by trade negotiators, few details were released, and sources in Shanghai and Beijing confirmed that the U.S. and China have significant differences in how to lower trade barriers.
Leaders of the U.S. and China are set to talk on Friday, which could lead to finalization of the transfer of TikTok's U.S. assets and a possible announcement of China's purchase of soybeans and jet aircraft.
China Indexes and Stocks
The Hang Seng Index added 1.4% to 26,805.49, and the mainland-focused CSI 300 index increased 0.6% to 4,550.58.
Tencent Holdings increased 2% to HK$658.0, and the WeChat messaging app operator announced a completion of a 9 billion yuan, or $1.3 billion, offshore bond offering.
Alibaba Group Holding advanced 5% to HK$161.20, Meituan increased 4.4% to HK$105.50, and JD.com jumped 5.7% to HK$137.40.
Baidu Inc. jumped 15% to HK$130.50 after the search engine operator completed a 4.4 billion senior notes offering.
160 Health International soared 148% to HK$137.40, and the mainland-based company priced its initial public offering at HK$11.89 per share.
The digital healthcare matching platform operator sold 33.65 million shares and raised net proceeds of HK$316.1 million.
The company claimed to have 55.2 million registered individual users and 902,300 medical professionals on its platform.
U.S. Movers: Dave & Buster's Entertainment, Hain Celestial Group
Scott Peters
16 Sep, 2025
New York City
Dave & Buster’s Entertainment Inc. dropped 17.3% to $20 after the entertainment and dining company reported a 72% drop in profit in the fiscal second quarter ending on August 5.
Consolidated revenue inched up to $557.4 million from $557.1 million, net income plunged to $11.4 million from $40.3 million, and diluted earnings per share fell to 32 cents from 99 cents a year ago.
Comparable store sales decreased 3.0%.
During the second quarter, the company opened three new Dave & Buster's stores.
The company’s same-store sales quarter-to-date trends in the fiscal third quarter are consistent with where they were exiting the second quarter.
The company plans to open at least five additional international franchise stores in the next six months.
CEO Tarun Lal emphasized a renewed focus on guest experience, innovation, and long-term sales and cash flow growth.
Hain Celestial Group, Inc., fell 1.9% to $1.59 after the health and wellness consumer goods company reported more than a ninety-fold jump in net loss in the fourth quarter ended on June 30.
The company is in the middle of streamlining its portfolio of organic personal care products and natural foods, and the latest quarterly results were hit by a one-time charge related to "goodwill and certain intangible assets, as well as assets held for sale."
Consolidated revenue inched lower to $363.3 million from $418.8 million, net loss expanded to $272.6 million from $2.9 million, and diluted losses per share advanced to $3.06 from $0.03 a year ago.
Adjusted EBITDA fell to $114 million from $155 million, while free cash flow turned negative to $3 million compared to $83 million in the prior year.
The company recorded pre-tax impairment charges of $496 million, primarily related to goodwill and intangible assets. Net debt decreased to $650 million from $690 million.
"We are taking decisive action to optimize cash, deleverage our balance sheet, stabilize sales, and improve profitability as we recognize our performance has not met expectations,” said Alison Lewis, Interim President and CEO.
Stock Movers: Dave & Buster, Hain Celestial Group
Scott Peters
16 Sep, 2025
New York City
Dave & Buster’s Entertainment Inc. dropped 17.3% to $20 after the entertainment and dining company reported a 72% drop in profit in the fiscal second quarter ending on August 5.
Consolidated revenue inched up to $557.4 million from $557.1 million, net income plunged to $11.4 million from $40.3 million, and diluted earnings per share fell to 32 cents from 99 cents a year ago.
Comparable store sales decreased 3.0%.
During the second quarter, the company opened three new Dave & Buster's stores.
The company’s same-store sales quarter-to-date trends in the fiscal third quarter are consistent with where they were exiting the second quarter.
The company plans to open at least five additional international franchise stores in the next six months.
CEO Tarun Lal emphasized a renewed focus on guest experience, innovation, and long-term sales and cash flow growth.
Hain Celestial Group, Inc., fell 1.9% to $1.59 after the health and wellness consumer goods company reported more than a ninety-fold jump in net loss in the fourth quarter ended on June 30.
The company is in the middle of streamlining its portfolio of organic personal care products and natural foods, and the latest quarterly results were hit by a one-time charge.
Consolidated revenue inched lower to $363.3 million from $418.8 million, net loss expanded to $272.6 million from $2.9 million, and diluted losses per share advanced to $3.06 from $0.03 a year ago.
Adjusted EBITDA fell to $114 million from $155 million, while free cash flow turned negative to $3 million compared to $83 million in the prior year.
The company recorded pre-tax impairment charges of $496 million, primarily related to goodwill and intangible assets. Net debt decreased to $650 million from $690 million.
"We are taking decisive action to optimize cash, deleverage our balance sheet, stabilize sales, and improve profitability as we recognize our performance has not met expectations,” said Alison Lewis, Interim President and CEO.