Japan's Exports Jumped to Record High In December, Labor Unions Begin Spring Wage Talks

Akira Ito
23 Jan, 2025
Tokyo

Stock market indexes in Tokyo advanced to two-week highs ahead of the Bank of Japan's rate decisions tomorrow. 

The Nikkei 225 Stock Average increased 0.8% and the TOPIX advanced 0.5%, and both indexes extended gains for the fourth session in a row. 

The Bank of Japan officials in recent days have signaled a possible increase in rates on Friday and an upward revision in the inflation outlook. 

However, investors are divided, and many are anticipating the central bank to delay its rate increase after the ending of spring wage negotiations at large companies. 

After the historic wage increase of 5.1% in 2024, labor unions are hoping to negotiate a similar increase this year as wage talks kicked off this week.

However, smaller firms approved a far smaller wage increase, and most workers settled for a wage increase of between 1% and 2%. 

Japan's wages have been stagnant since 2000, as large Japanese companies expanded overseas and transferred manufacturing operations to China, Mexico, and the ASEAN region. 

On the economic front, Japan's exports increased 2.8% to 9.9 trillion yen, and imports advanced 1.8% to 9.7 trillion yen. 

Exports advanced for the third month in a row and reached a record high, and imports rose at the fastest pace in five months amid rising demand for energy and petroleum products.

Exports to China declined 3.0%, to the U.S. fell 2.1%, but rose to South Korea by 10.9% and to India by 5.5%. 

Imports from India soared 56.6%, from China gained 5.7%, and from the U.S. by 1.4%. 

Japan Stock Movers 

The Nikkei 225 Stock Average increased 0.8% to 39,958.87, and the broader TOPIX gained 0.5% to 2,751.74. 

Tokyo Electron declined 0.6% to¥27,430.0, Advantest Corp. gained 2.4% to¥10,050.0, and Disco Corp.¥50,860.0. 

SoftBank Group Corp. advanced 5.1% to ¥10,755.0 and extended two-day gains to more than 15% after the company was named in a group that claims to invest over $100 billion in building artificial intelligence infrastructure in the U.S. 

Seven &I Holdings declined 0.9% to ¥2,422.0, Fast Retailing added 1% to ¥49,570.0, Takashimaya increased 1% to ¥1,238.0, J Front Retailing advanced 3.2% to ¥2,074.0, and Aeon Co. Ltd. decreased 0.5% to ¥3,584.0. 

Isetan Mitsukoshi added 0.8% to ¥2,520.0. 

China Indexes Jumped 1% After Insurance Pilot Investment Plan to Boost Stocks

Li Chen
23 Jan, 2025
Mumbai

Stock market indexes in China and Hong Kong diverged after the financial regulator announced a pilot program to bolster markets. 

The Hang Seng index erased morning gains of as much as 1% to trade lower by 0.4%, and the mainland-focused CSI 300 index jumped 1% following an announcement by the CSRC. 

The China Securities Regulatory Commission announced a pilot program to invest 30% of annual new insurance premiums in China's onshore markets, potentially boosting prices of large-cap companies. 

The pilot program starting this year would see an annual increase of 10% over the next three years, said Wu Qing, chairman of CSRC, at a press conference held in Beijing on Thursday. 

The regulator said about 100 billion yuan, or about $14 billion, will be invested in the first half of this year, including about half of the funds before the start of Lunar New Year on January 29.

China Stock Movers 

The Hang Seng index decreased 0.4% to 19,705.52, but the mainland-focused CSI 300 index rose 1% to 3,835.34. 

Ping An increased 1.8% to HK $42.70, China Life advanced 2.2% to HK $14.04, and AliHealth gained 0.7% to HK $3.15. 

Leading tech companies advanced after the regulatory announcement to divert insurance premiums into large-cap stocks over the next three years. 

Tencent Holdings decreased 0.5% to HK $380.40, JD.com fell 0.5% to HK $150.40, and Alibaba Group Holdings rose 0.6% to HK $82.70. 

Tencent and JD.com edged up nearly 1% in the early trading but erased gains near the close of the regular trading hours. 

Fuling Technology soared more than 360% to 24.05 yuan after the disposable tableware company priced its initial public offering and lifted its shares on the Shenzhen Stock Exchange. 

The company sold 147.33 million shares and raised 781 million, or $108.7 million, after pricing its shares at 5.30 yuan. 

China Indexes Jumped 1% After Insurance Pilot Investment Plan to Boost Stocks

Li Chen
23 Jan, 2025
Mumbai

Stock market indexes in China and Hong Kong diverged after the financial regulator announced a pilot program to bolster markets. 

The Hang Seng index erased morning gains of as much as 1% to trade lower by 0.4%, and the mainland-focused CSI 300 index jumped 1% following an announcement by the CSRC. 

The China Securities Regulatory Commission announced a pilot program to invest 30% of annual new insurance premiums in China's onshore markets, potentially boosting prices of large-cap companies. 

The pilot program starting this year would see an annual increase of 10% over the next three years, said Wu Qing, chairman of CSRC, at a press conference held in Beijing on Thursday. 

The regulator said about 100 billion yuan, or about $14 billion, will be invested in the first half of this year, including about half of the funds before the start of Lunar New Year on January 29.

China Stock Movers 

The Hang Seng index decreased 0.4% to 19,705.52, but the mainland-focused CSI 300 index rose 1% to 3,835.34. 

Ping An increased 1.8% to HK $42.70, China Life advanced 2.2% to HK $14.04, and AliHealth gained 0.7% to HK $3.15. 

Leading tech companies advanced after the regulatory announcement to divert insurance premiums into large-cap stocks over the next three years. 

Tencent Holdings decreased 0.5% to HK $380.40, JD.com fell 0.5% to HK $150.40, and Alibaba Group Holdings rose 0.6% to HK $82.70. 

Tencent and JD.com edged up nearly 1% in the early trading but erased gains near the close of the regular trading hours. 

Fuling Technology soared more than 360% to 24.05 yuan after the disposable tableware company priced its initial public offering and lifted its shares on the Shenzhen Stock Exchange. 

The company sold 147.33 million shares and raised 781 million, or $108.7 million, after pricing its shares at 5.30 yuan. 

India Movers: BPCL, Dr Reddy's, Elecon, Gravita, HDFC Bank, Polycab, Zensar Technologies

Arun Goswami
23 Jan, 2025
Mumbai

Stock market indexes in Mumbai gained, and investors reacted to the latest batch of earnings. 

Investors are hoping that the central government's upcoming budget will focus on modernizing railways and improving the supply of stable electric power and water in smaller cities.

The Sensex index increased by 0.21% to 76,590.45, and the Nifty index advanced by 0.2% to 23,200.90.

On the Mumbai stock exchange, 23 stocks traded at their 52-week highs, and 50 stocks traded at their 52-week lows.

HDFC Bank Ltd. increased 1.4% to ₹1,665.05 despite the financial services provider reporting a decline in revenue in the December quarter.

Consolidated revenue in the December quarter decreased to ₹1,12,193.9 crore from ₹1,15,015.5 crore, after-tax profit rose to ₹17,656.6 crore from ₹17,257.8 crore, and diluted earnings per share advanced to ₹23 from ₹22.65 a year ago.

Gravita India Ltd. declined 0.6% to ₹2,174.05 despite the company reporting a 32% surge from a year ago in the December quarter revenue.

Consolidated revenue in the December quarter increased to ₹1,025.28 crore from ₹773.21 crore, net income jumped to ₹78.1 crore from ₹61.5 crore, and diluted earnings per share rose to ₹11.35 from ₹8.74 a year ago

Rattanindia Power Limited jumped 1.8% to ₹12.78 after the company swung to a profit despite a decrease in revenue in the latest quarter.

Consolidated revenue in the December quarter decreased to ₹824.2 crore from ₹888.3 crore, net income swung to a profit of ₹4.3 crore from a loss of ₹587 and diluted earnings per share swung to 0.01 paisa from a loss of ₹1.09 a year ago.

Bharat Petroleum Corporation Ltd. increased 2.5% to ₹284.70 and the petroleum products distribution company reported an increase in net income in the December quarter. 

Consolidated revenue in the December quarter decreased to ₹1,28,158.36 crore from ₹1,30,475.59 crore, net income jumped to ₹3,805.94 crore from ₹3,181.42 crore, and diluted earnings per share rose to ₹8.91 from ₹7.47 a year ago.

The company declared interim dividend of ₹5 per share.

Elecon Engineering fell 2% to ₹540 despite the company reporting an increase in revenue and earnings in the fiscal third quarter. 

Consolidated revenue in the December quarter increased to ₹544.5 crore from ₹483.5 crore, net income advanced to ₹107.5 crore from ₹90.4 crore, and diluted earnings per share rose to ₹4.79 from ₹4.03 a year ago.

Wendt (India) Ltd. dropped 7% to ₹13,957.35 after the company reported a decline in quarterly revenue and earnings. 

Consolidated revenue in the December quarter declined to ₹55.32 crore from ₹56.32 crore, after-tax profit fell to ₹8.22 crore from ₹9.60 crore, and diluted earnings per share decreased to ₹41.10 from ₹47.96 a year ago

India Movers: BPCL, Dr Reddy's, Elecon, Gravita, HDFC Bank, Polycab, Zensar Technologies

Arun Goswami
23 Jan, 2025
Mumbai

Stock market indexes in Mumbai gained, and investors reacted to the latest batch of earnings. 

Investors are hoping that the central government's upcoming budget will focus on modernizing railways and improving the supply of stable electric power and water in smaller cities.

The Sensex index increased by 0.21% to 76,590.45, and the Nifty index advanced by 0.2% to 23,200.90.

On the Mumbai stock exchange, 23 stocks traded at their 52-week highs, and 50 stocks traded at their 52-week lows.

HDFC Bank Ltd. increased 1.4% to ₹1,665.05 despite the financial services provider reporting a decline in revenue in the December quarter.

Consolidated revenue in the December quarter decreased to ₹1,12,193.9 crore from ₹1,15,015.5 crore, after-tax profit rose to ₹17,656.6 crore from ₹17,257.8 crore, and diluted earnings per share advanced to ₹23 from ₹22.65 a year ago.

Gravita India Ltd. declined 0.6% to ₹2,174.05 despite the company reporting a 32% surge from a year ago in the December quarter revenue.

Consolidated revenue in the December quarter increased to ₹1,025.28 crore from ₹773.21 crore, net income jumped to ₹78.1 crore from ₹61.5 crore, and diluted earnings per share rose to ₹11.35 from ₹8.74 a year ago

Rattanindia Power Limited jumped 1.8% to ₹12.78 after the company swung to a profit despite a decrease in revenue in the latest quarter.

Consolidated revenue in the December quarter decreased to ₹824.2 crore from ₹888.3 crore, net income swung to a profit of ₹4.3 crore from a loss of ₹587 and diluted earnings per share swung to 0.01 paisa from a loss of ₹1.09 a year ago.

Bharat Petroleum Corporation Ltd. increased 2.5% to ₹284.70 and the petroleum products distribution company reported an increase in net income in the December quarter. 

Consolidated revenue in the December quarter decreased to ₹1,28,158.36 crore from ₹1,30,475.59 crore, net income jumped to ₹3,805.94 crore from ₹3,181.42 crore, and diluted earnings per share rose to ₹8.91 from ₹7.47 a year ago.

The company declared interim dividend of ₹5 per share.

Elecon Engineering fell 2% to ₹540 despite the company reporting an increase in revenue and earnings in the fiscal third quarter. 

Consolidated revenue in the December quarter increased to ₹544.5 crore from ₹483.5 crore, net income advanced to ₹107.5 crore from ₹90.4 crore, and diluted earnings per share rose to ₹4.79 from ₹4.03 a year ago.

Wendt (India) Ltd. dropped 7% to ₹13,957.35 after the company reported a decline in quarterly revenue and earnings. 

Consolidated revenue in the December quarter declined to ₹55.32 crore from ₹56.32 crore, after-tax profit fell to ₹8.22 crore from ₹9.60 crore, and diluted earnings per share decreased to ₹41.10 from ₹47.96 a year ago

Moderna Inc. declined 20% to $33.72 after the biotech company lowered its 2025 revenue range to between $1.5 billion and $2.5 billion, a decrease of $1 billion from the previous estimate as the company continues its operating costs. 

The revised outlook is lower than the previous outlook between $2.5 billion and $3.5 billion issued in September. 

13 Jan, 2025

Lululemon Athletica increased 1.9% to $403.29 after the specialty apparel retailer lifted its fourth quarter sales outlook. 

The company now estimated sales to increase between 11% and 12% to between $3.56 billion and $3.58 billion, higher than the previous range between $3.48 billion and $3.51 billion. 

The company is now forecasting its earnings per share to range between $5.81 and $5.85 compared to the previous estimate between $5.56 and $5.64. 

13 Jan, 2025

Wall Street indexes advanced, and investors reviewed the first of two inflation reports amid heightened attention to underlying drivers after a strong jobs market report. 

The S&P 500 index increased 0.4%, and the Nasdaq Composite advanced 0.5% after the producer price index rose less than expected in December. 

The measure of the wholesale price index rose 0.2% from the previous month, and the core index, which excludes volatile food and energy prices, was flat, according to a report released by the Bureau of Labor Statistics Tuesday. 

On an annual basis, producer price inflation accelerated to 3.3% in December from 3.0% in the previous month, and the core rate of inflation advanced to 3.5%. 

Market participants are sensitive to inflation reports after nonfarm payrolls expanded by faster-than-expected 256,000 in December, confirming that the jobs market is too strong for the Federal Reserve to lower rates at its next meeting, later in the month. 

14 Jan, 2025

Signet Jewelers Ltd. plunged 16% to $62.12 after the parent company of Zales lowered its fourth quarter outlook. 

The company estimated total sales in the fourth quarter to range between $2.32 billion and $2.335 billion, compared to the previous estimate between $2.38 billion and $2.46 billion. 

Same-store sales outlook in the quarter was lowered to a range between a decline of 2.0% and 2.5%, compared to the previous range between flat and an increase of 3.0%. 

The diamond jeweler said same-store sales in the ten-week period to January 11 declined 2% from a year ago. 

The company blamed the sales decline on "merchandise assortment gaps at key gifting price points" and customers seeking more items with promotional discounts. 

14 Jan, 2025

KB Home increased 10.6% to $70.86 after the home builder reported better-than-expected quarterly results. 

Revenue in the fourth quarter increased 19% to $1.99 billion from $1.67 billion, net income advanced 27% to $190.6 million from $150.3 million, and diluted earnings per share rose to $2.52 from $1.85 a year ago. 

Homes delivered in the quarter increased 17% to 3,978 homes, and net orders and net order value for the quarter both increased by 41%, reaching 2,688 and $1.32 billion, respectively. 

14 Jan, 2025

JPMorgan Chase increased 0.8% to $249.40 after the New York-based company reported better-than-expected net interest income, fixed income trading revenue, and investment banking fees. 

Total revenue increased 10% to $43.74 billion, driven by a surge in net interest income to $23.47 billion, fixed-income trading revenue jumped 20% to $5 billion, and investment banking fees soared 49% to $2.48 billion. 

16 Jan, 2025

Consumer price inflation accelerated for the third month in a row in December to 2.9%, and core inflation, which excludes food and energy prices, slowed to an annual 3.2% from 3.3%, according to the monthly report released by the U.S. Bureau of Labor Statistics. 

The annual rate of inflation accelerated from 2.7% in November, largely because of an increase in energy prices from a lower base in the previous year. 

However, shelter cost continued to advance at 4.6% compared to 4.7%, food inflation accelerated to 2.5% from 2.4%, and transportation inflation advanced to 7.3% from 7.1% annual rate in the previous month. 

On the other hand, prices for used cars and trucks fell at a slower annual pace of 3.3% from 3.4%, and new vehicles eased 0.4% compared to a fall of 0.7% annual pace in the previous month. 

15 Jan, 2025

Target Corp. declined 0.8% to $133.52 after the big-box retailer raised its sales outlook in the fourth quarter. 

The retailer said comparable sales are likely to increase 1.5% in the fourth quarter, compared to the previous estimate of flat. 

The company left its earnings estimate unrevised for the quarter and the full year, indicating customers were driven by promotions and deals during the holiday period. 

The retailer anticipated earnings per share in the fourth quarter between $1.85 and $2.45 and for the full year between $8.30 and $8.90. 

Target said it will release detailed financial results on March 4. 

16 Jan, 2025

UnitedHealth Group decreased 3.5% to $525.0 after the health insurance company reported mixed quarterly results. 

Total revenue in the quarter was $100.81 billion, and adjusted earnings per share were $6.81. 

The annual medical cost ratio, the percentage of collected premiums spent on medical care costs, increased to 85.5% from 83.2% in 2023. 

The company reaffirmed its annual earnings per share in 2025 between $29.50 and $30.0, confirming its previous estimate released in December. 

16 Jan, 2025

Costco Wholesale Co edged up 0.1% to $944.50 after the membership warehouse club operator's workers' union of 18,000 workers voted to strike at the end of January if management fails to meet their demands. 

Costco recently reported $254 billion in annual revenue and $7.4 billion in net profits, which is a 135% increase since 2018.

21 Jan, 2025