Market Update
Japan's Stock Indexes Jumped 3%; Yen and Bonds Turned Lower Amid Stimulus Plan Size Worries
Akira Ito
20 Nov, 2025
Tokyo
Stocks in Japan advanced in a broad market rally, powered by a rebound in AI-linked stocks following Nvidia's stronger-than-expected quarterly results.
The Nikkei 225 Stock Average soared nearly 3%, and the broader Topix advanced 2%, as AI bubble worries receded.
The 4-day market slumped after benchmark indexes soared as investors stepped up to increase exposure to AI-linked stocks and technology companies.
Nvidia's revenue in the third quarter soared 67% from a year ago to a record $57 billion, and the company's current quarter revenue estimate surpassed market expectations.
Nvidia's strong revenue growth eased market worries that the race to build data centers could slow down in the near future, after CEO Jensen Huang said that demand for its Blackwell chips is "off the charts."
However, the Japanese bond and currency markets danced to a different tune, and investors worried that Prime Minister Takaichi's plan could worsen Japan's fiscal debt problem.
Investors anticipate the stimulus budget to be as large as 25 trillion yen.
The yen dropped to a new 10-month low of 157.45 against the U.S. dollar, and the yield on Japan's 10-year bonds rose above 1.8%, the highest level since 2008.
Japan Indexes and Stocks
The Nikkei 225 Stock Average jumped 2.8% to 49,903.96, and the broader Topix advanced 2% to 3,309.39.
SoftBank Group advanced 2.8% to ¥19,310.0, Tokyo Electron jumped 5.5% to ¥32,570.0, and Advantest Corp. increased 8.6% to ¥20,795.0.
Kioxia Holdings jumped 4.3% to ¥11,305.0, and last week the company announced net income in the fiscal second quarter plunged 62%.
However, the memory chip maker, spun off from Toshiba Corp., held out for strong sales in the current quarter.
Japan's Stock Indexes Jumped 3%; Yen and Bonds Turned Lower Amid Stimulus Plan Size Worries
Akira Ito
20 Nov, 2025
Tokyo
Stocks in Japan advanced in a broad market rally, powered by a rebound in AI-linked stocks following Nvidia's stronger-than-expected quarterly results.
The Nikkei 225 Stock Average soared nearly 3%, and the broader Topix advanced 2%, as AI bubble worries receded.
The 4-day market slumped after benchmark indexes soared as investors stepped up to increase exposure to AI-linked stocks and technology companies.
Nvidia's revenue in the third quarter soared 67% from a year ago to a record $57 billion, and the company's current quarter revenue estimate surpassed market expectations.
Nvidia's strong revenue growth eased market worries that the race to build data centers could slow down in the near future, after CEO Jensen Huang said that demand for its Blackwell chips is "off the charts."
However, the Japanese bond and currency markets danced to a different tune, and investors worried that Prime Minister Takaichi's plan could worsen Japan's fiscal debt problem.
Investors anticipate the stimulus budget to be as large as 25 trillion yen.
The yen dropped to a new 10-month low of 157.45 against the U.S. dollar, and the yield on Japan's 10-year bonds rose above 1.8%, the highest level since 2008.
Japan Indexes and Stocks
The Nikkei 225 Stock Average jumped 2.8% to 49,903.96, and the broader Topix advanced 2% to 3,309.39.
SoftBank Group advanced 2.8% to ¥19,310.0, Tokyo Electron jumped 5.5% to ¥32,570.0, and Advantest Corp. increased 8.6% to ¥20,795.0.
Kioxia Holdings jumped 4.3% to ¥11,305.0, and last week the company announced net income in the fiscal second quarter plunged 62%.
However, the memory chip maker, spun off from Toshiba Corp., held out for strong sales in the current quarter.
China and HK Indexes Ended 4-Day Slump, CICC Agreed to Acquire Two Smaller Rivals
Li Chen
20 Nov, 2025
Hong Kong
China and Hong Kong indexes halted a 4-day slump after tech stocks edged higher.
The Hang Seng inched up 0.4%, and the mainland-focused CSI 300 index increased 0.3% after Nvidia's results surpassed market expectations.
Nvidia Corp., the AI chip maker at the center of a seven-month-long market rally, reported revenue soared 62% from a year ago to a record $57 billion in its latest quarter, soothing market nerves.
The company's current-quarter revenue guidance exceeded market expectations, easing worries that surging valuations were ahead of fundamentals.
Following Nvidia's stronger-than-expected quarterly results and outlook, AI supply chain-driven stocks rallied in Japan, South Korea, and Taiwan.
China Indexes and Stocks
The Hang Seng Index edged up 0.4% to 25,916.89, and the mainland-focused CSI 300 index gained 0.3% to 4,602.02.
China International Capital Corp., or CICC, was halted at HK $18.96 after the company announced its plans to acquire two smaller rivals.
The combined company would have about one trillion yuan, or $140 billion, in assets under management after merging with Cinda Securities and Dongxing Securities.
The People's Bank of China and central committee policymakers have been urging brokerage companies to consolidate and create domestic giants capable of international expansion.
A unit of China's sovereign wealth fund, Central Huijin Investment, controls CICC, Cinda, and Dongxing, facilitating the easier consolidation.
Central Huijin controls a 40% stake in CICC, 45% in Dongxing, and 79% in Cinda.
China and HK Indexes Ended 4-Day Slump, CICC Agreed to Acquire Two Smaller Riva
Li Chen
20 Nov, 2025
Hong Kong
China and Hong Kong indexes halted a 4-day slump after tech stocks edged higher.
The Hang Seng inched up 0.4%, and the mainland-focused CSI 300 index increased 0.3% after Nvidia's results surpassed market expectations.
Nvidia Corp., the AI chip maker at the center of a seven-month-long market rally, reported revenue soared 62% from a year ago to a record $57 billion in its latest quarter, soothing market nerves.
The company's current-quarter revenue guidance exceeded market expectations, easing worries that surging valuations were ahead of fundamentals.
Following Nvidia's stronger-than-expected quarterly results and outlook, AI supply chain-driven stocks rallied in Japan, South Korea, and Taiwan.
China Indexes and Stocks
The Hang Seng Index edged up 0.4% to 25,916.89, and the mainland-focused CSI 300 index gained 0.3% to 4,602.02.
China International Capital Corp., or CICC, was halted at HK $18.96 after the company announced its plans to acquire two smaller rivals.
The combined company would have about one trillion yuan, or $140 billion, in assets under management after merging with Cinda Securities and Dongxing Securities.
The People's Bank of China and central committee policymakers have been urging brokerage companies to consolidate and create domestic giants capable of international expansion.
A unit of China's sovereign wealth fund, Central Huijin Investment, controls CICC, Cinda, and Dongxing, facilitating the easier consolidation.
Central Huijin controls a 40% stake in CICC, 45% in Dongxing, and 79% in Cinda.
U.S. Movers: Dolby Labs, Home Depot, Onsemi, Target
Scott Peters
19 Nov, 2025
New York City
Home Depot plunged 6% to $336.48 after the home improvement retailer lowered its same-store sales outlook and muted third-quarter results.
Revenue increased 1.1% to $41.4 billion from $40.2 billion, net income inched lower 1.3% to $3.60 billion from $3.64 billion, and diluted earnings per share fell to $3.62 from $3.67 a year ago.
Comparable sales increased 0.2% from a decline of 1.3%, comparable customer transactions declined to 1.6% from 0.6%, and the average ticket advanced 2% to $90.39 from $88.65 a year ago, respectively.
The do-it-yourself store retailer acknowledged the ongoing consumer uncertainty, the weakening housing market, and the expected post-storm seasonal renovation demand that failed to materialize.
Home Depot estimated total fiscal 2025 sales to increase 3.0%, including $2.0 billion in sales from the recent acquisition of GMS, and comparable sales growth to be "slightly positive" in the comparable 52-week period.
The company forecast diluted earnings per share to decrease 6% from $14.91 in the fiscal year 2024.
Onsemi increased 3.3% to $47.04 after the company's board authorized a new three-year stock repurchase program of $6 billion starting January 1, 2026.
The current stock buyback program, which is scheduled to end at the end of 2025, has acquired about $2.1 billion of stock, using 100% of the company's free cash flow in 2025.
Earlier in the month, the company said revenue decreased to $1.6 billion from $1.8 billion, net income fell to $255 million from $410.7 million, and diluted earnings per share decreased to 63 cents from 93 cents a year ago.
Dolby Laboratories edged up 0.6% to $64.96 after the audio and imaging company's fiscal first-quarter outlook fell short of market expectations.
Revenue in the fiscal fourth quarter ending in September increased to $307 million from $305 million, net attributable income plunged to $49.3 million from $58.6 million, and diluted earnings per share dropped to 51 cents from 61 cents a year ago.
Target Corp. decreased 2.5% to $86.60 after the company reported a decline in sales and earnings in the fiscal third quarter ending in September.
Revenue fell 1.5% to $25.3 billion from $25.7 billion, net income dropped 19.3% to $689 million from $854 million, and diluted earnings per share edged up to $1.14 from $1.12 a year ago.
For the fourth quarter, the company reiterated its estimate of "low-single-digit decline in sales," and the full-year diluted earnings per share estimate was revised lower to between $7.70 and $8.70.