Market Update
Japan Stocks Struggled Amid Higher Interest Rate Narrative
Akira Ito
27 May, 2025
Tokyo
Stock market indexes in Japan lacked direction as trade uncertainties loomed.
The Nikkei 225 Stock Average declined 0.2%, and the Topix index bounded around the flatline as investors awaited a flood of corporate results this week.
The yen strengthened to a four-week high of 142.85 as the U.S. dollar continued to drift lower amid the rising "Sell U.S." narrative among investors in Asia.
Moreover, expectations rose that the Bank of Japan is likely to continue with its rate increase campaign after core inflation in April unexpectedly accelerated to 3.5%.
Gold retained an upward bias as central banks in Asia continued to allocate more reserves to the precious metal as the U.S. dollar's safe haven status dims.
Japan's trade negotiators are still holding out for a reprieve from a punitive 25% U.S. tariff on Japanese vehicles, but so far an agreement has been elusive.
Moreover, the U.S. delayed the start of the 50% tariffs on imports from the European Union to July 9, as both sides struggled to find common ground.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 0.2% to 37,459.22, and the Topix index edged up 0.01% to 2,753.27.
Tech stocks traded down as investors sold high-flying artificial intelligence-linked stocks.
Tokyo Electron decreased 1.2% to ¥23,060.0, Advantest Corp. dropped 0.4% to ¥7,071.0, and Disco Corp. fell 1.9% to ¥33,630.0.
Seven & I Holdings decreased 0.7% to ¥2,148.50, Fast Retailing dropped 0.1% to ¥47,100.0, Takashimaya Co. Ltd. rose 1.5% to ¥1,158.0, and Isetan Mitsukoshi Ltd. gained 1.5% to ¥2,155.0.
Japan Stocks Struggled Amid Higher Interest Rate Narrative
Akira Ito
27 May, 2025
Tokyo
Stock market indexes in Japan lacked direction as trade uncertainties loomed.
The Nikkei 225 Stock Average declined 0.2%, and the Topix index bounded around the flatline as investors awaited a flood of corporate results this week.
The yen strengthened to a four-week high of 142.85 as the U.S. dollar continued to drift lower amid the rising "Sell U.S." narrative among investors in Asia.
Moreover, expectations rose that the Bank of Japan is likely to continue with its rate increase campaign after core inflation in April unexpectedly accelerated to 3.5%.
Gold retained an upward bias as central banks in Asia continued to allocate more reserves to the precious metal as the U.S. dollar's safe haven status dims.
Japan's trade negotiators are still holding out for a reprieve from a punitive 25% U.S. tariff on Japanese vehicles, but so far an agreement has been elusive.
Moreover, the U.S. delayed the start of the 50% tariffs on imports from the European Union to July 9, as both sides struggled to find common ground.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 0.2% to 37,459.22, and the Topix index edged up 0.01% to 2,753.27.
Tech stocks traded down as investors sold high-flying artificial intelligence-linked stocks.
Tokyo Electron decreased 1.2% to ¥23,060.0, Advantest Corp. dropped 0.4% to ¥7,071.0, and Disco Corp. fell 1.9% to ¥33,630.0.
Seven & I Holdings decreased 0.7% to ¥2,148.50, Fast Retailing dropped 0.1% to ¥47,100.0, Takashimaya Co. Ltd. rose 1.5% to ¥1,158.0, and Isetan Mitsukoshi Ltd. gained 1.5% to ¥2,155.0.
China Industrial Profit Growth Accelerated In April, Meituan Earnings Mask Rising Competitive Pressures
Li Chen
27 May, 2025
Hong Kong
Stock market indexes in China and Hong Kong struggled to stay above the flatline, and persistent worries about the domestic economic growth slowdown were compounded by U.S. trade policy uncertainties.
The Hang Seng index decreased 0.4%, and the mainland-focused CSI 300 index decreased 0.6%, and industrial profits at leading Chinese companies rose at a faster pace in April.
Profits at industrial companies accelerated to 3.0% in April from 2.6% in March, supported by Beijing's continued efforts to support economic expansion and ward off mounting trade risks.
For the first four months, to April, profit growth accelerated to 1.4% from 0.8% in the same period a year ago.
E-commerce companies were in focus after Meituan's earnings surpassed market expectations.
Foreign investors have remained skeptical of Chinese stocks despite the growing valuation discount to U.S. stocks amid worries of sluggish economic growth and lack of earnings visibility.
China Indexes and Stocks
The Hang Seng index decreased 0.4% to 23,181.95, and the CSI 300 index declined 0.6% to 3,836.88.
Meituan edged down 0.3% to HK $128.90 despite the e-commerce delivery platform operator reporting better-than-expected results in the March quarter.
Revenue in the quarter increased 18.1% to 86.6 billion yuan, and net income soared 87.3% to 10.1 billion yuan from a year ago, respectively.
The company's core local businesses, covering food and grocery delivery, merchant services, and travel and hotel bookings, rose 39.1% from a year ago to 13.5 billion yuan.
Amid rising competition and falling margins, the company has stepped up its operations in the Middle East and announced its plans to invest $1 billion in Brazil.
The IPO parade continued, and two new companies began trading in Hong Kong.
Xiamen Jihong soared 50% to HK $11.61, and the e-commerce advertising and marketing service sold about 70% of its initial public offering to foreign investors.
The advertising service provider sold 67.91 million shares at a price of HK $7.68 in an initial public offering and raised gross proceeds of HK $521.5 million.
PegBio declined 20% to HK $12.56 after the company priced its public offering at HK $15.60 per share.
The biotech company, which focuses on treating metabolic disorders related to chronic diseases, sold 19.7 million shares and raised gross proceeds of HK$300.8 million.
China Industrial Profit Growth Accelerated In April, Meituan Earnings Mask Rising Competitive Pressures
Li Chen
27 May, 2025
Hong Kong
Stock market indexes in China and Hong Kong struggled to stay above the flatline, and persistent worries about the domestic economic growth slowdown were compounded by U.S. trade policy uncertainties.
The Hang Seng index decreased 0.4%, and the mainland-focused CSI 300 index decreased 0.6%, and industrial profits at leading Chinese companies rose at a faster pace in April.
Profits at industrial companies accelerated to 3.0% in April from 2.6% in March, supported by Beijing's continued efforts to support economic expansion and ward off mounting trade risks.
For the first four months, to April, profit growth accelerated to 1.4% from 0.8% in the same period a year ago.
E-commerce companies were in focus after Meituan's earnings surpassed market expectations.
Foreign investors have remained skeptical of Chinese stocks despite the growing valuation discount to U.S. stocks amid worries of sluggish economic growth and lack of earnings visibility.
China Indexes and Stocks
The Hang Seng index decreased 0.4% to 23,181.95, and the CSI 300 index declined 0.6% to 3,836.88.
Meituan edged down 0.3% to HK $128.90 despite the e-commerce delivery platform operator reporting better-than-expected results in the March quarter.
Revenue in the quarter increased 18.1% to 86.6 billion yuan, and net income soared 87.3% to 10.1 billion yuan from a year ago, respectively.
The company's core local businesses, covering food and grocery delivery, merchant services, and travel and hotel bookings, rose 39.1% from a year ago to 13.5 billion yuan.
Amid rising competition and falling margins, the company has stepped up its operations in the Middle East and announced its plans to invest $1 billion in Brazil.
The IPO parade continued, and two new companies began trading in Hong Kong.
Xiamen Jihong soared 50% to HK $11.61, and the e-commerce advertising and marketing service sold about 70% of its initial public offering to foreign investors.
The advertising service provider sold 67.91 million shares at a price of HK $7.68 in an initial public offering and raised gross proceeds of HK $521.5 million.
PegBio declined 20% to HK $12.56 after the company priced its public offering at HK $15.60 per share.
The biotech company, which focuses on treating metabolic disorders related to chronic diseases, sold 19.7 million shares and raised gross proceeds of HK$300.8 million.
U.S. Stocks Slide and Gold Shines After Trump Threatens EU and Apple
Barry Adams
23 May, 2025
New York City
Bond yields advanced, stocks plunged, and gold raced to record highs amid renewed fears of international trade uncertainty.
The S&P 500 index declined 1.1%, and the Nasdaq Composite fell 1.4% after the yield on 30-year U.S. Treasury bonds inched higher to 5.1%.
The U.S. president's threat to impose 50% tariffs on goods arriving from the European Union sent shockwaves from Frankfurt to Milan, as trade talks stalled.
In addition, Donald Trump threatened to slap 25% tariffs on all iPhones sold but not made in the U.S.
Apple, Qualcomm, and Micron fell about 3% after the U.S. president issued the first threat targeting a company and its products.
The constantly changing U.S. trade policy and random threats to key trading partners and leading global technology companies highlighted the mercurial nature of the U.S. leadership, driving away more foreign investments.
For the week, the S&P 500 is down 1.7%, and the Nasdaq Composite has fallen 2.2% after one hour of trading on Friday.
Commodities, Currencies, Indexes, Yields
The S&P 500 index decreased 1.1% to 5,775.55, the Nasdaq Composite edged down 1.5% to 18,646.84, and the Russell 2000 index declined 1.5% to 2,013.83.
The yield on 2-year Treasury notes edged lower to 3.92%, 10-year Treasury notes decreased to 4.47%, and 30-year Treasury bonds declined to 5.01%.
WTI crude oil decreased $0.63 to $60.56 a barrel, and natural gas prices edged higher by $0.04 to $3.30 a thermal unit.
Gold increased by $54.32 to $3,353.52 an ounce, and silver edged up by $0.09 to $33.14.
The dollar index, which weighs the US currency against a basket of foreign currencies, decreased by 0.52 to 99.44 and traded at the lowest level since April 2022.
U.S. Stock Movers
Ross Stores plunged 13% to $132.30 after the off-price retailer withdrew its annual outlook and issued a weaker-than-expected earnings estimate for the current quarter.
Moreover, the retailer added that the current level of tariffs is likely to exert a downward pressure on its profitability.
Autodesk Inc. increased 1.4% to $299.0 after the specialty software company's second-quarter earnings outlook surpassed market expectations.
Intuit Inc. soared 7.2% to $714.0 after the tax preparation software company reported strong fiscal third-quarter results, and the company's full-year results surpassed market expectations.
U.S. Stocks Slide and Gold Shines After Trump Threatens EU and Apple
Barry Adams
23 May, 2025
New York City
Bond yields advanced, stocks plunged, and gold raced to record highs amid renewed fears of international trade uncertainty.
The S&P 500 index declined 1.1%, and the Nasdaq Composite fell 1.4% after the yield on 30-year U.S. Treasury bonds inched higher to 5.1%.
The U.S. president's threat to impose 50% tariffs on goods arriving from the European Union sent shockwaves from Frankfurt to Milan, as trade talks stalled.
In addition, Donald Trump threatened to slap 25% tariffs on all iPhones sold but not made in the U.S.
Apple, Qualcomm, and Micron fell about 3% after the U.S. president issued the first threat targeting a company and its products.
The constantly changing U.S. trade policy and random threats to key trading partners and leading global technology companies highlighted the mercurial nature of the U.S. leadership, driving away more foreign investments.
For the week, the S&P 500 is down 1.7%, and the Nasdaq Composite has fallen 2.2% after one hour of trading on Friday.
Commodities, Currencies, Indexes, Yields
The S&P 500 index decreased 1.1% to 5,775.55, the Nasdaq Composite edged down 1.5% to 18,646.84, and the Russell 2000 index declined 1.5% to 2,013.83.
The yield on 2-year Treasury notes edged lower to 3.92%, 10-year Treasury notes decreased to 4.47%, and 30-year Treasury bonds declined to 5.01%.
WTI crude oil decreased $0.63 to $60.56 a barrel, and natural gas prices edged higher by $0.04 to $3.30 a thermal unit.
Gold increased by $54.32 to $3,353.52 an ounce, and silver edged up by $0.09 to $33.14.
The dollar index, which weighs the US currency against a basket of foreign currencies, decreased by 0.52 to 99.44 and traded at the lowest level since April 2022.
U.S. Stock Movers
Ross Stores plunged 13% to $132.30 after the off-price retailer withdrew its annual outlook and issued a weaker-than-expected earnings estimate for the current quarter.
Moreover, the retailer added that the current level of tariffs is likely to exert a downward pressure on its profitability.
Autodesk Inc. increased 1.4% to $299.0 after the specialty software company's second-quarter earnings outlook surpassed market expectations.
Intuit Inc. soared 7.2% to $714.0 after the tax preparation software company reported strong fiscal third-quarter results, and the company's full-year results surpassed market expectations.
European Defense Stocks Extended Gains Amid Broader Weekly Market Gains
Bridgette Randall
23 May, 2025
London
European stock market indexes advanced and halted a two-slide, and the euro hovered near recent highs amid the elevated demand for euro-denominated securities.
Benchmark indexes in Frankfurt, Paris, Milan, and London edged higher and booked gains amid demand for defense industry-linked stocks.
Market sentiment stabilized after the U.S. and Europe signaled ongoing discussions about trade negotiations, but officials cited slow progress.
Moreover, European officials are looking to impose tariffs or sales tax on direct shipments from China using the postal system as package arrivals continue to soar.
In 2024, about 4.6 billion small packages worth less than €150 enter the European Union; about 91% of these packages arrive from China.
France alone received 800 million low-value small packages, and the public accounts minister, Amelie de Montchalin, said France plans to impose a small handling fee to process these packages.
However, European Union ministers are looking to finalize an agreement for all member states as customs and border control agencies step up checks for counterfeit goods and security risks.
Europe Indexes and Yields
The DAX index increased by 0.2% to 24,057.19, the CAC-40 index edged higher 0.3% to 7,884.52, and the FTSE 100 index advanced 0.4% to 8,775.17.
For the week, the DAX advanced 1.7%, the CAC-40 gained 0.2%, and the FTSE 100 index added 1%.
The yield on 10-year German bonds inched lower to 2.61%, French bonds decreased to 3.29%, the UK gilts moved down to 4.72%, and Italian bonds edged lower to 3.63%.
The euro increased to $1.13; the British pound was higher at $1.35; and the U.S. dollar was lower and traded at 82.60 Swiss cents.
Brent crude decreased $0.40 to $64.04 a barrel, and the Dutch TTF natural gas was lower by €0.06 to €36.30 per MWh.
Europe Stock Movers
Siemens AG increased 0.7% to €218.65, MTU Aero Engines AG advanced 1.4% to €347.30, and Rheinmetall AG gained 0.5% to €1,779.50.
Dassault Aviation decreased 0.3% to €310.20, Safran jumped 0.5% to €261.90, Airbus SE increased 0.5% to €162.08, BAE Systems plc inched up 0.4% to 1,849.50 pence, and Rolls Royce Holdings PLC advanced 1.5% to 855.40 pence.
Rolls Royce traded at a new intraday high amid expectations of new orders as the UK and France ramp up spending for military hardware in support of Ukraine.
European Defense Stocks Extended Gains Amid Broader Weekly Market Gains
Bridgette Randall
23 May, 2025
London
European stock market indexes advanced and halted a two-slide, and the euro hovered near recent highs amid the elevated demand for euro-denominated securities.
Benchmark indexes in Frankfurt, Paris, Milan, and London edged higher and booked gains amid demand for defense industry-linked stocks.
Market sentiment stabilized after the U.S. and Europe signaled ongoing discussions about trade negotiations, but officials cited slow progress.
Moreover, European officials are looking to impose tariffs or sales tax on direct shipments from China using the postal system as package arrivals continue to soar.
In 2024, about 4.6 billion small packages worth less than €150 enter the European Union; about 91% of these packages arrive from China.
France alone received 800 million low-value small packages, and the public accounts minister, Amelie de Montchalin, said France plans to impose a small handling fee to process these packages.
However, European Union ministers are looking to finalize an agreement for all member states as customs and border control agencies step up checks for counterfeit goods and security risks.
Europe Indexes and Yields
The DAX index increased by 0.2% to 24,057.19, the CAC-40 index edged higher 0.3% to 7,884.52, and the FTSE 100 index advanced 0.4% to 8,775.17.
For the week, the DAX advanced 1.7%, the CAC-40 gained 0.2%, and the FTSE 100 index added 1%.
The yield on 10-year German bonds inched lower to 2.61%, French bonds decreased to 3.29%, the UK gilts moved down to 4.72%, and Italian bonds edged lower to 3.63%.
The euro increased to $1.13; the British pound was higher at $1.35; and the U.S. dollar was lower and traded at 82.60 Swiss cents.
Brent crude decreased $0.40 to $64.04 a barrel, and the Dutch TTF natural gas was lower by €0.06 to €36.30 per MWh.
Europe Stock Movers
Siemens AG increased 0.7% to €218.65, MTU Aero Engines AG advanced 1.4% to €347.30, and Rheinmetall AG gained 0.5% to €1,779.50.
Dassault Aviation decreased 0.3% to €310.20, Safran jumped 0.5% to €261.90, Airbus SE increased 0.5% to €162.08, BAE Systems plc inched up 0.4% to 1,849.50 pence, and Rolls Royce Holdings PLC advanced 1.5% to 855.40 pence.
Rolls Royce traded at a new intraday high amid expectations of new orders as the UK and France ramp up spending for military hardware in support of Ukraine.
European Market Sentiment Stabilzied
Bridgette Randall
23 May, 2025
London
European stock market indexes advanced and halted a two-slide, and the euro hovered near recent highs amid the elevated demand for euro-denominated securities.
Benchmark indexes in Frankfurt, Paris, Milan, and London edged higher and booked gains amid demand for defense industry-linked stocks.
Market sentiment stabilized after the U.S. and Europe signaled ongoing discussions about trade negotiations, but officials cited slow progress.
Moreover, European officials are looking to impose tariffs or sales tax on direct shipments from China using the postal system as package arrivals continue to soar.
In 2024, about 4.6 billion small packages worth less than €150 enter the European Union; about 91% of these packages arrive from China.
France alone received 800 million low-value small packages, and the public accounts minister, Amelie de Montchalin, said France plans to impose a small handling fee to process these packages.
However, European Union ministers are looking to finalize an agreement for all member states as customs and border control agencies step up checks for counterfeit goods and security risks.
Europe Indexes and Yields
The DAX index increased by 0.2% to 24,057.19, the CAC-40 index edged higher 0.3% to 7,884.52, and the FTSE 100 index advanced 0.4% to 8,775.17.
For the week, the DAX advanced 1.7%, the CAC-40 gained 0.2%, and the FTSE 100 index added 1%.
The yield on 10-year German bonds inched lower to 2.61%, French bonds decreased to 3.29%, the UK gilts moved down to 4.72%, and Italian bonds edged lower to 3.63%.
The euro increased to $1.13; the British pound was higher at $1.35; and the U.S. dollar was lower and traded at 82.60 Swiss cents.
Brent crude decreased $0.40 to $64.04 a barrel, and the Dutch TTF natural gas was lower by €0.06 to €36.30 per MWh.
Europe Stock Movers
Siemens AG increased 0.7% to €218.65, MTU Aero Engines AG advanced 1.4% to €347.30, and Rheinmetall AG gained 0.5% to €1,779.50.
Dassault Aviation decreased 0.3% to €310.20, Safran jumped 0.5% to €261.90, Airbus SE increased 0.5% to €162.08, BAE Systems plc inched up 0.4% to 1,849.50 pence, and Rolls Royce Holdings PLC advanced 1.5% to 855.40 pence.
Rolls Royce traded at a new intraday high amid expectations of new orders as the UK and France ramp up spending for military hardware in support of Ukraine.