Market Update
Caution Returned In Tokyo Trading Ahead of BoJ Rate Decisions and Earnings
Akira Ito
28 Jul, 2025
Tokyo
Stock market indexes in Tokyo closed down for the second consecutive session amid caution ahead of the BoJ's rate decisions and corporate earnings.
The Nikkei 225 Stock Average fell 0.9%, and the broader Topix decreased 0.6%, as investors assessed the impact of the latest Japan-U.S. trade deal on the export-reliant industries.
In a busy week of earnings, investors are looking forward to results from Tokyo Electron, Advantest Corp., Keyence, Nintendo, ANA Holdings, Japan Airlines, Toyota Motor, Marubeni, and Mitsui & Company.
However, investors were less than enthusiastic about a deal between the U.S. and China, as negotiators meet in Sweden ahead of the August 12 deadline set by the U.S.
The U.S. president announced a "trade deal" with the European Union that will limit the additional tariffs on goods to 15%, higher than the current rate of about 2.5%.
The Japanese yen traded at 147.85 against the U.S. dollar amid worries about the near-term future of Prime Minister Shigeru Ishiba after the recent losses in the Upper House elections.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 0.9% to 41,075.83, and the Topix fell 0.6% to 2,933.74.
Tokyo Electron decreased 2.2% to ¥27,330.0, Advantest Corp. plunged 8% to ¥10,465.0, and Keyence Corp. increased 0.9% to ¥58,110.0.
Ahead of corporate results, Toyota Motor advanced 0.7% to ¥58,110.0, Marubeni Corp. decreased 0.8% to ¥3,064.0, Mitsui & Company dropped 1.4% to ¥3,095.0, Japan Airlines fell 0.9% to ¥2,926.50, and ANA Holdings added 0.2% to ¥2,945.0.
Hang Seng Index Advanced to Multi-Year Highs Amid Trade-Talk Hopes, CK Hutchison In Focus
Li Chen
28 Jul, 2025
Hong Kong
Stocks in China and Hong Kong diverged as investors reviewed and prepared for a busy week of earnings and rate decisions.
The Hang Seng index edged up 0.4%, and the mainland-focused CSI 300 index declined 0.2% amid rising hopes that a U.S.-China trade deal could avert excessive tariffs.
Trade negotiators are scheduled to meet in Sweden later today amid a weak outlook for an agreement ahead of the U.S.-imposed August 12 deadline.
Investors are hoping that the U.S. will extend the deadline for an agreement by another 90 days, as both sides struggle to agree on tariff rates, exclusion lists, and timetables.
For now, the current average tariff rate on the U.S. goods is just above 50%, sharply higher than 25% in 2024, and significantly above 10% only a decade ago.
Despite the rise in U.S. tariffs, China's exports continue to climb at a steady pace, as U.S. consumers rely on Chinese consumer and electrical goods, apparel and accessories, toys, and solar panels.
China's direct exports have jumped more than four-fold in two decades to $440 billion in 2024, despite the growing U.S. trade hurdles and tariffs.
The U.S. and the European Union agreed on a trade framework deal that will limit the U.S. import tax to 15%, according to the Trump administration.
The announcement lacked a specific timetable and critical details but reflected a tone similar to a broad agreement between the U.S. and Japan.
The trade agreement increases U.S. import tariffs to 15% from the current average of less than 3%, but it is lower than the threatened 25% tariffs by the U.S. president.
Trump's tariffs are expected to increase U.S. inflation and alter supply chains but not achieve the reshoring of manufacturing to the U.S. and increase foreign direct investments.
Meanwhile, tariff-related uncertainty and higher goods prices are likely to force the Federal Reserve to keep higher rates for longer.
The Federal Reserve is set to announce its rate decisions this week, and investors are anticipating the central bank to hold rates steady.
The Bank of Japan is expected to leave its benchmark rates steady but signal higher rates amid rising inflationary pressures in the economy.
China Indexes and Stocks
The Hang Seng index increased 0.4% to 25,480.53, and the mainland-focused CI 300 index decreased 0.2% to 4,119.24.
CK Hutchison Holdings Ltd. decreased 0.6% to HK $53.15, and the company said it plans to invite investment from a China-based company in a consortium to purchase its stake in ports.
The company's $23 billion deal to sell its global shipping ports, including in Panama, has faced stiff headwinds from China and the U.S.
The U.S.-based consortium and CK Hutchison had set the deadline to finalize the deal on July 27; however the deal is facing significant regulatory hurdles in Beijing.
The governments of the U.S. and China are maneuvering to retain an upper hand in controlling the flow of goods through the Panama Canal.
Insurance companies advanced after Morgan Stanley issued positive comments on AIA Group.
AIA Group rose 4.4% to HK $73.70, Ping An Insurance advanced 2.4% to HK ¥51.30, and China Life Insurance edged up 3.5% to HK $23.55.
Hang Seng Index Advanced to Multi-Year Highs Amid Trade-Talk Hopes
Li Chen
28 Jul, 2025
Hong Kong
Stocks in China and Hong Kong diverged as investors reviewed and prepared for a busy week of earnings and rate decisions.
The Hang Seng index edged up 0.4%, and the mainland-focused CSI 300 index declined 0.2% amid rising hopes that a U.S.-China trade deal could avert excessive tariffs.
Trade negotiators are scheduled to meet in Sweden later today amid a weak outlook for an agreement ahead of the U.S.-imposed August 12 deadline.
Investors are hoping that the U.S. will extend the deadline for an agreement by another 90 days, as both sides struggle to agree on tariff rates, exclusion lists, and timetables.
For now, the current average tariff rate on the U.S. goods is just above 50%, sharply higher than 25% in 2024, and significantly above 10% only a decade ago.
Despite the rise in U.S. tariffs, China's exports continue to climb at a steady pace, as U.S. consumers rely on Chinese consumer and electrical goods, apparel and accessories, toys, and solar panels.
The U.S. and the European Union agreed on a trade framework deal that will limit the U.S. import tax to 15%, according to the Trump administration.
The announcement lacked a specific timetable and critical details but reflected a tone similar to a broad agreement between the U.S. and Japan.
The trade agreement increases U.S. import tariffs to 15% from the current average of less than 3%, but it is lower than the threatened 25% tariffs by the U.S. president.
Trump's tariffs are expected to increase U.S. inflation and alter supply chains but not achieve the reshoring of manufacturing to the U.S. and increase foreign direct investments.
Meanwhile, tariff-related uncertainty and higher goods prices are likely to force the Federal Reserve to keep higher rates for longer.
The Federal Reserve is set to announce its rate decisions this week, and investors are anticipating the central bank to hold rates steady.
The Bank of Japan is expected to leave its benchmark rates steady but signal higher rates amid rising inflationary pressures in the economy.
China Indexes and Stocks
The Hang Seng index increased 0.4% to 25,480.53, and the mainland-focused CI 300 index decreased 0.2% to 4,119.24.
Insurance companies advanced after Morgan Stanley issued positive comments on AIA Group.
AIA Group rose 4.4% to HK $73.70, Ping An Insurance advanced 2.4% to HK ¥51.30, and China Life Insurance edged up 3.5% to HK $23.55.
Stock Movers: Tesla, Union Pacific, Intel, Ameriprise, Deckers Brands, Nasdaq
Scott Peters
26 Jul, 2025
New York City
Tesla Inc. surged 8.2% to $305.30 after the electric vehicle maker reported second-quarter 2025 results.
Revenue decreased to $22.5 billion from $25.5 billion, net income declined to $1.2 billion from $1.4 billion, and diluted earnings per share fell to 33 cents from 40 cents a year ago.
The company struggled with electric vehicle sales, and chief executive Vaibhav Taneja highlighted economic and regulatory challenges in the months ahead.
"The One Big Bill has a lot of changes that would affect our business in the near term," Taneja said on the earnings call to investors.
The company's revenues are likely to be lower in the third quarter as the government's subsidies to purchase new electric vehicles expire, and the new tax and spend bill eliminates the fines for not meeting fuel economy targets.
Tesla derives significant revenues from selling its regulatory credits to competitors, as other electric vehicle makers prefer to purchase credit instead of paying fines.
The new tax and spending bill eliminates the fines, essentially killing the regulatory credit marketplace operated by Tesla.
In the second quarter, Tesla's total vehicle revenue fell 16%, while energy generation and storage revenue decreased 7%, but services and other revenue jumped by 17%.
Union Pacific Corp. dropped 2% to $224.82 after the railroad shipment company reported second quarter 2025 results.
Revenue increased 2% to $6.1 billion from $6 billion, net income jumped 12% to $1.8 billion from $1.6 billion, and diluted earnings per share rose to $3.15 from $2.74 a year ago.
For the first half, revenue advanced 1% to $12.2 billion from $12 billion, net income increased 6% to $3.5 billion from $3.3 billion, and diluted earnings per share edged higher 8% to $5.85 from $5.43 a year ago.
The company's board declared an interim dividend of $1.34 per share.
The company reiterated its annual capital expenditure of $3.4 billion and share repurchases between $4.0 billion and $4.5 billion. and a third-quarter dividend increase of 3%.
Intel Corp. plunged 9.5% to $20.48 after the technology company reported second-quarter 2025 results.
Revenue inched higher to $12.9 billion from $12.8 billion, net loss expanded to $3 billion from a loss of $1.6 billion, and diluted loss per share advanced to 67 cents from a loss of 38 cents a year ago.
The company guided revenue in the next quarter to range between $12.6 billion and $13.6 billion.
The company also forecasted a diluted loss per share of $0.24 for the quarter.
Ameriprise Financial edged up 0.5% to $519.89, and the financial advisory company announced a cash dividend of $1.60 per share.
Revenue in the second quarter increased 4% to $4.4 billion from $4.2 billion, net income soared 28% to $1.1 billion from $829 million, and diluted earnings per share rose to $10.73 from $8.02 a year ago.
The company returned $731 million to shareholders this quarter, representing 81% of adjusted operating earnings, highlighting its strong capital return and consistent free cash flow.
Deckers Brands slipped 12.6% to $118.21 despite the footwear retailer reporting higher revenue and earnings in the fiscal 2026 first quarter.
Revenue increased to $964.5 million from $825.3 million, net income jumped to $139.2 billion from $115.6 billion, and diluted earnings per share rose to 93 cents from 75 cents a year ago.
For the fiscal year 2025, revenue advanced to $2.1 billion from $1.9 billion, net income soared to $966.1 billion from $759.6 billion, and diluted earnings per share edged higher to $6.33 from $4.86 a year ago.
The company guided net sales in the current quarter to range between $1.38 billion and $1.42 billion and diluted earnings per share in the range of $1.50 to $1.55.
During the first fiscal quarter, the company repurchased approximately 1.7 million shares of its common stock for a total of $183.0 million at a weighted average price paid per share of $109.84.
As of July 10, the company had approximately $2.4 billion remaining under its stock repurchase authorization.
In fiscal year 2025, the company repurchased approximately 3.8 million shares for $567.0 million at an average price of $149.21.
Nasdaq Inc. gained 0.01% to $93.59 after the securities marketplace reported second-quarter 2025 results.
Revenue increased 13% to $1.3 billion from $1.2 billion, net income jumped to $492 million from $397 million, and diluted earnings per share rose to 85 cents from 70 cents a year ago.
Stock Movers: Tesla, Union Pacific, Intel, Ameriprise, Deckers Brands, Nasdaq
Scott Peters
26 Jul, 2025
New York City
Tesla Inc. surged 8.2% to $305.30 after the electric vehicle maker reported second-quarter 2025 results.
Revenue decreased to $25.5 billion from $25.7 billion, net income declined to $1.4 billion from $2.1 billion, and diluted earnings per share fell to 40 cents from 60 cents a year ago.
The company struggled with electric vehicle sales, and chief executive Vaibhav Taneja highlighted economic and regulatory challenges in the months ahead.
"The One Big Bill has a lot of changes that would affect our business in the near term," Taneja said on the earnings call to investors.
The company's revenues are likely to be lower in the third quarter as the government's subsidies to purchase new electric vehicles expire, and the new tax and spend bill eliminates the fines for not meeting fuel economy targets.
Tesla derives significant revenues from selling its regulatory credits to competitors, as other electric vehicle makers prefer to purchase credit instead of paying fines.
The new tax and spending bill eliminates the fines, essentially killing the regulatory credit marketplace operated by Tesla.
In the second quarter, Tesla's total vehicle revenue fell 16%, while energy generation and storage revenue decreased 7%, but services and other revenue jumped by 17%.
Union Pacific Corp. dropped 2% to $224.82 after the railroad shipment company reported second quarter 2025 results.
Revenue increased 2% to $6.1 billion from $6 billion, net income jumped 12% to $1.8 billion from $1.6 billion, and diluted earnings per share rose to $3.15 from $2.74 a year ago.
For the first half, revenue advanced 1% to $12.2 billion from $12 billion, net income increased 6% to $3.5 billion from $3.3 billion, and diluted earnings per share edged higher 8% to $5.85 from $5.43 a year ago.
The company's board declared an interim dividend of $1.34 per share.
The company reiterated its annual capital expenditure of $3.4 billion and share repurchases between $4.0 billion and $4.5 billion. and a third-quarter dividend increase of 3%.
Intel Corp. plunged 9.5% to $20.48 after the technology company reported second-quarter 2025 results.
Revenue inched higher to $12.9 billion from $12.8 billion, net loss expanded to $3 billion from a loss of $1.6 billion, and diluted loss per share advanced to 67 cents from a loss of 38 cents a year ago.
The company guided revenue in the next quarter to range between $12.6 billion and $13.6 billion.
The company also forecasted a diluted loss per share of $0.24 for the quarter.
Ameriprise Financial edged up 0.5% to $519.89, and the financial advisory company announced a cash dividend of $1.60 per share.
Revenue in the second quarter increased 4% to $4.4 billion from $4.2 billion, net income soared 28% to $1.1 billion from $829 million, and diluted earnings per share rose to $10.73 from $8.02 a year ago.
The company returned $731 million to shareholders this quarter, representing 81% of adjusted operating earnings, highlighting its strong capital return and consistent free cash flow.
Deckers Brands slipped 12.6% to $118.21 despite the footwear retailer reporting higher revenue and earnings in the fiscal 2026 first quarter.
Revenue increased to $964.5 million from $825.3 million, net income jumped to $139.2 billion from $115.6 billion, and diluted earnings per share rose to 93 cents from 75 cents a year ago.
For the fiscal year 2025, revenue advanced to $2.1 billion from $1.9 billion, net income soared to $966.1 billion from $759.6 billion, and diluted earnings per share edged higher to $6.33 from $4.86 a year ago.
The company guided net sales in the current quarter to range between $1.38 billion and $1.42 billion and diluted earnings per share in the range of $1.50 to $1.55.
During the first fiscal quarter, the company repurchased approximately 1.7 million shares of its common stock for a total of $183.0 million at a weighted average price paid per share of $109.84.
As of July 10, the company had approximately $2.4 billion remaining under its stock repurchase authorization.
In fiscal year 2025, the company repurchased approximately 3.8 million shares for $567.0 million at an average price of $149.21.
Nasdaq Inc. gained 0.01% to $93.59 after the securities marketplace reported second-quarter 2025 results.
Revenue increased 13% to $1.3 billion from $1.2 billion, net income jumped to $492 million from $397 million, and diluted earnings per share rose to 85 cents from 70 cents a year ago.
S&P500 and Nasdaq Extended Rally to Fifth Consecutive Week
Barry Adams
25 Jul, 2025
New York City
On Friday, Wall Street indexes hugged the flatline after the S&P 500 index and the Nasdaq Composite notched new record highs in the previous session.
Major averages are set to close up after a week of trading and extend the rally to the fifth week in a row.
The S&P 500 index edged up 0.1%, and the Nasdaq Composite inched higher 0.2% as investors reviewed the latest batch of earnings.
On Friday, investors reacted to earnings from Intel, Union Pacific, Deckers Brands, Booz Allen Hamilton, and Ameriprise Financial.
The Federal Communications Commission approved the $8 billion merger between Paramount and Skydance Media.
The FCC approved the deal after Paramount Global settled a lawsuit with Donald Trump for $16 million, prompting a strong response from the lone Democrat Commissioner Anna Gomez.
"In an unprecedented move, this once-independent FCC used its vast power to pressure Paramount to broker a private legal settlement and further erode press freedom," said Gomez.
"Once again, this agency is undermining legitimate efforts to combat discrimination and expand opportunity by overstepping its authority and intervening in employment matters reserved for other government entities with proper jurisdiction on these issues," added Gomez.
U.S. Stock Movers
Intel Corp. declined 7.5% to $20.93, and the company's second-quarter sales increase failed to impress investors.
The advanced chipmaker is struggling to retain its market share in its core business amid competition from AMD, and the company has still not announced its AI chip pipeline of products.
Moreover, the capital-intensive foundry business is struggling to expand amid stiff domestic competition from TSMC.
Deckers Brands jumped 13.1% to $118.89, and the shoe company reported better-than-expected fiscal first-quarter earnings of 93 cents per share on revenue of $965 million.
Paramount Global increased 2.1% to $23.65 after the Federal Communications Commission approved the purchase of the company by Skydance Media for $8 billion.
Booz Allen Hamilton Holding Corp. advanced 1.4% to $116.86 after the company's fiscal first-quarter earnings surpassed market expectations.
The company reported better-than-expected adjusted earnings per share of $1.48 on lighter-than-estimated revenue of $2.92 billion.
Union Pacific Corp. edged up 0.6% to $221.77 after the railroad company delivered better-than-expected quarterly earnings amid a rebound in freight revenue.
Ameriprise Financial edged up 0.01% to $517.0, and the financial advisory company announced a cash dividend of $1.60 per share.
Revenue in the second quarter increased 4% to $4.4 billion from $4.2 billion, net income soared 28% to $1.1 billion from $829 million, and diluted earnings per share rose to $10.73 from $8.02 a year ago.
S&P500 and Nasdaq Extended Rally to Fifth Consse
Barry Adams
25 Jul, 2025
New York City
On Friday, Wall Street indexes hugged the flatline after the S&P 500 index and the Nasdaq Composite notched new record highs in the previous session.
Major averages are set to close up after a week of trading and extend the rally to the fifth week in a row.
The S&P 500 index edged up 0.1%, and the Nasdaq Composite inched higher 0.2% as investors reviewed the latest batch of earnings.
On Friday, investors reacted to earnings from Intel, Union Pacific, Deckers Brands, Booz Allen Hamilton, and Ameriprise Financial.
The Federal Communications Commission approved the $8 billion merger between Paramount and Skydance Media.
The FCC approved the deal after Paramount Global settled a lawsuit with Donald Trump for $16 million, prompting a strong response from the lone Democrat Commissioner Anna Gomez.
"In an unprecedented move, this once-independent FCC used its vast power to pressure Paramount to broker a private legal settlement and further erode press freedom," said Gomez.
"Once again, this agency is undermining legitimate efforts to combat discrimination and expand opportunity by overstepping its authority and intervening in employment matters reserved for other government entities with proper jurisdiction on these issues," added Gomez.
U.S. Stock Movers
Intel Corp. declined 7.5% to $20.93, and the company's second-quarter sales increase failed to impress investors.
The advanced chipmaker is struggling to retain its market share in its core business amid competition from AMD, and the company has still not announced its AI chip pipeline of products.
Moreover, the capital-intensive foundry business is struggling to expand amid stiff domestic competition from TSMC.
Deckers Brands jumped 13.1% to $118.89, and the shoe company reported better-than-expected fiscal first-quarter earnings of 93 cents per share on revenue of $965 million.
Paramount Global increased 2.1% to $23.65 after the Federal Communications Commission approved the purchase of the company by Skydance Media for $8 billion.
Booz Allen Hamilton Holding Corp. advanced 1.4% to $116.86 after the company's fiscal first-quarter earnings surpassed market expectations.
The company reported better-than-expected adjusted earnings per share of $1.48 on lighter-than-estimated revenue of $2.92 billion.
Union Pacific Corp. edged up 0.6% to $221.77 after the railroad company delivered better-than-expected quarterly earnings amid a rebound in freight revenue.
Ameriprise Financial edged up 0.01% to $517.0, and the financial advisory company announced a cash dividend of $1.60 per share.
Revenue in the second quarter increased 4% to $4.4 billion from $4.2 billion, net income soared 28% to $1.1 billion from $829 million, and diluted earnings per share rose to $10.73 from $8.02 a year ago.
S&P 500 and Nasdaq Notch Extended Rally to Fifth Consecutive Week
Barry Adams
25 Jul, 2025
New York City
On Friday, Wall Street indexes hugged the flatline after the S&P 500 index and the Nasdaq Composite notched new record highs in the previous session.
Major averages are set to close up after a week of trading and extend the rally to the fifth week in a row.
The S&P 500 index edged up 0.1%, and the Nasdaq Composite inched higher 0.2% as investors reviewed the latest batch of earnings.
On Friday, investors reacted to earnings from Intel, Union Pacific, Deckers Brands, Booz Allen Hamilton, and Ameriprise Financial.
The Federal Communications Commission approved the $8 billion merger between Paramount and Skydance Media.
The FCC approved the deal after Paramount Global settled a lawsuit with Donald Trump for $16 million, prompting a strong response from the lone Democrat Commissioner Anna Gomez.
"In an unprecedented move, this once-independent FCC used its vast power to pressure Paramount to broker a private legal settlement and further erode press freedom," said Gomez.
"Once again, this agency is undermining legitimate efforts to combat discrimination and expand opportunity by overstepping its authority and intervening in employment matters reserved for other government entities with proper jurisdiction on these issues," added Gomez.
U.S. Stock Movers
Intel Corp. declined 7.5% to $20.93, and the company's second-quarter sales increase failed to impress investors.
The advanced chipmaker is struggling to retain its market share in its core business amid competition from AMD, and the company has still not announced its AI chip pipeline of products.
Moreover, the capital-intensive foundry business is struggling to expand amid stiff domestic competition from TSMC.
Deckers Brands jumped 13.1% to $118.89, and the shoe company reported better-than-expected fiscal first-quarter earnings of 93 cents per share on revenue of $965 million.
Paramount Global increased 2.1% to $23.65 after the Federal Communications Commission approved the purchase of the company by Skydance Media for $8 billion.
Booz Allen Hamilton Holding Corp. advanced 1.4% to $116.86 after the company's fiscal first-quarter earnings surpassed market expectations.
The company reported better-than-expected adjusted earnings per share of $1.48 on lighter-than-estimated revenue of $2.92 billion.
Union Pacific Corp. edged up 0.6% to $221.77 after the railroad company delivered better-than-expected quarterly earnings amid a rebound in freight revenue.
Ameriprise Financial edged up 0.01% to $517.0, and the financial advisory company announced a cash dividend of $1.60 per share.
Revenue in the second quarter increased 4% to $4.4 billion from $4.2 billion, net income soared 28% to $1.1 billion from $829 million, and diluted earnings per share rose to $10.73 from $8.02 a year ago.
Japan Indexes Trimmed Weekly Gains to 4%, Tokyo Core CPI Eased but Stayed Above BoJ Target
Akira Ito
25 Jul, 2025
Tokyo
Stocks in Japan corrected on Friday following a sharp rally this week that pushed indexes to new record highs.
The Nikkei 225 Stock Average decreased 0.9%, and the broader Topix fell 0.8% as investors booked profit after the recent market rally.
The optimism surrounding the Japan-U.S. trade agreement buoyed benchmark indexes by 4% after a week of trading.
The U.S. lifted its import duties on Japanese goods to 15% from the current average of 3%, but lower than the 25% threatened by the Trump administration.
Prime Minister Shigeru Ishiba said Japanese companies plan to invest $500 billion in the U.S., targeting the automobile and pharmaceutical sectors, but did not disclose the timeline.
Tokyo Core Inflation Cooled In July
The Tokyo area's inflation edged down for the second consecutive month, benefiting from the easing of inflationary pressures for energy, water, and rice prices.
The overall consumer price inflation was 3.2%, and core inflation, which excludes food prices, cooled to 2.9% from 3.1% in June, the Ministry of Internal Affairs and Communications said Friday.
Water prices plunged 34.6% for the second consecutive month, indicating the largest decrease in prices since record keeping began in 1971.
Core inflation excluding energy prices was 3.1%, unchanged from the previous month.
After the government rolled out a series of measures to boost rice supply, price inflation slowed to 81.8% from 90.6% in June.
However, food price inflation excluding fresh products accelerated to 7.4% in July from 7.2% in June and rose at the fastest pace since September 2023.
Moreover, Japan's leading food companies are planning to increase prices on 2,105 products this month, nearly five times more than a year ago, according to an update by Teikoku Databank.
Tokyo's inflation data are closely watched by economists as a leading indicator for nationwide trends.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 0.9% to 41,450.31, and the Topix dropped 0.8% to 2,952.63.
Toyota Motor Corp. decreased 2% to ¥2,787.0, Honda Motor Co. Ltd. declined 1.9% to ¥1,621.0, and Nissan Motor Co. Ltd. fell 2.8% to ¥325.0.
Shin-Etsu Chemical Co. Ltd. dropped 9.5% to ¥4,530.0 after the company estimated a weaker-than-expected annual profit outlook in the latest fiscal year.
Lasertec Corp. declined 3% to ¥16,450.0, Tokyo Electron fell 0.2% to ¥27,960.0, and Advantest Corp. jumped 1.4% to ¥11,495.0.
Japan Indexes Trimmed Weekly Gains to 4%, Tokyo Core CPI Eased but Stayed Above BoJ Target
Akira Ito
25 Jul, 2025
Tokyo
Stocks in Japan corrected on Friday following a sharp rally this week that pushed indexes to new record highs.
The Nikkei 225 Stock Average decreased 0.9%, and the broader Topix fell 0.8% as investors booked profit after the recent market rally.
The optimism surrounding the Japan-U.S. trade agreement buoyed benchmark indexes by 4% after a week of trading.
The U.S. lifted its import duties on Japanese goods to 15% from the current average of 3%, but lower than the 25% threatened by the Trump administration.
Prime Minister Shigeru Ishiba said Japanese companies plan to invest $500 billion in the U.S., targeting the automobile and pharmaceutical sectors, but did not disclose the timeline.
Tokyo Core Inflation Cooled In July
The Tokyo area's inflation edged down for the second consecutive month, benefiting from the easing of inflationary pressures for energy, water, and rice prices.
The overall consumer price inflation was 3.2%, and core inflation, which excludes food prices, cooled to 2.9% from 3.1% in June, the Ministry of Internal Affairs and Communications said Friday.
Water prices plunged 34.6% for the second consecutive month, indicating the largest decrease in prices since record keeping began in 1971.
Core inflation excluding energy prices was 3.1%, unchanged from the previous month.
After the government rolled out a series of measures to boost rice supply, price inflation slowed to 81.8% from 90.6% in June.
However, food price inflation excluding fresh products accelerated to 7.4% in July from 7.2% in June and rose at the fastest pace since September 2023.
Moreover, Japan's leading food companies are planning to increase prices on 2,105 products this month, nearly five times more than a year ago, according to an update by Teikoku Databank.
Tokyo's inflation data are closely watched by economists as a leading indicator for nationwide trends.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 0.9% to 41,450.31, and the Topix dropped 0.8% to 2,952.63.
Toyota Motor Corp. decreased 2% to ¥2,787.0, Honda Motor Co. Ltd. declined 1.9% to ¥1,621.0, and Nissan Motor Co. Ltd. fell 2.8% to ¥325.0.
Shin-Etsu Chemical Co. Ltd. dropped 9.5% to ¥4,530.0 after the company estimated a weaker-than-expected annual profit outlook in the latest fiscal year.
Lasertec Corp. declined 3% to ¥16,450.0, Tokyo Electron fell 0.2% to ¥27,960.0, and Advantest Corp. jumped 1.4% to ¥11,495.0.
China Stocks Face High Valuation and Trade Uncertainty Worries
Li Chen
25 Jul, 2025
Hong Kong
China's benchmark indexes turned lower on Friday and extended weekly losses as investors awaited the start of the earnings season.
The Hang Seng index declined 1%, and the mainland-focused CSI 300 index fell 0.6%, and China-U.S. trade negotiators are scheduled to start the next round of talks this weekend.
The sharp increase in stock market valuation has left investors uncertain about the future trajectory of the market.
Stocks in Hong Kong and China are trading at three-year highs, and stock market indexes have rebounded over the last three months.
Further upward movement in the broader market needs positive developments from China-U.S. trade negotiations, and investors are anticipating the two nations to extend the Aug 1 deadline by 90 days.
In overseas trading, the European Central Bank held its key lending rates unrevised, marking the end of the current rate easing cycle.
Over the last twelve months, the central bank lowered rates eight times, and policymakers decided to take a wait-and-see approach amid the ongoing EU-U.S. trade negotiations.
China Indexes and Stocks
The Hang Seng index decreased 1.1% to 25,383.07, and the mainland-focused CSI 300 index dropped 0.6% to 4,126.35.
For the week, the Hang Seng index advanced 1.5% and the CSI 300 index added 1.4%.
Internet-linked stocks led decliners amid valuation worries and ahead of quarterly results.
Alibaba Group Holding Ltd. fell 2% to HK $117.70, Meituan fell 2.5% to HK $131.0, and Tencent Holdings Ltd dropped 1.5% to HK $548.0.
Sands China Ltd. decreased 0.4% to HK $18.58 after the U.S. parent company reported second-quarter results.
Sands China's total net revenue increased 2.5% to $1.79 billion, and net income eased to $214 million from $246 million from a year ago.
Nanjing Leads Biolabs traded at HK $69.60 after the company listed its share on the Hong Kong Stock Exchange.
The biotech company priced its stock at HK$35.0 per share, towards the upper end of its filing range between HK $31.50 and HK $35.0.
The company raised gross proceeds of HK $1.29 billion and sold 36.86 million shares.
China Stocks Face High Valuation and Trade Uncertainty Worries
Li Chen
25 Jul, 2025
Hong Kong
China's benchmark indexes turned lower on Friday and extended weekly losses as investors awaited the start of the earnings season.
The Hang Seng index declined 1%, and the mainland-focused CSI 300 index fell 0.6%, and China-U.S. trade negotiators are scheduled to start the next round of talks this weekend.
The sharp increase in stock market valuation has left investors uncertain about the future trajectory of the market.
Stocks in Hong Kong and China are trading at three-year highs, and stock market indexes have rebounded over the last three months.
Further upward movement in the broader market needs positive developments from China-U.S. trade negotiations, and investors are anticipating the two nations to extend the Aug 1 deadline by 90 days.
In overseas trading, the European Central Bank held its key lending rates unrevised, marking the end of the current rate easing cycle.
Over the last twelve months, the central bank lowered rates eight times, and policymakers decided to take a wait-and-see approach amid the ongoing EU-U.S. trade negotiations.
China Indexes and Stocks
The Hang Seng index decreased 1.1% to 25,383.07, and the mainland-focused CSI 300 index dropped 0.6% to 4,126.35.
For the week, the Hang Seng index advanced 1.5% and the CSI 300 index added 1.4%.
Internet-linked stocks led decliners amid valuation worries and ahead of quarterly results.
Alibaba Group Holding Ltd. fell 2% to HK $117.70, Meituan fell 2.5% to HK $131.0, and Tencent Holdings Ltd dropped 1.5% to HK $548.0.
Sands China Ltd. decreased 0.4% to HK $18.58 after the U.S. parent company reported second-quarter results.
Sands China's total net revenue increased 2.5% to $1.79 billion, and net income eased to $214 million from $246 million from a year ago.
Nanjing Leads Biolabs traded at HK $69.60 after the company listed its share on the Hong Kong Stock Exchange.
The biotech company priced its stock at HK$35.0 per share, towards the upper end of its filing range between HK $31.50 and HK $35.0.
The company raised gross proceeds of HK $1.29 billion and sold 36.86 million shares.