Market Update
China New Home Price Decline, Industrial Production, and Retail Sales Growth Slow
Li Chen
19 May, 2025
Hong Kong
Stock market indexes in China and Hong Kong turned lower in Monday's trading, and investors reviewed the latest flood of economic releases.
The Hang Seng Index declined 0.5%, and the Nasdaq Composite decreased 0.4%, as investors hoped for the GDP growth to meet the target rate after the release of mixed economic updates.
Retail sales in April advanced 5.1% from a year ago compared to a one-year high rate of 5.9% in the previous month, the National Bureau of Statistics reported on Monday.
For the first four months of the year, retail sales expanded 4.7%, amid weak economic consumption as households remained cautious due to weak consumer confidence and a prolonged property market slump.
China's new home prices declined for the 22nd consecutive month in April, but the decline was the slowest since May 2024, the statistical agency reported.
New home prices across the 70 largest cities decreased 4.0% from a year ago amid the central government's efforts to stabilize the residential property market.
New home prices in Beijing dropped 5.0% compared to 5.7%, in Guangzhou declined 6.3% compared to 7.2%, and in Shenzhen eased 3.0% compared to 3.9% in the previous month.
Meanwhile, prices in Shanghai advanced at a slightly faster pace of 5.9% compared to 5.7% in the previous month.
Industrial production expanded at a slower pace of 6.1% in April compared to a three-year high rate of 7.7% in March, the statistical bureau said in a separate report.
Factories expanded operations as U.S. importers and retailers front-loaded ahead of the looming tariffs and trade policy uncertainties.
Fixed asset investment increased at an annual pace of 4% in the first four months of April, the statistical agency reported.
April's data provided an early glimpse of the impact of the sharply higher U.S. tariffs on Chinese goods, destabilizing financial markets and bringing trade between the world's largest economies to a near halt.
China Indexes and Stocks
The Hang Seng index decreased 0.5% to 23,230.95, and the CSI 300 index dropped 0.4% to 3,874.40.
Midea Group increased 1.7% to HK $79.25, and ZTO Express advanced 4% to HK $149.60 after the two companies were selected to be included in the Hang Seng Index on June 6.
China New Home Price Decline, Industrial Production, and Retail Sales Growth Slow
Li Chen
19 May, 2025
Hong Kong
Stock market indexes in China and Hong Kong turned lower in Monday's trading, and investors reviewed the latest flood of economic releases.
The Hang Seng Index declined 0.5%, and the Nasdaq Composite decreased 0.4%, as investors hoped for the GDP growth to meet the target rate after the release of mixed economic updates.
Retail sales in April advanced 5.1% from a year ago compared to a one-year high rate of 5.9% in the previous month, the National Bureau of Statistics reported on Monday.
For the first four months of the year, retail sales expanded 4.7%, amid weak economic consumption as households remained cautious due to weak consumer confidence and a prolonged property market slump.
China's new home prices declined for the 22nd consecutive month in April, but the decline was the slowest since May 2024, the statistical agency reported.
New home prices across the 70 largest cities decreased 4.0% from a year ago amid the central government's efforts to stabilize the residential property market.
New home prices in Beijing dropped 5.0% compared to 5.7%, in Guangzhou declined 6.3% compared to 7.2%, and in Shenzhen eased 3.0% compared to 3.9% in the previous month.
Meanwhile, prices in Shanghai advanced at a slightly faster pace of 5.9% compared to 5.7% in the previous month.
Industrial production expanded at a slower pace of 6.1% in April compared to a three-year high rate of 7.7% in March, the statistical bureau said in a separate report.
Factories expanded operations as U.S. importers and retailers front-loaded ahead of the looming tariffs and trade policy uncertainties.
Fixed asset investment increased at an annual pace of 4% in the first four months of April, the statistical agency reported.
April's data provided an early glimpse of the impact of the sharply higher U.S. tariffs on Chinese goods, destabilizing financial markets and bringing trade between the world's largest economies to a near halt.
China Indexes and Stocks
The Hang Seng index decreased 0.5% to 23,230.95, and the CSI 300 index dropped 0.4% to 3,874.40.
Midea Group increased 1.7% to HK $79.25, and ZTO Express advanced 4% to HK $149.60 after the two companies were selected to be included in the Hang Seng Index on June 6.
U.S. Stocks Extend Gains Amid Lack of Visible Signs of Tariffs On Inflation
Barry Adams
16 May, 2025
New York City
Wall Street indexes looked higher in early trading as investors looked to add exposure to riskier assets following two inflation reports and retail sales data.
The S&P 500 index edged up 0.1%, and the Nasdaq Composite advanced 0.2%, and the two widely followed benchmark indexes are set to extend gains for the fourth consecutive week.
In the week to Thursday, the S&P 500 index advanced 4.5%, and the Nasdaq Composite jumped 6%, after the U.S. and China agreed to lower tariffs over the weekend.
Market sentiment further improved after the U.S. rolled back additional tariffs on parcels arriving from China under the de minimis program, and China removed the ban on the purchase of Boeing aircraft.
Despite the cooling of tensions, the two sides are far apart, and tensions could easily flare up in the weeks ahead.
Two latest inflation reports also supported the market rebound, after the annual consumer price inflation eased to 2.3% and the producer price inflation declined 0.5% in April from the previous month.
Over the last five weeks, market recovery has been halting amid worries that higher tariffs on foreign goods will eventually show up in macroeconomic data, but the steady decline in gasoline prices could soften the blow to consumers.
Shipments from China are expected to rebound in early June as businesses scramble to make the most of the 90-day pause on punitive tariffs and restock warehouses.
Housing Activities Contracted In April
Closer to home on the economic front, housing activities fell in April from a year ago, according to the preliminary data released by the U.S. Census Bureau.
Building permits declined by 3.2% to an annual pace of 1.41 million, housing starts fell by 1.7% to 1.37 million, and housing completions dropped by 12.3% to 1.45 million from a year ago, respectively.
Commodities, Currencies, Indexes, Yields
The S&P 500 index increased 0.04% to 5,919.48, the Nasdaq Composite edged up 0.2% to 19,147.60, and the Russell 2000 index advanced 0.6% to 2,097.02.
The yield on 2-year Treasury notes edged lower to 3.95%, 10-year Treasury notes decreased to 4.40%, and 30-year Treasury bonds declined to 4.86%.
WTI crude oil increased $0.41 to $62.03 a barrel, and natural gas prices edged lower by $0.02 to $3.38 a thermal unit.
Gold decreased by $62.48 to 3,174.20 an ounce, and silver edged down by $0.52 to $32.11.
The dollar index, which weighs the US currency against a basket of foreign currencies, decreased by 0.09 to 100.79 and traded at a two-year high.
U.S. Movers
Charter Communications Inc. soared 9.4% to $459.0 after the cable television service provider agreed to merge with the privately held Cox Communications.
The deal values Cox at an enterprise value of $34.5 billion, including $21.9 billion in equity and $12.6 net of all liabilities.
After the merger, Cox Enterprises will own 23% of the fully diluted outstanding shares, according to the merger announcement by the two companies.
Charter CEO Chris Winfrey will lead the combined company, and Alex Taylor, chairman and CEO of Cox Enterprises, will assume the role of chairman of the combined company's board.
Microsoft Corp. edged down 0.03% to $452.98, and the software company said it plans to eliminate 3% of its worldwide staff across all levels of management and geographies.
Microsoft employs about 228,000 staff around the world, according to the latest data available in the company's annual report.
The current round of layoffs is the largest for the Redmond, Washington-based software company following the elimination of 10,000 positions in 2023.
U.S. Stocks Extend Gains Amid Lack of Visible Signs of Tariffs On Inflation
Barry Adams
16 May, 2025
New York City
Wall Street indexes looked higher in early trading as investors looked to add exposure to riskier assets following two inflation reports and retail sales data.
The S&P 500 index edged up 0.1%, and the Nasdaq Composite advanced 0.2%, and the two widely followed benchmark indexes are set to extend gains for the fourth consecutive week.
In the week to Thursday, the S&P 500 index advanced 4.5%, and the Nasdaq Composite jumped 6%, after the U.S. and China agreed to lower tariffs over the weekend.
Market sentiment further improved after the U.S. rolled back additional tariffs on parcels arriving from China under the de minimis program, and China removed the ban on the purchase of Boeing aircraft.
Despite the cooling of tensions, the two sides are far apart, and tensions could easily flare up in the weeks ahead.
Two latest inflation reports also supported the market rebound, after the annual consumer price inflation eased to 2.3% and the producer price inflation declined 0.5% in April from the previous month.
Over the last five weeks, market recovery has been halting amid worries that higher tariffs on foreign goods will eventually show up in macroeconomic data, but the steady decline in gasoline prices could soften the blow to consumers.
Shipments from China are expected to rebound in early June as businesses scramble to make the most of the 90-day pause on punitive tariffs and restock warehouses.
Housing Activities Contracted In April
Closer to home on the economic front, housing activities fell in April from a year ago, according to the preliminary data released by the U.S. Census Bureau.
Building permits declined by 3.2% to an annual pace of 1.41 million, housing starts fell by 1.7% to 1.37 million, and housing completions dropped by 12.3% to 1.45 million from a year ago, respectively.
U.S. Movers
Charter Communications Inc. soared 9.4% to $459.0 after the cable television service provider agreed to merge with the privately held Cox Communications.
The deal values Cox at an enterprise value of $34.5 billion, including $21.9 billion in equity and $12.6 net of all liabilities.
After the merger, Cox Enterprises will own 23% of the fully diluted outstanding shares, according to the merger announcement by the two companies.
Charter CEO Chris Winfrey will lead the combined company, and Alex Taylor, chairman and CEO of Cox Enterprises, will assume the role of chairman of the combined company's board.
Microsoft Corp. edged down 0.03% to $452.98, and the software company said it plans to eliminate 3% of its worldwide staff across all levels of management and geographies.
Microsoft employs about 228,000 staff around the world, according to the latest data available in the company's annual report.
The current round of layoffs is the largest for the Redmond, Washington-based software company following the elimination of 10,000 positions in 2023.
European Markets Extend Weekly Gains to Fifth Consecutive Week, Richemont In Focus
Bridgette Randall
16 May, 2025
London
European markets advanced in Friday's trading, and benchmark indexes are set to extend their advance to the fifth consecutive week.
Market sentiment wavered in a choppy week of trading, but benchmarks across Europe hovered near their six-week highs amid de-escalating trade tensions with the U.S.
Investors are hoping that the European Union will be able to strike a deal with the U.S. as early as next month and avoid sky-high import taxes on automobiles, vehicle parts, steel, and aluminum.
On the earnings front, France's jobless rate edged up to 7.4% in the first quarter from 7.3% in the previous quarter, according to data released by the INSEE.
The labor participation rate increased to 75.1% from 74.6% in the previous quarter, but the number of unemployed persons increased by 64,000 to 2.4 million.
However, the youth jobless rate for those aged between 15 and 24 was virtually unchanged at 19.2%; for individuals between 25 and 49 edged up a fraction to 6.7%, and for individuals above 50 and over held steady at 4.7%.
Europe Indexes and Yields
The DAX index increased by 0.4% to 23,786.26, the CAC-40 index edged higher by 0.2% to 7,853.47, and the FTSE 100 index advanced 0.5% to 8,675.90.
The yield on 10-year German bonds inched lower to 2.58%, French bonds decreased to 3.27%, UK gilts moved down to 4.62%, and Italian bonds edged lower to 3.59%.
The euro increased to $1.12; the British pound was higher at $1.33; and the U.S. dollar was lower and traded at 83.34 Swiss cents.
Brent crude decreased $0.06 to $64.46 a barrel, and the Dutch TTF natural gas was lower by €0.20 to €35.16 per MWh.
Europe Movers
Richemont SA gained 5.3% to CHF 163.15, and the luxury goods group reported a better-than-expected 7% increase in the first quarter.
Swiss Re AG increased 1.3% to CHF 151.65, and the reinsurance group reported a 16% increase in profit in the first quarter.
The company delivered higher earnings despite $587 million of losses linked to wildfires in Los Angeles, California.
Aegon Ltd. declined 0.4% to €6.19, and the Dutch insurance company reported weak results in the first quarter.
Despite the weak quarterly results, the insurance company reiterated its full-year estimate of €800 million in free cash flow and a dividend per share of €0.40.
European Markets Extend Weekly Gains to Fifth Consecutive Week, Richemont In Focus
Bridgette Randall
16 May, 2025
London
European markets advanced in Friday's trading, and benchmark indexes are set to extend their advance to the fifth consecutive week.
Market sentiment wavered in a choppy week of trading, but benchmarks across Europe hovered near their six-week highs amid de-escalating trade tensions with the U.S.
Investors are hoping that the European Union will be able to strike a deal with the U.S. as early as next month and avoid sky-high import taxes on automobiles, vehicle parts, steel, and aluminum.
On the earnings front, France's jobless rate edged up to 7.4% in the first quarter from 7.3% in the previous quarter, according to data released by the INSEE.
The labor participation rate increased to 75.1% from 74.6% in the previous quarter, but the number of unemployed persons increased by 64,000 to 2.4 million.
However, the youth jobless rate for those aged between 15 and 24 was virtually unchanged at 19.2%; for individuals between 25 and 49 edged up a fraction to 6.7%, and for individuals above 50 and over held steady at 4.7%.
Europe Indexes and Yields
The DAX index increased by 0.4% to 23,786.26, the CAC-40 index edged higher by 0.2% to 7,853.47, and the FTSE 100 index advanced 0.5% to 8,675.90.
The yield on 10-year German bonds inched lower to 2.58%, French bonds decreased to 3.27%, UK gilts moved down to 4.62%, and Italian bonds edged lower to 3.59%.
The euro increased to $1.12; the British pound was higher at $1.33; and the U.S. dollar was lower and traded at 83.34 Swiss cents.
Brent crude decreased $0.06 to $64.46 a barrel, and the Dutch TTF natural gas was lower by €0.20 to €35.16 per MWh.
Europe Movers
Richemont SA gained 5.3% to CHF 163.15, and the luxury goods group reported a better-than-expected 7% increase in the first quarter.
Swiss Re AG increased 1.3% to CHF 151.65, and the reinsurance group reported a 16% increase in profit in the first quarter.
The company delivered higher earnings despite $587 million of losses linked to wildfires in Los Angeles, California.
Aegon Ltd. declined 0.4% to €6.19, and the Dutch insurance company reported weak results in the first quarter.
Despite the weak quarterly results, the insurance company reiterated its full-year estimate of €800 million in free cash flow and a dividend per share of €0.40.
Europe Movers: Aegon, Swiss Re
Inga Muller
16 May, 2025
Frankfurt
Swiss Re AG dropped 2% to CHF 146.65 after the Swiss reinsurance company reported lower revenue in the first quarter.
Insurance revenue declined 11% to $10.40 billion from $11.68 billion, and net income jumped 16% to $1.27 billion from $1.10 billion a year ago.
The company has proposed a dividend of $7.35 per share, an increase of 8% over the previous year.
Aegon Ltd. eased 0.8% to €6.16 after the Dutch financial services company reported first-quarter 2025 results.
Net deposits declined 72% to €767 million from €2.73 billion, and assets under management increased 3% to €324.62 billion from €314.05 billion a year ago.
“Third-party net deposits in Global Platforms were mostly driven by inflows in alternative fixed income products and fixed income products in the UK and the Netherlands,” the company said in a release to investors.
Net outflows from Affiliate resulted mainly from net outflows in UK and US retirement funds and the gradual run-off of the traditional insurance book in the UK, the company added in the statement.
New life sales in the international segment rose 11% in the quarter from a year ago, mainly driven by Brazil due to higher credit life sales.
Europe Movers: Aegon, Swiss Re
Inga Muller
16 May, 2025
Frankfurt
Swiss Re AG dropped 2% to CHF 146.65 after the Swiss reinsurance company reported higher revenue and net income in the first quarter.
Revenue increased to $11.98 billion from $11.68 billion, and net income rose to $938 million from $1.09 billion a year ago.
The company proposed a dividend of $7.35 per share, an increase of 8% over the previous year.
Aegon Ltd. eased 0.8% to €6.16 after the Dutch financial services company reported first-quarter 2025 results.
Net deposits declined 72% to €767 million from €2.73 billion, and assets under management increased 3% to €324.62 billion from €314.05 billion a year ago.
“Third-party net deposits in Global Platforms were mostly driven by inflows in alternative fixed income products and fixed income products in the UK and the Netherlands,” the company said in a release to investors.
Net outflows from Affiliate resulted mainly from net outflows in UK and US retirement funds and the gradual run-off of the traditional insurance book in the UK, the company added in the statement.
New life sales in the international segment rose 11% in the quarter from a year ago, mainly driven by Brazil due to higher credit life sales.
U.S. Movers: Alibaba, Birkenstock, Doximity, Walmart
Scott Peters
16 May, 2025
New York City
Walmart Inc. dropped 3.1% to $93.86 after the retailer reported a decline in earnings in the fiscal first quarter.
Revenue edged up 2.5% to $165.61 billion from $161.51 billion, net income decreased 12.1% to $4.49 billion from $5.10 billion, and diluted earnings per share fell 11.1% to 56 cents from 63 cents a year ago.
U.S. comparable sales were up 4.5% in the quarter, with strong growth in health and wellness and grocery segments, and global e-commerce sales grew 22% driven by a rising demand across all segments.
The company guided second-quarter sales to increase between 3.5% and 4.5% in constant currency and did not provide any indication of earnings and earnings per share because of constantly changing U.S. tariff rates.
During the first quarter, Walmart repurchased 50.4 million shares at an average price of $90.35 per share for a total of $4.6 billion, and $7.5 billion has remained under repurchase authorization.
Dividend payments amounted to $1.9 billion in the quarter, compared to $1.7 billion in the same period a year ago.
The company’s inventory stood at $57.5 billion, an increase of 3.8%, or $2.1 billion, from a year earlier.
Alibaba Group Holding Ltd. plunged 8.2% to $123.05 after the China-based e-commerce company reported March quarter and full-year results.
Revenue in the March quarter increased 7% to 236.45 billion yuan from 221.87 billion yuan, net income surged 279% to 12.38 billion yuan from 3.27 billion yuan, and diluted earnings per share rose 296% to 65 yuan cents from 16 yuan cents a year ago.
The company repurchased 51 million ordinary shares, equivalent to 6 million ADSs, for a total of $0.6 billion during the quarter, and for the fiscal year, the retailer repurchased 1.197 billion ordinary shares, equivalent to 150 million ADSs, for a total of $11.9 billion.
In addition, the company approved a two-part dividend in the total amount of 25 cents per ordinary share, or $2.00 per ADS.
For the full year, revenue edged up to 996.35 billion yuan from 941.17 billion yuan, net income jumped to 130.11 billion yuan from 80.01 billion yuan, and diluted earnings per share rose to 6.70 yuan from 3.91 yuan a year ago.
Birkenstock Holding plc soared 7.05% to $58.33 after the German shoe and sandals manufacturer reported second-quarter 2025 results.
Revenue surged to €574.33 million from €481.24 million, net profit climbed to €105.11 million from €71.65 million, and diluted earnings per share rose to 56 cents from 38 cents a year ago.
The double-digit sales growth was driven by strength in all segments, including the Americas, EMEA, and APAC.
Birkenstock invested approximately €21 million in capital expenditures in the second quarter, primarily to expand production capacity to meet rising consumer demand.
The company guided full-year revenue growth to be at the high end of the 15% to 17% range in constant currency, compared to €1.8 billion in 2024, and adjusted EBITDA to range between €660 million and €670 million, compared to €555 million a year earlier.
Doximity Inc. slumped 20.7% to $46.36 after the networking site healthcare professionals' outlook fell short of market expectations.
Revenue jumped to $138.29 million from $118.06 million, net income climbed to $62.46 million from $40.62 million, and diluted earnings per share rose to 31 cents from 20 cents a year ago.
The company guided first-quarter revenue to be between $139 million and $140 million, compared to $126.7 million a year earlier, and adjusted EBITDA between $71 million and $72 million, compared to $65.9 million in the same period of fiscal 2025.
For the full year, Doximity estimated revenue to be between $619 million and $631 million, compared to $570.4 million in 2025, and adjusted EBITDA between $333 million and $345 million, compared to $313.8 million a year ago.
U.S. Movers: Alibaba, Birkenstock, Doximity, Walmart
Scott Peters
16 May, 2025
New York City
Walmart Inc. dropped 3.1% to $93.86 after the retailer reported a decline in earnings in the fiscal first quarter.
Revenue edged up 2.5% to $165.61 billion from $161.51 billion, net income decreased 12.1% to $4.49 billion from $5.10 billion, and diluted earnings per share fell 11.1% to 56 cents from 63 cents a year ago.
U.S. comparable sales were up 4.5% in the quarter, with strong growth in health and wellness and grocery segments, and global e-commerce sales grew 22% driven by a rising demand across all segments.
The company guided second-quarter sales to increase between 3.5% and 4.5% in constant currency and did not provide any indication of earnings and earnings per share because of constantly changing U.S. tariff rates.
During the first quarter, Walmart repurchased 50.4 million shares at an average price of $90.35 per share for a total of $4.6 billion, and $7.5 billion has remained under repurchase authorization.
Dividend payments amounted to $1.9 billion in the quarter, compared to $1.7 billion in the same period a year ago.
The company’s inventory stood at $57.5 billion, an increase of 3.8%, or $2.1 billion, from a year earlier.
Alibaba Group Holding Ltd. plunged 8.2% to $123.05 after the China-based e-commerce company reported March quarter and full-year results.
Revenue in the March quarter increased 7% to 236.45 billion yuan from 221.87 billion yuan, net income surged 279% to 12.38 billion yuan from 3.27 billion yuan, and diluted earnings per share rose 296% to 65 yuan cents from 16 yuan cents a year ago.
The company repurchased 51 million ordinary shares, equivalent to 6 million ADSs, for a total of $0.6 billion during the quarter, and for the fiscal year, the retailer repurchased 1.197 billion ordinary shares, equivalent to 150 million ADSs, for a total of $11.9 billion.
In addition, the company approved a two-part dividend in the total amount of 25 cents per ordinary share, or $2.00 per ADS.
For the full year, revenue edged up to 996.35 billion yuan from 941.17 billion yuan, net income jumped to 130.11 billion yuan from 80.01 billion yuan, and diluted earnings per share rose to 6.70 yuan from 3.91 yuan a year ago.
Birkenstock Holding plc soared 7.05% to $58.33 after the German shoe and sandals manufacturer reported second-quarter 2025 results.
Revenue surged to €574.33 million from €481.24 million, net profit climbed to €105.11 million from €71.65 million, and diluted earnings per share rose to 56 cents from 38 cents a year ago.
The double-digit sales growth was driven by strength in all segments, including the Americas, EMEA, and APAC.
Birkenstock invested approximately €21 million in capital expenditures in the second quarter, primarily to expand production capacity to meet rising consumer demand.
The company guided full-year revenue growth to be at the high end of the 15% to 17% range in constant currency, compared to €1.8 billion in 2024, and adjusted EBITDA to range between €660 million and €670 million, compared to €555 million a year earlier.
Doximity Inc. slumped 20.7% to $46.36 after the networking site healthcare professionals' outlook fell short of market expectations.
Revenue jumped to $138.29 million from $118.06 million, net income climbed to $62.46 million from $40.62 million, and diluted earnings per share rose to 31 cents from 20 cents a year ago.
The company guided first-quarter revenue to be between $139 million and $140 million, compared to $126.7 million a year earlier, and adjusted EBITDA between $71 million and $72 million, compared to $65.9 million in the same period of fiscal 2025.
For the full year, Doximity estimated revenue to be between $619 million and $631 million, compared to $570.4 million in 2025, and adjusted EBITDA between $333 million and $345 million, compared to $313.8 million a year ago.
Japan's GDP Contracts In First Quarter, Nikkei 225 Edges Higher After a Week of Volatile Trading
Akira Ito
16 May, 2025
Tokyo
Japan's stock market indexes declined for the third consecutive day as investors shifted their attention to corporate earnings outlook and GDP growth data.
The Nikkei 225 Stock Average and the broader Topix index inched slightly lower after Japan's economic activities contracted in the first quarter.
GDP shrank 0.2% in the first quarter after expanding by 0.6% in the fourth quarter, the Cabinet Office said on Friday.
The economy contracted for the first time in over a year because of the impact of the U.S. trade policy and weak demand from key trading partners.
Private consumption, which accounts for half the GDP, was essentially unchanged, and government spending was flat after rising in the previous three quarters.
Net international trade dragged the GDP down by 0.8 percentage points after imports overwhelmed exports in the quarter.
On an annual basis, the economy contracted by 0.7%, after rising in the previous two quarters.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 0.1% to 37,739.53, and the broader Topix index eased 0.01% to 2,738.68.
For the week, the Nikkei 225 Stock Average and the Topix advanced 0.3% and extended gains for the sixth consecutive week.
The Japanese yen traded at 145.14 against the U.S. dollar after the weak GDP data confirmed the Bank of Japan's downbeat economic outlook released a week ago.
Automakers and electronics exporters remained in focus for the fifth week in a row amid a surge in U.S. tariffs and uncertain trade policy.
Toyota Motor declined 0.5% to ¥2,645.0, Honda Motor decreased 0.2% to ¥1,401.0, and Nissan Motor rose 4.6% to ¥356.70.
Shipping companies traded volatile amid uncertainty about the U.S.-Japan trade negotiations.
Nippon Yusen rose 1.5% to ¥5,265.0, Mitsui O.S.K. Lines advanced 0.6% to ¥5,200.0, and Kawasaki Kisen Kaisha added 2.5% to ¥2,197.0.
Japan's GDP Contracts In First Quarter, Nikkei 225 Edges Higher After a Week of Volatile Trading
Akira Ito
16 May, 2025
Tokyo
Japan's stock market indexes declined for the third consecutive day as investors shifted their attention to corporate earnings outlook and GDP growth data.
The Nikkei 225 Stock Average and the broader Topix index inched slightly lower after Japan's economic activities contracted in the first quarter.
GDP shrank 0.2% in the first quarter after expanding by 0.6% in the fourth quarter, the Cabinet Office said on Friday.
The economy contracted for the first time in over a year because of the impact of the U.S. trade policy and weak demand from key trading partners.
Private consumption, which accounts for half the GDP, was essentially unchanged, and government spending was flat after rising in the previous three quarters.
Net international trade dragged the GDP down by 0.8 percentage points after imports overwhelmed exports in the quarter.
On an annual basis, the economy contracted by 0.7%, after rising in the previous two quarters.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 0.1% to 37,739.53, and the broader Topix index eased 0.01% to 2,738.68.
For the week, the Nikkei 225 Stock Average and the Topix advanced 0.3% and extended gains for the sixth consecutive week.
The Japanese yen traded at 145.14 against the U.S. dollar after the weak GDP data confirmed the Bank of Japan's downbeat economic outlook released a week ago.
Automakers and electronics exporters remained in focus for the fifth week in a row amid a surge in U.S. tariffs and uncertain trade policy.
Toyota Motor declined 0.5% to ¥2,645.0, Honda Motor decreased 0.2% to ¥1,401.0, and Nissan Motor rose 4.6% to ¥356.70.
Shipping companies traded volatile amid uncertainty about the U.S.-Japan trade negotiations.
Nippon Yusen rose 1.5% to ¥5,265.0, Mitsui O.S.K. Lines advanced 0.6% to ¥5,200.0, and Kawasaki Kisen Kaisha added 2.5% to ¥2,197.0.
China Stocks Turn Lower After Earnings Growth and Macroeconomic Worries Resurface
Li Chen
16 May, 2025
Hong Kong
Stock market indexes in China and Hong Kong turned lower and trimmed weekly gains as investors shifted their attention to quarterly earnings and macroeconomic data.
The Hang Seng index decreased 0.7%, and the mainland-focused CSI 300 index dropped 0.3% amid lingering worries of a weakening macroeconomic outlook and faltering investor confidence.
Weaker-than-expected earnings from Alibaba Group Holding added to market anxieties, following a quarterly earnings update from Tencent Holdings.
Investor confidence has remained fragile as leading companies reported higher sales and earnings, but growth profile has lagged investor expectations.
Moreover, Alibaba, JD.com, Tencent Holding, and Baidu are also facing significant increases in investment in artificial intelligence infrastructure over several years.
Investors are still waiting for the signs of improving macroeconomic fundamentals and a turnaround in the protracted residential real estate market after more than five years.
China Indexes and Stocks
The Hang Seng index declined 0.7% to 23,287.71, and the mainland-focused CSI 300 index dropped 0.3% to 3,884.60.
Alibaba dropped 5% to HK $122.50, and the e-commerce company reported a 279% jump in the fiscal fourth quarter profit ending in March, largely driven by a change in valuations in equity holdings.
Revenue jumped 7% to 236.5 billion yuan, and net income soared 279% to 12.4 billion yuan.
NetEase Inc. soared 13.3% to HK $190.80 after the online and mobile game company reported a 35% jump in profit in the latest quarter to 10.3 billion yuan.
Green Tea Group declined 5% to HK$6.87 per share, and the casual restaurant chain operator company priced its HK$1.21 billion initial public offering.
Green Tea's public offering was oversubscribed by 316 times, and the company priced its initial public offering at HK$7.19 per share.
Retail investors have returned, and they are bidding up public offerings of popular consumer-facing companies.
The public offerings of Aunt Jenny were oversubscribed by 3,616 times and Mixue by 5,258 times.
Jiangsu Hanbon Science and Technology jumped 105% to 47.92 yuan in Shanghai after the medical equipment maker priced its initial public offering at 22.77 yuan and sold 22 million shares, raising a total of 500.94 million yuan.
Zerun soared 105% to 70.05 yuan in Shenzhen, and the power transmission equipment maker priced its initial public offering at 33.06 yuan per share and sold 15.97 million shares, raising 527.9 million yuan.
China Stocks Turn Lower After Earnings Growth and Macroeconomic Worries Resurfac
Li Chen
16 May, 2025
Hong Kong
Stock market indexes in China and Hong Kong turned lower and trimmed weekly gains as investors shifted their attention to quarterly earnings and macroeconomic data.
The Hang Seng index decreased 0.7%, and the mainland-focused CSI 300 index dropped 0.3% amid lingering worries of a weakening macroeconomic outlook and faltering investor confidence.
Weaker-than-expected earnings from Alibaba Group Holding added to market anxieties, following a quarterly earnings update from Tencent Holdings.
Investor confidence has remained fragile as leading companies reported higher sales and earnings, but growth profile has lagged investor expectations.
Moreover, Alibaba, JD.com, Tencent Holding, and Baidu are also facing significant increases in investment in artificial intelligence infrastructure over several years.
Investors are still waiting for the signs of improving macroeconomic fundamentals and a turnaround in the protracted residential real estate market after more than five years.
China Indexes and Stocks
The Hang Seng index declined 0.7% to 23,287.71, and the mainland-focused CSI 300 index dropped 0.3% to 3,884.60.
Alibaba dropped 5% to HK $122.50, and the e-commerce company reported a 279% jump in the fiscal fourth quarter profit ending in March, largely driven by a change in valuations in equity holdings.
Revenue jumped 7% to 236.5 billion yuan, and net income soared 279% to 12.4 billion yuan.
NetEase Inc. soared 13.3% to HK $190.80 after the online and mobile game company reported a 35% jump in profit in the latest quarter to 10.3 billion yuan.
Green Tea Group declined 5% to HK$6.87 per share, and the casual restaurant chain operator company priced its HK$1.21 billion initial public offering.
Green Tea's public offering was oversubscribed by 316 times, and the company priced its initial public offering at HK$7.19 per share.
Retail investors have returned, and they are bidding up public offerings of popular consumer-facing companies.
The public offerings of Aunt Jenny were oversubscribed by 3,616 times and Mixue by 5,258 times.
Jiangsu Hanbon Science and Technology jumped 105% to 47.92 yuan in Shanghai after the medical equipment maker priced its initial public offering at 22.77 yuan and sold 22 million shares, raising a total of 500.94 million yuan.
Zerun soared 105% to 70.05 yuan in Shenzhen, and the power transmission equipment maker priced its initial public offering at 33.06 yuan per share and sold 15.97 million shares, raising 527.9 million yuan.
S&P 500 and Nasdaq Turn Lower After Retail Sales Report and Walmart Earnings
Barry Adams
15 May, 2025
New York City
Wall Street indexes struggled to rise above the flatline in early trading in New York, and investors reviewed the latest batch of earnings.
The S&P 500 index edged down 0.1%, and the Nasdaq Composite decreased 0.2%, and the tech-heavy index extended gains for the sixth session in a row as of the close of Wednesday.
On the economic front, investors reviewed the latest update on producer price inflation and retail sales.
Retail and Food Services Sales Advanced in April
Retail and food services sales adjusted for seasonal variations but not for price fluctuations increased 0.1% to $724.1 billion, the U.S. Census Bureau reported Thursday.
On an annual basis, retail sales advanced 5.2% from a year ago, reflecting higher prices at restaurants and bars.
However, sales excluding food services, auto dealers, building materials stores, and gasoline stations, which are used to calculate GDP, decreased 0.2%, lower than the upwardly revised 0.5% increase in March.
Producer Price Index In April Falls for First Time In 7 Months
The seasonally adjusted producer price index decreased 0.5% from the previous month in April, following a revised flat reading in March, the U.S. Bureau of Labor Statistics reported Thursday.
On an unadjusted basis, the measure of producer price inflation advanced 2.4%.
The monthly measure of inflation declined for the first time since October and fell at the fastest pace since April 2020, during the early outbreak of the Covid-19 pandemic.
The goods price index was unchanged, but the service price index fell 0.7%, the largest decline since record keeping began in December 2009.
The producer prices of less food, energy, and trade services edged down 0.1% in April, the first decline since falling 0.8% in April 2020.
For the 12 months ended April 2025, the index for final demand less foods, energy, and trade services advanced 2.9%.
Commodities, Currencies, Indexes, Yields
The S&P 500 index decreased 0.4% to 5,866.33, the Nasdaq Composite edged down 0.8% to 18,984.34, and the Russell 2000 index declined 0.1% to 2,080.69.
The yield on 2-year Treasury notes edged lower to 4.02%, 10-year Treasury notes decreased to 4.48%, and 30-year Treasury bonds declined to 4.96%.
WTI crude oil decreased $1.63 to $61.52 a barrel, and natural gas prices edged lower by $0.04 to $3.45 a thermal unit.
Gold increased by $10.44 to 3,196.27 an ounce, and silver edged down by $0.06 to $32.15.
The dollar index, which weighs the US currency against a basket of foreign currencies, decreased by 0.37 to 100.67 and traded at a two-year high.
U.S. Stock Movers
Cisco Systems advanced 3.2% to $62.76 after the networking gear company reported better-than-expected fiscal third quarter adjusted earnings of 96 cents per share and revenue of $14.2 billion.
Foot Locker jumped 83% to $23.56 after the specialty retailer was reportedly in merger talks with Dick's Sporting Goods for $2.3 billion, or about $24 per share.
Boot Barn Holdings jumped 12% to $150.12 after the apparel and accessories retailer reported strong sales and earnings growth.
Same-store sales in the quarter increased 6%, driven by an in-store sales rise of 5.5% and an e-commerce sales increase of 9.8%.
Walmart decreased 0.03% to $96.79 after the retailer reported a decline in earnings in the fiscal first quarter and the company reiterated its annual sales and earnings outlook.
I’m concerned that consumers are going to start seeing higher prices. You’ll begin to see that, likely towards the tail end of this month, and then certainly much more in June,” Chief Financial Officer John David Rainey said in an interview with CNBC.
The company estimated fiscal second quarter sales to increase between 3.5% and 4.5% and did not provide any indication of earnings and earnings per share because of constantly changing U.S. tariff rates.
Revenue increased 2.5% to $161.51 billion, net income decreased to $4.49 billion from $5.1 billion, and diluted earnings per share fell to 56 cents from 63 cents a year ago.
Alibaba Group declined 4.4% to 128.25 after the China-based e-commerce company reported a 7% increase in revenue and earnings soared 279%, largely reflecting changes in equity valuations of its holdings.