Market Update
Indexes In Shanghai and Hong Kong Fail to Stay Above Flatline
Li Chen
06 Aug, 2024
Hong Kong
Stocks in Hong Kong and Shanghai rebounded after market sentiment stabilized, and investors looked forward to the release of corporate results.
The Hang Seng and the CSI indexes rebounded in early trading after Japan's Nikkei 225 stock average recouped most of the historic losses in the previous session amid panic selling.
But market indexes turned lower after a weak domestic economic outlook and earnings growth uncertainty overshadowed market sentiment in Hong Kong and Shanghai.
Investors looked forward to the release of official consumer price inflation and producer price inflation data on Friday.
Economists are estimating consumer price inflation to rebound by 0.3% in July, but wholesale deflation will persist for the 22nd month in a row and show a decline of 0.9%.
The Hang Seng index has erased about 15% of its gains from the peak in May, and the benchmark is struggling near a three-month low as foreign investors lighten their holdings and domestic investors stay on the sidelines.
In addition, China's policymakers are struggling to devise market reform amid weak consumer confidence and prolonged residential market decline as the world's second-largest economy labors under record-high government debt.
Across wider Asia, market indexes in Mumbai advanced 0.7%, in Tokyo rebounded 9.6%, in Seoul gained 4.5%, and in Sydney jumped 0.4%.
China Stock Movers
The Hang Seng index fell 0.2% to 16,668.21, and the CSI 300 index declined 0.5% to 3,327.05.
Property developers were in focus ahead of the release of their quarterly results.
China's top 100 residential real estate developers reported home sales of 1.85 trillion yuan, a 40% decline in sales in the first half, according to China Real Estate Information Corp.
But the supply of new homes is still rising at a pace faster than the rate in 2016, indicating that the industry may take more than a decade to rebound from the current slump.
China Vanke increased 1.2% to HK $4.08, China Resources Land gained 1.1% to HK $22.70, Longfor Group was unchanged at HK $9.07, and China Overseas Land & Investment inched higher 0.3% to HK $12.56.
Alibaba Group jumped 2% to HK $75.65, Meituan Holding declined 0.4% to $106.30, Baidu decreased 1.4% to HK $79.90, and Tencent Holdings dropped 1.6% to HK $350.80.
India Movers: BLS International, ONGC, Deepak Nitrite, Schneider Electric, Tata Chemicals, V-Mart
Arun Goswami
06 Aug, 2024
Mumbai
India indexes rebounded, tracking a rise in Asian markets, and investors focused on the latest batch of mixed quarterly results.
The Sensex index decreased by 0.8% to 79,815.89, and the Nifty index fell by 0.8% to 24,121.15.
On the Mumbai stock exchange, 110 stocks traded at their 52-week highs, and 19 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched lower to 6.85%, and the Indian rupee edged lower to ₹83.85 against the U.S. dollar.
ONGC increased 1.9% to ₹316.05, and the oil explorer reported a decline in profit in the June quarter.
Revenue increased 1.8% to 35,266.4 crore, and net income decreased 9.4% to 8,938.1 crore from a year ago, respectively.
Deepak Nitrite advanced 2.2% to ₹3,017.50 after the chemical maker reported a jump in revenue and earnings in the June quarter.
Revenue increased by 22.5% to 2,166.8 crore, and net income rose by 35.1% to 202.5 crore a year ago, respectively.
BLS International gained 4.3% to ₹365.0, and the visa services processing company reported a rise in revenue and earnings in the June quarter.
Revenue increased 28.5% to ₹492.7 crore and net income soared 70% to ₹120.8 crore from a year ago, respectively.
V-Mart Retail jumped 10.3% to ₹3,616.65, and the hypermarkets operator swung to a profit in the June quarter.
Revenue increased 15.9% to ₹786 crore, and net income swung to a profit of ₹12.1 crore compared to a loss in the quarter a year ago, respectively.
Schneider Electric Infrastructure advanced 7.7% to ₹807.30 after the power grid equipment and system maker reported a double-digit increase in revenue and earnings in the June quarter.
Revenue soared 19.7% to 592.9 crore, and net income advanced 38.8% to 48.5 crore from the corresponding month a year earlier.
Tata Chemicals increased 1.8% to ₹1,072.30, and the chemical and crop protection maker reported a decline in profit and earnings in the June quarter.
Revenue decreased 10.2% to 3,789 crore, and net income plunged 67.6% to 190 crore from a year ago, respectively.
U.S. Investors Shift Focus to Hard Landing Scenario as World Markets Lower Expectations
Alexander Garcia
05 Aug, 2024
Miami
Stock market indexes on Wall Street dropped sharply in Monday's trading and extended weekly losses of the previous three weeks in a row.
The global market sell-off that originated last week reverberated on Wall Street on Monday as investors recalibrated their economic growth and corporate earnings outlook.
The S&P 500 index and the Nasdaq Composite dropped around 3%, but at the opening, the benchmark indexes plunged as much as 4.5% and 6.5%, respectively.
Only two weeks ago, investors rushed to congratulate the Federal Reserve as policymakers struggled to cool inflation while keeping economic growth intact—the so-called soft landing.
However, market sentiment reversed sharply after key economic indicators suggested weakening economic activities and labor market expansion, suggesting that the economy may be losing steam faster than previously anticipated.
The hoped-for soft-landing scenario has been been discounted to a hard-landing scenario as investors fear economic activities may be falling at a faster-than-previously estimated pace.
The sudden shift in the economic narrative caught investors off guard and set in motion a decline on Wall Street last week, which rippled to Asia and Europe with heightened amplitude.
In Monday's trading, last quarter's big winners linked to artificial intelligence plunged in high double-digits, setting another round of sell-off across the Atlantic.
Intel, Nvidia, Broadcom, Qualcomm, AMD, and TSMC plunged between 5% and 15% at the opening, but those losses were trimmed after an hour of trading.
The yield on 10-year U.S. Treasury notes slipped to 3.7% as investors sought a safe haven in bond markets as stock market indexes hit new lows in the last two weeks.
In overnight trading, Japan's Nikkei plunged 12.4%, the largest point decline in the index's history and the second-largest fall in percentage, after the Bank of Japan lifted rates that contributed to a sharp rebound in the yen.
In the week ahead, in the U.S., all eyes will be on the fresh batch of earnings, including updates from Amgen, Caterpillar, Disney, and Uber.
On the economic front, the service sector activity report is likely to show a rebound in growth in July after a contraction in June.
Investors are also awaiting the release of the international goods and services trade balance, and changes in the deficit with China will take center stage.
U.S. Indexes and Treasury Yields
The S&P 500 index is down about 9%, and the Nasdaq Composite has dropped by 14% from its recent high in early July.
The S&P 500 index decreased 2.7% to 5,199.27, the Nasdaq Composite fell 3.1% to 16,252.99, and the Russell 2000 index declined 3.0% to 2,046.74.
The yield on 2-year Treasury notes edged lower to 3.87%, 10-year Treasury notes decreased to 3.70%, and 30-year Treasury bonds decreased to 4.03%.
WTI crude oil decreased $0.39 to $73.13 a barrel, and natural gas prices edged down 2 cents to $1.94 a thermal unit.
Gold decreased by $50.42 to $2,392.42 an ounce, and silver declined by $1.36 to $27.17.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 102.52.
U.S. Stock Movers
Artificial intelligence-linked stocks rebounded from steep losses on Monday morning.
Nvidia declined 6.5% to $99.23, Qualcomm dropped 0.5% to $158.14, TSMC decreased 5.1% to $142.30, but AMD managed to shake off losses to rise above the flatline to gain 0.5% to $133.25.
Apple decreased 5.4% to $207.97 after Warren Buffett-controlled Berkshire Hathaway disclosed in regulatory filings that it had cut its holding in the company by half.
Tesla declined 5.4% to $196.40, and company founder Elon Musk revived a lawsuit against OpenAI and its founder, Sam Altman.
European Stock Markets Extend Losses On Monday as Global Sell-off Intensifies
European markets extended losses from last week as investors adjusted their global growth outlook amid a weakening economic backdrop.
Benchmark indexes in Paris, Frankfurt, and London dropped between 2% and 4% as weaker-than-expected earnings from mega-cap tech companies were compounded by the weakening economic drop in the U.S.
Large European companies relied on export growth to the U.S. and China, which is the main driver of earnings growth, because of the stagnant economic conditions in the European Union.
However, in recent quarters, most of the earnings growth has been driven by U.S. demand growth, offset by China's weaker-than-expected economic recovery.
Now if the U.S. economy weakens, that could severely impact demand for European industrial and luxury goods, providing another headwind for earnings at European companies.
In domestic economic news, a survey showed the eurozone economy stalled in July as demand for goods and services deteriorated.
The HCOB composite PMI output index fell to a five-month low of 50.2 from 50.9 in June, S&P Global reported Monday.
In the week ahead, investors are awaiting the release of German factory orders and industrial production data, both of which are expected to show a rebound, and final inflation data is expected to confirm acceleration in July.
In the eurozone, investors are looking forward to the release of retail sales and producer price indexes, industrial production in Spain, the unemployment rate in France, and an inflation update in Italy.
Europe Indexes and Yields
The DAX index decreased by 1.8% to 17,339.0; the CAC-40 index fell by 1.4% to 7,148.99; and the FTSE 100 index declined by 2.1% to 8,008.23.
European bond yields dropped to six-month lows as investors sought safety in government securities amid growing worries about the global economic slowdown and rising geopolitical tensions.
The yield on 10-year German bonds edged lower to 2.10%, French bonds inched lower to 2.92%, the UK gilts inched lower to 3.77%, and Italian bonds decreased to 3.62%.
The euro edged down to $1.09; the British pound inched lower to $1.272; and the U.S. dollar weakened to 85.05 Swiss cents.
Brent crude decreased $0.56 to $76.24 a barrel, and the Dutch TTF natural gas fell by €0.85 to €35.80 per MWh.
Europe Stock Movers
Clarkson PLC plunged 10.4% to 3,875.0 pence after the UK-based shipping broker reported a decline in sales and earnings in the first half.
OCI NV increased 10.3% to €23.82 after Woodside Energy agreed to acquire the Netherlands-based chemical maker's clean ammonia plant in Texas for 2.35 billion.
Woodside Energy decreased 2.5% to 1,302.0 pence.
Senior plc plunged 7.7% to 145.4 pence, despite the UK-based engineering company reporting a 10% increase in its first-half profit.
Aurubis AG rose 9.2% to €62.50 after the non-ferrous metal producer and copper recycler reported third-quarter operating earnings below market expectations.
Galderma AG increased 4.6% to CHF 70.09 after L'Oreal said it acquired a 10% stake in the dermatology company for an undisclosed amount.
Japan's Nikkei Records Largest Single-day Fall of 12% Amid Panic Selling
Market indexes in Tokyo plunged in Monday's trading steepened three-day losses amid a growing list of worries as investors adjusted to the hawkish central bank.
The Nikkei 225 stock average plunged more than 12% and extended three-day losses to 20% as the Bank of Japan unexpectedly increased interest rates and sparked a sharp reversal in the Japanese yen.
Last Thursday, the Bank of Japan increased interest rates for the second time since March by 15 basis points to 0.25% and held out for more interest rate increases in the imminent future.
Investors were also under pressure after a string of weak earnings from mega-cap U.S. technology companies, which also led to the unwinding of the artificial intelligence-linked rally, dragging semiconductor equipment makers.
The yen continued to advance for the second week in a row and strengthened as much as 4% to close at 142.45 against the U.S. dollar, a sharp jump from 162 only three weeks ago.
The minutes of the Bank of Japan's policy meeting held on June 13–14 indicated members noted modest economic recovery, and participants decided to delay the release of a detailed bond purchase program until the next meeting.
The yield on 10-year Japanese government bonds dropped to 0.775% from 1.07% in Friday's trading.
Japan Stock Movers
The Nikkei 225 stock average recorded the largest decline in points in the index's history, and registered the second largest decline in percentage terms.
The Nikkei 225 stock average declined 3,836 points on October 20, 1987, the day after following the sharp plunge on Black Monday in New York.
The Nikkei 225 stock average plunged 12.4% or 4,451.28 points to 31,458.42, and the Topix index declined 12.2% to 2,227.15.
Banks, technology stocks, and industrial and automotive stocks led the decliners for the second day in a row.
Mitsubishi UFJ Financial plunged 17.8% to ¥1,245.50, Sumitomo Mitsui Financial dropped 15.5% to ¥8,162.0, and Mizuho Financial fell 19% to ¥2,452.0.
Over the last three trading sessions, Mitsubishi UFJ declined 33%, Mitsui Financial plunged 20%, and Mizuho Financial chopped 27%.
Softbank Group plunged 19% to ¥6,400.0, Advantest Corp. slid 15.5% to ¥5,313.0, and Screen Holdings dropped 12.7% to ¥9,080.0.
Over the last three trading sessions, Softbank plunged 31%, Advantest dropped 22%, Tokyo Electron decreased 25%, and Screen Holdings decreased 27%.
Toyota Motor declined 13.5% to ¥2,232.0, Honda Motor decreased 17.5% to ¥1,251.50, and Nissan Motor fell 14.5% to ¥378.10.
China Indexes Sell-off Erases 2024 Gains Amid U.S. Recession Worries
Market sentiment continued to weaken in Shanghai and Hong Kong as fears of the U.S. recession grew.
The Hang Seng index declined nearly 3% and dropped to a 3-month low, and the CSI index fell, tracking losses in Asia.
Investor sentiment deteriorated after a string of U.S. economic data suggested that the economy may be heading into a recession, reversing the popular narrative of strong consumer spending and business investments.
The U.S. payrolls expanded at the slowest pace in several years in July, and the jobless rate rose for the fourth month in a row to 4.3%, indicating labor market conditions are moderating.
In addition, last week, factory activities shrank for the third month in a row, and initial jobless claims approached a one-year high.
The sudden reversal in market sentiment from soft landing to hard landing was further supported by weak earnings from Intel, Amazon, Alphabet, and Tesla.
Investors are now thinking that the Federal Reserve may have held interest rates too high for too long and that the central bank may lower rates sooner than expected.
Closer to home, China's service sector showed an improvement in July, driven by an acceleration in export demand and rising employment, according to a private survey.
The Caixin China General Services PMI increased to 52.1–51.2% in June, according to a survey released by S&P Global.
China Stock Movers
The Hang Seng index declined 2.6% to 16,512.61, and the CSI 300 index dropped 1% to 3,352.63.
Internet stocks were among the leading decliners amid worries of a further weakening in earnings.
Alibaba Group fell 2.2% to HK $73.65, Tencent Holding decreased 1.6% to HK $352.40, and Baidu plunged 4.2% to HK $80.05.
Electric vehicle markets fell as investors avoided high-flying stocks.
BYD declined 2.2% to HK $214.40, Li Auto fell 3.2% to HK $71.55, and Xpeng decreased 3% to HK $28.55.
China Vanke declined 1.7% to HK $3.98, China Resources Land dropped 2.2% to HK $21.85, and Henderson Land Development eased 0.5% to HK $21.80.
HSBC Holdings plc declined 5.3% to HK $62.15, and Standard Chartered plc plunged 6.2% to HK $68.15.
Global Market Rout Returns Home Sinking S&P 500 and Nasdaq 4%
Barry Adams
05 Aug, 2024
New York City
The global market sell-off that originated last week reverberated on Wall Street on Monday as investors recalibrated their economic growth and corporate earnings outlook.
The S&P 500 index declined 3% and the Nasdaq Composite dropped 3.4%, but at the opening, the benchmark indexes plunged as much as 4.5% and 6.5%, respectively.
Only two weeks ago, investors rushed to congratulate the Federal Reserve as policymakers struggled to cool inflation while keeping economic growth intact—the so-called soft landing.
However, market sentiment reversed sharply after key economic indicators suggested weakening economic activities and labor market expansion, suggesting that the economy may be losing steam faster than previously anticipated.
The sudden shift in the economic narrative caught investors off guard and set in motion a decline on Wall Street last week, which rippled to Asia and Europe with heightened amplitude.
In Monday's trading, last quarter's big winners linked to artificial intelligence plunged in high double-digits, setting another round of sell-off across the Atlantic.
Intel, Nvidia, Broadcom, Qualcomm, AMD, and TSMC plunged between 5% and 15% at the opening, but those losses were trimmed after an hour of trading.
The yield on 10-year U.S. Treasury notes slipped to 3.7% as investors sought a safe haven in bond markets as stock market indexes hit new lows in the last two weeks.
In overnight trading, Japan's Nikkei plunged 12.4%, the largest point decline in the index's history and the second-largest fall in percentage, after the Bank of Japan lifted rates that contributed to a sharp rebound in the yen.
In the week ahead, in the U.S., all eyes will be on the fresh batch of earnings, including updates from Amgen, Caterpillar, Disney, and Uber.
On the economic front, the service sector activity report is likely to show a rebound in growth in July after a contraction in June.
Investors are also awaiting the release of the international goods and services trade balance, and changes in the deficit with China will take center stage.
U.S. Indexes and Treasury Yields
The S&P 500 index is down about 9%, and the Nasdaq Composite has dropped by 14% from its recent high in early July.
The S&P 500 index decreased 2.9% to 5,187.58, the Nasdaq Composite fell 3.7% to 16,159.91, and the Russell 2000 index declined 4.3% to 2,019.43.
The yield on 2-year Treasury notes edged lower to 3.87%, 10-year Treasury notes decreased to 3.70%, and 30-year Treasury bonds decreased to 4.03%.
WTI crude oil decreased $0.39 to $73.13 a barrel, and natural gas prices edged down 2 cents to $1.94 a thermal unit.
Gold decreased by $50.42 to $2,392.42 an ounce, and silver declined by $1.36 to $27.17.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 102.52.
U.S. Stock Movers
Artificial intelligence-linked stocks rebounded from steep losses on Monday morning.
Nvidia declined 6.5% to $99.23, Qualcomm dropped 0.5% to $158.14, TSMC decreased 5.1% to $142.30, but AMD managed to shake off losses to rise above the flatline to gain 0.5% to $133.25.
Apple decreased 5.4% to $207.97 after Warren Buffett-controlled Berkshire Hathaway disclosed in regulatory filings that it had cut its holding in the company by half.
Tesla declined 5.4% to $196.40, and company founder Elon Musk revived a lawsuit against OpenAI and its founder, Sam Altman.
Europe Movers: Aurubis, Clarkson, Galderma, OCI, Senior, Woodside Energy
Inga Muller
05 Aug, 2024
Frankfurt
European markets continued their decline for the second day on Monday amid growing worries about the U.S. economy's strength.
Market sentiment deteriorated after the eurozone economy stalled in July, as weak domestic demand overshadowed relative strength in exports.
The DAX index decreased by 2.5% to 17,209.20; the CAC-40 index fell by 2.4% to 7,105.90; and the FTSE 100 index declined by 2.6% to 7,961.64.
European bond yields dropped to six-month lows as investors sought safety in government securities amid growing worries about the global economic slowdown and rising geopolitical tensions.
The yield on 10-year German bonds edged lower to 2.10%, French bonds inched lower to 2.92%, the UK gilts inched lower to 3.77%, and Italian bonds decreased to 3.62%.
Clarkson PLC plunged 10.4% to 3,875.0 pence after the UK-based shipping broker reported a decline in sales and earnings in the first half.
OCI NV increased 10.3% to €23.82 after Woodside Energy agreed to acquire the Netherlands-based chemical maker's clean ammonia plant in Texas for 2.35 billion.
Woodside Energy decreased 2.5% to 1,302.0 pence.
Senior plc plunged 7.7% to 145.4 pence, despite the UK-based engineering company reporting a 10% increase in its first-half profit.
Aurubis AG rose 9.2% to €62.50 after the non-ferrous metal producer and copper recycler reported third-quarter operating earnings below market expectations.
Galderma AG increased 4.6% to CHF 70.09 after L'Oreal said it acquired a 10% stake in the dermatology company for an undisclosed amount.
European Stock Markets Extend Losses On Monday as Global Sell-off Intensifies
Bridgette Randall
05 Aug, 2024
London
European markets extended losses from last week as investors adjusted their global growth outlook amid a weakening economic backdrop.
Benchmark indexes in Paris, Frankfurt, and London dropped between 2% and 4% as weaker-than-expected earnings from mega-cap tech companies were compounded by the weakening economic drop in the U.S.
Large European companies relied on export growth to the U.S. and China, which is the main driver of earnings growth, because of the stagnant economic conditions in the European Union.
However, in recent quarters, most of the earnings growth has been driven by U.S. demand growth, offset by China's weaker-than-expected economic recovery.
Now if the U.S. economy weakens, that could severely impact demand for European industrial and luxury goods, providing another headwind for earnings at European companies.
In domestic economic news, a survey showed the eurozone economy stalled in July as demand for goods and services deteriorated.
The HCOB composite PMI output index fell to a five-month low of 50.2 from 50.9 in June, S&P Global reported Monday.
In the week ahead, investors are awaiting the release of German factory orders and industrial production data, both of which are expected to show a rebound, and final inflation data is expected to confirm acceleration in July.
In the eurozone, investors are looking forward to the release of retail sales and producer price indexes, industrial production in Spain, the unemployment rate in France, and an inflation update in Italy.
Europe Indexes and Yields
The DAX index decreased by 2.5% to 17,209.20; the CAC-40 index fell by 2.4% to 7,105.90; and the FTSE 100 index declined by 2.6% to 7,961.64.
European bond yields dropped to six-month lows as investors sought safety in government securities amid growing worries about the global economic slowdown and rising geopolitical tensions.
The yield on 10-year German bonds edged lower to 2.10%, French bonds inched lower to 2.92%, the UK gilts inched lower to 3.77%, and Italian bonds decreased to 3.62%.
The euro edged down to $1.09; the British pound inched lower to $1.272; and the U.S. dollar weakened to 85.05 Swiss cents.
Brent crude decreased $1.35 to $75.44 a barrel, and the Dutch TTF natural gas fell by €1.80 to €34.85 per MWh.
Europe Stock Movers
Clarkson PLC plunged 10.4% to 3,875.0 pence after the UK-based shipping broker reported a decline in sales and earnings in the first half.
OCI NV increased 10.3% to €23.82 after Woodside Energy agreed to acquire the Netherlands-based chemical maker's clean ammonia plant in Texas for 2.35 billion.
Woodside Energy decreased 2.5% to 1,302.0 pence.
Senior plc plunged 7.7% to 145.4 pence, despite the UK-based engineering company reporting a 10% increase in its first-half profit.
Aurubis AG rose 9.2% to €62.50 after the non-ferrous metal producer and copper recycler reported third-quarter operating earnings below market expectations.
Galderma AG increased 4.6% to CHF 70.09 after L'Oreal said it acquired a 10% stake in the dermatology company for an undisclosed amount.
Amid Panic Selling, Japan's Nikkei Records Largest Single-day Fall of 12.4%
Akira Ito
05 Aug, 2024
Tokyo
Market indexes in Tokyo plunged in Monday's trading steepened three-day losses amid a growing list of worries as investors adjusted to the hawkish central bank.
The Nikkei 225 stock average plunged more than 12% and extended three-day losses to 20% as the Bank of Japan unexpectedly increased interest rates and sparked a sharp reversal in the Japanese yen.
Last Thursday, the Bank of Japan increased interest rates for the second time since March by 15 basis points to 0.25% and held out for more interest rate increases in the imminent future.
Investors were also under pressure after a string of weak earnings from mega-cap U.S. technology companies, which also led to the unwinding of the artificial intelligence-linked rally, dragging semiconductor equipment makers.
The yen continued to advance for the second week in a row and strengthened as much as 4% to close at 142.45 against the U.S. dollar, a sharp jump from 162 only three weeks ago.
The minutes of the Bank of Japan's policy meeting held on June 13–14 indicated members noted modest economic recovery, and participants decided to delay the release of a detailed bond purchase program until the next meeting.
The yield on 10-year Japanese government bonds dropped to 0.775% from 1.07% in Friday's trading.
Japan Stock Movers
The Nikkei 225 stock average recorded the largest decline in points in the index's history, and registered the second largest decline in percentage terms.
The Nikkei 225 stock average declined 3,836 points on October 20, 1987, the day after following the sharp plunge on Black Monday in New York.
The Nikkei 225 stock average plunged 12.4% or 4,451.28 points to 31,458.42, and the Topix index declined 12.2% to 2,227.15.
Banks, technology stocks, and industrial and automotive stocks led the decliners for the second day in a row.
Mitsubishi UFJ Financial plunged 17.8% to ¥1,245.50, Sumitomo Mitsui Financial dropped 15.5% to ¥8,162.0, and Mizuho Financial fell 19% to ¥2,452.0.
Over the last three trading sessions, Mitsubishi UFJ declined 33%, Mitsui Financial plunged 20%, and Mizuho Financial chopped 27%.
Softbank Group plunged 19% to ¥6,400.0, Advantest Corp. slid 15.5% to ¥5,313.0, and Screen Holdings dropped 12.7% to ¥9,080.0.
Over the last three trading sessions, Softbank plunged 31%, Advantest dropped 22%, Tokyo Electron decreased 25%, and Screen Holdings decreased 27%.
Toyota Motor declined 13.5% to ¥2,232.0, Honda Motor decreased 17.5% to ¥1,251.50, and Nissan Motor fell 14.5% to ¥378.10.
China Sell-off Erases 2024 Gains Amid U.S. Recession Worries
Li Chen
05 Aug, 2024
Hong Kong
Market sentiment continued to weaken in Shanghai and Hong Kong as fears of the U.S. recession grew.
The Hang Seng index declined nearly 3% and dropped to a 3-month low, and the CSI index fell, tracking losses in Asia.
Investor sentiment deteriorated after a string of U.S. economic data suggested that the economy may be heading into a recession, reversing the popular narrative of strong consumer spending and business investments.
The U.S. payrolls expanded at the slowest pace in several years in July, and the jobless rate rose for the fourth month in a row to 4.3%, indicating labor market conditions are moderating.
In addition, last week, factory activities shrank for the third month in a row, and initial jobless claims approached a one-year high.
The sudden reversal in market sentiment from soft landing to hard landing was further supported by weak earnings from Intel, Amazon, Alphabet, and Tesla.
Investors are now thinking that the Federal Reserve may have held interest rates too high for too long and that the central bank may lower rates sooner than expected.
Closer to home, China's service sector showed an improvement in July, driven by an acceleration in export demand and rising employment, according to a private survey.
The Caixin China General Services PMI increased to 52.1 from 51.2 in June, according to a survey released by S&P Global.
China Stock Movers
The Hang Seng index declined 2.6% to 16,512.61, and the CSI 300 index dropped 1% to 3,352.63.
Internet stocks were among the leading decliners amid worries of a further weakening in earnings.
Alibaba Group fell 2.2% to HK $73.65, Tencent Holding decreased 1.6% to HK $352.40, and Baidu plunged 4.2% to HK $80.05.
Electric vehicle markets fell as investors avoided high-flying stocks.
BYD declined 2.2% to HK $214.40, Li Auto fell 3.2% to HK $71.55, and Xpeng decreased 3% to HK $28.55.
China Vanke declined 1.7% to HK $3.98, China Resources Land dropped 2.2% to HK $21.85, and Henderson Land Development eased 0.5% to HK $21.80.
HSBC Holdings plc declined 5.3% to HK $62.15, and Standard Chartered plc plunged 6.2% to HK $68.15.
India Movers: Bank of India, Britannia, Divi's Laboratories, JK Tyre & Industries, State Bank of India, Titan
Arun Goswami
05 Aug, 2024
Mumbai
A global market sell-off for the second day in a row dragged market indexes in India amid rising concerns that the U.S. economic slowdown may negatively impact exports to the world's largest economy.
The Sensex index decreased by 2.5% to 78,968.21, and the Nifty index fell by 2.4% to 24,121.15.
On the Mumbai stock exchange, 171 stocks traded at their 52-week highs, and 51 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched lower to 6.98%, and the Indian rupee edged lower to ₹83.78 against the U.S. dollar.
State Bank of India declined 2.2% to ₹828.70, and the largest financial service company in India reported better-than-expected June quarter results.
The gross non-performing assets ratio declined to 2.2% from 2.7%, and net income declined 1% to ₹17,035.2 crore.
Titan Company declined 0.5% to ₹3,443.95, and the specialty retailer reported a decline in its June quarter profit to ₹770 crore from ₹777 crore a year ago.
Britannia Industries rose 1.3% to ₹5,794.10, and the food products maker reported June quarter net income increased 11% to ₹506 crore from ₹453 crore a year ago.
Net revenue increased 6% to ₹4,250 crore from ₹4,015 crore in the period a year ago and rose 4% from ₹4,086 crore in the previous quarter.
Bank of India declined 4.9% to ₹119.90, and the financial services company said consolidate net income in the June quarter increased 10% to ₹1,702 crore from ₹1,551 crore a year ago.
JK Tyre & Industries declined 2.5% to ₹420.35, and the industrial company reported consolidated net income rose 37% to ₹211 crore from ₹154 crore a year ago.
Divi's Laboratories declined 3.3% to ₹4,822.25 after the generic pharmaceutical maker reported a double-digit increase in revenue and earnings in the June quarter.
Revenue increased 19% to ₹2,118 crore, and net income advanced 21% to ₹430 crore from a year ago, respectively.
U.S. Movers: Apple, Amazon.com, Chevron, Exxon Mobil, Intel
Scott Peters
02 Aug, 2024
New York City
Apple Inc. increased 2.2% to $222.75 after the iPhone maker reported better-than-expected quarterly results and sales hit hew highs amid rinsing sales in India.
Revenue in the fiscal third quarter ending in June increased 5% to $85.8 billion from $81.8 billion, net income jumped to $21.4 billion from $19.9 billion, and diluted earnings per share advanced to $1.40 from $1.26 a year ago.
On a regional basis, Greater China sales edged down to $14.7 billion from $15.8 billion, Japan sales edged up to $5.1 billion from $4.8 billion, and Americas sales advanced to $37.7 billion from $35.4 billion a year ago, respectively.
Across products and services, iPhone sales edged slightly lower to $39.3 billion from $39.7 billion, and services sales increased to $24.2 billion from $21.2 billion a year ago, respectively.
Amazon.com Inc. dropped 12.2% to $161.83 after the online retailer and cloud service provider reported weaker-than-expected second quarter revenue and issued a disappointing estimate.
Revenue in second quarter increased 10% to $148 billion from $134.4 billion, net income rose to $13.5 billion from $6.7 billion, and diluted earnings per share advanced to $1.26 from 65 cents a year ago.
Intel plunged 29% to $20.74 after the advanced chipmaker reported weaker-than-expected second quarter results, announced job cuts of 15,000, and issued a weak outlook.
Revenue in the second quarter declined 1% to $12.8 billion from $12.9 billion, net income swung to a loss of $1.6 billion from a profit of $1.5 billion, and diluted earnings per share were a loss of 38 cents compared to a profit of 35 cents a year ago.
The advanced chipmaker announced its deepest restructuring plan in forty years and planned to eliminate 15,000 jobs in an effort to reduce costs by $10 billion.
The company announced a quarterly dividend of 12.5 cents per share payable on September 1 to shareholders on record on August 7.
In addition, the company announced the suspension of its dividend starting in the fourth quarter.
Exxon Mobil Corporation inched up 0.1% to $117.05, and the energy company reported better-than-expected second quarter earnings driven by record energy production in Guyana and the Permian Basin oil fields.
Total revenue increased to $93.1 billion from $82.9 billion, net income attributable to shareholders rose to $9.2 billion from $7.5 billion, and diluted earnings per share advanced to $2.14 billion from $1.94 a year ago.
In the quarter, the company distributed $9.5 billion to shareholders, including $4.3 billion in dividends and $5.2 billion of share repurchases.
Net production in the second quarter increased 15% to 4.4 million oil-equivalent barrels per day due to contributions from the recent acquisition of Pioneer Natural Resources and higher production from energy fields in Guyana and heritage Permian.
On May 3, ExxonMobil completed the acquisition of Pioneer Natural Resources through the exchange of 545 million shares of ExxonMobil common stock valued at $63 billion and the assumption of $5 billion of debt.
Chevron Corp. declined 2.5% to $148.85 after the energy company reported weaker-than-expected second-quarter earnings due to weak crude oil refining margins.
Revenue increased to $51.2 billion from $48.9 billion, net income decreased to $4.4 billion from $6.0 billion, and diluted earnings per share fell to $2.43 from $3.20 a year ago.
Chevron's global production increased by 11% because of higher production at oil fields in the Permian and Denver-Julesburg basins and contributions from the recent acquisition of PDC Energy.
Chevron also executed agreements in Namibia, Brazil, Equatorial Guinea, and Angola to increase the company’s global exploration acreage footprint.
The company returned $6 billion of cash to shareholders during the quarter, including dividends of $3 billion and share repurchases of $3 billion.
The company's board declared $1.63 per share of quarterly dividend payable on September 10 to shareholders on record on August 19.