Market Update
Japan's Stocks Lacked Direction After BoJ Signaled Gradual Rate-Hike Approach
Akira Ito
03 Sep, 2025
Tokyo
Japan's stock market indexes eased, following losses in overnight trading on Wall Street.
The Nikkei 225 Stock Average decreased 0.9%, and Topix declined more than 1% amid rising bond yields and renewed trade tensions.
Investor sentiment has wavered over the last two weeks after the key benchmark indexes reached new record highs.
The Nikkei 225 Stock Average and the Topix rebounded about 50% from the lows reached on April 7, amid constant U.S. trade policy flip-flops and uncertainty about how tariffs will be collected.
The yield on the 10-year Japanese government bond edged up to 1.63% following comments from Bank of Japan Deputy Governor Ryozo Himino.
Deputy Governor Himino said that the central bank should increase rates gradually amid elevated global risks, highlighting a lack of urgency in aggressive tightening.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 0.9% to 41,933.95, and the broader Topix dropped 1.1% to 3,048.09.
The Japanese yen weakened to 148.67 against the U.S. dollar as the central bank signaled the lack of urgency for aggressive tightening.
SoftBank Group declined 5.3% to ¥14,570.0, Tokyo Electron decreased 1.9% to ¥19,945.0, Advantest Corp. added 0.3% to ¥10,695.0, and Disco Corp.
Mitsui & Company increased 1% to ¥3,580.0, Mitsubishi Corp. decreased 2.2% to ¥3,359.0, Marubeni Corp. fell 1.4% to ¥3,410.0, Sumitomo Corp. declined 1.4% to ¥4,209.0, and Itochu Corp. eased 1.3% to ¥8,472.0.
Japan's Stocks Lacked Direction After BoJ Signaled Gradual Rate-Hike Approach
Akira Ito
03 Sep, 2025
Tokyo
Japan's stock market indexes eased, following losses in overnight trading on Wall Street.
The Nikkei 225 Stock Average decreased 0.9%, and Topix declined more than 1% amid rising bond yields and renewed trade tensions.
Investor sentiment has wavered over the last two weeks after the key benchmark indexes reached new record highs.
The Nikkei 225 Stock Average and the Topix rebounded about 50% from the lows reached on April 7, amid constant U.S. trade policy flip-flops and uncertainty about how tariffs will be collected.
The yield on the 10-year Japanese government bond edged up to 1.63% following comments from Bank of Japan Deputy Governor Ryozo Himino.
Deputy Governor Himino said that the central bank should increase rates gradually amid elevated global risks, highlighting a lack of urgency in aggressive tightening.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 0.9% to 41,933.95, and the broader Topix dropped 1.1% to 3,048.09.
The Japanese yen weakened to 148.67 against the U.S. dollar as the central bank signaled the lack of urgency for aggressive tightening.
SoftBank Group declined 5.3% to ¥14,570.0, Tokyo Electron decreased 1.9% to ¥19,945.0, Advantest Corp. added 0.3% to ¥10,695.0, and Disco Corp.
Mitsui & Company increased 1% to ¥3,580.0, Mitsubishi Corp. decreased 2.2% to ¥3,359.0, Marubeni Corp. fell 1.4% to ¥3,410.0, Sumitomo Corp. declined 1.4% to ¥4,209.0, and Itochu Corp. eased 1.3% to ¥8,472.0.
China Defense Stocks In Focus On Victory Day Parade
Li Chen
03 Sep, 2025
Hong Kong
The stock market rally in China and Hong Kong paused for the second consecutive day amid a lack of new buyers and valuation worries.
The Hang Seng Index decreased 0.5%, and the mainland-focused CSI 300 index dropped nearly 1% as the market rally lost steam after benchmark indexes hovered near multi-year highs.
The CSI 300 index has soared nearly 30% over the last five months, after the monthly exports data showed little impact of the sharp escalation of U.S. tariffs.
Over the last four months, the sustained growth in direct and indirect goods exports to the U.S. eased worries linked to the possible international trade disruption.
The five-month-long market rally got an additional boost as retail investors chased returns and rotated into stocks from fixed-income products.
Market sentiment improved further after better-than-expected interim results from leading technology, industrial, and consumer companies.
Defense-related stocks were in focus as investors reviewed the massive military parade in Beijing to commemorate the 80th anniversary of China's victory over Japan in World War II.
China Indexes and Stocks
The Hang Seng Index decreased 0.5% to 25,375.79, and the mainland-focused CSI 300 index fell 0.9% to 4,451.16.
Zijin Mining Group advanced 1.4% to HK$27.48 following the bullion price reaching a new record high in New York.
Alibaba Group Holding decreased 0.5% to HK$134.10, Tencent Holdings decreased 0.2% to HK$599.50, and Meituan fell 1% to HK$99.95.
China Shipbuilding Group decreased 0.2% to ¥22.40, CSSC Hong Kong Shipping decreased 1.5% to HK$1.86, NORINCO International dropped 1.9% to ¥11.17, and CEC Cyber Security Technology Co. Ltd. fell 2% to ¥17.79.
China Defense Stocks In Focus On Victory Day Parade
Li Chen
03 Sep, 2025
Hong Kong
The stock market rally in China and Hong Kong paused for the second consecutive day amid a lack of new buyers and valuation worries.
The Hang Seng Index decreased 0.5%, and the mainland-focused CSI 300 index dropped nearly 1% as the market rally lost steam after benchmark indexes hovered near multi-year highs.
The CSI 300 index has soared nearly 30% over the last five months, after the monthly exports data showed little impact of the sharp escalation of U.S. tariffs.
Over the last four months, the sustained growth in direct and indirect goods exports to the U.S. eased worries linked to the possible international trade disruption.
The five-month-long market rally got an additional boost as retail investors chased returns and rotated into stocks from fixed-income products.
Market sentiment improved further after better-than-expected interim results from leading technology, industrial, and consumer companies.
Defense-related stocks were in focus as investors reviewed the massive military parade in Beijing to commemorate the 80th anniversary of China's victory over Japan in World War II.
China Indexes and Stocks
The Hang Seng Index decreased 0.5% to 25,375.79, and the mainland-focused CSI 300 index fell 0.9% to 4,451.16.
Zijin Mining Group advanced 1.4% to HK$27.48 following the bullion price reaching a new record high in New York.
Alibaba Group Holding decreased 0.5% to HK$134.10, Tencent Holdings decreased 0.2% to HK$599.50, and Meituan fell 1% to HK$99.95.
China Shipbuilding Group decreased 0.2% to ¥22.40, CSSC Hong Kong Shipping decreased 1.5% to HK$1.86, NORINCO International dropped 1.9% to ¥11.17, and CEC Cyber Security Technology Co. Ltd. fell 2% to ¥17.79.
New Uncertainties About Trade Tariffs Set the Stage for September Sell-Off
Barry Adams
02 Sep, 2025
New York City
Stock market indexes faced a selling pressure after a second U.S. court challenged the legality of sweeping tariffs imposed by the Trump administration.
The latest court ruling adds another twist to the erratic tariff implementation, and the sharp escalation in import duties is expected to increase goods prices and contribute to inflationary forces over the next twelve months.
Investors are worried that the Trump administration's aggressive push to appoint policy committee members that are sympathetic to the Republican Party's agenda could severely undermine policymaking and the Fed's credibility.
Trump's Tariffs Face Legal Headwinds
The U.S. Court of Appeals ruled Trump's tariffs as illegal, citing that only the U.S. Congress has the authority to impose taxes on imports.
The U.S. Court of Appeals for the Federal Circuit, in a 7-4 decision, said that the law invoked by the U.S. president doesn't grant him powers to impose expansive taxes.
For now, the appeals court allowed tariffs to stay till October 14, allowing the Trump administration to seek a verdict from the U.S. Supreme Court.
Trump's tariffs were ruled illegal for the second time, and there are at least two federal cases challenging the U.S. president's use of the International Emergency Economic Powers Act, or IEEPA, to impose a broad range of aggressive tariffs.
Week Ahead
In the week ahead, U.S. investors are awaiting the release of the jobs report and the trade balance report.
The U.S. government agencies are set to release August's nonfarm payrolls, wage growth, jobless rate, and the JOLT report.
Investors are anticipating the jobless rate to increase to 4.3% and wages to advance 0.3% from the previous month, and nonfarm payrolls are expected to increase at a faster pace than in July.
The international trade deficit in July is expected to expand to close to $70 billion, driven by the faster increase in imports than exports.
On the earnings front, Salesforce.com, Figma, GitLab, Broadcom, Dollar Tree, DocuSign, Ciena, RH, Lululemon, Toro, Costco Wholesale, and Children's Place are set to release their quarterly results.
U.S. Stock Movers
Kraft Heinz Co. increased 0.2% to $28.02, and the food products company confirmed its plans to separate into two companies.
The tax-free spinoff is expected to be completed in the second half of next year.
Signet Jewelers Ltd. advanced 6.2% to $93.50 after the specialty retailer's quarterly results surpassed market expectations.
Revenue in the fiscal second quarter ending on August 2 increased 3% to $1.5 billion, driven by a same-store sales increase of 2%.
The price increases drove gross margin expansion by 60 basis points 38.6%
Net loss in the quarter shrank to $9.1 million from $101.5 million, and diluted loss per share eased to 22 cents from $2.28 a year ago.
Signet declared cash dividend of 32 cents per share on November 21 to shareholders on record on October 24.
The company revised the full-year fiscal 2026 sales estimate from the previous range between $6.57 billion and $6.80 billion to a new range between $6.67 billon and $6.82 billion.
Same store sales growth estimate was revised to between a decrease of 0.75% and an increase of 1.75% from the previous estimate between a decline of 2.0% and an increase of 1.50%.
The company guided adjusted annual diluted earnings per share to a new range between $8.04 and $9.57 from the previous range between $7.70 and $9.38.
New Uncertainties About Trade Tariffs Set the Stage for September Sell-ff
Barry Adams
02 Sep, 2025
New York City
Stock market indexes faced a selling pressure after a second U.S. court challenged the legality of sweeping tariffs imposed by the Trump administration.
The latest court ruling adds another twist to the erratic tariff implementation that are expected to increase goods prices and contribute to inflationary forces over the next twelve months.
Trump's Tariffs Face Legal Headwinds
The U.S. Court of Appeals ruled Trump's tariffs as illegal, citing that only the U.S. Congress has the authority to impose taxes on imports.
The U.S. Court of Appeals for the Federal Circuit, in a 7-4 decision, said that the law invoked by the U.S. president doesn't grant him powers to impose expansive taxes.
For now, the appeals court allowed tariffs to stay till October 14, allowing the Trump administration to seek a verdict from the U.S. Supreme Court.
Trump's tariffs were ruled illegal for the second time, and there are at least two federal cases challenging the U.S. president's use of the International Emergency Economic Powers Act, or IEEPA, to impose a broad range of aggressive tariffs.
Week Ahead
In the week ahead, U.S. investors are awaiting the release of the jobs report and the trade balance report.
The U.S. government agencies are set to release August's nonfarm payrolls, wage growth, jobless rate, and the JOLT report.
Investors are anticipating the jobless rate to increase to 4.3% and wages to advance 0.3% from the previous month, and nonfarm payrolls are expected to increase at a faster pace than in July.
The international trade deficit in July is expected to expand to close to $70 billion, driven by the faster increase in imports than exports.
On the earnings front, Salesforce.com, Figma, GitLab, Broadcom, Dollar Tree, DocuSign, Ciena, RH, Lululemon, Toro, Costco Wholesale, and Children's Place are set to release their quarterly results.
U.S. Stock Movers
Kraft Heinz Co. increased 0.2% to $28.02, and the food products company confirmed its plans to separate into two companies.
The tax-free spinoff is expected to be completed in the second half of next year.
Signet Jewelers Ltd. advanced 6.2% to $93.50 after the specialty retailer's quarterly results surpassed market expectations.
Revenue in the fiscal second quarter ending on August 2 increased 3% to $1.5 billion, driven by a same-store sales increase of 2%.
The price increases drove gross margin expansion by 60 basis points 38.6%
Net loss in the quarter shrank to $9.1 million from $101.5 million, and diluted loss per share eased to 22 cents from $2.28 a year ago.
Signet declared cash dividend of 32 cents per share on November 21 to shareholders on record on October 24.
The company revised the full-year fiscal 2026 sales estimate from the previous range between $6.57 billion and $6.80 billion to a new range between $6.67 billon and $6.82 billion.
Same store sales growth estimate was revised to between a decrease of 0.75% and an increase of 1.75% from the previous estimate between a decline of 2.0% and an increase of 1.50%.
The company guided adjusted annual diluted earnings per share to a new range between $8.04 and $9.57 from the previous range between $7.70 and $9.38.
Japan's Indexes Rebounded Ahead of Wage Data, Gold Reached New Record High
Akira Ito
02 Sep, 2025
Tokyo
Stock market indexes in Tokyo advanced after falling in two previous consecutive sessions.
The Nikkei 225 Stock Average inched higher 0.3%, and the Topix gained 0.6%, as investors looked forward to the release of wage data later in the week.
Large corporations have increased wages for the second year in a row at a record high of 5%, putting additional pressure on smaller companies to match wage increases.
However, most small- and mid-sized corporations have kept wage gains closer to the 2% to 3% range, amid a weak outlook for profit growth.
The Japanese yen's weakness has been a double-edged sword; while the weaker yen helps exports, it also drives higher costs of imports, including energy and raw material prices.
Investors worried that the latest U.S. court ruling could add another layer of uncertainty for Japan's direct exports and indirect exports through the ASEAN region, China, and Mexico to the U.S.
In commodities trading, gold and crude oil advanced as investors confronted ongoing geopolitical uncertainties and future rate paths in the U.S.
Crude oil jumped 27 cents amid growing worries that the ongoing Russia-Ukraine conflict could further disrupt oil supplies.
Gold jumped 0.5% to $3,495.26 as investors speculate that the U.S. Federal Reserve is more likely to cut rates at the end of a two-day meeting on September 17.
Japan Indexes and Stocks
The Nikkei 225 Stock Average increased 0.3% to 42,300.50, and Topix advanced 0.6% to 3,082.41.
Toyota Motor Corp. rose 0.3% to ¥2,866.50, Honda Motor Corp. advanced 0.06% to ¥1,670.0, and Nissan Motor inched lower 0.5% to ¥333.70.
Seven & I Holdings Co. Ltd. advanced 0.4% to ¥1,937.0, Fast Retailing gained 0.5% to ¥46,420.0, Takashimaya Co. Ltd. jumped 3% to ¥1,372.0, and Aeon Co. Ltd. decreased 1% to ¥1,772.0.
Nippon Yusen KK rose 2.9% to ¥5,510.0, Mitsui O.S.K. Lines added 1.8% to ¥4,814.0, and Kawasaki Kisen Kaisha Ltd. increased 2.3% to ¥2,324.50.
Japan Indexes Rebounded Ahead of Wage Data
Akira Ito
02 Sep, 2025
Tokyo
Stock market indexes in Tokyo advanced after falling in two previous consecutive sessions.
The Nikkei 225 Stock Average inched higher 0.3%, and the Topix gained 0.6%, as investors looked forward to the release of wage data later in the week.
Large corporations have increased wages for the second year in a row at a record high of 5%, putting additional pressure on smaller companies to match wage increases.
However, most small- and mid-sized corporations have kept wage gains closer to the 2% to 3% range, amid a weak outlook for profit growth.
The Japanese yen's weakness has been a double-edged sword; while the weaker yen helps exports, it also drives higher costs of imports, including energy and raw material prices.
Investors worried that the latest U.S. court ruling could add another layer of uncertainty for Japan's direct exports and indirect exports through the ASEAN region, China, and Mexico to the U.S.
In commodities trading, gold and crude oil advanced as investors confronted ongoing geopolitical uncertainties and future rate paths in the U.S.
Crude oil jumped 27 cents amid growing worries that the ongoing Russia-Ukraine conflict could further disrupt oil supplies.
Gold jumped 0.5% to $3,495.26 as investors speculate that the U.S. Federal Reserve is more likely to cut rates at the end of a two-day meeting on September 17.
Japan Indexes and Stocks
The Nikkei 225 Stock Average increased 0.3% to 42,300.50, and Topix advanced 0.6% to 3,082.41.
Toyota Motor Corp. rose 0.3% to ¥2,866.50, Honda Motor Corp. advanced 0.06% to ¥1,670.0, and Nissan Motor inched lower 0.5% to ¥333.70.
Seven & I Holdings Co. Ltd. advanced 0.4% to ¥1,937.0, Fast Retailing gained 0.5% to ¥46,420.0, Takashimaya Co. Ltd. jumped 3% to ¥1,372.0, and Aeon Co. Ltd. decreased 1% to ¥1,772.0.
Nippon Yusen KK rose 2.9% to ¥5,510.0, Mitsui O.S.K. Lines added 1.8% to ¥4,814.0, and Kawasaki Kisen Kaisha Ltd. increased 2.3% to ¥2,324.50.
China and HK Indexes Retreated After Rallying 30% from Mid-April Lows
Li Chen
02 Sep, 2025
Hong Kong
Market indexes in China and Hong Kong eased after retaining an upward bias in the previous two months.
The Hang Seng Index fell 1%, and the mainland-focused CSI 300 index decreased 0.9% as benchmark indexes paused.
The liquidity-driven mainland stocks rally halted after investors worried about the pace of recent gains over the last four months.
Since the low in mid-April, the CSI 300 index rebounded nearly 30% and rose to a three-year high.
Investors in the mainland have been rotating out of fixed-income products to riskier assets as interest rates approached record lows amid worries of slowing economic activities.
On the economic front, China's official survey showed ongoing weakness in the manufacturing sector activities in August.
However, a private survey released by S&P Global showed August's manufacturing activities returned to growth as both new orders and export demand improved.
China Indexes and Stocks
The Hang Seng Index decreased 1% to 25,493.05, and the mainland-focused CSI 300 index fell 0.9% to 4,482.89.
China Unicom Ltd. decreased 1.7% to HK$9.33, Midea Group Co. Ltd. advanced 2.2% to HK$85.70, and Techtronic Industries fell 1.9% to HK$96.70.
Alibaba Group decreased 1.7% to HK$134.80, Tencent Holdings eased 0.7% to HK$600.50, Meituan fell 3% to HK$99.90, and JD.com Inc. dropped 1.2% to HK$119.90.
China and HK Indexes Retreated After Rallying 30% from Mid-April Lows
Li Chen
02 Sep, 2025
Hong Kong
Market indexes in China and Hong Kong eased after retaining an upward bias in the previous two months.
The Hang Seng Index fell 1%, and the mainland-focused CSI 300 index decreased 0.9% as benchmark indexes paused.
The liquidity-driven mainland stocks rally halted after investors worried about the pace of recent gains over the last four months.
Since the low in mid-April, the CSI 300 index rebounded nearly 30% and rose to a three-year high.
Investors in the mainland have been rotating out of fixed-income products to riskier assets as interest rates approached record lows amid worries of slowing economic activities.
On the economic front, China's official survey showed ongoing weakness in the manufacturing sector activities in August.
However, a private survey released by S&P Global showed August's manufacturing activities returned to growth as both new orders and export demand improved.
China Indexes and Stocks
The Hang Seng Index decreased 1% to 25,493.05, and the mainland-focused CSI 300 index fell 0.9% to 4,482.89.
China Unicom Ltd. decreased 1.7% to HK$9.33, Midea Group Co. Ltd. advanced 2.2% to HK$85.70, and Techtronic Industries fell 1.9% to HK$96.70.
Alibaba Group decreased 1.7% to HK$134.80, Tencent Holdings eased 0.7% to HK$600.50, Meituan fell 3% to HK$99.90, and JD.com Inc. dropped 1.2% to HK$119.90.
Stock Movers: Burlington Stores, Marvell Technology, Victoria's Secret
Scott Peters
01 Sep, 2025
New York City
Burlington Stores Inc. traded flat at $290.68 after the off-price department store retailer reported a 28% increase in net income in the fiscal second quarter ending on August 2.
Consolidated revenue increased to $2.7 billion from $2.46 billion, net income jumped to $94.2 million from $73.8 million, and diluted earnings per share rose to $1.47 from $1.15 a year ago.
During the fiscal second quarter, Burlington returned a total of $26 million to shareholders through the repurchase of 102,474 shares of its common stock.
As of the end of the fiscal second quarter, the company had $632 million remaining under its share repurchase program authorizations.
The company guided third-quarter net sales to increase between 5% and 7%, comparable store sales to rise between zero and 2%, an effective tax rate expected to be 25%, and adjusted diluted earnings per share between $1.50 and $1.60.
The company guided full-year net sales to increase between 7% and 8%, comparable store sales to rise between 1% and 2%, an effective tax rate expected to be 25%, and adjusted diluted earnings per share between $9.19 and $9.59.
“Comparable store sales increased 5%, which was on top of 5% comparable store sales growth in the second quarter of last year," said CEO Michael O’Sullivan.
O'Sullivan added adjusted EBIT margin increased 120 basis points, while adjusted EPS grew 39% versus the second quarter of last year, driven by "higher merchandise margin, lower freight expense, and leverage on SG&A expenses.”
Marvell Technology Inc. gained 0.2% to $63 after the semiconductor provider's net income swung to a profit from a year ago in the fiscal second quarter ending on August 2.
Consolidated revenue advanced 58% to $2 billion from $1.27 billion, net income swung to a profit of $194.8 million from a loss of $193.3 million, and diluted earnings per share rose to an income of 22 cents from a loss of 22 cents a year ago.
Marvell guided third-quarter revenue to be $2.06 billion and diluted earnings per share to be $2.03 with a band of 5 cents, with adjusted diluted earnings per share between 74 cents with a band of 5 cents.
"Marvell's growth is being fueled by strong AI demand for our custom silicon and electro-optics products, as well as a significant increase in the pace of recovery in our enterprise networking and carrier infrastructure end markets.
Our custom AI design activity is at an all-time high, with the Marvell team now engaged in over 50 new opportunities across more than 10 customers," said Matt Murphy, Marvell's Chairman and CEO.
Victoria's Secret & Co. fell 0.4% to $22.94 after the women's innerwear retailer reported a 49% decrease in profit in the fiscal second quarter ending on August 2.
Consolidated revenue edged higher to $1.46 billion from $1.42 billion, net income declined to $16.22 million from $31.80 million, and diluted earnings per share dropped to 20 cents from 40 cents a year ago.
The company guided third-quarter revenue to be between $1.39 billion and $1.42 billion, adjusted operating loss between $35 million and $55 million, and adjusted net loss earnings per share between 55 cents and 75 cents.
The specialty retailer guided full-year revenue to be between $6.33 billion and $6.41 billion, adjusted operating income between $270 million and $320 million.
The company estimated a net tariff impact of approximately $100 million on its annual earnings.