Market Update
China's Industrial Profit Rebounded In August, CSI 300 and Hang Seng Indexes Advanced On
Li Chen
29 Sep, 2025
Hong Kong
Stock market indexes in China and Hong Kong advanced on Monday following the release of the industrial profit report for August.
The Hang Seng index increased 1.4%, and the mainland-focused CSI 300 index gained 0.5% amid optimism that corporate profits are likely to hold up despite macroeconomic worries.
Industrial profits among mainland firms with at least 20 million yuan rose 20.4% from a year ago in August, according to the National Bureau of Statistics.
Corporate profits rebounded from an annual decrease of 1.5% in July, as activities at industrial companies picked up pace.
In the eight months to August, industrial profits inched higher 0.9% from a year ago to 4.7 trillion yuan, compared to a decrease of 1.7% in the first seven month of the year.
Investor enthusiasm remained muted ahead of the start of the eight-day Golden Week holidays, despite Monday's advance.
China's indexes advanced more than 30% from the lows reached in the first week of April, driven by domestic investors chasing higher returns from riskier assets.
Foreign investors piled into Chinese stocks amid hopes of a recovery in profits and annual economic growth of 5% or better.
China Indexes and Stocks
The Hang Seng Index increased 1.4% to 26,476.48, and the mainland-focused CSI 300 index advanced 0.5% to 4,571.66.
Alibaba Group Holding increased 3.1% to HK$171.45, Tencent Holdings advanced 1.7% to HK$655.0, and JD.com Inc gained 2.4% to HK$135.70.
However, electric vehicle makers led Monday's decliners.
Xiaomi Corp. decreased 2.4% to HK$53.35, Li Auto Inc. declined 1% to HK$99.10, and Xpeng Inc. dropped 2% to HK$89.0.
Rising Trade Uncertainties and Inflation Worries Keep Wall Street Indexes In Check
Barry Adams
26 Sep, 2025
New York City
U.S. stocks lacked direction in Friday's trading, amid new U.S. tariffs and rising risks of a federal government shutdown.
The S&P 500 index hugged the flatline, and the Nasdaq Composite decreased 0.1% as investors reviewed the latest update on the Fed's inflation gauge.
The federal government is likely to face its first shutdown in five years as lawmakers from both parties dig in their heels and fail to strike a compromise on healthcare spending.
The looming shutdown could stop or delay payments for social security, federal contractors, and as many as two million federal employees.
The U.S. president threatened to impose additional tariffs on trucks, furniture, and pharmaceuticals, which could lead to more disruptions in global supply chains and support elevated inflation at home.
Trump threatened to impose tariffs of as much as 100% on branded or patented drugs, 25% on heavy-duty trucks, and 30% on upholstered furniture.
The latest tariff salvo adds more confusion to the so-called trade agreements and imports from countries deemed as most favored nations.
The Trump administration's constant tinkering of trade policy, random announcements, pullbacks, withdrawals, and reimpositions have shaken the faith of foreign investors.
PCE Price Index Accelerated In August
On the economic front, the personal consumption price index, the Fed's preferred measure of inflation, accelerated o a six-month high.
Personal Consumption Price index increased 2.7% from a year ago in August, and core inflation which excludes food and energy, advanced 2.9%, according to the U.S. Bureau of Economic Analysis.
Both measures of watered-down inflation met expectations set by economists on Wall Street.
The PCE price index understates broader inflation in the economy because it includes consumer behavior to price changes, as families may substitute branded goods for generic versions to stretch their budgets.
U.S. Stock Movers
Costco Wholesale Corp. decreased 1% to $935.49, and the membership warehouse club operator reported solid quarterly results.
However, the retailer's same-store sales growth slowed for the second quarter in a row.
Revenue in the fiscal fourth quarter increased to $86.2 billion from $79.7 billion, net income advanced to $2.61 billion from $2.35 billion, and diluted earnings per share rose to $5.87 from $5.21 a year ago.
Same-store sales, excluding store openings and closures, foreign exchange adjustments, and gasoline sales, increased 6.4%, and e-commerce sales surged 13.5% from a year ago, respectively.
Membership fee income soared 14% from a year ago in the quarter, as the company attracted younger and paying customers.
Concentrix Corp. plunged 19.5% to $44.24 after the business process outsourcing company reported weaker-than-expected quarterly results and the service company tightened its outlook.
Rising Trade Uncertainties and Inflation Worries Keep Wall Street Indexes In Check
26 Sep, 2025
New York City
U.S. stocks lacked direction in Friday's trading, amid new U.S. tariffs and rising risks of a federal government shutdown.
The S&P 500 index hugged the flatline, and the Nasdaq Composite decreased 0.1% as investors reviewed the latest update on the Fed's inflation gauge.
The federal government is likely to face its first shutdown in five years as lawmakers from both parties dig in their heels and fail to strike a compromise on healthcare spending.
The looming shutdown could stop or delay payments for social security, federal contractors, and as many as two million federal employees.
The U.S. president threatened to impose additional tariffs on trucks, furniture, and pharmaceuticals, which could lead to more disruptions in global supply chains and support elevated inflation at home.
Trump threatened to impose tariffs of as much as 100% on branded or patented drugs, 25% on heavy-duty trucks, and 30% on upholstered furniture.
The latest tariff salvo adds more confusion to the so-called trade agreements and imports from countries deemed as most favored nations.
The Trump administration's constant tinkering of trade policy, random announcements, pullbacks, withdrawals, and reimpositions have shaken the faith of foreign investors.
U.S. Stock Movers
Costco Wholesale Corp. decreased 1% to $935.49, and the membership warehouse club operator reported solid quarterly results.
However, the retailer's same-store sales growth slowed for the second quarter in a row.
Revenue in the fiscal fourth quarter increased to $86.2 billion from $79.7 billion, net income advanced to $2.61 billion from $2.35 billion, and diluted earnings per share rose to $5.87 from $5.21 a year ago.
Same-store sales, excluding store openings and closures, foreign exchange adjustments, and gasoline sales, increased 6.4%, and e-commerce sales surged 13.5% from a year ago, respectively.
Membership fee income soared 14% from a year ago in the quarter, as the company attracted younger and paying customers.
Concentrix Corp. plunged 19.5% to $44.24 after the business process outsourcing company reported weaker-than-expected quarterly results and the service company tightened its outlook.
Japan's Indexes Halted 3-Day Rally, Tokyo's Inflation Stayed Above 2% In September
Akira Ito
26 Sep, 2025
Tokyo
Benchmark indexes in Tokyo halted a three-day rally, and the U.S. announced new tariffs.
The Nikkei 225 Stock Average decreased 0.5%, the broader Topix added 0.3%, and the Japanese yen drifted to a two-month low of 149.65 against the U.S. dollar.
Global market sentiment weakened after the U.S. president announced new tariffs on upholstered furniture, heavy-duty trucks, and pharmaceuticals.
The latest tariff whiplash raised concerns that any trade agreement with the Trump administration could be easily rendered useless by Donald Trump.
Moreover, Tokyo-area core inflation rose 2.5% from a year ago in September, matching the annual rate in August, according to the Statistics Bureau of Japan.
Overall annual inflation was 2.5%, matching the rate in the previous month, and Tokyo's indicator serves as a leading indicator for the national trend.
The Japanese yen drifted toward the two-month low as investors worried that the ongoing political uncertainty and unpredictability of the U.S. trade policy could dampen exports.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 0.5% to 45,578.56, and the broader Topix added 0.3% to 3,193.64.
For the holiday-shortened week, the Nikkei 225 Stock Average decreased 0.3%, and the Topix gained 0.2%.
Softbank Group declined 2.9% to ¥19,005.0, Tokyo Electron fell 3.3% to ¥26,800.0, and Disco Corp. dropped 6.7% to ¥47,050.0.
Astellas Pharma decreased 0.8% to ¥1,647.50, Takeda Pharmaceutical increased 0.3% to ¥4,445.0, and Daiichi Sanko Co. Ltd. dropped 2.2% to ¥3,341.0.
Japan's Indexes Halted 3-Day Rally, Tokyo's Inflation Stayed Above 2% In September
Akira Ito
26 Sep, 2025
Tokyo
Benchmark indexes in Tokyo halted a three-day rally, and the U.S. announced new tariffs.
The Nikkei 225 Stock Average decreased 0.5%, the broader Topix added 0.3%, and the Japanese yen drifted to a two-month low of 149.65 against the U.S. dollar.
Global market sentiment weakened after the U.S. president announced new tariffs on upholstered furniture, heavy-duty trucks, and pharmaceuticals.
The latest tariff whiplash raised concerns that any trade agreement with the Trump administration could be easily rendered useless by Donald Trump.
Moreover, Tokyo-area core inflation rose 2.5% from a year ago in September, matching the annual rate in August, according to the Statistics Bureau of Japan.
Overall annual inflation was 2.5%, matching the rate in the previous month, and Tokyo's indicator serves as a leading indicator for the national trend.
The Japanese yen drifted toward the two-month low as investors worried that the ongoing political uncertainty and unpredictability of the U.S. trade policy could dampen exports.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 0.5% to 45,578.56, and the broader Topix added 0.3% to 3,193.64.
For the holiday-shortened week, the Nikkei 225 Stock Average decreased 0.3%, and the Topix gained 0.2%.
Softbank Group declined 2.9% to ¥19,005.0, Tokyo Electron fell 3.3% to ¥26,800.0, and Disco Corp. dropped 6.7% to ¥47,050.0.
Astellas Pharma decreased 0.8% to ¥1,647.50, Takeda Pharmaceutical increased 0.3% to ¥4,445.0, and Daiichi Sanko Co. Ltd. dropped 2.2% to ¥3,341.0.
China Indexes Face Headwinds Amid Frothy Valuations and New U.S. Tariffs
Li Chen
26 Sep, 2025
Hong Kong
China indexes turned lower for the third consecutive day amid a growing list of worries, compounded by additional U.S. tariffs.
The Hang Seng Index decreased 0.7%, and the mainland-focused CSI 300 index dropped 0.72 amid worries that the stocks are ahead of fundamentals.
Market indexes in China and Hong Kong have jumped more than 30% since April's low, as investors rotated into riskier assets from low-yielding fixed-income securities.
Investors bid up stocks ahead of the U.S. Federal Reserve's cut and elevated capital spending in AI products by leading tech companies in the U.S. and China.
However, investors are increasingly worried about the lofty valuations of tech companies and the durability of the AI-driven tech rally in the months ahead.
In addition, economists are not expecting additional fiscal steps after the annual meeting of top policymakers in October, which generally provides a roadmap for social and economic development for the next five years.
China Indexes and Stocks
The Hang Seng Index decreased 0.7% to 26,296.95, and the CSI 300 index fell 0.7% to 4,574.03, and the benchmark indexes are set to register their first weekly decline in three weeks.
Pharmaceutical companies traded down after the U.S. president announced his plans to impose as much as 100% duty on branded or patented drugs.
WuXi Biologics decreased 1.4% to HK$39.40, Wuxi AppTec declined 1.6% to HK$109.50, Hansoh Pharmaceutical Group fell 2.2% to HK$34.78, and Sino Biopharmaceutical edged down 0.1% to HK$7.95.
China Indexes Face Headwinds Amid Frothy Valuations and New U.S. Tariffs
Li Chen
26 Sep, 2025
Hong Kong
China indexes turned lower for the third consecutive day amid a growing list of worries, compounded by additional U.S. tariffs.
The Hang Seng Index decreased 0.7%, and the mainland-focused CSI 300 index dropped 0.72 amid worries that the stocks are ahead of fundamentals.
Market indexes in China and Hong Kong have jumped more than 30% since April's low, as investors rotated into riskier assets from low-yielding fixed-income securities.
Investors bid up stocks ahead of the U.S. Federal Reserve's cut and elevated capital spending in AI products by leading tech companies in the U.S. and China.
However, investors are increasingly worried about the lofty valuations of tech companies and the durability of the AI-driven tech rally in the months ahead.
In addition, economists are not expecting additional fiscal steps after the annual meeting of top policymakers in October, which generally provides a roadmap for social and economic development for the next five years.
China Indexes and Stocks
The Hang Seng Index decreased 0.7% to 26,296.95, and the CSI 300 index fell 0.7% to 4,574.03, and the benchmark indexes are set to register their first weekly decline in three weeks.
Pharmaceutical companies traded down after the U.S. president announced his plans to impose as much as 100% duty on branded or patented drugs.
WuXi Biologics decreased 1.4% to HK$39.40, Wuxi AppTec declined 1.6% to HK$109.50, Hansoh Pharmaceutical Group fell 2.2% to HK$34.78, and Sino Biopharmaceutical edged down 0.1% to HK$7.95.
U.S. Investors Hope Higher Highs Supported by AI-Driven Market Rally
Barry Adams
25 Sep, 2025
New York City
Stocks meandered on Thursday as investors debated future rate cuts, the looming federal government shutdown, and rising risks to the labor market slowdown.
The S&P 500 index decreased 0.1%, and the tech-heavy Nasdaq Composite eased 0.2% amid worries about circular AI trade.
The artificial intelligence-driven technology stocks—Nvidia, Oracle, and Micron Tech—fell for the third consecutive day amid worries about the rapid rise over the last four months.
Valuation worries dominated trading sentiment after Fed Chair Jerome Powell highlighted that stocks appear highly valued by several metrics.
Fed Chair Powell added that the rising risks to the labor market played a crucial role in the central bank's first rate cut this year, despite the stubborn inflation.
Investors are looking forward to the release of PCE Price Index data on Friday, which could shed more light on the future rate paths.
U.S. Stock Movers
Intel Corp. jumped 1.3% to $31.62, and a Bloomberg report suggested that the company is in discussions with Apple, which may lead to a multi-billion dollar investment in the struggling chipmaker.
A potential deal will follow a $5 billion investment from Nvidia to co-develop PC chips and data centers.
U.S. Investors Hope Higher Highs Supported by AI-Driven Market Rally
Barry Adams
25 Sep, 2025
New York City
Stocks meandered on Thursday as investors debated future rate cuts, the looming federal government shutdown, and rising risks to the labor market slowdown.
The S&P 500 index decreased 0.1%, and the tech-heavy Nasdaq Composite eased 0.2% amid worries about circular AI trade.
The artificial intelligence-driven technology stocks—Nvidia, Oracle, and Micron Tech—fell for the third consecutive day amid worries about the rapid rise over the last four months.
Valuation worries dominated trading sentiment after Fed Chair Jerome Powell highlighted that stocks appear highly valued by several metrics.
Fed Chair Powell added that the rising risks to the labor market played a crucial role in the central bank's first rate cut this year, despite the stubborn inflation.
Investors are looking forward to the release of PCE Price Index data on Friday, which could shed more light on the future rate paths.
U.S. Stock Movers
Intel Corp. jumped 1.3% to $31.62, and a Bloomberg report suggested that the company is in discussions with Apple, which may lead to a multi-billion dollar investment in the struggling chipmaker.
A potential deal will follow a $5 billion investment from Nvidia to co-develop PC chips and data centers.
Japan Indexes Struggled Amid Valuation Worries and Political Uncertainties
Akira Ito
25 Sep, 2025
Tokyo
Benchmark indexes in Tokyo lacked direction as investors turned cautious amid high valuations.
The Nikkei 225 Stock Average increased 0.2%, and the broader Topix edged up 0.3% amid worries of the AI-driven tech rally.
Market indexes hovered near record highs, but worries are rising about the stretched valuations following the run-up in stocks since April.
Moreover, the LDP leadership race is also weighing on the market sentiment amid rising voter discontent with the party and ongoing trade tensions with the U.S.
The minutes of the Bank of Japan's July meeting showed that policymakers are ready to raise rates if economic and price conditions evolve as expected.
On the economic front, investors are awaiting the release of Tokyo-area inflation, which could provide an additional signal for the future rate path.
Japan Indexes and Stocks
The Nikkei 225 Stock Average gained 0.2% to 45,731.73, and the broader Topix added 0.3% to 3,183.80.
Nippon Yusen KK added 1.1% to ¥5,361.0, Mitsui O.S.K. Lines inched higher 0.4% to ¥4,712.0, and Kawasaki Kisen Kaisha Limited added 1.2% to ¥2,248.50.
Tokyo Electron added 2.2% to ¥27,845.0, Lasertec Corp. gained 0.2% to ¥21,560.0, and Disco Corp. increased 3.3% to ¥50,320.0.