Market Update
Japan Indexes Struggled to Gain Traction Amid U.S. Trade Policy and Rate Path Worries
Akira Ito
26 Aug, 2025
Tokyo
Japan's stock market indexes traded in a tight range with a downward bias for the second session in a row in cautious trading.
Trade tensions resurfaced after the U.S. president threatened sky-high additional tariffs on Chinese goods if China failed to export rare-earth magnets.
Moreover, the constantly shifting U.S. trade policy and lack of agreements with Mexico, Canada, and India are also weighing on the global market sentiment.
Closer to home, investors are awaiting the release of industrial output, retail sales, and consumer confidence data later in the week.
Market sentiment in Tokyo turned cautious after the U.S. Fed Chair Jerome Powell clarified that rate cuts are possible but not certain next month.
The uncertainty about the U.S. rate path dominated the market sentiment, and the Japanese yen traded at 147.74 against the U.S. dollar, and the yield on 10-year Japanese government bonds hovered at 1.62%.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 0.9% to 42,435.37, and the Topix dropped 1% to 3,077.86.
Tokyo Electron decreased 0.4% to ¥20,150.0, Advantest Corp. fell 0.7%, and Lasertec Corp. dropped 2% to ¥15,665.0.
Seven & I Holdings fell 1.3% to ¥1,970.50, Aeon Co. Ltd. dropped 0.7% to ¥5,432.0, and Fast Retailing decreased 1.6% to ¥47,740.0.
Toyota Motor Corp. decreased 1.3% to ¥2,902.50, Honda Motor Corp. fell 1.7% to ¥1,667.0, and Nissan Motor Co. Ltd. declined 6% to ¥341.50.
Japan Indexes Struggled to Gain Traction Amid U.S. Trade Policy and Rate Path Worries
Akira Ito
26 Aug, 2025
Tokyo
Japan's stock market indexes traded in a tight range with a downward bias for the second session in a row in cautious trading.
Trade tensions resurfaced after the U.S. president threatened sky-high additional tariffs on Chinese goods if China failed to export rare-earth magnets.
Moreover, the constantly shifting U.S. trade policy and lack of agreements with Mexico, Canada, and India are also weighing on the global market sentiment.
Closer to home, investors are awaiting the release of industrial output, retail sales, and consumer confidence data later in the week.
Market sentiment in Tokyo turned cautious after the U.S. Fed Chair Jerome Powell clarified that rate cuts are possible but not certain next month.
The uncertainty about the U.S. rate path dominated the market sentiment, and the Japanese yen traded at 147.74 against the U.S. dollar, and the yield on 10-year Japanese government bonds hovered at 1.62%.
Japan Indexes and Stocks
The Nikkei 225 Stock Average decreased 0.9% to 42,435.37, and the Topix dropped 1% to 3,077.86.
Tokyo Electron decreased 0.4% to ¥20,150.0, Advantest Corp. fell 0.7%, and Lasertec Corp. dropped 2% to ¥15,665.0.
Seven & I Holdings fell 1.3% to ¥1,970.50, Aeon Co. Ltd. dropped 0.7% to ¥5,432.0, and Fast Retailing decreased 1.6% to ¥47,740.0.
Toyota Motor Corp. decreased 1.3% to ¥2,902.50, Honda Motor Corp. fell 1.7% to ¥1,667.0, and Nissan Motor Co. Ltd. declined 6% to ¥341.50.
Stock Movers: Heico Corp
Scott Peters
25 Aug, 2025
New York City
Heico Corp gained 1.6% to $310.20 after the aircraft parts and electronic components maker reported a 30% rise in its earnings in the fiscal third quarter ending on July 31.
Consolidated revenue advanced to $1.15 billion from $992.24 million, net income soared to $177.3 billion from $136.6 billion, and diluted earnings per share rose to $1.26 from 97 cents a year ago.
Operating income increased to $265.0 million from $216.4 million, and EBITDA jumped to $316.4 million from $261.4 million a year earlier.
"These results are highlighted by consistently strong organic net sales growth across the Flight Support Group's product lines and impressive double-digit organic net sales growth for the Electronic Technologies Group's other electronics and space products," said co-CEOs Eric A. Mendelson and Victor H. Mendelson.
Flight Support Group’s record third-quarter results were driven by strong growth in the aerospace aftermarket, with operating income increasing 29% and net sales rising 18% from a year ago, reflecting continued end-market strength.
The Flight Support Group's net sales increased 18% to a record $802.7 million from $681.6 million, and operating income increased 29% to a record $198.3 million from $153.6 million a year ago, respectively.
Stock Movers: Heico Corp
Scott Peters
25 Aug, 2025
New York City
Heico Corp gained 1.6% to $310.20 after the aircraft parts and electronic components maker reported a 30% rise in its earnings in the fiscal third quarter ending on July 31.
Consolidated revenue advanced to $1.15 billion from $992.24 million, net income soared to $177.3 billion from $136.6 billion, and diluted earnings per share rose to $1.26 from 97 cents a year ago.
Operating income increased to $265.0 million from $216.4 million, and EBITDA jumped to $316.4 million from $261.4 million a year earlier.
"These results are highlighted by consistently strong organic net sales growth across the Flight Support Group's product lines and impressive double-digit organic net sales growth for the Electronic Technologies Group's other electronics and space products," said co-CEOs Eric A. Mendelson and Victor H. Mendelson.
Flight Support Group’s record third-quarter results were driven by strong growth in the aerospace aftermarket, with operating income increasing 29% and net sales rising 18% from a year ago, reflecting continued end-market strength.
The Flight Support Group's net sales increased 18% to a record $802.7 million from $681.6 million, and operating income increased 29% to a record $198.3 million from $153.6 million a year ago, respectively.
China Stocks Face Headwinds Ahead of Earnings Reports and Uncertain U.S. Trade Policy
Li Chen
26 Aug, 2025
Hong Kong
Stocks in China and Hong Kong faced headwinds as investors reassessed the interest rate outlook and awaited an update on U.S.-China trade talks.
The Hang Seng index decreased 0.1%, and the CSI 300 index dropped 0.2%, and investors turned cautious ahead of the flood of earnings announcements this week.
Haidilao International declined about 2% after the restaurant chain operator reported a downturn in revenue and earnings amid market challenges.
Later in the week, investors are awaiting quarterly results from PetroChina, Nongfu Spring, Meituan, Ping An Insurance, Midea Group, ANTA Sports, Mixue Group, Air China Cargo, CNOOC, Air China, CITIC, Cosco Holding, and China Galaxy Securities.
The U.S.-China trade talks also appear to have stalled, as both sides struggle to find common ground and avoid the U.S.-imposed sky-high tariffs.
Chinese negotiators have little incentive to give in to the U.S. demands, and the world's largest economy has reduced its reliance on direct exports to the U.S. over the last ten years.
China's exports to South America, the ASEAN region, Mexico, and the Middle East have soared since 2016, enabling the Chinese trade negotiators to push back against the U.S.'s high tariffs.
Moreover, investors lowered expectations for U.S. rate cuts after the U.S. Fed Chair Jerome Powell clarified that the rate action is likely but not certain.
China Indexes and Stocks
The Hang Seng Index decreased 0.1% to 25,799.82, and the mainland-focused CI 300 Index declined 0.2% to 4,464.85.
Haidilao International decreased 1.8% to HK $14.60 after the hot pot restaurant chain operator reported a decline in operating revenue and net income in the first half.
Revenue fell 3.7%, and net income dropped 13.7% amid heightened competition and challenging market conditions.
The company declared an interim dividend of 33.8 HK cents payable on October 15 to shareholders on record on September 11.
China Stocks Face Headwinds Ahead of Earnings Reports and Uncertain U.S. Trade Policy
Li Chen
26 Aug, 2025
Hong Kong
Stocks in China and Hong Kong faced headwinds as investors reassessed the interest rate outlook and awaited an update on U.S.-China trade talks.
The Hang Seng index decreased 0.1%, and the CSI 300 index dropped 0.2%, and investors turned cautious ahead of the flood of earnings announcements this week.
Haidilao International declined about 2% after the restaurant chain operator reported a downturn in revenue and earnings amid market challenges.
Later in the week, investors are awaiting quarterly results from PetroChina, Nongfu Spring, Meituan, Ping An Insurance, Midea Group, ANTA Sports, Mixue Group, Air China Cargo, CNOOC, Air China, CITIC, Cosco Holding, and China Galaxy Securities.
The U.S.-China trade talks also appear to have stalled, as both sides struggle to find common ground and avoid the U.S.-imposed sky-high tariffs.
Chinese negotiators have little incentive to give in to the U.S. demands, and the world's largest economy has reduced its reliance on direct exports to the U.S. over the last ten years.
China's exports to South America, the ASEAN region, Mexico, and the Middle East have soared since 2016, enabling the Chinese trade negotiators to push back against the U.S.'s high tariffs.
Moreover, investors lowered expectations for U.S. rate cuts after the U.S. Fed Chair Jerome Powell clarified that the rate action is likely but not certain.
China Indexes and Stocks
The Hang Seng Index decreased 0.1% to 25,799.82, and the mainland-focused CI 300 Index declined 0.2% to 4,464.85.
Haidilao International decreased 1.8% to HK $14.60 after the hot pot restaurant chain operator reported a decline in operating revenue and net income in the first half.
Revenue fell 3.7%, and net income dropped 13.7% amid heightened competition and challenging market conditions.
The company declared an interim dividend of 33.8 HK cents payable on October 15 to shareholders on record on September 11.
Wall Street Indexes Wavered On Monday, Keurig Dr Pepper to Buy JDE Peet for $18 Billion
Barry Adams
25 Aug, 2025
New York City
Wall Street indexes hovered near record highs on Monday, and artificial intelligence technology-related stocks remained in focus ahead of Nvidia's earnings.
The S&P 500 index decreased 0.2%, and the Nasdaq Composite declined 0.3% after they advanced 1% and 2%, respectively.
Wall Street indexes rebounded last Friday and trimmed weekly losses after Fed Chairman Powell signaled a possible rate cut in September.
Benchmark indexes jumped as much as 2%, but a possible 25-basis-point rate cut is not likely to cure the fast-cooling labor market and record-high economic uncertainty induced by Trump tariffs.
Small businesses in logistics, retail, and manufacturing activities are going out of business in record numbers.
Moreover, farmers are forced out of their land in Kansas, Nebraska, Iowa, and Montana following the ending of the USAID program and China switching to sourcing from South America amid constant U.S. tariff threats.
Prices for corn and soybeans are at multi-year lows, and the rising costs of farming inputs are exacerbating the situation throughout the Midwest.
In addition, the U.S. Immigration and Customs Enforcement crackdown is keeping migrant workers away from farms, forcing many farmers to let the crop rot, as Americans show little interest in rushing to take up the newly available farm jobs.
Last week, Walmart, Target, Home Depot, Lowe's, Ross Stores, and T.J. Maxx indicated that the sharp jump in import duties is increasing the cost of goods.
On the economic front, this week investors are awaiting the release of the second estimate of the economic growth in the second quarter.
Friday's personal income and outlays are expected to show an increase in July, and the core PCE price index is estimated to rise 0.3% monthly, confirming elevated inflationary forces.
Moreover, durable goods orders are likely to show a contraction in July, but orders excluding volatile transportation and defense are expected to be steady.
On the earnings front, investors are awaiting quarterly results from Nvidia, and analysts are likely to raise the target price after the release of earnings.
In addition, Abercrombie & Fitch, Williams-Sonoma, Urban Outfitters, Burlington Northern, Best Buy, and Dick's Sporting Goods are set to release their quarterly results.
In addition, HEICO, MongoDB, Okta, Autodesk, Marvell Technology, HP, and PVH Corp. are scheduled to release their quarterly results this week.
U.S. Stock Movers
Keurig Dr Pepper Inc declined 7.5% to $32.50, and the beverage company agreed to acquire the Netherlands-based JDE Peet for €15.4 billion, or $18.5 billion.
After the merger, the company plans to list two separate businesses—a soft drink company and a coffee group.
Keurig Dr Pepper agreed to pay shareholders of JDE Peet's €31.85, or about $37.28, per share.
JDE Peet's global brand portfolio includes Douwe Egberts, Kenco and Peet’s Coffee, Maxwell House, Grand Mere, Prima, and Caboclo.
Wall Street Indexes Wavered On Monday, Keurig Dr Pepper to Buy JDE Peet for $18 Billion
Barry Adams
25 Aug, 2025
New York City
Wall Street indexes hovered near record highs on Monday, and artificial intelligence technology-related stocks remained in focus ahead of Nvidia's earnings.
The S&P 500 index decreased 0.2%, and the Nasdaq Composite declined 0.3% after they advanced 1% and 2%, respectively.
Wall Street indexes rebounded last Friday and trimmed weekly losses after Fed Chairman Powell signaled a possible rate cut in September.
Benchmark indexes jumped as much as 2%, but a possible 25-basis-point rate cut is not likely to cure the fast-cooling labor market and record-high economic uncertainty induced by Trump tariffs.
Small businesses in logistics, retail, and manufacturing activities are going out of business in record numbers.
Moreover, farmers are forced out of their land in Kansas, Nebraska, Iowa, and Montana following the ending of the USAID program and China switching to sourcing from South America amid constant U.S. tariff threats.
Prices for corn and soybeans are at multi-year lows, and the rising costs of farming inputs are exacerbating the situation throughout the Midwest.
In addition, the U.S. Immigration and Customs Enforcement crackdown is keeping migrant workers away from farms, forcing many farmers to let the crop rot, as Americans show little interest in rushing to take up the newly available farm jobs.
Last week, Walmart, Target, Home Depot, Lowe's, Ross Stores, and T.J. Maxx indicated that the sharp jump in import duties is increasing the cost of goods.
On the economic front, this week investors are awaiting the release of the second estimate of the economic growth in the second quarter.
Friday's personal income and outlays are expected to show an increase in July, and the core PCE price index is estimated to rise 0.3% monthly, confirming elevated inflationary forces.
Moreover, durable goods orders are likely to show a contraction in July, but orders excluding volatile transportation and defense are expected to be steady.
On the earnings front, investors are awaiting quarterly results from Nvidia, and analysts are likely to raise the target price after the release of earnings.
In addition, Abercrombie & Fitch, Williams-Sonoma, Urban Outfitters, Burlington Northern, Best Buy, and Dick's Sporting Goods are set to release their quarterly results.
In addition, HEICO, MongoDB, Okta, Autodesk, Marvell Technology, HP, and PVH Corp. are scheduled to release their quarterly results this week.
U.S. Stock Movers
Keurig Dr Pepper Inc declined 7.5% to $32.50, and the beverage company agreed to acquire the Netherlands-based JDE Peet for €15.4 billion, or $18.5 billion.
After the merger, the company plans to list two separate businesses—a soft drink company and a coffee group.
Keurig Dr Pepper agreed to pay shareholders of JDE Peet's €31.85, or about $37.28, per share.
JDE Peet's global brand portfolio includes Douwe Egberts, Kenco and Peet’s Coffee, Maxwell House, Grand Mere, Prima, and Caboclo.
Stock Movers: Ross Stores, Buckle, Estee Lauder
Scott Peters
22 Aug, 2025
New York City
Ross Stores Inc. increased 0.7% to $147.94 after the off-price apparel and home fashion chain reported a slight increase in revenue and a marginal decline in net income in the fiscal second quarter ending on August 2.
Consolidated revenue increased to $5.5 billion from $5.3 billion, net income inched lower to $508 million from $527 million, and diluted earnings per share edged down to $1.56 from $1.59 a year ago.
Same-store sales in the quarter rose 2% from a year ago.
During the second quarter, Ross Stores returned a total of $262 million to shareholders through share repurchases of 1.9 million shares of common stock.
Ross Stores guided fiscal third-quarter consolidated comparable sales to increase between 2% and 3%, and diluted earnings per share between $1.31 and $1.37.
The third-quarter guidance includes an estimated cost impact of 7 cents to 8 cents per share from the announced tariffs.
The company guided full-year earnings per share to range between $6.08 and $6.21, compared to $6.32 a year ago.
The company anticipated a tariff-driven hit of between 22 cents and 25 cents per share in the fiscal year ending on January 31, 2026.
Buckle Inc. increased 2.5% to $56.18 after the fashion retailer reported a 15% rise in net income in the latest quarter ending on August 2.
Consolidated revenue inched higher to $305.7 billion from $282.4 billion, net income climbed to $45 million from $39.2 million, and diluted earnings per share soared to 89 cents from 78 cents a year ago.
During the quarter, comparable store sales increased by 7.3%, and online sales jumped 17.7% from a year ago.
Estee Lauder Companies Inc. decreased 0.4% to $90.85 after the beauty products maker reported net losses expanded sharply in the fourth quarter ending on June 30.
Consolidated revenue declined 12% to $3.4 billion from $3.9 billion, net loss advanced 92% to $546 million from $284 million, and diluted losses per share expanded 92% to $1.51 from 79 cents a year ago.
The company board announced a quarterly dividend of $0.35 per share, payable on September 16 to shareholders on record on September 2.
The Estée Lauder Company confirms its fiscal 2026 outlook to restore positive sales growth and improve operating profitability.
Stock Movers: Ross Stores, Buckle, Estee Lauder
Scott Peters
22 Aug, 2025
New York City
Ross Stores Inc. increased 0.7% to $147.94 after the off-price apparel and home fashion chain reported a slight increase in revenue and a marginal decline in net income in the fiscal second quarter ending on August 2.
Consolidated revenue increased to $5.5 billion from $5.3 billion, net income inched lower to $508 million from $527 million, and diluted earnings per share edged down to $1.56 from $1.59 a year ago.
Same-store sales in the quarter rose 2% from a year ago.
During the second quarter, Ross Stores returned a total of $262 million to shareholders through share repurchases of 1.9 million shares of common stock.
Ross Stores guided fiscal third-quarter consolidated comparable sales to increase between 2% and 3%, and diluted earnings per share between $1.31 and $1.37.
The third-quarter guidance includes an estimated cost impact of 7 cents to 8 cents per share from the announced tariffs.
The company guided full-year earnings per share to range between $6.08 and $6.21, compared to $6.32 a year ago.
The company anticipated a tariff-driven hit of between 22 cents and 25 cents per share in the fiscal year ending on January 31, 2026.
Buckle Inc. increased 2.5% to $56.18 after the fashion retailer reported a 15% rise in net income in the latest quarter ending on August 2.
Consolidated revenue inched higher to $305.7 billion from $282.4 billion, net income climbed to $45 million from $39.2 million, and diluted earnings per share soared to 89 cents from 78 cents a year ago.
During the quarter, comparable store sales increased by 7.3%, and online sales jumped 17.7% from a year ago.
Estee Lauder Companies Inc. decreased 0.4% to $90.85 after the beauty products maker reported net losses expanded sharply in the fourth quarter ending on June 30.
Consolidated revenue declined 12% to $3.4 billion from $3.9 billion, net loss advanced 92% to $546 million from $284 million, and diluted losses per share expanded 92% to $1.51 from 79 cents a year ago.
The company board announced a quarterly dividend of $0.35 per share, payable on September 16 to shareholders on record on September 2.
The Estée Lauder Company confirms its fiscal 2026 outlook to restore positive sales growth and improve operating profitability.
Japan and Asian Markets Advanced After U.S. Fed Chair Comments
Akira Ito
25 Aug, 2025
Tokyo
Japan's indexes advanced following a rise in an Asia-wide rally amid optimism about a possible U.S. rate cut.
The Nikkei 225 Stock Average gained 0.4%, and the Topix gained 0.1%, as investors bid up stocks in Asia.
Japan's market indexes advanced for the second consecutive session amid hopes that the lower U.S. interest rate could arrest the fast-softening labor market and impacts of the sharp escalation in U.S. tariffs.
Despite the market enthusiasm, the U.S. nonfarm payrolls are shrinking as small businesses struggle to survive following the sharp escalation in import duties, independent farmers are going out of business because of the government ending the purchase of corn and soybeans, and migrant labor is staying away from farms.
On the domestic front, investors are awaiting the release of retail sales, industrial output, and consumer confidence data this week.
The artificial intelligence-related stocks were in focus ahead of Nvidia's earnings on Wednesday.
Japan Indexes and Stocks
The Nikkei 225 Stock Average increased 0.4% to 42,796.67, and the broader Topix advanced 0.1% to 3,104.41.
Semiconductor equipment makers advanced ahead of the release of quarterly results from the artificial intelligence leader Nvidia.
Tokyo Electron advanced 0.7% to ¥20,225.0, Advantest Corp. increased 1% to ¥10,880.0, and Lasertec Corp. fell 0.3% to ¥16,000.0.
Fast Retailing Co. Ltd. inched higher 0.2% to ¥48,510.0, Seven & I Holdings Co. Ltd. declined 1% to ¥1,996.0, Takashimaya & Company was down 1%, and Isetan Mitsukoshi fell 0.2% to ¥2,554.50.