Market Update
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.
China and Hong Kong Indexes Jumped 2%, China Evergrande Delisted After 16 Years
Li Chen
25 Aug, 2025
Hong Kong
Stock market indexes in China and Hong Kong jumped on Monday following the rising possibility of a U.S. rate cut.
The Hang Seng index soared 2.1%, and the mainland-focused CSI 300 index jumped 2% after U.S. Federal Reserve Chair Jerome Powell laid out a case for a possible rate cut as early as next month.
Fed Chair Powell cited shifts in risks between the softening labor market and inflationary forces after the sharp downward revision in nonfarm payrolls data for the months of May and June and weaker-than-expected job growth in July.
The possible cut in the U.S. rate is generally followed by a similar-sized rate cut in Hong Kong, as the central bank is mandated to keep the Hong Kong currency's peg to the U.S. dollar.
In mainland and Hong Kong trading, real estate developers, banks, and Internet-driven companies led the gains.
China Evergrande Group was delisted from the Hong Kong Stock Exchange on Monday after the once largest developer by sales in China racked up as much as $300 billion in debt.
The developer's stock has been suspended from Hong Kong trading since January 29, 2024, after the Hong Kong court ordered the liquidation of the firm.
China Indexes and Stocks
The Hang Seng index advanced 2.1% to 25,866.49, and the mainland-focused CSI 300 added 2% to 4,438.81.
Alibaba Group Holding adjusted 5.8% to HK $124.90, Meituan added 3.1% to HK $122.10, and JD.com Inc advanced 4.8% to HK $127.20.
BYD gained 1.8% to ¥106.80, Li Auto jumped 5.8% to HK $94.70, and Xpeng decreased 0.4% to $91.50.
Zijin Mining Group increased 56% to HK $24.24, CNOOC gained 2.6% to HK $18.84, and PetroChina Company inched up 0.3% to HK $7.53.
China and Hong Kong Indexes Jumped 2%, China Evergrande Delisted After 16 Years
Li Chen
25 Aug, 2025
Hong Kong
Stock market indexes in China and Hong Kong jumped on Monday following the rising possibility of a U.S. rate cut.
The Hang Seng index soared 2.1%, and the mainland-focused CSI 300 index jumped 2% after U.S. Federal Reserve Chair Jerome Powell laid out a case for a possible rate cut as early as next month.
Fed Chair Powell cited shifts in risks between the softening labor market and inflationary forces after the sharp downward revision in nonfarm payrolls data for the months of May and June and weaker-than-expected job growth in July.
The possible cut in the U.S. rate is generally followed by a similar-sized rate cut in Hong Kong, as the central bank is mandated to keep the Hong Kong currency's peg to the U.S. dollar.
In mainland and Hong Kong trading, real estate developers, banks, and Internet-driven companies led the gains.
China Evergrande Group was delisted from the Hong Kong Stock Exchange on Monday after the once largest developer by sales in China racked up as much as $300 billion in debt.
The developer's stock has been suspended from Hong Kong trading since January 29, 2024, after the Hong Kong court ordered the liquidation of the firm.
China Indexes and Stocks
The Hang Seng index advanced 2.1% to 25,866.49, and the mainland-focused CSI 300 added 2% to 4,438.81.
Alibaba Group Holding adjusted 5.8% to HK $124.90, Meituan added 3.1% to HK $122.10, and JD.com Inc advanced 4.8% to HK $127.20.
BYD gained 1.8% to ¥106.80, Li Auto jumped 5.8% to HK $94.70, and Xpeng decreased 0.4% to $91.50.
Zijin Mining Group increased 56% to HK $24.24, CNOOC gained 2.6% to HK $18.84, and PetroChina Company inched up 0.3% to HK $7.53.
Caution Returned to Wall Street Amid AI Infrastructure Spending Growth Worry and Cloudy Outlook for Retailers
Barry Adams
22 Aug, 2025
New York City
Wall Street indexes struggled to advance on Friday, and investors reviewed the fresh batch of mixed earnings.
The S&P 500 index edged up 0.2%, and the tech-heavy Nasdaq Composite inched higher 0.1%, amid worries about the tariff-driven hit on corporate earnings.
For the week, the S&P 500 index is set to close down more than 2%, and the Nasdaq Composite is likely to ease around 1.4%.
Ross Stores reported mixed quarterly results and confirmed that the U.S. import duties are expected to lower its annual earnings per share by 5% from a year ago.
Earlier in the week, Walmart, Target, Home Depot, Lowe's, T.J. Maxx, and other leading companies indicated that the sharp jump in import duties is increasing the cost of goods.
Retailers have been able to avoid a sharp increase in prices because tariffs have been rolled out at a slower than expected pace, and large retailers stocked up on goods that could last for several months.
However, smaller and independent retailers have struggled to adjust to higher import duties amid capital constraints and lack of a diversified supply base.
For now, large retailers are absorbing higher import costs, but as tariffs increase on a wider range of products beginning this month, consumers are likely to see higher prices in the months ahead.
Fed Chair Jerome Powell is set to deliver his comments about the state of the U.S. economy at the annual symposium held in Jackson Hole, Wyoming.
Investors are looking for clues about rate paths, labor market conditions, and the possible longer-term impact of high import duties.
U.S. Stock Movers
Intuit Inc. declined 6.3% to $655.0, despite the company delivering better-than-expected results in its latest fiscal quarter.
Consolidated revenue inched higher to $3.8 billion from $3.2 billion, net income swung to a profit of $381 million from a loss of $20 million, and diluted income per share swung to a profit of $1.35 from a loss of 7 cents a year ago.
The company's outlook for the current quarter fell short of investor expectations.
Intuit provided GAAP guidance for the fiscal first-quarter revenue to be between $3.74 billion and $3.78 billion, operating income between $440 million and $460 million, and diluted earnings per share between $1.19 and $1.26.
Zoom Communications rose 4% to $76.10, and the video platform operator reported higher sales driven by a surge in demand from its enterprise customers.
Consolidated revenue in the second quarter ending in July edged higher to $1.22 billion from $1.16 billion, net income advanced to $471.3 million from $436.4 million, and diluted earnings per share rose to $1.16 from 70 cents a year ago.
Workday Inc. declined 4.5% to $217.13 after the company's forward-looking guidance disappointed investors.
Total revenue in the fiscal second quarter ending in July rose 12.6% to $2.4 billion, net income rose to $228 million from $132 million, and diluted earnings per share advanced to 84 cents from 49 cents a year ago.
The human resource software company guided fiscal third quarter revenue to increase 14% to $2.24 billion and adjusted operating margin to 28%, matching expectations laid by some analysts.
In addition, the company revised its full-year revenue outlook to $8.8 billion and adjusted operating margin of 29%.
Ross Stores advanced 3% to $145.62, despite the deep discount merchandiser reporting mixed results in the second quarter ending on August 2.
Revenue in the quarter increased to $5.5 billion from $5.3 billion, net income decreased to $508 million from $527.2 million, and diluted earnings per share declined to $1.56 from $1.59 a year ago.
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.
Caution Returned to Wall Street Amid AI Infrastructure Spending Growth Worry and Cloudy Outlook for Retailers
Barry Adams
22 Aug, 2025
New York City
Wall Street indexes struggled to advance on Friday, and investors reviewed the fresh batch of mixed earnings.
The S&P 500 index edged up 0.2%, and the tech-heavy Nasdaq Composite inched higher 0.1%, amid worries about the tariff-driven hit on corporate earnings.
For the week, the S&P 500 index is set to close down more than 2%, and the Nasdaq Composite is likely to ease around 1.4%.
Ross Stores reported mixed quarterly results and confirmed that the U.S. import duties are expected to lower its annual earnings per share by 5% from a year ago.
Earlier in the week, Walmart, Target, and other leading companies indicated that the sharp jump in import duties is increasing the cost of goods.
For now, large retailers are absorbing higher import costs, but as tariffs increase on a wider range of products beginning this month, consumers are likely to see higher prices in the months ahead.
Fed Chair Jerome Powell is set to deliver his comments about the state of the U.S. economy at the annual symposium held in Jackson Hole, Wyoming.
Investors are looking for clues about rate paths, labor market conditions, and the possible longer-term impact of high import duties.
U.S. Stock Movers
Intuit Inc. declined 6.3% to $655.0, despite the company delivering better-than-expected results in its latest fiscal quarter.
Consolidated revenue inched higher to $3.8 billion from $3.2 billion, net income swung to a profit of $381 million from a loss of $20 million, and diluted income per share swung to a profit of $1.35 from a loss of 7 cents a year ago.
The company's outlook for the current quarter fell short of investor expectations.
Intuit provided GAAP guidance for the fiscal first-quarter revenue to be between $3.74 billion and $3.78 billion, operating income between $440 million and $460 million, and diluted earnings per share between $1.19 and $1.26.
Zoom Communications rose 4% to $76.10, and the video platform operator reported higher sales driven by a surge in demand from its enterprise customers.
Consolidated revenue in the second quarter ending in July edged higher to $1.22 billion from $1.16 billion, net income advanced to $471.3 million from $436.4 million, and diluted earnings per share rose to $1.16 from 70 cents a year ago.
Workday Inc. declined 4.5% to $217.13 after the company's forward-looking guidance disappointed investors.
Total revenue in the fiscal second quarter ending in July rose 12.6% to $2.4 billion, net income rose to $228 million from $132 million, and diluted earnings per share advanced to 84 cents from 49 cents a year ago.
The human resource software company guided fiscal third quarter revenue to increase 14% to $2.24 billion and adjusted operating margin to 28%, matching expectations laid by some analysts.
In addition, the company revised its full-year revenue outlook to $8.8 billion and adjusted operating margin of 29%.
Ross Stores advanced 3% to $145.62, despite the deep discount merchandiser reporting mixed results in the second quarter ending on August 2.
Revenue in the quarter increased to $5.5 billion from $5.3 billion, net income decreased to $508 million from $527.2 million, and diluted earnings per share declined to $1.56 from $1.59 a year ago.
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.