Market Update
China THURSDAY
Li Chen
14 Aug, 2025
Hong Kong
Benchmark indexes in China and Hong Kong traded at multi-year highs amid waning buzz about the U.S. tariffs, and the earnings season picked up pace.
The Hang Seng index decreased a fraction and hovered near a four-year high after Tencent Holdings reported better-than-expected quarterly results.
Earnings remained in focus after Power Assets Holdings and CK Infrastructure Holdings reported higher-than-expected first-half results.
China's annual M1 money supply increased 5.6% in July, indicating improving economic conditions, according to data released by the People's Bank of China.
Market sentiment was cautious ahead of the release of retail sales, fixed-asset investment, and new home prices on Friday.
China Indexes and Stocks
The Hang Seng index decreased 0.1% to 25,597.85, and the CSI 300 index rose 0.5% to 4,199.06.
Tencent Holdings Ltd. increased 1.4% to HK $594.0, and the Internet platform operator reported better-than-expected second-quarter results.
Revenue increased 15% to 184.5 billion yuan, and net income soared 16% to 55.6 billion yuan, or $7.81 billion, from a year ago, respectively.
Video game sales advanced 17% to 40.4 billion yuan, and revenue from fintech and business services increased 10% to 55.5 billion yuan.
S&P 500 and Nasdaq Composite Scale New Highs Amid Rate Cut Hopes
Barry Adams
13 Aug, 2025
New York City
Wall Street indexes edged higher on Wednesday after setting new records in the previous session following the inflation report.
The S&P 500 index inched higher 0.2%, and the tech-heavy Nasdaq Composite edged up 0.3% as investors looked forward to the release of the producer price inflation report on Thursday.
Investors may be celebrating inflation victory prematurely after the annual consumer price inflation held steady at 2.7% in July.
With more retailers and importers set to pass on price increases beginning this month, goods prices are set to rise, driven largely by the rise in prices for furniture, household goods, and home appliances.
Investors are worried that the Trump administration's erratic trade policy could force importers to hold imports from China and Mexico until greater clarity on tariff rates emerges.
U.S. Stock Movers
CAVA Group Inc. plunged 25% to $64.10 after the Mediterranean restaurant chain reported weaker-than-expected second-quarter revenue growth.
The specialty restaurant company lowered its annual same-store sales growth outlook to between 4% and 6% from the previous range between 6% and 8% released on May 15.
Revenue in the second quarter increased 20.3% to $278.2 million from $234.1 million, net income fell to $18.4 million from $19.7 million, and diluted earnings per share dropped to 16 cents from 17 cents a year ago.
The revenue increase in the quarter was largely driven by new store openings, and the company plans to open between 68 and 70 in the current year.
The company said the 2.1% increase in same-store sales was primarily driven by the price increases and product mix with "flat traffic."
CoreWeave Inc. declined 9% to $135.30 after the artificial intelligence infrastructure's mixed quarterly results fell short of market expectations.
Consolidated revenue in the June quarter increased to $1.21 billion from $395 million, net loss decreased to $291 million from $323 million, and diluted losses per share declined to 60 cents from $1.62 a year ago.
The AI infrastructure company forecasts third-quarter revenue between $1.26 billion and $1.30 billion, compared to $1.21 billion, and adjusted operating income between $160 million and $190 million, compared to $200 million a quarter earlier, respectively.
The company guided full-year revenue between $5.15 billion and $5.35 billion and adjusted operating income between $800 million and $830 million a year earlier, respectively.
CoreWeave has announced a $4 billion expansion deal with OpenAI, building on the previously disclosed $11.9 billion agreement.
Hanesbrands Inc. decreased 27.9% to $5.70, and the T-shirt maker agreed to be acquired by Canada-based Gildan Activewear for $6.0 in share and stock.
The deal estimated Hanesbrands' enterprise value at $4.4 billion.
S&P 500 and Nasdaq Composite New Highs Amid Rate Cut Hopes
Barry Adams
13 Aug, 2025
New York City
Wall Street indexes edged higher on Wednesday after setting new records in the previous session following the inflation report.
The S&P 500 index inched higher 0.2%, and the tech-heavy Nasdaq Composite edged up 0.3% as investors looked forward to the release of the producer price inflation report on Thursday.
Investors may be celebrating inflation victory prematurely after the annual consumer price inflation held steady at 2.7% in July.
With more retailers and importers set to pass on price increases beginning this month, goods prices are set to rise, driven largely by the rise in prices for furniture, household goods, and home appliances.
Investors are worried that the Trump administration's erratic trade policy could force importers to hold imports from China and Mexico until greater clarity on tariff rates emerges.
U.S. Stock Movers
CAVA Group Inc. plunged 25% to $64.10 after the Mediterranean restaurant chain reported weaker-than-expected second-quarter revenue growth.
The specialty restaurant company lowered its annual same-store sales growth outlook to between 4% and 6% from the previous range between 6% and 8% released on May 15.
Revenue in the second quarter increased 20.3% to $278.2 million from $234.1 million, net income fell to $18.4 million from $19.7 million, and diluted earnings per share dropped to 16 cents from 17 cents a year ago.
The revenue increase in the quarter was largely driven by new store openings, and the company plans to open between 68 and 70 in the current year.
The company said the 2.1% increase in same-store sales was primarily driven by the price increases and product mix with "flat traffic."
CoreWeave Inc. declined 9% to $135.30 after the artificial intelligence infrastructure's mixed quarterly results fell short of market expectations.
Consolidated revenue in the June quarter increased to $1.21 billion from $395 million, net loss decreased to $291 million from $323 million, and diluted losses per share declined to 60 cents from $1.62 a year ago.
The AI infrastructure company forecasts third-quarter revenue between $1.26 billion and $1.30 billion, compared to $1.21 billion, and adjusted operating income between $160 million and $190 million, compared to $200 million a quarter earlier, respectively.
The company guided full-year revenue between $5.15 billion and $5.35 billion and adjusted operating income between $800 million and $830 million a year earlier, respectively.
CoreWeave has announced a $4 billion expansion deal with OpenAI, building on the previously disclosed $11.9 billion agreement.
Hanesbrands Inc. decreased 27.9% to $5.70, and the T-shirt maker agreed to be acquired by Canada-based Gildan Activewear for $6.0 in share and stock.
The deal estimated Hanesbrands' enterprise value at $4.4 billion.
Stock Movers: CAVA, CoreWeave
Scott Peters
13 Aug, 2025
New York City
CoreWeave Inc. fell 10.4% to $133.25 despite the AI-focused cloud infrastructure provider saying net loss shrank in the June quarter.
Consolidated revenue in the June quarter increased to $1.21 billion from $395 million, net loss decreased to $291 million from $323 million, and diluted losses per share declined to 60 cents from $1.62 a year ago.
CoreWeave guided third-quarter revenue between $1.26 billion and $1.30 billion, compared to $1.21 billion, and adjusted operating income between $160 million and $190 million, compared to $200 million a quarter earlier, respectively.
The company guided full-year revenue between $5.15 billion and $5.35 billion and adjusted operating income between $800 million and $830 million a year earlier, respectively.
CoreWeave has announced a $4 billion expansion deal with OpenAI, building on the previously disclosed $11.9 billion agreement.
CoreWeave announced its acquisition of Core Scientific in a $9 billion all-stock transaction, aiming to vertically integrate its AI infrastructure by gaining ownership of 1.3 GW of data center capacity and eliminating approximately $10 billion in future lease obligations.
The company said it raised $2 billion through the sale of 9.25% Senior Unsecured Notes due 2030, to finance its cloud computing infrastructure development.
CAVA Group Inc. plunged 25% to $64.10 after the Mediterranean restaurant chain reported weaker-than-expected second-quarter revenue growth.
The specialty restaurant company lowered its annual same-store sales growth outlook to between 4% and 6% from the previous range between 6% and 8% released on May 15.
Revenue in the second quarter increased 20.3% to $278.2 million from $234.1 million, net income fell to $18.4 million from $19.7 million, and diluted earnings per share dropped to 16 cents from 17 cents a year ago.
The revenue increase in the quarter was largely driven by new store openings, and the company plans to open between 68 and 70 in the current year.
The company said the 2.1% increase in same-store sales was primarily driven by the price increases and product mix with "flat traffic."
Stock Movers: CoreWeave
Scott Peters
12 Aug, 2025
New York City
CoreWeave Inc. fell 10.4% to $133.25 despite the AI-focused cloud infrastructure provider saying net loss shrank in the June quarter.
Consolidated revenue in the June quarter increased to $1.21 billion from $395 million, net loss decreased to $291 million from $323 million, and diluted losses per share declined to 60 cents from $1.62 a year ago.
CoreWeave guided third-quarter revenue between $1.26 billion and $1.30 billion, compared to $1.21 billion, and adjusted operating income between $160 million and $190 million, compared to $200 million a quarter earlier, respectively.
The company guided full-year revenue between $5.15 billion and $5.35 billion and adjusted operating income between $800 million and $830 million a year earlier, respectively.
CoreWeave has announced a $4 billion expansion deal with OpenAI, building on the previously disclosed $11.9 billion agreement.
CoreWeave announced its acquisition of Core Scientific in a $9 billion all-stock transaction, aiming to vertically integrate its AI infrastructure by gaining ownership of 1.3 GW of data center capacity and eliminating approximately $10 billion in future lease obligations.
The company said it raised $2 billion through the sale of 9.25% Senior Unsecured Notes due 2030, to finance its cloud computing infrastructure development.
Japan's Producer Price Inflation Dropped to 11-Month Low, Nikkei 225 Scaled New Record High
Akira Ito
13 Aug, 2025
Tokyo
Japan's benchmark indexes hit new record highs following a rally in overnight trading on Wall Street.
The Nikkei 225 Stock Average and the broader Topix advanced more than 1% as investors doubled down on the hopes of a U.S. rate cut after the policy meeting next month.
Closer to home, producer price inflation dropped to an 11-month low in July, as export-driven companies contend with higher U.S. tariffs.
Producer prices rose at an annual pace of 2.6% in July, slower than 2.9% in the previous month, the Bank of Japan reported Wednesday.
Producer price inflation moderated for the fourth consecutive month, weakening the price growth to the slowest since August 2024.
On a monthly basis, producer prices rose 0.2%, following a downwardly revised 0.1% decrease in June.
Japan Indexes and Stocks
The Nikkei 225 Stock Average advanced 1.6% to 43,394.80, and the broader Topix gained 1.1% to 3,100.43.
Semiconductor equipment makers led the gainers in Tokyo trading.
Tokyo Electron advanced 0.7% to ¥21,680.0, Advantest Corp. jumped 4.9% to ¥11,695.0, and Disco Corp. increased 1.5% to ¥42,820.0.
Sanrio jumped 7.2% to ¥7,706.0, Sony Group advanced 3.6% to ¥4,136.0, and Mitsubishi Heavy Industries added 3.8% to ¥4,109.0.