Market Update
China's Industrial Profit Growth Moderates In June, Oil Falls 6%
Li Chen
27 Jul, 2026
Hong Kong
China's indexes lacked direction in Monday's trading, and investors awaited the market debut of the memory-chip maker following the recent selloff in AI-related stocks.
The Hang Seng index increased 0.8%, the mainland-focused CSI 300 Index inched higher 0.3%, and crude oil prices fell sharply after the U.S. and Iran suspended strikes against each other following fourteen days of fighting.
The Brent crude oil dropped 6.2% to $92.25 a barrel as the U.S. struggled to continue missile attacks following the shortage of critical arms and related ammunition.
China's industrial profit advanced 18.7% to 3.95 trillion yuan in the first half of 2026, slightly lower than the 18.8% increase in the January-May period.
Resilient exports overcame the softness in domestic demand, highlighting the economy's uneven recovery despite the government's efforts to boost consumption.
Profits at state-controlled firms increased 17.9% to 1.3 trillion yuan, while the joint-stock companies reported a stronger 24.7% rise to 3.04 trillion yuan, and private firms reported a 13% increase in profit to 965.6 billion yuan.
The continued rise in rare-earth and precious metals prices supported the surge in profit for mining companies, noted the report released by the National Bureau of Statistics.
Profits at mining companies soared 33.5% and manufacturing companies increased 20.1%, but declined 4.2% at utilities.
Profits in June increased 15.1% from a year ago, slower than a 21.1% rise in May.
China Indexes and Stocks
The Hang Seng Index increased 0.8% to 25,151.33, and the mainland-focused CSI 300 Index gained 0.3% to 4,661.02.
PetroChina decreased 2.7% to HK $9.93, CNOOC decreased 1.8% to $23.14, and China Petroleum and Chemical added 0.7% to HK $4.30.
NAURA Technology Group decreased 0.1% to ¥756.22, Eoptolink Technology added 0.2% to ¥479.47, and Zhongji Innolight edged down a fraction to ¥1,046.49.
CXMT is set to commence its trading after the memory chip maker completed its initial public offering, and the company raised 57.96 billion yuan, selling shares at 8.66 yuan each.
Japan Inflation Accelerated in June and Reached 6-Month High, Nikkei 225 Dropped 3%
Akira Ito
24 Jul, 2026
Tokyo
Japan's indexes reversed gains of the previous session on Friday amid multiple headwinds rooted in international trade, geopolitical conditions, and AI trade.
The Nikkei 225 Stock Average declined 3.2%, the broader TOPIX fell 1.3%, and the Japanese yen weakened to 163.81 against the U.S. dollar.
The U.S. president reimposed temporary tariffs of between 10% and 12.5% on goods imported from 60 nations, prolonging the higher costs of imported goods to U.S. consumers.
The new set of levies is imposed just to continue the temporary tariffs slapped on imported goods, which are set to expire on Friday, following the Trump administration's defeat at the U.S. Supreme Court.
Asian markets fell sharply following the extension of U.S. tariffs on Friday amid escalating tensions in the Middle East. Benchmark indexes in China declined 1.2%, in India fell 1%, and in South Korea plunged 5.7%.
The Brent crude oil price rose 0.1% to $100.75 a barrel after the U.S. and Iran continued to exchange military strikes, and the hostilities in the wider Middle East showed no signs of easing.
Closer to home, Japan's headline inflation in June rose to a six-month high, largely driven by higher energy prices as the government scaled back energy subsidies.
Consumer price inflation accelerated to 1.7% in June from 1.5% in May, driven by an acceleration in transportation to 2.4% from 1.9%, housing to 1.0% from 0.9%, household goods to 2.4% from 2.2%, and healthcare to 1.3% from flat.
However, food price inflation eased to 3.2% from 3.5% in May and dropped to the weakest level since May 2024, said the Ministry of Internal Affairs and Communications.
Core inflation, which excludes food prices, accelerated to 1.6% from 1.4% in the previous month and stayed below the 2% target set by the Bank of Japan for the fifth consecutive month.
Japan Indexes and Stocks
The Nikkei 225 Stock Average declined 3.2% to 64,294.53, and the broader TOPIX dropped 1.3% to 4,001.88.
For the week, the Nikkei 225 Stock Average decreased 0.4%, and the broader TOPIX advanced 1.2%.
Kioxia Holdings plunged 9.8% to ¥55,810.0, Tokyo Electron declined 6.3% to ¥61,780.0, and Advantest Corp. dropped 7% to ¥28,635.0, and Taiyo Yuden decreased 9.2% to ¥11,030.0.
Nippon Yusen KK increased 2.2% to ¥5,949.0, Mitsui O.S.K. Lines rose 1.3% to ¥5,872.0, and Kawasaki Kisen Ltd. edged up 0.8% to ¥2,813.50.
Japan Inflation Accelerated In June and Reached 6-Month High, Nikkei 225 Dropped 3%
Akira Ito
24 Jul, 2026
Tokyo
Japan's indexes reversed gains of the previous session on Friday amid multiple headwinds rooted in international trade, geopolitical conditions, and AI trade.
The Nikkei 225 Stock Average declined 3.2%, the broader TOPIX fell 1.3%, and the Japanese yen weakened to 163.81 against the U.S. dollar.
The U.S. president reimposed temporary tariffs of between 10% and 12.5% on goods imported from 60 nations, prolonging the higher costs of imported goods to U.S. consumers.
The new set of levies is imposed just to continue the temporary tariffs slapped on imported goods, which are set to expire on Friday, following the Trump administration's defeat at the U.S. Supreme Court.
Asian markets fell sharply following the extension of U.S. tariffs on Friday amid escalating tensions in the Middle East. Benchmark indexes in China declined 1.2%, in India fell 1%, and in South Korea plunged 5.7%.
The Brent crude oil price rose 0.1% to $100.75 a barrel after the U.S. and Iran continued to exchange military strikes, and the hostilities in the wider Middle East showed no signs of easing.
Closer to home, Japan's headline inflation in June rose to a six-month high, largely driven by higher energy prices as the government scaled back energy subsidies.
Consumer price inflation accelerated to 1.7% in June from 1.5% in May, driven by an acceleration in transportation to 2.4% from 1.9%, housing to 1.0% from 0.9%, household goods to 2.4% from 2.2%, and healthcare to 1.3% from flat.
However, food price inflation eased to 3.2% from 3.5% in May and dropped to the weakest level since May 2024, said the Ministry of Internal Affairs and Communications.
Core inflation, which excludes food prices, accelerated to 1.6% from 1.4% in the previous month and stayed below the 2% target set by the Bank of Japan for the fifth consecutive month.
Japan Indexes and Stocks
The Nikkei 225 Stock Average declined 3.2% to 64,294.53, and the broader TOPIX dropped 1.3% to 4,001.88.
For the week, the Nikkei 2225 Stock Average decreased 0.4%, and the broader TOPIX advanced 1.2%.
Kioxia Holdings plunged 9.8% to ¥55,810.0, Tokyo Electron declined 6.3% to ¥61,780.0, and Advantest Corp. dropped 7% to ¥28,635.0, and Taiyo Yuden decreased 9.2% to ¥11,030.0.
Nippon Yusen KK increased 2.2% to ¥5,949.0, Mitsui O.S.K. Lines rose 1.3% to ¥5,872.0, and Kawasaki Kisen Ltd. edged up 0.8% to ¥2,813.50.
China and Asia Indexes Trimmed Weekly Gains as U.S. Extended Temporary Tariffs
Li Chen
24 Jul, 2026
Hong Kong
China's indexes turned sharply lower on Friday, trimming weekly gains as international trade faced new headwinds.
The Hang Seng Index decreased 1.4%, and the mainland-focused CSI 300 Index fell 1.3% as the U.S. president imposed a new set of tariffs ranging between 10% and 12.5% on imports from 60 countries.
The new set of levies is imposed just to continue the temporary tariffs slapped on imported goods, which are set to expire on Friday, following the Trump administration's defeat at the U.S. Supreme Court.
Asian markets fell sharply following the extension of U.S. tariffs on Friday amid escalating tensions in the Middle East.
The Brent crude oil prices rose 0.1% to $100.75 a barrel after the U.S. and Iran continued to exchange military strikes, and the hostilities in the wider Middle East showed no signs easing.
Houthi rebels continued to target Saudi vessels in the Red Sea, raising risks for global energy exports from the Gulf nations and driving energy prices higher.
Closer to home, the People's Republic of China injected a net 500 billion yuan into the banking system through a one-year MLF operation, following the 700 billion yen liquidity operation earlier this month through a direct purchase of reverse repos.
China Indexes and Stocks
The Hang Seng Index decreased 1.4% to 24,856.78, and the mainland-focused declined 1.3% to 4,667.49.
For the week, the Hang Seng Index increased 0.3%, and the mainland-focused CSI 300 Index advanced 2.1%.
Foxconn Industrial Internet decreased 3.6% to ¥60.60, Eoptolink Technology declined 2.7% to ¥483.80, Zhongji Innolight fell 1.5% to ¥1,056.79, and SMIC advanced 0.9% to HK $71.40.