Market Update
Japan's Indexes Closed at New Record Highs, SoftBank Group Jumped 6%
Akira Ito
12 Aug, 2025
Tokyo
Japan's benchmark indexes soared to new record highs after investors returned from a three-day holiday.
The Nikkei 225 Stock Average jumped 2.7%, and the Topix advanced 1.8%, and both indexes closed at new record highs amid optimism over the international trade.
China and the U.S. confirmed the extension of the trade tariff deadline by 90 days to November 10, supporting the market sentiment across Asia.
The U.S. tariff on Chinese goods averaged about 50% in July, but import duties were scheduled to increase as high as 145% on some products.
For now, the extension of the tariff deadline avoided the worst-case scenario, but the U.S. is likely to impose a "punitive tariff" of 25% for China's continued import of Russian oil and natural gas.
On the domestic economic front, investors remained divided about the Bank of Japan's next move, and traders continued to bet that the central bank will hike rates by at least 25 basis points before the year's end.
Japan Indexes and Stocks
The Nikkei 225 Stock Average soared 2.7% to 42,942.96, and the broader Topix added 1.8% to 3,077.35.
SoftBank Group added 6.5% to ¥14,765.0 after the investment company committed to invest as much as $32.7 billion in OpenAI.
In addition, the company agreed to acquire chip design firm Ampere Computing for $5.6 billion.
Sanrio Co. Ltd. soared 15.7% to ¥7,180.0 after the parent company of the Hello Kitty brand reported strong quarterly results.
Net sales in the June quarter soared 49.1% to 43 billion yen, operating profit jumped 88% to 20.1 billion yen, and the profit attributable to owners of the parent company advanced 37.8% to 14.1 billion yen.
The sales growth in the quarter was driven by the global popularity of the company's characters, increased sales in domestic stores and theme parks, and solid growth in its licensing business in North America and China.
Tokyo Electron advanced 2.2% to ¥21,760.0 and rebounded from a one-week low after the company's quarterly results last week fell short of investor expectations.
Japan's Indexes Close at New Record Highs, SoftBank Group Jumped 6%
Akira Ito
12 Aug, 2025
Tokyo
Japan's benchmark indexes soared to new record highs after investors returned from a three-day holiday.
The Nikkei 225 Stock Average jumped 2.7%, and the Topix advanced 1.8%, and both indexes closed at new record highs amid optimism over the international trade.
China and the U.S. confirmed the extension of the trade tariff deadline by 90 days to November 10, supporting the market sentiment across Asia.
The U.S. tariff on Chinese goods averaged about 50% in July, but import duties were scheduled to increase as high as 145% on some products.
For now, the extension of the tariff deadline avoided the worst-case scenario, but the U.S. is likely to impose a "punitive tariff" of 25% for China's continued import of Russian oil and natural gas.
On the domestic economic front, investors remained divided about the Bank of Japan's next move, and investors continued to bet that the central bank will hike rates by at least 25 basis points before the year's end.
Japan Indexes and Stocks
The Nikkei 225 Stock Average soared 2.7% to 42,942.96, and the broader Topix added 1.8% to 3,077.35.
SoftBank Group added 6.5% to ¥14,765.0 after the investment company committed to invest as much as $32.7 billion in OpenAI.
In addition, the company agreed to acquire chip design firm Ampere Computing for $5.6 billion.
Sanrio Co. Ltd. soared 15.7% to ¥7,180.0 after the parent company of the Hello Kitty brand reported strong quarterly results.
Net sales in the June quarter soared 49.1% to 43 billion yen, operating profit jumped 88% to 20.1 billion yen, and the profit attributable to owners of the parent company advanced 37.8% to 14.1 billion yen.
The sales growth in the quarter was driven by the global popularity of the company's characters, increased sales in domestic stores and theme parks, and solid growth in its licensing business in North America and China.
Tokyo Electron advanced 2.2% to ¥21,760.0 and rebounded from a one-week low after the company's quarterly results last week fell short of investor expectations.
China Stocks Lacked Direction as Investors Awaited Retail Sales and Fixed-Investment Data
Li Chen
12 Aug, 2025
Hong Kong
China and Hong Kong stocks wavered as investors remained focused on earnings results and economic data.
The Hang Seng index edged up 0.1%, and the CSI 300 index advanced 0.5% in lackluster trading as the U.S. and China confirmed the extension of the trade tariff deadline.
The U.S. president extended the deadline by 90 days to November 10, citing progress in talks, but Chinese negotiators in Beijing confirmed that the two sides remain far apart.
China is also bracing for an additional "punitive tariff" of 25% for its continued import of Russian oil, in addition to tariffs that average about 50% on goods shipments to the U.S.
On the economic front, the National Bureau of Statistics is scheduled to release retail sales and fixed-asset investments on Friday.
Both economic measures are likely to show a slight easing in activities amid persistent malaise in the property market, falling consumer confidence, and a weakening job market.
In addition, investors are awaiting the release of earnings from Tencent Holdings, NetEase Inc., and JD.com later in the week.
China Indexes and Stocks
The Hang Seng index edged up 0.1% to 24,911.45, and the CSI 300 index gained 0.5% to 4,143.85.
Tencent Holdings Ltd decreased 0.3% to HK $559.50, NetEase Inc edged up 0.6% to HK $203.80, and JD.com added 0.2% to HK $122.50.
Zijin Mining Group advanced 0.5% to HK $22.96 after the U.S. president said that gold bullion imports will not attract import taxes.
Nongfu Spring Company Ltd. added 1.5% to HK $47.20, BYD Electronic International gained 1.4% to HK $40.02, and Zhongsheng Group Holdings Ltd. added 5.5% to HK $14.48.