Market Update
U.S. Movers: Air Canada, Starwood Property
Scott Peters
12 May, 2025
New York City
Starwood Property Trust Inc. eased 0.1% to $19.15 after the real estate finance company reported first-quarter 2025 results.
Revenue declined to $418.18 million from $523.09 million, net income edged down to $112.25 million from $154.33 million, and diluted earnings per share fell to 45 cents from 59 cents a year ago.
The company invested $1.4 billion in commercial lending and a record $0.7 billion in infrastructure lending during the quarter.
Starwood Property paid a quarterly dividend of 48 cents per share, and the company also issued $500 million of corporate debt, extending the average maturity to 3.7 years.
Air Canada soared 14.6% to C$17.54 after Canada’s largest airline company reported first-quarter 2025 results.
Revenue edged down to C$5.20 billion from C$5.23 billion, net loss expanded to C$102 million from a loss of C$81 million, and diluted loss per share widened to 40 cents from a loss of 22 cents a year ago.
The company said its cargo and vacation segments delivered solid results in the period, and the airline carried nearly 10.8 million passengers during the quarter.
Air Canada has previously said its decline in U.S.-bound bookings over the next six months mirrors an industry-wide drop of roughly 10%.
U.S. Movers: Air Canada, Starwood Property
Scott Peters
12 May, 2025
New York City
Starwood Property Trust Inc. eased 0.1% to $19.15 after the real estate finance company reported first-quarter 2025 results.
Revenue declined to $418.18 million from $523.09 million, net income edged down to $112.25 million from $154.33 million, and diluted earnings per share fell to 45 cents from 59 cents a year ago.
The company invested $1.4 billion in commercial lending and a record $0.7 billion in infrastructure lending during the quarter.
Starwood Property paid a quarterly dividend of 48 cents per share, and the company also issued $500 million of corporate debt, extending the average maturity to 3.7 years.
Air Canada soared 14.6% to C$17.54 after Canada’s largest airline company reported first-quarter 2025 results.
Revenue edged down to C$5.20 billion from C$5.23 billion, net loss expanded to C$102 million from a loss of C$81 million, and diluted loss per share widened to 40 cents from a loss of 22 cents a year ago.
The company said its cargo and vacation segments delivered solid results in the period, and the airline carried nearly 10.8 million passengers during the quarter.
Air Canada has previously said its decline in U.S.-bound bookings over the next six months mirrors an industry-wide drop of roughly 10%.
India
12 May, 2025
Select
Stock market indexes in Mumbai soared after India and Pakistan agreed to a ceasefire following a week of retaliatory military attacks by India.
The Sensex and Nifty indexes soared more than 3% after India and Pakistan agreed to halt military attacks and pursue negotiations following a Pakistan-backed terrorist attack that killed 26 people in Kashmir.
The Indian rupee held its ground and traded near 85-mark against the U.S. dollar and the Pakistani rupee drifted lower to a one-year low of 281.20 against the U.S. dollar.
The benchmark index in Karachi soared 9% after the ceasefire held for the second day, raising hopes that a wider conflict between the two neighboring nations could be avoided.
Pakistan's economy has been ravaged over the last three decades as the nation's resources are used up by military in financing wars in the name of Islam.
Pakistan's democracy has struggled to take hold in the nation, as military generals install puppet political regimes through sham elections, and divert nation's resources to war with Afghanistan, finance terrorist activities in India-held Kashmir, and Baluchistan province inches closer to independence.
Commodities, Yields, and Indexes
The Sensex index advanced by 3.1% to 81,975.67, and the Nifty index increased by 3% to 24,795.55.
On the Mumbai stock exchange, 94 stocks traded at their 52-week highs, and 45 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched lower to 6.41%, and the Indian rupee traded at 84.67 against the U.S. dollar.
The gold price edged down by 0.2% to ₹96,565 per ten grams, and silver declined by 2.5% to ₹94,076 per kilo.
Crude oil gained 0.8% to ₹5,253 per barrel, and natural gas decreased by 1.7% to ₹316.90 per thermal unit.
India Stock Movers
ABB India Ltd. advanced 1.2% to ₹5,505.50, and the infrastructure company reported a marginal increase in its quarterly profit.
Dr. Reddy's Laboratories Ltd. advanced 2.5% to ₹1,185.50, and the generic pharmaceutical maker reported a 22% increase in profit in the March quarter.
Yes Bank Ltd. increased 2% to ₹20.43 after the Japan's Sumitomo Bank acquired a 20% stake in the bank from the State Bank of India-led consortium for ₹13,483 crore.
Adani Power Ltd. soared 6% to ₹543.65 after the company won an order to build a 1,500 MW thermal power plan for Uttar Pradesh at a price of ₹5.383 per unit.
Tokyo Stocks Trade Sideways, Japan Records Current Account Surplus in Fiscal 2024
Akira Ito
12 May, 2025
Tokyo
Japan's stock market indexes struggled to advance on Monday, and they hovered near six-week highs as investors awaited the release of financial results from leading companies this week.
The Nikkei 225 Stock Average and broader Topix indexes inched slightly higher as earnings season gathered momentum, and financial stocks led the most actively traded stocks in Tokyo.
The trade negotiators sent cautiously optimistic signals at the conclusion of the first official talks on Sunday in Switzerland.
Despite the two sides sending positive signals after the two days of intense talks led by Chinese Vice Premier He Lifeng and U.S. Secretary of State Scott Bessent and U.S. Trade Representative Jamieson Greer, the two sides remain far apart from an agreement.
The U.S. and China are set to release a joint statement later on Monday, and the statement is likely to focus broad framework for future trade discussions.
Japan's Annual Current Account Surplus Widened In Fiscal 2024
Japan's current account surplus advanced to 3.678 trillion yen in April from 3.448 trillion yen a year ago, the Ministry of Finance reported Monday.
The goods account surplus expanded to 516.5 billion yen from 463.5 billion yen from a year ago, driven by a faster increase in exports compared to imports.
The primary income account increased to 3.92 trillion yen from 3.607 trillion yen, while the secondary income deficit expanded to 739.4 billion yen from 618.6 billion yen from a year ago, respectively.
For the full fiscal year ending in March 2024, the current account surplus widened to 30.38 trillion yen from 26.17 trillion yen in the previous year, reflecting strong gains in primary income and continued gains in international trade.
Japan Indexes and Stocks
The Nikkei 225 Stock Average edged up 0.001% to 37,518.10, and the broader Topix index inched down 0.02% to 2,732.99.
The yen weakened to 146.08 against the U.S. dollar amid growing speculation that the Bank of Japan is likely to hold rates steady at the end of the next two-day meeting on June 17.
Export-sensitive stocks and financial services providers led gainers in Tokyo trading.
Kawasaki Heavy Industries Ltd. advanced 4.4% to ¥8,637.0, IHI Corp. gained 0.2% to ¥12,525.0, and Mitsubishi Heavy Industries decreased 0.3% to ¥2,722.50.
Mitsubishi UFJ Financial Group added 1.3% to ¥1,834.0. Sumitomo Mitsui Financial Group increased 0.6% to ¥3,448.0. Mizuho Financial Group edged up 0.6% to ¥3,691.0.
Tokyo Stocks Trade Sideways, Japan Records Current Account Surplus in Fiscal 2024
Akira Ito
12 May, 2025
Tokyo
Japan's stock market indexes struggled to advance on Monday, and they hovered near six-week highs as investors awaited the release of financial results from leading companies this week.
The Nikkei 225 Stock Average and broader Topix indexes inched slightly higher as earnings season gathered momentum, and financial stocks led the most actively traded stocks in Tokyo.
The trade negotiators sent cautiously optimistic signals at the conclusion of the first official talks on Sunday in Switzerland.
Despite the two sides sending positive signals after the two days of intense talks led by Chinese Vice Premier He Lifeng and U.S. Secretary of State Scott Bessent and U.S. Trade Representative Jamieson Greer, the two sides remain far apart from an agreement.
The U.S. and China are set to release a joint statement later on Monday, and the statement is likely to focus broad framework for future trade discussions.
Japan's Annual Current Account Surplus Widened In Fiscal 2024
Japan's current account surplus advanced to 3.678 trillion yen in April from 3.448 trillion yen a year ago, the Ministry of Finance reported Monday.
The goods account surplus expanded to 516.5 billion yen from 463.5 billion yen from a year ago, driven by a faster increase in exports compared to imports.
The primary income account increased to 3.92 trillion yen from 3.607 trillion yen, while the secondary income deficit expanded to 739.4 billion yen from 618.6 billion yen from a year ago, respectively.
For the full fiscal year ending in March 2024, the current account surplus widened to 30.38 trillion yen from 26.17 trillion yen in the previous year, reflecting strong gains in primary income and continued gains in international trade.
Japan Indexes and Stocks
The Nikkei 225 Stock Average edged up 0.001% to 37,518.10, and the broader Topix index inched down 0.02% to 2,732.99.
The yen weakened to 146.08 against the U.S. dollar amid growing speculation that the Bank of Japan is likely to hold rates steady at the end of the next two-day meeting on June 17.
Export-sensitive stocks and financial services providers led gainers in Tokyo trading.
Kawasaki Heavy Industries Ltd. advanced 4.4% to ¥8,637.0, IHI Corp. gained 0.2% to ¥12,525.0, and Mitsubishi Heavy Industries decreased 0.3% to ¥2,722.50.
Mitsubishi UFJ Financial Group added 1.3% to ¥1,834.0. Sumitomo Mitsui Financial Group increased 0.6% to ¥3,448.0. Mizuho Financial Group edged up 0.6% to ¥3,691.0.
Hong Kong Markets Extended Rally to Eighth Day Ahead of US-China Joint Statement
Li Chen
12 May, 2025
Hong Kong
Stock market indexes in China and Hong Kong advanced amid hopes of a positive outcome of the US-China trade talks in Switzerland.
The Hang Seng index gained 0.8%, and the mainland-focused CSI 300 index inched higher 0.6%, as investors looked forward to details of the framework of US-China trade talks.
The talks in Geneva followed weeks of tensions and global financial market chaos after the U.S. slapped unilateral country-specific tariffs on all imports, with the heaviest burden on shipments arriving from China.
The two sides issued positive comments after two days of talks ending on late Sunday, but it is not clear what the U.S. and China have agreed upon.
The U.S. and China "have taken important steps to resolve important differences through equal dialogue and consultation," the state news agency Xinhua reported.
Despite positive spin by trade negotiators, investors are skeptical that the two sides could reach an agreement in such a short time, as China is looking to lower tariffs to less than 10% from the current proposed level of as high as 250%.
Negotiators in Geneva said that the two sides will release a joint statement on early Monday New York time, and the statement is likely to focus on the trade negotiation framework and set an outline of discussion topics.
Two sides are far apart in their demands, and an agreement is not likely to be reached before the year's end, as the Chinese government ramps up imports of agricultural products from South America and restricts the sale of rare earth minerals to the U.S., according to three Chinese trade negotiators contacted by ticker.com.
The trade discussions are fluid and at an early stage, and the possible outcome is likely to focus on an interim deal covering the next three months to de-escalate tensions and continue the flow of direct shipments from China to the U.S. West Coast ports.
China Indexes and Stocks
The Hang Seng index advanced 0.8% to 23,049.61, and the mainland-focused CSI 300 index edged up 0.6% to 3,869.78.
Contemporary Amperex Technology Co. Ltd. rose 2.6% to 254.69 yuan, ahead of the electric vehicle battery maker's public offering on the Hong Kong Stock Exchange.
The company is set to sell at least 117.9 million shares and raise as much as HK $41 billion, or US $5.3 billion, at the top end of its offering price of HK $263.
Export-sensitive stocks advanced in Hong Kong trading after the US and China sent positive signals after the ending of trade talks in Switzerland.
Haier Smart Home Co. jumped 4.4% to HK $23.80, Techtronic Industries advanced 3.9% to HK $89.75, and Sunny Optical Technology Group soared 10.5% to HK $70.95.