Market Update
China's Economic Momentum Falters as Industrial Output, Retail Sales and Property Market Data Confirm Slowdown
Li Chen
15 Aug, 2025
Hong Kong
China and Hong Kong indexes turned lower after the latest economic data failed to sway market sentiment.
The Hang Seng index fell 1.3%, and the CSI 300 index edged higher a fraction as China’s domestic consumption weakens and industrial output loses momentum.
China’s retail sales growth slowed to 3.7% in July from 4.8% in the previous month, according to the data released by the National Bureau of Statistics on Friday.
The key measure of consumer spending showed signs of economic strain, despite the top policymakers reiterating their goals of expanding domestic demand.
China’s trade-in program has supported the purchase of household appliances, and Beijing has allocated 231 billion yuan from the sale of ultra-long special treasury bonds this year.
As of July 16, the program has generated 1.6 trillion, or about $223 billion, in sales, according to the official data released by the government agencies.
Industrial output growth slowed to an increase of 5.7% in July from 6.8% in June, and fixed-asset investment in the first seven months to July slowed to 1.6% from 2.8% in the first half of 2025.
Economists were quick to lower estimates for GDP growth in the second half after weaker-than-expected economic data.
Property investments continue to slow down as new home prices fall and consumer confidence remains weak.
Property investment declined 12% in the period from January to July, from the fall of 11.2% in the first half of 2025.
In addition, the agency said new home sales by floor area declined by 4% in the year-to-July compared to the fall of 3.5% in the first half.
A separate report by the NBS showed new home prices declined for the 25th month in a row in July.
New home prices in 70 cities decreased 2.8% in July, easing from a 3.2% fall in the previous month.
Prices in Beijing declined 3.6% compared to 4.1%, in Guangzhou eased 4.6% compared to 5.1%, and in Shenzhen fell 2.2% compared to 2.5%, but in Shanghai rose 6.1% compared to 6.0% in the previous month, respectively.
The jobless rate in the urban areas inched higher to 5.2% in July from 5.0% in June, according to the official data released by the NBS.
China's jobless data are viewed with deep skepticism, as several private estimates show the unemployment rate as high as 9%.
China Indexes and Stocks
The Hang Seng Index decreased 1.3% to 25,181.88, and the CSI 300 index edged higher 0.03% to 4,174.64.
JD.com, Inc. dropped 3.1% to HK $120.20, and the e-commerce platform operator reported a 51% decline in profit in the second quarter.
Geely Automobile Holdings Ltd. edged down 2.1% to HK $18.56 after the company reported a 14% decline in profit in the first half.
Guangzhou Innogen Pharmaceutical Group soared to HK $55.30 after the company priced its public offering at HK $18.68 per share.
The diabetes and other metabolic diseases-focused pharmaceutical company sold a total of 36.55 million shares and listed its shares on the Hong Kong Stock Exchange.
China's Economic Momentum Falters as Industrial Output, Retail Sales and Property Market Data Confirm Slowdown
Li Chen
15 Aug, 2025
Hong Kong
China and Hong Kong indexes turned lower after the latest economic data failed to sway market sentiment.
The Hang Seng index fell 1.3%, and the CSI 300 index edged higher a fraction as China’s domestic consumption weakens and industrial output loses momentum.
China’s retail sales growth slowed to 3.7% in July from 4.8% in the previous month, according to the data released by the National Bureau of Statistics on Friday.
The key measure of consumer spending showed signs of economic strain, despite the top policymakers reiterating their goals of expanding domestic demand.
China’s trade-in program has supported the purchase of household appliances, and Beijing has allocated 231 billion yuan from the sale of ultra-long special treasury bonds this year.
As of July 16, the program has generated 1.6 trillion, or about $223 billion, in sales, according to the official data released by the government agencies.
Industrial output growth slowed to an increase of 5.7% in July from 6.8% in June, and fixed-asset investment in the first seven months to July slowed to 1.6% from 2.8% in the first half of 2025.
Economists were quick to lower estimates for GDP growth in the second half after weaker-than-expected economic data.
Property investments continue to slow down as new home prices fall and consumer confidence remains weak.
Property investment declined 12% in the period from January to July, from the fall of 11.2% in the first half of 2025.
In addition, the agency said new home sales by floor area declined by 4% in the year-to-July compared to the fall of 3.5% in the first half.
A separate report by the NBS showed new home prices declined for the 25th month in a row in July.
New home prices in 70 cities decreased 2.8% in July, easing from a 3.2% fall in the previous month.
Prices in Beijing declined 3.6% compared to 4.1%, in Guangzhou eased 4.6% compared to 5.1%, and in Shenzhen fell 2.2% compared to 2.5%, but in Shanghai rose 6.1% compared to 6.0% in the previous month, respectively.
The jobless rate in the urban areas inched higher to 5.2% in July from 5.0% in June, according to the official data released by the NBS.
China's jobless data are viewed with deep skepticism, as several private estimates show the unemployment rate as high as 9%.
China Indexes and Stocks
The Hang Seng Index decreased 1.3% to 25,181.88, and the CSI 300 index edged higher 0.03% to 4,174.64.
JD.com, Inc. dropped 3.1% to HK $120.20, and the e-commerce platform operator reported a 51% decline in profit in the second quarter.
Geely Automobile Holdings Ltd. edged down 2.1% to HK $18.56 after the company reported a 14% decline in profit in the first half.
Guangzhou Innogen Pharmaceutical Group soared to HK $55.30 after the company priced its public offering at HK $18.68 per share.
The diabetes and other metabolic diseases-focused pharmaceutical company sold a total of 36.55 million shares and listed its shares on the Hong Kong Stock Exchange.
Wall Street Indexes Hovered Near Record Highs as Investors Reviewed Jobless Claims and July's PPI
Barry Adams
14 Aug, 2025
New York City
Wall Street indexes flatlined and hovered near record highs as investors digested the latest batch of earnings.
The S&P 500 index edged down 0.3%, and the tech-heavy Nasdaq Composite fell 0.4%, as investors reviewed the latest weekly jobless claims and the producer price index reading.
July's PPI Rebound Dented Rate Cut Hopes
July's producer price index rose 3.3% from a year ago and advanced 0.9% from the previous month, surpassing market expectations.
The annual PPI advanced at the fastest pace since February, when the measure of wholesale prices increased 3.4%, according to data released by the Bureau of Labor Statistics.
The elevated wholesale price index dented hopes that the Federal Reserve may increase rates at its policy meeting next month.
The annual core producer price inflation, which excludes food and energy, accelerated to 3.7% in July from 2.6% in the previous month.
Initial Jobless Claims Eased, Continuing Claims Hovered Near 2 Million
Initial weekly jobless claims decreased 3,000 to 224,000 in the week ending on August 9, according to the Department of Labor.
The previous week's initial claims were revised lower by 1,000 to 226,000.
The continuing claims, which lag by one week, decreased by 15,000 from the previous week's revised level to 1.953 million.
The previous week's continuing claims were revised down by 6,000 to 1.97 million.
Tariffs May Not Show Up In Inflation Numbers for Several Months
The S&P 500 index and the Nasdaq Composite closed at new highs in the previous session after cooler-than-expected inflation soothed investor anxieties.
The Department of Treasury collected about $29 billion in "customs and excise taxes" in July, sharply higher than $8.7 billion in the month a year ago.
Despite the sharp increase in import duties, most retailers and businesses have, for now, not passed over higher import duties to customers. But that is likely to change in the months ahead if import taxes cover more items and escalate.
To put things in perspective, total nominal retail and food services sales in July, including automobiles and gasoline, are likely to reach $725.0 billion.
So for now, tariffs are not a big factor impacting consumer decisions, but that could change as more items face higher tariffs beginning in August.
U.S. Stock Movers
Cisco Systems decreased 1.3% to $69.33 despite the networking equipment maker reporting higher sales and earnings.
Consolidated revenue increased to $14.7 billion from $13.6 billion, net income advanced to $2.8 billion from $2.2 billion, and diluted earnings per share rose to 71 cents from 54 cents a year ago.
During the fourth quarter, Cisco returned a total of $2.9 billion to shareholders through share repurchases and dividends, including the repurchase of 1.3 million shares of common stock.
Brinker International decreased 0.2% to $157.12 despite the parent company of the Chili's restaurant chain reporting an 88% jump in its earnings in the fourth quarter.
Consolidated revenue inched higher to $1.5 billion from $1.2 billion, net income jumped to $107 million from $57 million, and diluted earnings per share soared to $2.30 from $1.24 a year ago.
Comparable restaurant sales increased by 21.3%, driven by a 23.7% increase at Chili's and a 0.4% decrease at Maggiano's restaurant chains.
During the fourth quarter, Brinker returned a total of $507 million to shareholders through share repurchases.
Coherent Corp. dropped 19% to $91.91, and the advanced semiconductor and optical materials maker's results disappointed investors.
In addition, the company announced the sale of its aerospace and defense business for $400 million to Advent Technologies Holdings.
Ibotta Inc. dropped 34% to $22.32, and the promotion technology provider reported a decline in revenue in the second quarter.
Revenue fell 2% to $86.0 million from $87.9 million, and net income swung to a profit of $2.49 million from a loss of $33.96 million. and diluted earnings per share was a profit of 8 cents compared to a loss of $1.32 a year ago.
Deere & Company declined 6.5% to $480.0 after the agriculture equipment company offered a mixed outlook for the full year.
Wall Street Indexes Scale to New Record Highs as Investors Reviewed Jobless Claims and July's PPI
Barry Adams
14 Aug, 2025
New York City
Wall Street indexes flatlined and hovered near record highs as investors digested the latest batch of earnings.
The S&P 500 index edged up 0.1%, and the tech-heavy Nasdaq Composite advanced 0.2%, as investors reviewed the latest weekly jobless claims and the producer price index reading.
The S&P 500 index and the Nasdaq Composite closed at new highs in the previous session after cooler-than-expected inflation soothed investor anxieties.
The Department of Treasury collected about $29 billion in "customs and excise taxes" in July, sharply higher than $8.7 billion in the month a year ago.
Despite the sharp increase in import duties, most retailers and businesses have, for now, not passed over higher import duties to customers. But that is likely to change in the months ahead if import taxes cover more items and escalate.
To put things in perspective, total nominal retail and food services sales in July, including automobiles and gasoline, are likely to reach $725.0 billion.
So for now, tariffs are not a big factor impacting consumer decisions, but that could change as more items face higher tariffs beginning in August.
U.S. Stock Movers
Cisco Systems decreased 1.3% to $69.33 despite the networking equipment maker reporting higher sales and earnings.
Consolidated revenue increased to $14.7 billion from $13.6 billion, net income advanced to $2.8 billion from $2.2 billion, and diluted earnings per share rose to 71 cents from 54 cents a year ago.
During the fourth quarter, Cisco returned a total of $2.9 billion to shareholders through share repurchases and dividends, including the repurchase of 1.3 million shares of common stock.
Brinker International decreased 0.2% to $157.12 despite the parent company of the Chili's restaurant chain reporting an 88% jump in its earnings in the fourth quarter.
Consolidated revenue inched higher to $1.5 billion from $1.2 billion, net income jumped to $107 million from $57 million, and diluted earnings per share soared to $2.30 from $1.24 a year ago.
Comparable restaurant sales increased by 21.3%, driven by a 23.7% increase at Chili's and a 0.4% decrease at Maggiano's restaurant chains.
During the fourth quarter, Brinker returned a total of $507 million to shareholders through share repurchases.
Coherent Corp. dropped 19% to $91.91, and the advanced semiconductor and optical materials maker's results disappointed investors.
In addition, the company announced the sale of its aerospace and defense business for $400 million to Advent Technologies Holdings.
Ibotta Inc. dropped 34% to $22.32, and the promotion technology provider reported a decline in revenue in the second quarter.
Revenue fell 2% to $86.0 million from $87.9 million, and net income swung to a profit of $2.49 million from a loss of $33.96 million. and diluted earnings per share was a profit of 8 cents compared to a loss of $1.32 a year ago.
Deere & Company declined 6.5% to $480.0 after the agriculture equipment company offered a mixed outlook for the full year.
Stock Movers: Cisco Systems, Brinker International
Scott Peters
14 Aug, 2025
New York City
Cisco Systems Inc. fell 0.03% to $70.37 despite the networking company reporting a 30% increase in net income in the fourth quarter.
Consolidated revenue increased to $14.7 billion from $13.6 billion, net income advanced to $2.8 billion from $2.2 billion, and diluted earnings per share rose to 71 cents from 54 cents a year ago.
During the fourth quarter, Cisco returned a total of $2.9 billion to shareholders through share repurchases and dividends, including the repurchase of 1.3 million shares of common stock.
The company's board declared a cash dividend of $0.41 per share.
The company guided net sales in the next quarter to range between $14.65 million and $14.85 million, and GAAP EPS between $0.63 and $0.68 a quarter earlier, respectively.
"The AI infrastructure orders we received from webscale customers in fiscal 2025 were more than double our original target, indicating a massive opportunity ahead as we lead the required architectural shift and build the critical infrastructure needed for the AI era," said Chuck Robbins, chair and CEO of Cisco.
Brinker International decreased 0.3% to $157.38 despite the parent company of the Chili's restaurant chain reporting an 88% jump in its earnings in the fourth quarter.
Consolidated revenue inched higher to $1.5 billion from $1.2 billion, net income jumped to $107 million from $57 million, and diluted earnings per share soared to $2.30 from $1.24 a year ago.
Comparable restaurant sales increased by 21.3%, driven by a 23.7% increase at Chili's and a 0.4% decrease at Maggiano's restaurant chains.
During the fourth quarter, Brinker returned a total of $507 million to shareholders through share repurchases.
Brinker International guided full-year revenue to be between $5.60 billion and $5.70 billion and non-GAAP diluted earnings per share between $9.90 and $10.50 a year earlier.
Chili's franchisees generated sales of approximately $262.3 million for the fourth quarter of fiscal 2025 compared to $230.1 million for the fourth quarter of fiscal 2024.
Stock Movers: Cisco Systems, Brinker International
Scott Peters
14 Aug, 2025
New York City
Cisco Systems Inc. fell 0.03% to $70.37 despite the networking company reporting a 30% increase in net income in the fourth quarter.
Consolidated revenue increased to $14.7 billion from $13.6 billion, net income advanced to $2.8 billion from $2.2 billion, and diluted earnings per share rose to 71 cents from 54 cents a year ago.
During the fourth quarter, Cisco returned a total of $2.9 billion to shareholders through share repurchases and dividends, including the repurchase of 1.3 million shares of common stock.
The company's board declared a cash dividend of $0.41 per share.
The company guided net sales in the next quarter to range between $14.65 million and $14.85 million, and GAAP EPS between $0.63 and $0.68 a quarter earlier, respectively.
"The AI infrastructure orders we received from webscale customers in fiscal 2025 were more than double our original target, indicating a massive opportunity ahead as we lead the required architectural shift and build the critical infrastructure needed for the AI era," said Chuck Robbins, chair and CEO of Cisco.
Brinker International decreased 0.3% to $157.38 despite the parent company of the Chili's restaurant chain reporting an 88% jump in its earnings in the fourth quarter.
Consolidated revenue inched higher to $1.5 billion from $1.2 billion, net income jumped to $107 million from $57 million, and diluted earnings per share soared to $2.30 from $1.24 a year ago.
Comparable restaurant sales increased by 21.3%, driven by a 23.7% increase at Chili's and a 0.4% decrease at Maggiano's restaurant chains.
During the fourth quarter, Brinker returned a total of $507 million to shareholders through share repurchases.
Brinker International guided full-year revenue to be between $5.60 billion and $5.70 billion and non-GAAP diluted earnings per share between $9.90 and $10.50 a year earlier.
Chili's franchisees generated sales of approximately $262.3 million for the fourth quarter of fiscal 2025 compared to $230.1 million for the fourth quarter of fiscal 2024.
Japan's Indexes Eased 1% After a 3-Day Rally Lifted Stocks to Record Highs
Akira Ito
14 Aug, 2025
Tokyo
Benchmark indexes in Japan pulled back after rallying for three consecutive sessions amid profit taking.
The Nikkei 225 Stock Average and the broader Topix declined more than 1%, as investors booked profit after benchmark indexes surged more than 10% this year.
Market sentiment remained positive amid receding global trade tensions and an improving profit outlook for domestic corporations.
Moreover, foreign investors continued to pump new capital into Japanese stocks as they chased returns outside the U.S.
The Nikkei 225 Stock Average and the Topix are hovering at record highs, as investors remain focused on corporate earnings results despite the challenging global macroeconomic outlook.
Investors debated the rate path, and the Bank of Japan is expected to continue its rate-hike campaign amid wage pressures and building inflationary pressures after decades of price declines.
The yen strengthened to 146.24 against the U.S. dollar amid speculation that the U.S. Federal Reserve is more likely to lower rates at the end of the next policy meeting in September.
Japan Indexes and Stocks
The Nikkei 225 Stock Average fell 1.3% to 42,693.77, and the broader Topix decreased 1% to 3,060.14.
SoftBank Group advanced 4.4% to ¥15,530.0, NTT Inc. decreased 0.8% to ¥161.50, and KDDI Corp. fell 1.9% to ¥2,587.50.
Toyota Motor Corp. declined 2.2% to ¥2,813.50, Honda Motor Corp. dropped 1.6% to ¥1,618.0, and Nissan Motor eased 1.4% to ¥327.80.
Kawasaki Kisen Kaisha decreased 0.8% to ¥2,213.0, Nippon Yusen K.K. eased 1.5% to ¥5,246.0, and Mitsui O.S.K. Lines Ltd. fell 0.3% to ¥4,885.0.
Japan Indexes Eased 1% After a 3-Day Rally Lifted Stocks to Record Highs
Akira Ito
14 Aug, 2025
Tokyo
Benchmark indexes in Japan pulled back after rallying for three consecutive sessions amid profit taking.
The Nikkei 225 Stock Average and the broader Topix declined more than 1%, as investors booked profit after benchmark indexes surged more than 10% this year.
Market sentiment remained positive amid receding global trade tensions and an improving profit outlook for domestic corporations.
Moreover, foreign investors continued to pump new capital into Japanese stocks as they chased returns outside the U.S.
The Nikkei 225 Stock Average and the Topix are hovering at record highs, as investors remain focused on corporate earnings results despite the challenging global macroeconomic outlook.
Investors debated the rate path, and the Bank of Japan is expected to continue its rate-hike campaign amid wage pressures and building inflationary pressures after decades of price declines.
The yen strengthened to 146.24 against the U.S. dollar amid speculation that the U.S. Federal Reserve is more likely to lower rates at the end of the next policy meeting in September.
Japan Indexes and Stocks
The Nikkei 225 Stock Average fell 1.3% to 42,693.77, and the broader Topix decreased 1% to 3,060.14.
SoftBank Group advanced 4.4% to ¥15,530.0, NTT Inc. decreased 0.8% to ¥161.50, and KDDI Corp. fell 1.9% to ¥2,587.50.
Toyota Motor Corp. declined 2.2% to ¥2,813.50, Honda Motor Corp. dropped 1.6% to ¥1,618.0, and Nissan Motor eased 1.4% to ¥327.80.
Kawasaki Kisen Kaisha decreased 0.8% to ¥2,213.0, Nippon Yusen K.K. eased 1.5% to ¥5,246.0, and Mitsui O.S.K. Lines Ltd. fell 0.3% to ¥4,885.0.
China and HK Indexes Hover at Multi-Year Highs; Tencent, CK Infrastructure, and Power Assets In Focus
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.