Market Update
Japan's Indexes Traded Flat Amid Cautious as U.S.-China Talks Ended Without an Agreement
Akira Ito
30 Jul, 2025
Tokyo
Japan's benchmark indexes were little changed on Wednesday as investors remained focused on the upcoming earnings and the Bank of Japan's rate decisions.
The Nikkei 225 Stock Average and the broader Topix traded around the flatline, and investors awaited the central bank's rate decisions.
The Bank of Japan is widely anticipated to hold short-term rates at 0.5% amid ongoing uncertainty linked to the U.S. trade policy and its impact on the export-focused Japanese economy.
Investor sentiment was dented after the U.S. and China ended their trade talks in Stockholm without an agreement and diverged on the pause for tariff extensions.
Last week, the widely followed indexes advanced after the U.S. and Japan agreed to limit the increase in tariffs to 15% from the current average of 2%, helping the market sentiment to recover.
Japan signaled a tsunami alert after an earthquake of 8.8 magnitude hit Russia's Far Eastern Kamchatka Peninsula on Wednesday.
The Japan Meteorological Agency forecasts waves as high as 3 meters, or 10 feet, to reach vast swathes of coastal areas starting this evening.
Japan Indexes and Stocks
The Nikkei 225 Stock Average edged up 0.04% to 40,693.16, and the broader Topix advanced 0.3% to 2,919.03.
Fujikura Ltd. soared 9% to ¥9,756.0, Furukawa Electric jumped 7.3% to ¥8,710.0, Tokyo Electron increased 0.7% to ¥27,250.0, and Keyence Corp. fell 4% to ¥55,060.0.
Japan's Indexes Traded Flat Amid Cautious as U.S.-China Talks Ended Without an Agreement
Akira Ito
30 Jul, 2025
Tokyo
Japan's benchmark indexes were little changed on Wednesday as investors remained focused on the upcoming earnings and the Bank of Japan's rate decisions.
The Nikkei 225 Stock Average and the broader Topix traded around the flatline, and investors awaited the central bank's rate decisions.
The Bank of Japan is widely anticipated to hold short-term rates at 0.5% amid ongoing uncertainty linked to the U.S. trade policy and its impact on the export-focused Japanese economy.
Investor sentiment was dented after the U.S. and China ended their trade talks in Stockholm without an agreement and diverged on the pause for tariff extensions.
Last week, the widely followed indexes advanced after the U.S. and Japan agreed to limit the increase in tariffs to 15% from the current average of 2%, helping the market sentiment to recover.
Japan signaled a tsunami alert after an earthquake of 8.8 magnitude hit Russia's Far Eastern Kamchatka Peninsula on Wednesday.
The Japan Meteorological Agency forecasts waves as high as 3 meters, or 10 feet, to reach vast swathes of coastal areas starting this evening.
Japan Indexes and Stocks
The Nikkei 225 Stock Average edged up 0.04% to 40,693.16, and the broader Topix advanced 0.3% to 2,919.03.
Fujikura Ltd. soared 9% to ¥9,756.0, Furukawa Electric jumped 7.3% to ¥8,710.0, Tokyo Electron increased 0.7% to ¥27,250.0, and Keyence Corp. fell 4% to ¥55,060.0.
China, U.S. Talks In Stockholm Inconclusive, Tariff Pause Extension in Jeopardy
Li Chen
30 Jul, 2025
Hong Kong
Stocks in China and Hong Kong faced headwinds after trade talks in Stockholm failed to produce an agreement.
The Hang Seng index declined 0.4%, and the mainland-focused CSI 300 index gained 0.5% as investors worried about the impact of stalled U.S.-China trade negotiations.
China and the U.S. ended their third round of trade talks in Stockholm, and Chinese negotiators said the two sides remained far apart about the timing of new tariffs despite a framework agreement.
Currently Chinese goods imports face a 51% import duty, and negotiators were looking to lower the rate to close to 15%.
Despite the Trump administration's rhetoric about reshoring manufacturing and increasing direct investments, China's imports have been rapidly increasing this year.
The stalled bilateral talks kept market enthusiasm in check in Hong Kong ahead of the release of interim results from eight companies included in the benchmark index.
HSBC is expected to report higher revenue and earnings later today, but Hang Seng Bank may report mixed results.
China Indexes and Stocks
The Hang Seng index decreased 0.4% to 25,414.73, and the mainland-focused CSI 300 index increased 0.5% to 4,173.70.
Electric vehicle makers led the decliners on the worry that intense competition in the sector is likely to negatively impact profit outlook in the near future.
Li Auto Inc. plunged 10.7% to HK $107.40, BYD dropped 4.2% to ¥112.0, and Xiaomi Corp. fell 0.3% to HK $55.20.
Ahead of the earnings release later in the day, HSBC Holdings plc decreased 0.3% to HK $100.50, and Hang Seng Bank declined 0.7% to $122.0.