Japan's Weak Economic Growth Highlighted Persistent

Japan's indexes advanced on Monday and extended previous week's gains as investors reviewed the latest update on economic growth. 

The Nikkei 225 Stock Average increased 0.4%, the broader TOPIX fell 0.4%, and the yen edged up to 159.05 against the U.S. dollar. 

Japan's economy grew at an annual pace of 1.1% in the second quarter, accelerating from 0.5% in the previous quarter, according to the Cabinet Office. 

The resilience in exports and factory activity expansion offset the weakness in domestic demand, as global demand for electronic components and electrical equipment supported foreign shipments. 

On a quarterly basis, economic growth slowed to 0.3% in the second quarter from 0.5% in the previous quarter, as domestic demand subtracted 0.2 percentage point growth. 

The ongoing conflict in the Middle East is expected to further strain household finances and corporate budgets, which will likely negatively impact economic growth in the third quarter. 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average increased 0.4% to 68,954.52, and the broader TOPIX decreased 0.4% to 4,175.34. 

Semiconductor- and AI-linked stocks advanced on Monday in Tokyo's trading as investors added exposure to high-flying tech stocks. 

Kioxia Holdings Corp. soared 14% to ¥61,170.0, Tokyo Electron added 1.2% to ¥59,850.0, Advantest Corp. gained 2.2% to ¥37,690.0, and Fujikura Ltd. soared 6.2% to ¥6,022.0. 

SoftBank Group advanced 1.9% to ¥5,851.0, and Nvidia is reported to be planning to invest up to $3 billion in the company's subsidiary SB Energy, developing a major data center facility in Ohio for OpenAI. 

China's Indexes Advanced Ahead of Key Economic Reports, Hygon Information and Kweichow Moutai In Focus

China's indexes advanced ahead of the release of key economic indicators and the latest batch of earnings. 

The Hang Seng Index increased 1.6%, and the CSI 300 Index advanced 0.8% amid uncertainty over the reopening of the Strait of Hormuz and the rising prices of precious and base metals. 

China's statistical bureau is scheduled to release updates on fixed investments, retail sales, industrial production, foreign direct investment, home prices, and jobless rate data. 

China's economy is likely to grow at a slower pace in the second half, between 3.75% and 4.5%, as resilient exports and factory activities cap the weakening domestic demand growth outlook.  

Technology stocks led gainers in Shenzhen and Hong Kong following strong earnings from Hygon Information Technology.  

China Indexes and Stocks 

The Hang Seng Index jumped 1.6% to 25,521.99, and the mainland-focused CSI 300 Index advanced 0.8% to 4,701.19. 

Kweichow Moutai Co. Ltd. decreased 4.2% to ¥1,285.18 after the company reported a decline in first-half net profit. 

Kweichow Moutai Co Ltd reported a 2% decline from a year ago in net profit attributable to shareholders for the first half of 2026, dropping to 44.5 billion yuan. The profit decline occurred despite a 1.5% increase in total revenue.

Revenue in the second quarter decreased 5.2% to 37.6 billion yuan, and net income dropped 6% to 17.2 billion yuan, despite the company raising prices on its premium products. 

Moutai Liquor revenue decreased 1% to 31.7 billion yen, despite a 17% ex-factory price increase in Feitian and series liquor revenue dropped 25% to 5.1 billion yuan as dealers preferred to delay inventory replenishment. 

The company is transitioning from a traditional wholesale model toward a direct-to-consumer and consignment model. 

This shift led to lower proxy-sale pricing on its digital iMoutai platform compared to previous dealer prepayment models, compressing the company's blended average selling price per ton.

Direct sales revenue soared 33.6% to 22.5 billion yuan, with i Moutai sales contributing 18.7 billion yuan in the quarter.  

While revenue grew modestly, operating costs jumped 21.8% to 9.47 billion, slightly compressing net profit margins.

The recent price hikes are likely to deliver an increase in sales in the third and the fourth quarter, supported by an improvement in the product mix.  

China's Indexes Advanced Ahead of Key Economic Reports, Hygon Information and Kweichow Moutai In Focus

China's indexes advanced ahead of the release of key economic indicators and the latest batch of earnings. 

The Hang Seng Index increased 1.6%, and the CSI 300 Index advanced 0.8% amid uncertainty over the reopening of the Strait of Hormuz and the rising prices of precious and base metals. 

China's statistical bureau is scheduled to release updates on fixed investments, retail sales, industrial production, foreign direct investment, home prices, and jobless rate data. 

China's economy is likely to grow at a slower pace in the second half, between 3.75% and 4.5%, as resilient exports and factory activities cap the weakening domestic demand growth outlook.  

Technology stocks led gainers in Shenzhen and Hong Kong following strong earnings from Hygon Information Technology.  

China Indexes and Stocks 

The Hang Seng Index jumped 1.6% to 25,521.99, and the mainland-focused CSI 300 Index advanced 0.8% to 4,701.19. 

Kweichow Moutai Co. Ltd. decreased 4.2% to ¥1,285.18 after the company reported a decline in first-half net profit. 

Revenue decreased 5.2% to 37.6 billion yuan, and net income dropped 6% to 17.2 billion yuan, despite the company raising prices on its premium products. 

Moutai Liquor revenue decreased 1% to 31.7 billion yen, despite a 17% ex-factory price increase in Feitian and series liquor revenue dropped 25% to 5.1 billion yuan as dealers preferred to delay inventory replenishment. 

Direct sales revenue soared 33.6% to 22.5 billion yuan, with i Moutai sales contributing 18.7 billion yuan in the quarter.  

The recent price hikes are likely to deliver an increase in sales in the third and the fourth quarter, supported by an improvement in the product mix.  

Japan's TOPIX Closed at New Record High, Yen Extended Weekly Losses as Bears Remain In Charge

Stocks in Japan extended a weekly rally, and the yen erased roughly half of gains made in late July and early August. 

The Nikkei 225 Stock Average edged up 0.3%, the broader TOPIX inched up 0.4%, and the Japanese yen weakened to 159.31 against the U.S. dollar. 

The yen resumed its downward slide and extended this week's losses to 1%, following the lack of additional interventions in the currency markets.  

Speculators continued to bet against the embattled currency, which remained under pressure from long-term fundamentals. 

The persistent and wide rate differentials between the U.S. and Japan, rising fiscal deficit, and lagging response from the Bank of Japan are emboldening speculators to bet against the currency. 

With more than $1.1 trillion in holdings of the U.S. Treasury, Japan has more than enough resources to ward off future currency attacks, but a half-hearted approach to currency's downward adjustments could exacerbate the problem. 

The Bank of Japan's rate policy has still kept real rates in the negative territory, despite a surge in inflation driven by a weaker yen and a surge in imported energy prices. 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average increased 0.3% to 68,539.12, and the broader TOPIX advanced 0.4% to 4,192.31. 

For the week, the Nikkei 225 increased 4.1%, and the broader TOPIX advanced 3.2%. 

AI- and semiconductor-linked stocks led gainers in Tokyo following Cisco Systems reporting solid quarterly results. 

Kioxia Holdings added 3.8% to ¥53,770.0, Tokyo Electron decreased 0.4%, Advantest Corp. increased 1.8% to ¥36,580.0, Ibiden C0 decreased 4.7% to ¥20,535.0, and Taiyo Yuden Co. edged up 0.8% to ¥11,010.0. 

Japan's TOPIX Closed at New Record High, Yen Extended Weekly Losses as Bears Remain In Charge

Stocks in Japan extended a weekly rally, and the yen erased roughly half of gains made in late July and early August. 

The Nikkei 225 Stock Average edged up 0.3%, the broader TOPIX inched up 0.4%, and the Japanese yen weakened to 159.31 against the U.S. dollar. 

The yen resumed its downward slide and extended this week's losses to 1%, following the lack of additional interventions in the currency markets.  

Speculators continued to bet against the embattled currency, which remained under pressure from long-term fundamentals. 

The persistent and wide rate differentials between the U.S. and Japan, rising fiscal deficit, and lagging response from the Bank of Japan are emboldening speculators to bet against the currency. 

With more than $1.1 trillion in holdings of the U.S. Treasury, Japan has more than enough resources to ward off future currency attacks, but a half-hearted approach to currency's downward adjustments could exacerbate the problem. 

The Bank of Japan's rate policy has still kept real rates in the negative territory, despite a surge in inflation driven by a weaker yen and a surge in imported energy prices. 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average increased 0.3% to 68,539.12, and the broader TOPIX advanced 0.4% to 4,192.31. 

For the week, the Nikkei 225 increased 4.1%, and the broader TOPIX advanced 3.2%. 

AI- and semiconductor-linked stocks led gainers in Tokyo following Cisco Systems reporting solid quarterly results. 

Kioxia Holdings added 3.8% to ¥53,770.0, Tokyo Electron decreased 0.4%, Advantest Corp. increased 1.8% to ¥36,580.0, Ibiden C0 decreased 4.7% to ¥20,535.0, and Taiyo Yuden Co. edged up 0.8% to ¥11,010.0. 

China's Stocks Extended Weekly Losses, SMIC Quarterly Profit Tripled

China's indexes struggled to advance on Friday as advanced U.S. technology was sent to China and more trade barriers were raised for U.S.-China trade, and tensions flared up. 

The Hang Seng Index decreased 0.8%, and the mainland-focused CSI 300 Index edged down 0.1% despite a rebound in semiconductor stocks. 

SMIC edged higher after the advanced computer chip maker reported that its second quarter profit more than tripled from a year ago. 

The sharp jump in revenue and earnings confirmed the rising demand for AI-related chips and that the latest AI investment supercycle is likely to last longer than previously estimated. 

Makers of electronic and optical components and advanced compute and memory chips traded higher and extended weekly gains after SMIC's results were in line with market expectations. 

The U.S. announced new tariffs and trade restrictions targeting several Latin American countries and imposed 100% tariffs on imported drones and related components from China. 

The U.S. renewed its push to stem the flow of the advanced U.S. technology to China and raised more trade barriers for the imported electrical goods from China and transshipments through Mexico and Latin American nations. 

China Indexes and Stocks 

The Hang Seng Index decreased 0.8% to 25,175.06, and the CSI 300 Index edged down 0.1% to 4,658.48. 

For the week, the Hang Seng Index decreased 2.7% and the CSI 300 Index declined 0.9%. 

SMIC jumped 2.6% to HK $68.95 after China's largest semiconductor company reported solid second-quarter results. 

Revenue soared 36% to $3 billion, and net income soared 260% to $479.2 million. 

GigaDevice Semiconductor increased 2.3% to HK $512.50, Eoptolink Technology added 3.4% to ¥444.49, and Zhongji Innolight advanced 2.4% to HK $1,168.0. 

Cambricon Technologies decreased 1.5% to ¥1,089.50, and Hygon Information declined 1.9% to ¥280.62.  

China's Stocks Extended Weekly Losses, SMIC Quarterly Profit Tripled

China's indexes struggled to advance on Friday as advanced U.S. technology was sent to China and more trade barriers were raised for U.S.-China trade, and tensions flared up. 

The Hang Seng Index decreased 0.8%, and the mainland-focused CSI 300 Index edged down 0.1% despite a rebound in semiconductor stocks. 

SMIC edged higher after the advanced computer chip maker reported that its second quarter profit more than tripled from a year ago. 

The sharp jump in revenue and earnings confirmed the rising demand for AI-related chips and that the latest AI investment supercycle is likely to last longer than previously estimated. 

Makers of electronic and optical components and advanced compute and memory chips traded higher and extended weekly gains after SMIC's results were in line with market expectations. 

The U.S. announced new tariffs and trade restrictions targeting several Latin American countries and imposed 100% tariffs on imported drones and related components from China. 

The U.S. renewed its push to stem the flow of the advanced U.S. technology to China and raised more trade barriers for the imported electrical goods from China and transshipments through Mexico and Latin American nations. 

China Indexes and Stocks 

The Hang Seng Index decreased 0.8% to 25,175.06, and the CSI 300 Index edged down 0.1% to 4,658.48. 

For the week, the Hang Seng Index decreased 2.7% and the CSI 300 Index declined 0.9%. 

SMIC jumped 2.6% to HK $68.95 after China's largest semiconductor company reported solid second-quarter results. 

Revenue soared 36% to $3 billion, and net income soared 260% to $479.2 million. 

GigaDevice Semiconductor increased 2.3% to HK $512.50, Eoptolink Technology added 3.4% to ¥444.49, and Zhongji Innolight advanced 2.4% to HK $1,168.0. 

Cambricon Technologies decreased 1.5% to ¥1,089.50, and Hygon Information declined 1.9% to ¥280.62.  

Cerebras Systems plunged 15.1% to $222.49 after the AI chipmaker reported weaker than expected revenue in the second quarter. 

Total revenue increased 74% to $180.1 million from $103.3 million, net income swung to a loss of $450.5 million from a profit of $309.5 million, and diluted earnings per share swung to a loss of $2.98 from a profit of $1.91 a year a year ago. 

The company estimated adjusted core revenue in the third quarter to range between $214 million and $216 million and for the full year to range between $880 million and $890 million. 

The company guided the core negative operating margin for the third quarter to fall between 25% and 23% and, in the full year, to range between 19% and 17%.

Cisco Systems decreased 6% to $116.40 after the networking equipment maker reported a strong fiscal fourth quarter report ending on July 25. 

Revenue increased 18% to $17.3 billion from $14.7 billion, net income soared 51% to $3.9 billion from $2.6 billion, and diluted earnings per share jumped 52% to 97 cents from 64 cents a year ago. 

The company cited AI-driven applications fueling a broad increase in demand as a "networking supercycle" accelerates. 

Networking product orders soared 40% in the fiscal fourth quarter, marking the eighth consecutive quarter of double-digit growth. 

The company declared a quarterly dividend of 42 cents to be paid on October 21 to shareholders on record on October 2. 

Cisco estimated fiscal first-quarter revenue between $18.0 billion and $18.2 billion and diluted earnings per share to range between $1.08 and $1.10. 

The company is capitalizing on a multi-year investment boom in AI infrastructure, as businesses, data center operators, and hyperscalers increase spending. 

The company revised estimated orders from hyperscalers to $7.5 billion in the fiscal 2027, compared to $4.0 billion in the fiscal 2026. 

The company estimated full-year fiscal 2027 revenue between $72.2 billion and $73.4 billion and diluted earnings per share between $4.00 and $4.06. 

U.S. Stocks Attempted to Extend Market Rally, Producer Prices Flat In July

Stocks on Wall Street edged higher as investors weighed the latest batch of earnings, falling crude oil prices, and an update on producer price inflation. 

The S&P 500 Index edged up 0.2%, and the tech-focused Nasdaq Composite inched higher 0.3% as geopolitical uncertainty weighed on investor sentiment. 

West Texas crude oil price per barrel decreased 2.1% to $81.52, and Brent crude oil price declined 2.0% to $87.22 amid growing worry that the continued disruptions of the Strait of Hormuz are increasingly weighing on consumption. 

The Energy International Agency, an association of oil producers in the U.S. and Europe, estimated the global supply of crude oil at 6.3 million barrels per day, significantly lower than the supply level a year ago.  

The unpredictable supply and higher prices are destroying demand, forcing many developing nations to seek alternative energy sources. 

The U.S. producer prices were unchanged in July, following a revised 0.1% decrease in June, the U.S. Bureau of Labor Statistics reported Thursday. 

However, the annual measure eased to 4.7% in July from 5.5% in June, and the core measure eased to 4.2% from 4.7% in the previous month.   

U.S. Movers 

Cisco Systems decreased 6% to $116.40 after the networking equipment maker reported a strong fiscal fourth quarter report ending on July 25. 

Revenue increased 18% to $17.3 billion from $14.7 billion, net income soared 51% to $3.9 billion from $2.6 billion, and diluted earnings per share jumped 52% to 97 cents from 64 cents a year ago. 

The company cited AI-driven applications fueling a broad increase in demand as a "networking supercycle" accelerates. 

Networking product orders soared 40% in the fiscal fourth quarter, marking the eighth consecutive quarter of double-digit growth. 

The company declared a quarterly dividend of 42 cents to be paid on October 21 to shareholders on record on October 2. 

Cisco estimated fiscal first-quarter revenue between $18.0 billion and $18.2 billion and diluted earnings per share to range between $1.08 and $1.10. 

The company is capitalizing on a multi-year investment boom in AI infrastructure, as businesses, data center operators, and hyperscalers increase spending. 

The company revised estimated orders from hyperscalers to $7.5 billion in the fiscal 2027, compared to $4.0 billion in the fiscal 2026. 

The company estimated full-year fiscal 2027 revenue between $72.2 billion and $73.4 billion and diluted earnings per share between $4.00 and $4.06. 

Cerebras Systems plunged 15.1% to $222.49 after the AI chipmaker reported weaker than expected revenue in the second quarter. 

Total revenue increased 74% to $180.1 million from $103.3 million, net income swung to a loss of $450.5 million from a profit of $309.5 million, and diluted earnings per share swung to a loss of $2.98 from a profit of $1.91 a year a year ago. 

The company estimated adjusted core revenue in the third quarter to range between $214 million and $216 million and for the full year to range between $880 million and $890 million. 

The company guided the core negative operating margin for the third quarter to fall between 25% and 23% and, in the full year, to range between 19% and 17%.

U.S. Stocks Attempted to Extend Market Rally, Producer Prices Flat In July

Stocks on Wall Street edged higher as investors weighed the latest batch of earnings, falling crude oil prices, and an update on producer price inflation. 

The S&P 500 Index edged up 0.2%, and the tech-focused Nasdaq Composite inched higher 0.3% as geopolitical uncertainty weighed on investor sentiment. 

West Texas crude oil price per barrel decreased 2.1% to $81.52, and Brent crude oil price declined 2.0% to $87.22 amid growing worry that the continued disruptions of the Strait of Hormuz are increasingly weighing on consumption. 

The Energy International Agency, an association of oil producers in the U.S. and Europe, estimated the global supply of crude oil at 6.3 million barrels per day, significantly lower than the supply level a year ago.  

The unpredictable supply and higher prices are destroying demand, forcing many developing nations to seek alternative energy sources. 

U.S. Movers 

Cisco Systems decreased 6% to $116.40 after the networking equipment maker reported a strong fiscal fourth quarter report ending on July 25. 

Revenue increased 18% to $17.3 billion from $14.7 billion, net income soared 51% to $3.9 billion from $2.6 billion, and diluted earnings per share jumped 52% to 97 cents from 64 cents a year ago. 

The company cited AI-driven applications fueling a broad increase in demand as a "networking supercycle" accelerates. 

Networking product orders soared 40% in the fiscal fourth quarter, marking the eighth consecutive quarter of double-digit growth. 

The company declared a quarterly dividend of 42 cents to be paid on October 21 to shareholders on record on October 2. 

Cisco estimated fiscal first-quarter revenue between $18.0 billion and $18.2 billion and diluted earnings per share to range between $1.08 and $1.10. 

The company is capitalizing on a multi-year investment boom in AI infrastructure, as businesses, data center operators, and hyperscalers increase spending. 

The company revised estimated orders from hyperscalers to $7.5 billion in the fiscal 2027, compared to $4.0 billion in the fiscal 2026. 

The company estimated full-year fiscal 2027 revenue between $72.2 billion and $73.4 billion and diluted earnings per share between $4.00 and $4.06. 

Cerebras Systems plunged 15.1% to $222.49 after the AI chipmaker reported weaker than expected revenue in the second quarter. 

Total revenue increased 74% to $180.1 million from $103.3 million, net income swung to a loss of $450.5 million from a profit of $309.5 million, and diluted earnings per share swung to a loss of $2.98 from a profit of $1.91 a year a year ago. 

The company estimated adjusted core revenue in the third quarter to range between $214 million and $216 million and for the full year to range between $880 million and $890 million. 

The company guided the core negative operating margin for the third quarter to fall between 25% and 23% and, in the full year, to range between 19% and 17%.

Japan's Elevated Wholesale Price Inflation Adds Urgency for BoJ Rate Action

Japan's producer price inflation stayed above 7% for the second consecutive month in July amid rising prices for energy, food and beverages, and chemicals.

Japan's indexes advanced amid a renewed interest in AI trade, and investors reviewed the latest inflation reports. 

The Nikkei 225 Stock Average gained 1.6%, the broader TOPIX advanced 0.7% to a record high of 4,181.57, and the yen weakened to 159.47 against the U.S. dollar. 

AI- and semiconductor-linked stocks extended this week's gains ahead of quarterly results from the China-based SMIC later today, and investors are looking for insights into the demand for advanced chips. 

Tech-heavy benchmarks in Tokyo and Seoul soared 1.6% and 4.5%, respectively, following strong earnings from major tech companies, which reinforced confidence in sustained AI infrastructure. 

Moreover, AI adoption is accelerating across a wider range of applications and broader segments of the economy, supporting the case for revenue momentum. 

Japan's annual producer price inflation surged to 7.2% and stayed above the 5% level for the fourth consecutive month, largely because of energy price inflation. 

The measure of wholesale price inflation eased from 7.3% in June, as a weaker yen continues to amplify imported cost pressures. 

Despite elevated producer prices, consumer inflation remains relatively low at 1.9%, partly due to government subsidies shielding consumers from the latest energy shock.  

The U.S. annual consumer price inflation weakened for the second consecutive month in July, but prices are still rising faster than the Fed's target rate, complicating policymakers' task. 

Overall and core consumer price inflation slowed in July from June, according to the U.S. Bureau of Labor Statistics. 

The annual consumer price inflation eased to 3.4% in July from 3.5% in June and declined for the second consecutive month after reaching a two-year high of 4.2% in May. 

The annual core inflation, which excludes volatile food and energy prices, slowed to 2.5% from 2.4%.  

U.S. consumer price inflation has remained above the Federal Reserve's 2% annual target for over five consecutive years, extending into its sixth straight year as of mid-2026. 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average increased 1.6% to 68,727.23, and the broader TOPIX advanced 0.7% to 4,169.26. 

Recruit Holdings jumped 1.7% to ¥16,935.0 after the company reported solid results in the fiscal first quarter and lifted its annual outlook earlier in the week. 

Revenue in the quarter surged 19% to 1.04 trillion yen from 879 billion yen, net income attributable to shareholders soared 68% to 202.6 billion yen from 120.9 billion yen, and diluted earnings per share advanced 74% to 144.56 yen from 83.24 yen a year ago. 

Despite a broader slowdown in cyclical hiring volumes in the company's core markets in the U.S. and Japan, the shift to an AI-driven hiring platform has helped the company accelerate its monetization. 

Recruit lifted its annual operating income estimate to 1.1 trillion yen from the previous estimate of 949 billion yen, and it also revised the full-year revenue growth to 14.4%, increasing the forecast to 4.2 trillion yen, compared to the earlier estimate of a 9.0% increase to 4.03 trillion yen.   

Japan's Elevated Wholesale Prices Adds Urgency for BoJ Rate Action

Japan's indexes advanced amid a renewed interest in AI trade, and investors reviewed latest inflation reports. 

The Nikkei 225 Stock Average gained 1.6%, the broader TOPIX advanced 0.7% to a record high of 4,181.57, and the yen weakened to 159.47 against the U.S. dollar. 

AI- and semiconductor-linked stocks extended this week's gains ahead of quarterly results from the China-based SMIC later today, and investors are looking for insights into the demand for advanced chips. 

Tech-heavy benchmarks in Tokyo and Seoul soared 1.6% and 4.5%, respectively, following strong earnings from major tech companies, which reinforced confidence in sustained AI infrastructure. 

Moreover, AI adoption is accelerating across a wider range of applications and broader segments of the economy, supporting the case for revenue momentum. 

Japan's PPI Stayed Above 7% In July

Japan's annual producer price inflation surged to 7.2% and stayed above the 5% level for the fourth consecutive month, largely because of energy price inflation. 

The measure of wholesale price inflation eased from 7.3% in June, as weaker yen continues to amplify imported cost pressures, noted the Bank of Japan in its monthly release on Thursday. 

Despite elevated producer prices, consumer inflation remains relatively low at 1.9%, partly due to government subsidies shielding consumers from the latest energy shock.  

U.S. Subdued Inflation Eased Imminent Rate hike Fears 

The U.S. annual consumer price inflation weakened for the second consecutive month in July, but prices are still rising faster than the Fed's target rate, complicating policymakers' task. 

Overall and core consumer price inflation slowed in July from June, according to the U.S. Bureau of Labor Statistics. 

The annual consumer price inflation eased to 3.4% in July from 3.5% in June and declined for the second consecutive month after reaching a two-year high of 4.2% in May. 

The annual core inflation, which excludes volatile food and energy prices, slowed to 2.5% from 2.4%.  

U.S. consumer price inflation has remained above the Federal Reserve's 2% annual target for over five consecutive years, extending into its sixth straight year as of mid-2026. 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average increased 1.6% to 68,727.23, and the broader TOPIX advanced 0.7% to 4,169.26. 

Recruit Holdings jumped 1.7% to ¥16,935.0 after the company reported solid results in the fiscal first quarter and lifted its annual outlook earlier in the week. 

Revenue in the quarter surged 19% to 1.04 trillion yen from 879 billion yen, net income attributable to shareholders soared 68% to 202.6 billion yen from 120.9 billion yen, and diluted earnings per share advanced 74% to 144.56 yen from 83.24 yen a year ago. 

Despite a broader slowdown in cyclical hiring volumes in the company's core markets in the U.S. and Japan, the shift to an AI-driven hiring platform has helped the company accelerate its monetization. 

Recruit lifted its annual operating income estimate to 1.1 trillion yen from the previous estimate of 949 billion yen, and it also revised the full-year revenue growth to 14.4%, increasing the forecast to 4.2 trillion yen, compared to the earlier estimate of a 9.0% increase to 4.03 trillion yen.   

China's Investors Held Out for Higher Highs Amid Renewed Interest In AI Trade

Stocks in China advanced amid a renewed interest in AI-related stocks, and energy stocks lacked direction following conflicting signals from the Middle East. 

The Hang Seng Index edged up 0.01%, and the mainland-focused CSI 300 Index increased 0.5% tracking strength across Asian markets. 

AI- and semiconductor-linked stocks extended this week's gains ahead of quarterly results from SMIC later today, and investors are looking for insights into the demand for advanced chips. 

Tech-heavy benchmarks in Tokyo and Seoul soared 1.6% and 4.5%, respectively, following strong earnings from major tech companies, which reinforced confidence in sustained AI infrastructure. 

Moreover, AI adoption is accelerating across a wider range of applications and broader segments of the economy, supporting the case for revenue momentum. 

The U.S. annual consumer price inflation weakened for the second consecutive month in July, but prices are still rising faster than the Fed's target rate, complicating policymakers' task. 

Overall and core consumer price inflation slowed in July from June, according to the U.S. Bureau of Labor Statistics. 

The annual consumer price inflation eased to 3.4% in July from 3.5% in June and declined for the second consecutive month after reaching a two-year high of 4.2% in May. 

The annual core inflation, which excludes volatile food and energy prices, slowed to 2.5% from 2.4%.  

U.S. consumer price inflation has remained above the Federal Reserve's 2% annual target for over five consecutive years, extending into its sixth straight year as of mid-2026.

China Indexes and Stocks 

The Hang Seng Index edged up 0.01% to 25,442.61, and the mainland-focused CSI 300 Index increased 0.5% to 4,712.14. 

SMIC gained 3.6% to HK $69.85 ahead of the company's quarterly results later on Thursday. 

Zhongji Innolight increased 2.8% to ¥947.0, Eoptolink Technology advanced 4.2% to ¥446.0, Cambricon Technologies gained 3.2% to ¥1,142.08, and NAURA Technology edged up a fraction to ¥760.0. 

Energy stocks struggled to advance on Thursday amid contradictory signals from the U.S., Iran, and Oman, reinforcing the view that the reopening of the Strait of Hormuz is likely to take longer than previously estimated. 

CNOOC Ltd. decreased 1.3% to HK $23.64, PetroChina fell 0.8% to HK $9.44, and China Petroleum and Chemical declined 0.8% to HK $4.22. 

China's Investors Held Out for Higher Highs Amid Renewed Interest In AI

Stocks in China advanced amid a renewed interest in AI-related stocks, and energy stocks lacked direction following conflicting signals from the Middle East. 

The Hang Seng Index edged up 0.01%, and the mainland-focused CSI 300 Index increased 0.5% tracking strength across Asian markets. 

AI- and semiconductor-linked stocks extended this week's gains ahead of quarterly results from SMIC later today, and investors are looking for insights into the demand for advanced chips. 

Tech-heavy benchmarks in Tokyo and Seoul soared 1.6% and 4.5%, respectively, following strong earnings from major tech companies, which reinforced confidence in sustained AI infrastructure. 

Moreover, AI adoption is accelerating across a wider range of applications and broader segments of the economy, supporting the case for revenue momentum. 

The U.S. annual consumer price inflation weakened for the second consecutive month in July, but prices are still rising faster than the Fed's target rate, complicating policymakers' task. 

Overall and core consumer price inflation slowed in July from June, according to the U.S. Bureau of Labor Statistics. 

The annual consumer price inflation eased to 3.4% in July from 3.5% in June and declined for the second consecutive month after reaching a two-year high of 4.2% in May. 

The annual core inflation, which excludes volatile food and energy prices, slowed to 2.5% from 2.4%.  

U.S. consumer price inflation has remained above the Federal Reserve's 2% annual target for over five consecutive years, extending into its sixth straight year as of mid-2026.

China Indexes and Stocks 

The Hang Seng Index edged up 0.01% to 25,442.61, and the mainland-focused CSI 300 Index increased 0.5% to 4,712.14. 

SMIC gained 3.6% to HK $69.85 ahead of the company's quarterly results later on Thursday. 

Zhongji Innolight increased 2.8% to ¥947.0, Eoptolink Technology advanced 4.2% to ¥446.0, Cambricon Technologies gained 3.2% to ¥1,142.08, and NAURA Technology edged up a fraction to ¥760.0. 

Energy stocks struggled to advance on Thursday amid contradictory signals from the U.S., Iran, and Oman, reinforcing the view that the reopening of the Strait of Hormuz is likely to take longer than previously estimated. 

CNOOC Ltd. decreased 1.3% to HK $23.64, PetroChina fell 0.8% to HK $9.44, and China Petroleum and Chemical declined 0.8% to HK $4.22.