Japan Extends Weekly Rally to 3% After US Court Struck Down Global Tariffs

Japan's indexes extended this week's rally after a U.S. federal court blocked global tariffs imposed by the U.S. president. 

The Nikkei 225 Stock Average gained nearly 2%, and the broader Topix advanced 1.5% after a three-judge panel deemed Donald Trump's efforts "unlawful to all."

The U.S. Court of International Trade struck down unilaterally imposed global tariffs, citing that the president overstepped his authority and tariffs fail to perform the stated objective of limiting drug trafficking into the U.S.  

The White House said it plans to appeal the federal court's decision, as judges ordered the administration to stop collecting tariffs and blocked levies permanently.  

The court's decision powered a broad rally in markets in Japan, China, and Australia, in the hopes that the tariffs could be suspended for the foreseeable future. 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average soared 1.8% to 38,376.73, and the broader Topix index advanced 1.5% to 2,812.0. 

The Japanese yen eased sharply to 146.15 as the dollar rebounded and the yield on 10-year Japanese government bonds held near 1.52%. 

In active trading, tech stocks led gainers in Tokyo.

Tokyo Electron Ltd. inched up 3.2% to ¥23,895.0, Advantest Corp. gained 4.3% to ¥7,570.0, and Lasertec increased 1.4% to ¥15,210.0. 

Toyota Motor jumped 4% to ¥2,738.50, Honda Motor advanced 4.6% to ¥1,495.50, and Nissan Motor increased 6% to ¥381.30. 

Seven & I Holdings Co. Ltd. inched up 0.5% to ¥2,191.0, Fast Retailing Co. Ltd. increased 2.6% to ¥48,540.0, and Isetan Mitsukoshi Holdings added 0.7% to ¥2,218.0. 

China and Hong Kong Indexes Advanced After Trade Court Struck Down Trump Tariffs

Stock market indexes in China and Hong Kong traded higher and approached two-month highs after a U.S. court struck down tariffs unilaterally imposed by the U.S. president. 

The Hang Seng index advanced 0.7%, and the mainland-focused CSI 300 index gained 0.6% as investors surmised that the court's ruling may not impede international trade. 

The U.S. Court of International Trade, located in New York City, struck down the so-called "reciprocal tariffs," stating that the U.S. president had overstepped his authority. 

The panel of three judges added that it did not see a direct connection between the president's stated objective of arresting the drug trafficking in the U.S. and the administration's approach in taxing legal trade. 

The court ruling removed for now one level of uncertainty, and investors shifted their attention to corporate earnings and economic releases. 

The manufacturing sector is likely to show a contraction in activities for the second consecutive month in May, according to a report from the National Bureau of Statistics later in the week. 

China Indexes and Stocks 

The Hang Seng index jumped 0.7% to 23,408.36, and the mainland-focused CSI 300 index edged higher 0.6% to 3,862.44. 

Alibaba Group Holding advanced 0.8% to HK $116.60, Meituan jumped 4.5% to HK $137.90, and the apparel maker Shenzhou International Group Holdings gained 4.6% to HK $59.45. 

China and Hong Kong Indexes Advanced After Trade Court Struck Down Trump

Stock market indexes in China and Hong Kong traded higher and approached two-month highs after a U.S. court struck down tariffs unilaterally imposed by the U.S. president. 

The Hang Seng index advanced 0.7%, and the mainland-focused CSI 300 index gained 0.6% as investors surmised that the court's ruling may not impede international trade. 

The U.S. Court of International Trade, located in New York City, struck down the so-called "reciprocal tariffs," stating that the U.S. president had overstepped his authority. 

The panel of three judges added that it did not see a direct connection between the president's stated objective of arresting the drug trafficking in the U.S. and the administration's approach in taxing legal trade. 

The court ruling removed for now one level of uncertainty, and investors shifted their attention to corporate earnings and economic releases. 

The manufacturing sector is likely to show a contraction in activities for the second consecutive month in May, according to a report from the National Bureau of Statistics later in the week. 

China Indexes and Stocks 

The Hang Seng index jumped 0.7% to 23,408.36, and the mainland-focused CSI 300 index edged higher 0.6% to 3,862.44. 

Alibaba Group Holding advanced 0.8% to HK $116.60, Meituan jumped 4.5% to HK $137.90, and the apparel maker Shenzhou International Group Holdings gained 4.6% to HK $59.45. 

Toro Corp. increased 2.7% to $75.88 after the provider of lawn maintenance equipment maker reported a slight decline in revenue in the first quarter.

Net sales edged down to $995 million from $1.00 billion, net income dropped to $52.8 million from $64.9 million, and diluted earnings per share fell to 52 cents from 62 cents a year ago.

The company guided full-year net sales growth to be in the range of breakeven to 1%, compared to $4.58 billion, and adjusted diluted earnings per share between $4.25 and $4.40, compared to $4.17 a year earlier, respectively.

Okta Inc. plunged 12.8% to $109.39 despite the identity management company reporting higher revenue in the first quarter of 2025.

Revenue increased to $688 million from $617 million, net income swung a profit of $62 million from a loss of $40 million, and diluted earnings per share swung to a profit of 36 cents from a loss of 24 cents a year ago.

The company guided second-quarter revenue to be between $710 million and $712 million, compared to $556 million, and non-GAAP diluted earnings per share between 83 cents and 84 cents, compared to 31 cents a year earlier, respectively.

For the full year, Okta estimated revenue to be between $2.85 billion and $2.86 billion, compared to $2.26 billion, and non-GAAP diluted earnings per share between $3.23 and $3.28, compared to $2.81 a year ago, respectively.

AutoZone Inc. traded flat at $3,695.66 after the retailer of aftermarket automotive parts reported higher revenue in the fiscal third quarter.

Net sales climbed 5.4% to $4.46 billion from $4.23 billion, net income dropped 6.6% to $608 million from $652 million, and diluted earnings per share fell 3.6% to $35.36 from $36.69 a year ago.

The company repurchased $250 million of its own stock during the quarter and opened 84 new stores, compared to 45 stores a year earlier.

AutoZone increased its inventory by 10.8% to $6.82 billion from $6.15 billion in the prior year and reduced its debt by 1.6%.

Advance Auto Parts Inc. advanced 0.7% to $49.50 after the automotive aftermarket parts provider reported first-quarter 2025 results.

Net sales declined to $2.58 billion from $2.77 billion, net income dropped to $24 million from $40 million, and diluted earnings per share fell to 40 cents from 67 cents a year ago.

Advance Auto Parts surged more than 57% in the previous session after the company backed its annual outlook despite tariff pressures.

The company guided full-year net sales to be between $8.40 billion and $8.60 billion, compared to $9.09 billion, and comparable store sales to increase between 0.5% and 1.5%, following a decrease of 0.7% in the previous year, respectively.

The company reaffirmed full-year adjusted earnings per share to range between $1.50 and $2.50. 

Auto Parts plans to open 30 new stores and 10 new market hubs during the current fiscal year.

Ralph Lauren Corp. inched up 0.03% to $277.50 after the lifestyle products retailer reported strong fourth-quarter 2025 results.

Revenue edged up to $1.70 billion from $1.57 billion, net income jumped to $129.0 million from $90.7 million, and diluted earnings per share rose to $2.03 from $1.38 a year ago.

The company returned $625 million to shareholders through dividends and repurchases and approved a 10% dividend increase and a $1.5 billion expansion of the existing share repurchase program.

The fashion retailer guided fiscal 2026 revenue to grow at low single digits on a constant currency basis, compared to $7.08 billion a year earlier.

Autodesk Inc. surged 3.3% to $304.79 after the 3D software developer reported higher revenue in the first quarter of fiscal 2026.

Revenue edged up to $1.63 billion from $1.42 billion, net income slipped to $152 million from $252 million, and diluted earnings per share fell to 70 cents from $1.16 a year ago.

Separately, the company announced new funding, technology, and support to accelerate rebuilding efforts in wildfire-affected areas of Los Angeles, following this January's devastating fires across the region.

Deckers Outdoor Corp. slipped 15.2% to $106.86 despite the footwear, apparel, and accessories retailer reporting steady fourth-quarter 2025 results.

Net sales climbed to $1.02 billion from $959.76 million, net income jumped to $151.41 million from $127.54 million, and diluted earnings per share rose to $1.00 from 82 cents a year ago.

Domestic net sales of $647.7 million were flat, while international sales increased 19.9% to $374.1 million from $312.0 million as compared to last year, respectively.

During the quarter, the company repurchased approximately 1.778 million shares at an average price of $149.62 per share for a total of $266.0 million, and approximately $2.5 billion remains under repurchase authorization.

The company guided first-quarter net sales to be between $890 million and $910 million, compared to $825.35 million, and diluted earnings per share between 62 cents and 67 cents, compared to $4.52 a year ago, respectively.

Copart Inc. dropped 3.1% to $58.75 despite the online vehicle auction company reporting higher revenue and earnings in the third quarter of fiscal 2025.

Revenue edged up 7.5% to $1.21 billion from $1.13 billion, net income jumped 6.4% to $406.61 million from $382.29, and diluted earnings per share rose to 42 cents from 39 cents a year ago.

For the nine months to April 30, revenue climbed 11.2% to $3.52 billion from $3.17 billion, net income edged up 11.1% to $1.16 billion from $1.04 billion, and diluted earnings per share increased 10.3% to $1.18 from $1.07 a year earlier.

 

Ross Stores Inc. plunged 11.4% to $134.86 after the off-price apparel and home fashion chain reported slightly lower earnings for the first quarter of 2025.

Revenue edged up to $4.98 billion from $4.85 billion, net earnings declined to $479.25 million from $487.99 million, and diluted earnings per share rose to $1.47 from $1.46 a year ago.

During the quarter, the company repurchased 2.0 million shares for a total of $263 million, and $1.05 billion remained under repurchase authorization through fiscal 2025.

“The earnings guidance range includes an approximate $0.11 to $0.16 per share cost impact from announced tariffs,” the company said in a release to investors.

The department store retailer said comparable store sales in the second quarter are projected to be flat to up 3% on top of a 4% gain in the same period last year.

The company estimated earnings per share to be between $1.40 and $1.55, compared to $1.59 a year earlier.

Intuit Inc. surged 8% to $719.10 after the financial technology platform operator reported strong third-quarter results and raised its full-year outlook.

Revenue increased to $7.75 billion from $6.74 billion, net income jumped to $2.82 billion from $2.39 billion, and diluted earnings per share rose to $10.02 from $8.42 a year ago.

The company guided fourth-quarter revenue to be between $3.723 billion and $3.760 billion, an increase of 17% to 18% from $3.2 billion, and non-GAAP diluted earnings per share between $2.63 and $2.68, compared to $1.99 a year ago, respectively.

For the full year, Intuit estimated revenue to be between $18.723 billion and $18.760 billion, an increase of 15% from $16.3 billion, and non-GAAP earnings per share between $20.07 and $20.12, compared to $16.94 a year earlier, respectively.

Urban Outfitters Inc. soared 17.4% to $70.00 after the lifestyle and homeware retailer reported strong first-quarter 2025 results.

Net sales jumped to $1.33 billion from $1.20 billion, net income surged to $108.35 million from $61.76 million, and diluted earnings per share rose to $1.16 from 65 cents a year ago.

The company said total inventory as of April 30 stood at $84.8 million, an increase of 14.6% from a year earlier, and the company opened 13 new retail locations.

The clothing retailer repurchased and subsequently retired 3.3 million shares for approximately $152 million during the quarter and 1.2 million shares for $53 million during the fiscal year, and as of April 30, 14.7 million shares remained under repurchase authorization.

Guess? Inc. traded flat at $11.05 after the fashion clothing retailer reported fourth-quarter 2025 results.

Net revenue edged up to $932.25 million from $891.05 million, net earnings dropped to $81.40 million from $115.27 million, and diluted earnings per share fell to $1.16 from $1.71 a year ago.

The company guided first-quarter revenue to increase between 5.8% and 7.5%, compared to $569.8 million, and GAAP diluted loss per share to be between 75 cents and 66 cents, compared to a loss of 22 cents a year ago, respectively.

For the full year, Guess estimated revenue to increase between 3.9% and 6.2%, compared to $2.8 billion, and GAAP diluted earnings per share to be between $1.03 and $1.37, compared to $3.09 a year earlier, respectively.

During the fiscal year 2025, the company repurchased approximately 2.6 million shares for $60.3 million, and a capacity of $139.8 million remained under repurchase authorization.

VF Corp. traded up 0.4% to $12.20 after the apparel and footwear company reported fourth-quarter 2025 results.

Revenue edged down to $2.14 billion from $2.25 billion, net loss narrowed to $150.79 million from a loss of $418.31 million, and diluted loss per share shrank to 39 cents from a loss of $1.08 a year ago.

The company guided first-quarter sales to decrease by 3% to 5%, compared to $1.9 billion, and operating loss to be between $110 million and $125 million, compared to a loss of $239.89 a year ago, respectively.