U.S. Stocks Edged Higher as Investors Weighed Middle-East Impasse Against Earnings Outlook

Stocks in New York lacked momentum on Tuesday, as investors reviewed the situation in the Middle East. 

The S&P 500 Index increased 0.1%, and the tech-heavy Nasdaq Composite advanced 0.3% amid a growing concern over the prospect of reopening the Strait of Hormuz. 

Iran avoided direct talks with the U.S. while continuing to set terms for reopening of the narrow passage for oil shipments in talks through the intermediary Oman. 

The West Texas Intermediate crude oil price per barrel decreased 0.4% to $81.36, and the Brent crude oil price per barrel declined 0.5% to $87.45. 

The yield on 10-year U.S. Treasury notes inched higher to 4.73% as surging oil prices strengthened expectations that the Federal Reserve could raise rates sooner than expected. 

U.S. Movers 

Intel dropped 1.4% to $96.20 after the chipmaker expanded its public offering to $20 billion from $15 billion, as the company seeks additional capital to expand its production capacity for artificial intelligence computing power.  

Plug Power soared 13.4% to $2.40 after the electrical equipment maker reported better-than-expected results in the second quarter.  

Net revenue increased to $178.3 million from $174.0 million, net loss shrank to $190.1 million from $228.7 million, and diluted loss per share eased to 14 cents from 20 cents a year ago. 

The hydrogen cell technology company raised its full-year 2026 revenue growth estimate to between 15% and 16%, and estimated operating earnings to return to positive in the fourth quarter, citing its solid order backlog. 

Hims & Hers Health dropped 5.7% to $29.96 after the telehealth platform operator reported its results for the second quarter. 

Revenue increased to $753.2 million from $544.8 million, net income swung to a loss of $86.3 million from a profit of $42.5 million, and diluted earnings per share swung to a loss of 37 cents from a profit of 17 cents. 

The company estimated revenue in the third quarter to range between $880 million and $900 million and adjusted operating income between $75 million and $95 million. 

For the full year 2026, the company estimated revenue to fall between $3.1 billion and $3.3 billion and adjusted operating income between $275 million and $325 million. 

Japan TUESDAY

Japan Indexes and Stocks 

The Nikkei 225 Stock Average advanced 2% to 66,970.22, and the broader TOPIX gained 0.6% to 4,100.61.  

Volatile AI Stocks and Diplomatic Impasse In Middle East Dragged Down China's Indexes

China's benchmark indexes struggled to advance amid a diplomatic impasse in the Middle East and renewed selling in AI-related stocks. 

The Hang Seng Index decreased 0.5%, and the mainland-focused CSI 300 Index edged up 0.2% as investors debated the sustainability of the latest market rally. 

The Brent crude oil price per barrel increased 0.1% to $87.75 after the U.S. and Iran demanded compensation for damages and loss of life, lowering the prospects of a near-term easing of tensions between the two warring nations. 

Moreover, investors rotated into defensive stocks amid increasing volatility in the AI trade and dampening global sentiment toward semiconductor stocks. 

The latest two inflation reports supported that case for additional stimulus from policymakers, after July's inflation eased amid domestic demand weakness despite resilient exports and factor activities.  

China Indexes and Stocks 

The Hang Seng Index decreased 0.5% to 25,807.86, and the mainland-focused CSI 300 Index increased 0.2% to 4,711.42. 

Semiconductor-related stocks led decliners in Shanghai and Hong Kong as investors reassessed valuations, but they managed to rebound in the afternoon session. 

Zhongji Innolinght increased 2.5% to ¥876.98, Eoptolink Technology gained 4.1% to ¥415.98, and GigaDevice Semiconductor edged up 1.6% to ¥409.59.  

Cambricon Technologies fell 1.3% to ¥1,109.99, while Hygon Information Technology dropped slightly to ¥290.38. 

Volatile AI Stocks and Diplomatic Impasse In Middle East Dragged Down China's Indexes

China's benchmark indexes struggled to advance amid a diplomatic impasse in the Middle East and renewed selling in AI-related stocks. 

The Hang Seng Index decreased 0.5%, and the mainland-focused CSI 300 Index edged up 0.2% as investors debated the sustainability of the latest market rally. 

The Brent crude oil price per barrel increased 0.1% to $87.75 after the U.S. and Iran demanded compensation for damages and loss of life, lowering the prospects of a near-term easing of tensions between the two warring nations. 

Moreover, investors rotated into defensive stocks amid increasing volatility in the AI trade and dampening global sentiment toward semiconductor stocks. 

The latest two inflation reports supported that case for additional stimulus from policymakers, after July's inflation eased amid domestic demand weakness despite resilient exports and factor activities.  

China Indexes and Stocks 

The Hang Seng Index decreased 0.5% to 25,807.86, and the mainland-focused CSI 300 Index increased 0.2% to 4,711.42. 

Semiconductor-related stocks led decliners in Shanghai and Hong Kong as investors reassessed valuations, but they managed to rebound in the afternoon session. 

Zhongji Innolinght increased 2.5% to ¥876.98, Eoptolink Technology gained 4.1% to ¥415.98, and GigaDevice Semiconductor edged up 1.6% to ¥409.59.  

Cambricon Technologies fell 1.3% to ¥1,109.99, while Hygon Information Technology dropped slightly to ¥290.38. 

U.S. Stocks Extended Gains as S&P 500 Hovered Near Fresh Record

U.S. stocks advanced on Monday and extended previous week's highs amid a growing doubt over a temporary deal between the U.S. and Iran. 

The S&P 500 Index increased 0.2%, and the tech-focused Nasdaq Composite advanced 0.5% as investors looked ahead to the release of inflation updates later in the week. 

July consumer price inflation is estimated to cool to 3.4% and the core rate to 2.5%, and the annual producer price inflation is likely to ease to below 5.0%. 

Moreover, July retail sales, unadjusted for inflation, are estimated to stay above 6%, driven by a rise in household goods and motor vehicle parts.   

However, existing home sales are likely to slow to 4.1 million in July, amid elevated mortgage rates and affordability issues. 

The West Texas Intermediate crude oil price edged up 1% to $78.84 a barrel, after Iranian Foreign Minister Abbas Araghchi rejected calls for negotiations as long as the U.S. continues violating the June memorandum of understanding. 

Araghchi demanded compensations for violating the framework agreement, according to Tasnim News Agency, a semi-official news provider affiliated with the Islamic Revolutionary Guard Corps.  

U.S. stocks extended gains on Friday after the July's payrolls fell short of market expectations, and eased pressure on the Federal Reserve to raise rates in the immediate future. 

U.S. nonfarm payrolls experienced a volatile and cooling trend between January and July 2026, ending with an unexpected job contraction in mid-summer.

U.S. nonfarm payrolls decreased by 23,000 in July, overall jobless rate eased to 4.1%, and the average hourly earnings edged up slightly to $37.62 according to the data released by the U.S. Bureau of Labor Statistics. 

On an annual basis, average hourly earnings in the private sector advanced 3.2%, confirming steady wage inflation. 

The agency sharply lowered job gains in June to 63,000 from 129,000 and in May to 20,000 from 57,000, with these revisions employment in May and June combined is 103,000 lower than previously reported.  

So far in the first seven months, the U.S. economy has added about 426,000 net new jobs. 

U.S. Movers 

Five major global energy producers - Exxon Mobil, Chevron, BP, TotalEnergies, and Shell- generated close to $48 billion in profit in the second quarter, benefitting from higher crude oil prices after the U.S. and Iran stepped up attacks in the Strait of Hormuz. 

Companies are likely to share some of these windfall profits with shareholders and pay down debts. 

ExxonMobil holdings edged up 0.1% to $153.16, chevron Corp. gained 0.5% to $187.50, Shell PLC decreased 0.2% to $88.36, BP Plc increased 0.6% to $41.88, and TotalEnergies added 0.4% to $86.10. 

U.S. Stocks Extended Gains as S&P 500 Hovered Near Fresh Re

U.S. stocks advanced on Monday and extended previous week's highs amid a growing doubt over a temporary deal between the U.S. and Iran. 

The S&P 500 Index increased 0.2%, and the tech-focused Nasdaq Composite advanced 0.5% as investors looked ahead to the release of inflation updates later in the week. 

July consumer price inflation is estimated to cool to 3.4% and the core rate to 2.5%, and the annual producer price inflation is likely to ease to below 5.0%. 

Moreover, July retail sales, unadjusted for inflation, are estimated to stay above 6%, driven by a rise in household goods and motor vehicle parts.   

However, existing home sales are likely to slow to 4.1 million in July, amid elevated mortgage rates and affordability issues. 

The West Texas Intermediate crude oil price edged up 1% to $78.84 a barrel, after Iranian Foreign Minister Abbas Araghchi rejected calls for negotiations as long as the U.S. continues violating the June memorandum of understanding. 

Araghchi demanded compensations for violating the framework agreement, according to Tasnim News Agency, a semi-official news provider affiliated with the Islamic Revolutionary Guard Corps.  

U.S. stocks extended gains on Friday after the July's payrolls fell short of market expectations, and eased pressure on the Federal Reserve to raise rates in the immediate future. 

U.S. nonfarm payrolls experienced a volatile and cooling trend between January and July 2026, ending with an unexpected job contraction in mid-summer.

U.S. nonfarm payrolls decreased by 23,000 in July, overall jobless rate eased to 4.1%, and the average hourly earnings edged up slightly to $37.62 according to the data released by the U.S. Bureau of Labor Statistics. 

On an annual basis, average hourly earnings in the private sector advanced 3.2%, confirming steady wage inflation. 

The agency sharply lowered job gains in June to 63,000 from 129,000 and in May to 20,000 from 57,000, with these revisions employment in May and June combined is 103,000 lower than previously reported.  

So far in the first seven months, the U.S. economy has added about 426,000 net new jobs. 

U.S. Movers 

Five major global energy producers - Exxon Mobil, Chevron, BP, TotalEnergies, and Shell- generated close to $48 billion in profit in the second quarter, benefitting from higher crude oil prices after the U.S. and Iran stepped up attacks in the Strait of Hormuz. 

Companies are likely to share some of these windfall profits with shareholders and pay down debts. 

ExxonMobil holdings edged up 0.1% to $153.16, chevron Corp. gained 0.5% to $187.50, Shell PLC decreased 0.2% to $88.36, BP Plc increased 0.6% to $41.88, and TotalEnergies added 0.4% to $86.10. 

Japan's Current Account Swung to Deficit In June, Nikkei 225 Jumped 2%

Japan's indexes traded higher on Monday, as investors reviewed the ongoing tensions in the Middle East and the latest economic update. 

The Nikkei 225 Stock Average increased 2%, the broader TOPIX gained 0.7%, and the yen extended its downward march to 158.27 against the U.S. dollar. 

Stocks advanced in Tokyo, tracking gains in Friday's trading in New York after the release of July's nonfarm payrolls. 

U.S. nonfarm payrolls decreased by 23,000 in July, overall jobless rate eased to 4.1%, and the average hourly earnings edged up slightly to $37.62 according to the data released by the U.S. Bureau of Labor Statistics. 

On an annual basis, average hourly earnings in the private sector advanced 3.2%, confirming steady wage inflation. 

The agency sharply lowered job gains in June to 63,000 from 129,000 and in May to 20,000 from 57,000, with these revisions employment in May and June combined is 103,000 lower than previously reported.  

The price of Brent crude oil rose 0.3% to $83.82 a barrel, amid contradictory signals from the U.S. and Iran over the diplomatic efforts to reopen the Strait of Hormuz and end hostilities in the Red Sea. 

On the economic front, Japan's current account balance swung to a deficit in June, as strong exports of AI-related electronics were offset by rising costs of imported fuel and energy products. 

The current account balance swung to a deficit of 923.0 billion yen from a surplus of 1.28 trillion yen a year ago, said the Ministry of Finance on Monday. 

The international account swung to a deficit for the first time since January 2025, as goods exports swung to a deficit of 135.2 billion yen from a surplus of 467.3 billion yen surplus. 

Meanwhile service deficit widened to 228.5 billion yen from 160.6 billion yen, driving the primary income surplus sharply lower to 380.1 billion yen from 1.449 trillion yen a year ago. 

In the first half of June 2026, Japan's current account surplus rose to 17.43 trillion yen compared to 14.23 trillion yen in the same period a year ago.     

Japan Indexes and Stocks 

The Nikkei 225 Stock Average increased 2% to 66,908.37, and the broader TOPIX added 0.7% to 4,101.70. 

Semiconductor- and AI-linked stocks led the gainers in Tokyo's trading, tracking gains in Friday's surge on Wall Street. 

Tokyo Electron increased 3.7% to ¥56,490.0, Advantest Corp. gained 4.5% to ¥33,840.0, Ibiden Corp. advanced 4.8% to ¥20,030.0, and Fujikura Ltd. soared 9.6% to ¥5,655.0. 

Japan's Current Account Swung to Deficit In June, Nikkei 225 Jumped 2%

Japan's indexes traded higher on Monday, as investors reviewed the ongoing tensions in the Middle East and the latest economic update. 

The Nikkei 225 Stock Average increased 2%, the broader TOPIX gained 0.7%, and the yen extended its downward march to 158.27 against the U.S. dollar. 

Stocks advanced in Tokyo, tracking gains in Friday's trading in New York after the release of July's nonfarm payrolls. 

U.S. nonfarm payrolls decreased by 23,000 in July, overall jobless rate eased to 4.1%, and the average hourly earnings edged up slightly to $37.62 according to the data released by the U.S. Bureau of Labor Statistics. 

On an annual basis, average hourly earnings in the private sector advanced 3.2%, confirming steady wage inflation. 

The agency sharply lowered job gains in June to 63,000 from 129,000 and in May to 20,000 from 57,000, with these revisions employment in May and June combined is 103,000 lower than previously reported.  

The price of Brent crude oil rose 0.3% to $83.82 a barrel, amid contradictory signals from the U.S. and Iran over the diplomatic efforts to reopen the Strait of Hormuz and end hostilities in the Red Sea. 

On the economic front, Japan's current account balance swung to a deficit in June, as strong exports of AI-related electronics were offset by rising costs of imported fuel and energy products. 

The current account balance swung to a deficit of 923.0 billion yen from a surplus of 1.28 trillion yen a year ago, said the Ministry of Finance on Monday. 

The international account swung to a deficit for the first time since January 2025, as goods exports swung to a deficit of 135.2 billion yen from a surplus of 467.3 billion yen surplus. 

Meanwhile service deficit widened to 228.5 billion yen from 160.6 billion yen, driving the primary income surplus sharply lower to 380.1 billion yen from 1.449 trillion yen a year ago. 

In the first half of June 2026, Japan's current account surplus rose to 17.43 trillion yen compared to 14.23 trillion yen in the same period a year ago.     

Japan Indexes and Stocks 

The Nikkei 225 Stock Average increased 2% to 66,908.37, and the broader TOPIX added 0.7% to 4,101.70. 

Semiconductor- and AI-linked stocks led the gainers in Tokyo's trading, tracking gains in Friday's surge on Wall Street. 

Tokyo Electron increased 3.7% to ¥56,490.0, Advantest Corp. gained 4.5% to ¥33,840.0, Ibiden Corp. advanced 4.8% to ¥20,030.0, and Fujikura Ltd. soared 9.6% to ¥5,655.0. 

China's Inflation Slows Amid Weak Domestic Demand and Lower Fuel Prices

China's stocks lacked momentum on Monday, as investors assessed soft inflation data. 

The Hang Seng Index increased 0.6%, and the mainland-focused CSI 300 Index decreased 0.5% amid rising expectations of additional policy support to boost consumer spending. 

China's annual consumer price inflation eased to 0.5% in July from 1.0% in the previous month as food prices continued to decline while non-food inflation slowed further. 

Headline inflation eased for the third consecutive month and dropped to the lowest level since January, driven by a 1.5% decrease (compared to 1.6% in June) in food prices and a softer rise in non-food prices by 0.9% (compared to a 1.5% rise). 

Core inflation, which excludes food and energy prices, rose an annual pace of 0.9%, slower than 1.0% in June, according to the data released by the National Bureau of Statistics. 

China's annual producer price inflation eased to 3.5% in July from 4.1% in the previous month amid weak domestic demand and fading energy-driven inflation as tensions in the Middle East eased.  

Producer prices rose for the fifth consecutive month after falling for 41 consecutive months amid persistent weak domestic demand and intense price competition.  

The mid- and downstream manufacturers continued to feel squeezed amid rising input costs and weak demand, limiting their ability to pass on costs.  

At the recently completed Politburo policy meeting, China's top leaders vowed to support economic growth and promote stock market stability as China's tech companies line up to raise capital.   

China Indexes and Stocks 

The Hang Seng Index increased 0.6% to 25,816.25, and the mainland-focused CSI 300 Index fell 0.5% to 4,670.05. 

Zhonji Innolight decreased 7.5% to ¥850.05, Eoptolink Technology declined 7.3% to ¥391.50, and Suzhou Dongshan Precision Manufacturing dropped 7.4% to ¥180.86. 

China Vanke Company inched higher 0.8% to HK $2.52, China Overseas Land Investment increased 0.8% to HK 13.24, and Sun Hung Kai Properties advanced 0.6% to HK $116.10. 

China's Inflation Slows Amid Weak Domestic Demand and Lower Fuel Prices

China's stocks lacked momentum on Monday, as investors assessed soft inflation data. 

The Hang Seng Index increased 0.6%, and the mainland-focused CSI 300 Index decreased 0.5% amid rising expectations of additional policy support to boost consumer spending. 

China's annual consumer price inflation eased to 0.5% in July from 1.0% in the previous month as food prices continued to decline while non-food inflation slowed further. 

headline inflation eased for the third consecutive month, and dropped to the lowest level since January, driven by a 1.5% decrease (compared to 1.6% in June) in food prices and a softer rise in non-food prices by 0.9% (compared to a 1.5%% rise). 

Core inflation, which excludes food and energy prices, rose an annual pace of 0.9%, slower than 1.0% in June, according to the data released by the National Bureau of Statistics. 

China's annual producer price inflation eased to 3.5% in July from 4.1% in the previous month amid weak domestic demand and fading energy-driven inflation as tensions in the Middle East eased.  

Producer prices rose for the fifth consecutive month after falling for 41 consecutive months amid persistent weak domestic demand and intense price competition.  

The mid- and downstream manufacturers continued to feel squeezed amid rising input costs and weak demand, limiting their ability to pass on costs.  

At the recently completed Politburo policy meeting, China's top leaders vowed to support economic growth and promote stock market stability as China's tech companies line up to raise capital.   

China Indexes and Stocks 

The Hang Seng Index increased 0.6% to 25,816.25, and the mainland-focused CSI 300 Index fell 0.5% to 4,670.05. 

Zhonji Innolight decreased 7.5% to ¥850.05, Eoptolink Technology declined 7.3% to ¥391.50, and Suzhou Dongshan Precision Manufacturing dropped 7.4% to ¥180.86. 

China Vanke Company inched higher 0.8% to HK $2.52, China Overseas Land Investment increased 0.8% to HK 13.24, and Sun Hung Kai Properties advanced 0.6% to HK $116.10. 

Japan's Real Household Spending Declined for the Seventh Consecutive Month, Intervention Data In Focus

Japan's indexes traded down for the second consecutive session on Friday amid persistent worries over the artificial intelligence trade. 

The Nikkei 225 Stock Average edged down 0.5%, the broader TOPIX inched higher by 0.3%, and the yen weakened to 158.39 against the U.S. dollar. 

The renewed violence in the Middle East stoked worries of prolonged disruptions in energy products through the Red Sea and the Strait of Hormuz. 

The Brent crude oil price increased 1.8% to $83.92 per barrel after Houthi rebels stepped up their attacks targeting Saudi shipments in the Red Sea. 

The Japanese yen resumed its downward slide despite threats of verbal interventions from the Japanese authorities, as currency traders focused on structural impediments and the lagging response from the Bank of Japan in adjusting interest rates. 

Japanese authorities spent a single-day record 6.28 trillion yen on April 30 to prop up the yen, according to the latest data released by the Ministry of Finance on Friday. 

The authorities carried out two additional maneuvers in the week, driving the currency from the 163 level to the 155 level in a span of three days. 

Japan spent 11.73 trillion yen between April 28 and May 27, confirming the intervention efforts for the first time since 2024. 

The recent decline in the yen prompted another market intervention, coordinated with the U.S. Treasury, by the Japanese authorities during operating hours in New York on July 31. 

Japan's real household spending declined for the seventh consecutive month in June, partly because of difficult weather conditions.  

The average monthly income of two or more salaried households increased, inflation-adjusted, 2.0% to 1.02 million yen or $64,441.00, according to the government data.   

A household of two or more spent an average of 290,886 yen, or $1,840, a decline of 3.3% from a year ago after adjusting for inflation, the Ministry of Internal Affairs and Communications said on Friday. 

Spending on food and beverages dropped 2.5% from a year ago, driven by a fall in tea and sports drinks due to lower temperatures than a year ago. 

Spending for restaurant dining decreased 2.9% from a year ago due to poor weather conditions and one fewer Sunday than a year earlier. 

Spending on transportation and communication dropped 5.7% from a year ago, partly because of lower air and rail fares. 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average decreased 0.5% to 65,326.90, and the broader TOPIX added 0.3% to 4,069.50. 

For the week the Nikkei 225 stock average advanced 3.3%, and the TOPIX gained 3.2%.

Softbank dropped as much as 6% before recovering to a decline of 2% to ¥5,569.0, despite reporting stronger-than-expected results in the June quarter. 

The technology investing company's holdings in Intel delivered gains, which overshadowed the weakness in the UK-based Arm Holdings PLC.

Net sales rose 10% to 2.08 trillion yen from 1.82 trillion yen, comprehensive net income swung to a profit of 988.5 billion yen from a loss of 96.7 billion yen, and diluted earnings per share edged lower to 59.85 yen from 72.82 a year ago. 

Japan's Real Household Spending Declined for the Seventh Consecutive Month, Intervention Data In Focus

Japan's indexes traded down for the second consecutive session on Friday amid persistent worries over the artificial intelligence trade. 

The Nikkei 225 Stock Average edged down 0.5%, the broader TOPIX inched higher by 0.3%, and the yen weakened to 158.39 against the U.S. dollar. 

The renewed violence in the Middle East stoked worries of prolonged disruptions in energy products through the Red Sea and the Strait of Hormuz. 

The Brent crude oil price increased 1.8% to $83.92 per barrel after Houthi rebels stepped up their attacks targeting Saudi shipments in the Red Sea. 

The Japanese yen resumed its downward slide despite threats of verbal interventions from the Japanese authorities, as currency traders focused on structural impediments and the lagging response from the Bank of Japan in adjusting interest rates. 

Japanese authorities spent a single-day record 6.28 trillion yen on April 30 to prop up the yen, according to the latest data released by the Ministry of Finance on Friday. 

The authorities carried out two additional maneuvers in the week, driving the currency from the 163 level to the 155 level in a span of three days. 

Japan spent 11.73 trillion yen between April 28 and May 27, confirming the intervention efforts for the first time since 2024. 

The recent decline in the yen prompted another market intervention, coordinated with the U.S. Treasury, by the Japanese authorities during operating hours in New York on July 31. 

Japan's real household spending declined for the seventh consecutive month in June, partly because of difficult weather conditions.  

The average monthly income of two or more salaried households increased, inflation-adjusted, 2.0% to 1.02 million yen or $64,441.00, according to the government data.   

A household of two or more spent an average of 290,886 yen, or $1,840, a decline of 3.3% from a year ago after adjusting for inflation, the Ministry of Internal Affairs and Communications said on Friday. 

Spending on food and beverages dropped 2.5% from a year ago, driven by a fall in tea and sports drinks due to lower temperatures than a year ago. 

Spending for restaurant dining decreased 2.9% from a year ago due to poor weather conditions and one fewer Sunday than a year earlier. 

Spending on transportation and communication dropped 5.7% from a year ago, partly because of lower air and rail fares. 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average decreased 0.5% to 65,326.90, and the broader TOPIX added 0.3% to 4,069.50. 

For the week the Nikkei 225 stock average advanced 3.3%, and the TOPIX gained 3.2%.

Softbank dropped as much as 6% before recovering to a decline of 2% to ¥5,569.0, despite reporting stronger-than-expected results in the June quarter. 

The technology investing company's holdings in Intel delivered gains, which overshadowed the weakness in the UK-based Arm Holdings PLC.

Net sales rose 10% to 2.08 trillion yen from 1.82 trillion yen, comprehensive net income swung to a profit of 988.5 billion yen from a loss of 96.7 billion yen, and diluted earnings per share edged lower to 59.85 yen from 72.82 a year ago. 

China's Exports Growth Defies Geopolitical Tensions and Trade Headwinds

Stocks across exchanges in China advanced in Friday's trading as investors reviewed the latest international trade data. 

The Hang Seng index increased 0.01% and the mainland-focused CSI 300 Index 0.8% as investors debated possible policy support for stocks. 

China's Exports, Imports and Trade Surplus Expanded In July

China's exports continued to expand at a solid pace in July, keeping the recent momentum despite geopolitical uncertainties and increasing trade headwinds.  

Exports soared 23.9% to $397.9 billion, imports advanced 27.5% to $285.6 billion, and the trade surplus widened to $112.5 billion from $97.7 billion a year ago, respectively. 

However, trade surplus eased from $125.6 billion in June amid higher cost of energy products.  

The global race to build artificial intelligence infrastructure and the rise in demand for renewable energy products sustained the momentum for shipments, said the Customs Bureau. 

Exports to the ASEAN region soared 38.3% and to the European Union advanced 16%. 

Direct shipments to the U.S. surged 17%, largely because of the demand for electronic components and electrical subsystems used by data centers.  

China's trade surplus with the U.S. slightly declined to $28.03 billion from $228.9 billion in June. 

In the first seven months to July, China's trade surplus edged up to $687.5 billion from $683.5 billion a year ago, and exports advanced 18.5%, while imports soared 26.7% in the period, respectively.  

China Indexes and Stocks 

The Hang Seng Index increased 0.01% to 25,532.36, and the mainland-focused CSI 300 Index advanced 0.8% to 4,689.96. 

For the week, the Hang Seng Index decreased 1.6%, and the CSI 300 Index advanced 2.8%. 

Banks and financial services providers led decliners in Shanghai and Hong Kong, and residential property developers lacked direction. 

ICBC fell 0.9%, China Construction Bank decreased 1.3%, and Agriculture Bank of China eased 0.9%. 

Eoptolink Technology jumped 4.4% to ¥440.23, Zhongji Innolight edged up 2.6% to ¥977.45, and NAURA Technology increased 0.9% to ¥749.02. 

China's Exports Growth Defies Geopolitical Tensions and Trade Headwinds

Stocks across exchanges in China advanced in Friday's trading as investors reviewed the latest international trade data. 

The Hang Seng index increased 0.01% and the mainland-focused CSI 300 Index 0.8% as investors debated possible policy support for stocks. 

China's Exports, Imports and Trade Surplus Expanded In July

China's exports continued to expand at a solid pace in July, keeping the recent momentum despite geopolitical uncertainties and increasing trade headwinds.  

Exports soared 23.9% to $397.9 billion, imports advanced 27.5% to $285.6 billion, and the trade surplus widened to $112.5 billion from $97.7 billion a year ago, respectively. 

However, trade surplus eased from $125.6 billion in June amid higher cost of energy products.  

The global race to build artificial intelligence infrastructure and the rise in demand for renewable energy products sustained the momentum for shipments, said the Customs Bureau. 

Exports to the ASEAN region soared 38.3% and to the European Union advanced 16%. 

Direct shipments to the U.S. surged 17%, largely because of the demand for electronic components and electrical subsystems used by data centers.  

China's trade surplus with the U.S. slightly declined to $28.03 billion from $228.9 billion in June. 

In the first seven months to July, China's trade surplus edged up to $687.5 billion from $683.5 billion a year ago, and exports advanced 18.5%, while imports soared 26.7% in the period, respectively.  

China Indexes and Stocks 

The Hang Seng Index increased 0.01% to 25,532.36, and the mainland-focused CSI 300 Index advanced 0.8% to 4,689.96. 

For the week, the Hang Seng Index decreased 1.6%, and the CSI 300 Index advanced 2.8%. 

Banks and financial services providers led decliners in Shanghai and Hong Kong, and residential property developers lacked direction. 

ICBC fell 0.9%, China Construction Bank decreased 1.3%, and Agriculture Bank of China eased 0.9%. 

Eoptolink Technology jumped 4.4% to ¥440.23, Zhongji Innolight edged up 2.6% to ¥977.45, and NAURA Technology increased 0.9% to ¥749.02. 

SanDisk Corp. dropped 10% to $1,222.45 after the company's muted guidance for the current quarter disappointed investors. 

Revenue in the fiscal fourth quarter ending in June jumped to $8.9 billion from $1.9 billion, net income swung to a profit of $6.9 billion from a loss of $23 million, and diluted earnings per share were $43.97 compared to a loss of 16 cents a year ago. 

For the fiscal year 2026, revenue jumped 175% to $20.25 billion from $7.4 billion, net income soared to $11.4 billion from a loss of $1.6 billion, and diluted earnings per share advanced to $73.76 from a loss of $11.32 a year ago.  

Higher pricing, a mix shift to higher-value customers, and more than a fourfold increase in demand from data centers powered the revenue surge. 

The company guided fiscal first quarter 2027 revenue in the range between $10.30 billion and $10.80, and adjusted diluted earnings per share to range between $44.0 and $46.0.