U.S. Investors Debated Future Rate Paths Amid Macroeconomic Uncertainty

Wall Street indexes flatlined in Monday's trading, and traders held out for a possible rate cut on Wednesday. 

The S&P 500 index and the Nasdaq Composite edged slightly higher, and investors debated the future U.S. rate path amid macroeconomic uncertainties. 

The widely followed benchmark indexes advanced for the second week in a row and registered their seventh weekly gain in the last ten weeks. 

Stock market indexes have been meandering over the last few sessions, ahead of the Fed's rate decisions on Wednesday. 

The Fed's rate-setting committee is widely expected to lower the Fed funds rate range by 25 basis points, overlooking higher-for-longer inflation following the introduction of steep tariffs on imported goods by the Trump administration. 

The Federal Reserve is also expected to revise higher its 2026 estimates of jobless rates and inflation at the end of its 2-day policy meeting on December 10. 

This Week's Earnings and Economic Calendar 

This week less than 100 companies are set to release their quarterly results, and the U.S. federal agencies catch up to release delayed macroeconomic data. 

The JOLTs reports for September and October are likely to show job openings around 7.2 million, confirming businesses are reluctant to expand payrolls amid broader economic uncertainties. 

September's international trade deficit is expected to widen to $66 billion, amid persistent goods imports from Asia and Europe and energy imports from Canada and the Middle East.  

On the earnings front, Adobe, Oracle, Broadcom, Toll Brothers, Casey's General, Designer Brands, Chewy, and Oxford Industries are scheduled to release their quarterly results this week. 

China's Goods Trade Surplus Crossed One Trillion in 2025

In Asia, China's exports rose at a faster-than-expected pace in November and jumped 5.9% to $330.3 billion, and imports advanced 1.9% to $218.7 billion. 

China's goods trade surplus rose to $1.1 trillion in the first eleven months to November, confirming rising shipments to the non-U.S. markets.

Shipments to the ASEAN region soared 8.2%, to the European Union jumped 14.8%, and to Japan advanced 4.3%, but slumped by 28.6% to the U.S. 

U.S. importers pulled forward orders between April and June, ahead of the implementation of steep tariffs, and avoided holiday-period disruptions. However, the shipment growth supported by the front loading appears to have run its course. 

Japan's GDP and Wage Data Complicates BoJ's Rate Decisions 

Japan's GDP in the third quarter contracted 0.6% from the previous quarter, faster than the 0.4% decline estimated previously.  

The economy contracted on a quarterly basis for the first time since the first quarter of 2024, driven by a weakness in business spending growth. 

On an annual basis, GDP growth slowed to 1.1% in the third quarter from the 2.0% annual pace in the second quarter. 

Japan's real wages declined 0.7% in October and fell for the second consecutive month, according to data released by the Ministry of Health, Labor, and Welfare. 

Nominal wages, which include overtime payment, rose 2.6% from a year ago to 300,141 yen and advanced for the 46th month in a row. 

Despite the increase, real wages decreased after adjusting for inflation of 3.4% in the month. 

Japan's Nominal Wages Advanced In October, Third Quarter GDP Contraction Deeper Than Previously Estimated

Stocks in Japan lacked direction in Monday's trading, and investors reviewed the latest economic updates.

The Nikkei 225 Stock Average decreased a fraction, and the broader Topix inched higher 0.6%.  

Caution returned in Tokyo's trading as investors debated the future U.S. rate path amid growing uncertainty about the nation's monetary policy. 

The U.S. Federal Reserve is scheduled to announce its rate decisions on Wednesday, and investors are hoping that policymakers will deliver a 25 basis-point rate cut, overlooking resurgent inflationary forces. 

Moreover, China's goods exports rose at a faster-than-expected pace in November, driven by a surge in shipments to the ASEAN region and the European Union. 

China's goods trade surplus rose to $1.1 trillion in the first eleven months to November, confirming rising shipments to the non-U.S. markets.

Japan's Third Quarter GDP Contraction Deeper Than Previously Estimated

Closer to home, Japan's GDP in the third quarter contracted 0.6% from the previous quarter, faster than the 0.4% decline estimated previously.  

The economy contracted on a quarterly basis for the first time since the first quarter of 2024, driven by a weakness in business spending growth. 

On an annual basis, GDP growth slowed to 1.1% in the third quarter from the 2.0% annual pace in the second quarter. 

Japan's Real Wages Declined in October

Japan's real wages declined 0.7% in October and fell for the second consecutive month, according to data released by the Ministry of Health, Labor, and Welfare. 

Nominal wages, which include overtime payment, rose 2.6% from a year ago to 300,141 yen and advanced for the 46th month in a row. 

Despite the increase, real wages decreased after adjusting for inflation of 3.4% in the month. 

The Bank of Japan pays close attention to wage trends, as 50% of consumer spending accounts for Japan's economic activities.  

Japan Indexes and Stocks 

The Nikkei 225 Stock Average increased 0.1% to 50,517.40, and the broader Topix inched higher 0.6% to 3,383.74. 

Technology stocks turned lower amid rising geopolitical tensions after Japan said a Chinese fighter jet locked fire-control radar on Japanese military jets. 

Softbank Group decreased 3.3% to ¥18,655.0, Tokyo Electron inched up 0.01% to ¥33,160.0, and Advantest Corp. edged up 0.2% to ¥20,250.0.  

Japan's Nominal Wages Advanced In October, Third Quarter GDP Contraction Deeper Than Previously Estimated

Stocks in Japan lacked direction in Monday's trading, and investors reviewed the latest economic updates.

The Nikkei 225 Stock Average decreased a fraction, and the broader Topix inched higher 0.6%.  

Caution returned in Tokyo's trading as investors debated the future U.S. rate path amid growing uncertainty about the nation's monetary policy. 

The U.S. Federal Reserve is scheduled to announce its rate decisions on Wednesday, and investors are hoping that policymakers will deliver a 25 basis-point rate cut, overlooking resurgent inflationary forces. 

Moreover, China's goods exports rose at a faster-than-expected pace in November, driven by a surge in shipments to the ASEAN region and the European Union. 

China's goods trade surplus rose to $1.1 trillion in the first eleven months to November, confirming rising shipments to the non-U.S. markets.

Japan's Third Quarter GDP Contraction Deeper Than Previously Estimated

Closer to home, Japan's GDP in the third quarter contracted 0.6% from the previous quarter, faster than the 0.4% decline estimated previously.  

The economy contracted on a quarterly basis for the first time since the first quarter of 2024, driven by a weakness in business spending growth. 

On an annual basis, GDP growth slowed to 1.1% in the third quarter from the 2.0% annual pace in the second quarter. 

Japan's Real Wages Declined in October

Japan's real wages declined 0.7% in October and fell for the second consecutive month, according to data released by the Ministry of Health, Labor, and Welfare. 

Nominal wages, which include overtime payment, rose 2.6% from a year ago to 300,141 yen and advanced for the 46th month in a row. 

Despite the increase, real wages decreased after adjusting for inflation of 3.4% in the month. 

The Bank of Japan pays close attention to wage trends, as 50% of consumer spending accounts for Japan's economic activities.  

Japan Indexes and Stocks 

The Nikkei 225 Stock Average increased 0.1% to 50,517.40, and the broader Topix inched higher 0.6% to 3,383.74. 

Technology stocks turned lower amid rising geopolitical tensions after Japan said a Chinese fighter jet locked fire-control radar on Japanese military jets. 

Softbank Group decreased 3.3% to ¥18,655.0, Tokyo Electron inched up 0.01% to ¥33,160.0, and Advantest Corp. edged up 0.2% to ¥20,250.0.  

China's Goods Trade Surplus Surpassed $1 Trillion as Exports Returned to Growth

Stock market indexes in China and Hong Kong diverged, and investors awaited signals on 2026 economic priorities from top policymakers.

The Hang Seng Index declined 1%, and the mainland-focused CSI 300 index increased 1.1% amid cautious market sentiment at the start of a new week. 

Broader markets in China and Hong Kong struggled to advance last week and traded sideways as investors debated the U.S. rate path and possible stimulus measures focusing on consumption, technology, and the residential property market in China. 

China's Central Economic Work Conference, chaired by President Xi Jinping, is an annual platform where policymakers announce social and economic priorities for the next year. 

President Xi is expected to announce policy outlines and economic goals for the 15th five-year plan ending in 2030, as the world's second-largest economy battles slowing economic growth, persistent weakness in the residential property market, and weakening consumer spending growth. 

China's Goods Exports Growth Rebounded In November, ASEAN Shipments Surged 8%.

China's exports rose at a faster-than-expected pace in November, and the trade surplus soared to $1 trillion for the first time. 

Exports advanced 5.9% to $330.3 billion in November, reversing a 1.1% decline from the previous month, as exports to non-U.S. markets continued to rise. 

Shipments to the ASEAN region soared 8.2%, to the European Union jumped 14.8%, and to Japan advanced 4.3%, but slumped by 28.6% to the U.S. 

U.S. importers pulled forward orders between April and June, ahead of the implementation of steep tariffs, and avoided holiday-period disruptions. However, the shipment growth supported by the front loading appears to have run its course. 

Imports increased to $218.7 billion, an annual increase of 1.9% compared to 1% in the previous month.  

The international goods trade surplus expanded to $111.7 billion from $90.1 billion, as weakening prices of crude oil dampened the overall imports bill. 

In the first eleven months to November, China's goods exports increased 5.4% to $3.4 trillion, driving the trade surplus to $1.1 billion.  

China Indexes and Stocks 

The Hang Seng Index declined 1% to 25,797.95, and the CSI 300 index advanced 1% to 4,632.29. 

Suzhou Novosense Microelectronics plunged more than 7.5% to HK $108.10, and the company listed its stock on the Hong Kong Stock Exchange. 

The fabless designer of advanced chips for automotive and industrial applications priced its initial public offering at HK $116.0 per share, sold 19.1 million shares, and raised gross proceeds of HK $2.2 billion. 

Shanghai Able Digital Science & Tech soared 29% to HK $86.30, and the company completed its initial public offering in Hong Kong. 

The educational content and services provider priced its offering at HK $67.50 per share, sold 6.7 million shares, and raised gross proceeds of HK $450 million.  

China's Goods Trade Surplus Surpassed $1 Trillion as Exports Returned to Growth

Stock market indexes in China and Hong Kong diverged, and investors awaited signals on 2026 economic priorities from top policymakers.

The Hang Seng Index declined 1%, and the mainland-focused CSI 300 index increased 1.1% amid cautious market sentiment at the start of a new week. 

Broader markets in China and Hong Kong struggled to advance last week and traded sideways as investors debated the U.S. rate path and possible stimulus measures focusing on consumption, technology, and the residential property market in China. 

China's Central Economic Work Conference, chaired by President Xi Jinping, is an annual platform where policymakers announce social and economic priorities for the next year. 

President Xi is expected to announce policy outlines and economic goals for the 15th five-year plan ending in 2030, as the world's second-largest economy battles slowing economic growth, persistent weakness in the residential property market, and weakening consumer spending growth. 

China's Goods Exports Growth Rebounded In November, ASEAN Shipments Surged 8%.

China's exports rose at a faster-than-expected pace in November, and the trade surplus soared to $1 trillion for the first time. 

Exports advanced 5.9% to $330.3 billion in November, reversing a 1.1% decline from the previous month, as exports to non-U.S. markets continued to rise. 

Shipments to the ASEAN region soared 8.2%, to the European Union jumped 14.8%, and to Japan advanced 4.3%, but slumped by 28.6% to the U.S. 

U.S. importers pulled forward orders between April and June, ahead of the implementation of steep tariffs, and avoided holiday-period disruptions. However, the shipment growth supported by the front loading appears to have run its course. 

Imports increased to $218.7 billion, an annual increase of 1.9% compared to 1% in the previous month.  

The international goods trade surplus expanded to $111.7 billion from $90.1 billion, as weakening prices of crude oil dampened the overall imports bill. 

In the first eleven months to November, China's goods exports increased 5.4% to $3.4 trillion, driving the trade surplus to $1.1 billion.  

China Indexes and Stocks 

The Hang Seng Index declined 1% to 25,797.95, and the CSI 300 index advanced 1% to 4,632.29. 

Suzhou Novosense Microelectronics plunged more than 7.5% to HK $108.10, and the company listed its stock on the Hong Kong Stock Exchange. 

The fabless designer of advanced chips for automotive and industrial applications priced its initial public offering at HK $116.0 per share, sold 19.1 million shares, and raised gross proceeds of HK $2.2 billion. 

Shanghai Able Digital Science & Tech soared 29% to HK $86.30, and the company completed its initial public offering in Hong Kong. 

The educational content and services provider priced its offering at HK $67.50 per share, sold 6.7 million shares, and raised gross proceeds of HK $450 million.  

U.S. Movers: Hewlett Packard Enterprise, SoFi Technologies, Ulta Beauty

Ulta Beauty soared 5.6% to $564.03 after the beauty salon operator and cosmetic retailer reported better-than-expected fiscal third-quarter results. 

Revenue increased 12.9% to $2.9 billion from $2.5 billion, net income decreased to $230.8 million from $242.2 million, and diluted earnings per share was steady at $5.14. 

Comparable sales, which include online sales, increased 6.3% compared to 0.6% from a year ago, driven by a 3.8% rise in average ticket price and a 2.4% increase in transactions.  

During the fiscal third quarter ending on November 1, the beauty retailer repurchased 426,914 shares of its common stock at a cost of $224.7 million.

During the first nine months of fiscal 2025, the company repurchased 1.7 million shares of its common stock at a cost of $693.0 million, and as of November 1, $2.0 billion remained available under the $3.0 billion share repurchase program announced in October 2024.  

The company revised its fiscal 2025 sales guidance to $12.3 billion from the previously estimated range between $12.0 billion and $12.1 billion. The comparable sales estimate was revised higher to between 4.4% and 4.7% from the previous estimated range of 2.5% to 3.5%.

Ulta Beauty revised the higher diluted earnings per share range in fiscal 2025 to between $25.20 and $25.50, from the previous estimate of between $23.85 and $24.30. 

SoFi Technologies dropped 7% to $27.4, and the company announced its plans to raise $1.5 billion through a common stock offering. 

Hewlett Packard Enterprise plunged 9.4% to $20.75 after the cloud computing company's fiscal fourth-quarter results fell short of market expectations. 

Revenue increased 14% to $9.7 billion from $7.8 billion, net income dropped to $146 million from $1.3 billion, and diluted earnings per share fell to 11 cents from 99 cents a year ago. 

The HPE Board of Directors declared a regular cash dividend of $0.1425 per share, payable on January 16, 2026, to stockholders of record as of the close of December 19, 2025. 

HPE estimated fiscal 2026 first quarter revenue to be in the range of $9 billion to $9.4 billion, diluted earnings per share to be in the range of $0.09 to $0.13, and adjusted diluted earnings per share to be in the range of $0.57 to $0.61.  

U.S. Movers: Hewlett Packard Enterprise, SoFi Technologies, Ulta Beauty

Ulta Beauty soared 5.6% to $564.03 after the beauty salon operator and cosmetic retailer reported better-than-expected fiscal third-quarter results. 

Revenue increased 12.9% to $2.9 billion from $2.5 billion, net income decreased to $230.8 million from $242.2 million, and diluted earnings per share was steady at $5.14. 

Comparable sales, which include online sales, increased 6.3% compared to 0.6% from a year ago, driven by a 3.8% rise in average ticket price and a 2.4% increase in transactions.  

During the fiscal third quarter ending on November 1, the beauty retailer repurchased 426,914 shares of its common stock at a cost of $224.7 million.

During the first nine months of fiscal 2025, the company repurchased 1.7 million shares of its common stock at a cost of $693.0 million, and as of November 1, $2.0 billion remained available under the $3.0 billion share repurchase program announced in October 2024.  

The company revised its fiscal 2025 sales guidance to $12.3 billion from the previously estimated range between $12.0 billion and $12.1 billion. The comparable sales estimate was revised higher to between 4.4% and 4.7% from the previous estimated range of 2.5% to 3.5%.

Ulta Beauty revised the higher diluted earnings per share range in fiscal 2025 to between $25.20 and $25.50, from the previous estimate of between $23.85 and $24.30. 

SoFi Technologies dropped 7% to $27.4, and the company announced its plans to raise $1.5 billion through a common stock offering. 

Hewlett Packard Enterprise plunged 9.4% to $20.75 after the cloud computing company's fiscal fourth-quarter results fell short of market expectations. 

Revenue increased 14% to $9.7 billion from $7.8 billion, net income dropped to $146 million from $1.3 billion, and diluted earnings per share fell to 11 cents from 99 cents a year ago. 

The HPE Board of Directors declared a regular cash dividend of $0.1425 per share, payable on January 16, 2026, to stockholders of record as of the close of December 19, 2025. 

HPE estimated fiscal 2026 first quarter revenue to be in the range of $9 billion to $9.4 billion, diluted earnings per share to be in the range of $0.09 to $0.13, and adjusted diluted earnings per share to be in the range of $0.57 to $0.61.  

Wall Street Stocks Meandered Amid Mixed Economic Data and Macroeconomic Uncertainty

Stocks on Wall Street flatlined on the final session of the week, and investors awaited the release of inflation data that could influence the Fed's rate decisions next week. 

The S&P 500 index decreased 0.1%, and the tech-heavy Nasdaq Composite declined 0.2% ahead of the release of consumer income and spending data. 

Investors held out for a rate cut next Wednesday, and recent mixed economic data stoked speculation that policymakers may overlook the lagging impact of a surge in goods tariffs on inflation.

Seasonally adjusted jobless claims in the week ending November 29 were 191,000, a decrease of 27,000 from the previous week's revised figures. 

The continuing claims, which lag by one week, were 1.94 million, a decrease of 4,000 from the previous week's revised level, the U.S. Department of Labor reported on Thursday.  

 Jobless claims have been relatively stable over the last several weeks; however, employers have been reluctant to add new staff amid macroeconomic uncertainty and the chaotic trade policy of the Trump administration. 

The PCE Price Index and its core rate were 2.8%, the U.S. Commerce Department reported in a much-delayed September's personal income and spending report. 

U.S. Movers 

Ulta Beauty soared 5.6% to $564.03 after the beauty salon operator and cosmetic retailer reported better-than-expected fiscal third-quarter results. 

SoFi Technologies dropped 7% to $27.4, and the company announced its plans to raise $1.5 billion through a common stock offering. 

Hewlett Packard Enterprise plunged 9.4% to $20.75 after the cloud computing company's fiscal fourth quarter results fell short of market expectations. 

Wall Street Stocks Meandered Amid Mixed Economic Data and Macroeconomic Uncertainty

Stocks on Wall Street flatlined on the final session of the week, and investors awaited the release of inflation data that could influence the Fed's rate decisions next week. 

The S&P 500 index decreased 0.1%, and the tech-heavy Nasdaq Composite declined 0.2% ahead of the release of consumer income and spending data. 

Investors held out for a rate cut next Wednesday, and recent mixed economic data stoked speculation that policymakers may overlook the lagging impact of a surge in goods tariffs on inflation.

Seasonally adjusted jobless claims in the week ending November 29 were 191,000, a decrease of 27,000 from the previous week's revised figures. 

The continuing claims, which lag by one week, were 1.94 million, a decrease of 4,000 from the previous week's revised level, the U.S. Department of Labor reported on Thursday.  

 Jobless claims have been relatively stable over the last several weeks; however, employers have been reluctant to add new staff amid macroeconomic uncertainty and the chaotic trade policy of the Trump administration. 

The PCE Price Index and its core rate are likely to show little change around 2.8%, and the U.S. Commerce Department is set to release its much-delayed September's personal income and spending report later today. 

U.S. Movers 

Ulta Beauty soared 5.6% to $564.03 after the beauty salon operator and cosmetic retailer reported better-than-expected fiscal third-quarter results. 

SoFi Technologies dropped 7% to $27.4, and the company announced its plans to raise $1.5 billion through a common stock offering. 

Hewlett Packard Enterprise plunged 9.4% to $20.75 after the cloud computing company's fiscal fourth quarter results fell short of market expectations. 

Japan's Household Spending Declined First Time In Six Months In October

Japan's benchmark indexes turned sharply lower on Friday, and investors turned cautious ahead of rate decisions from major central banks. 

The Nikkei 225 Stock Average declined 1.1%, and the broader Topix decreased 1% as Japan's household spending declined in October. 

Spending fell 3% from a year ago after rising 1.8% in the previous month and fell for the first time since April and dropped at the fastest pace since January 2024. 

Spending increased to 306,872 yen, as food spending, which accounts for 30% of total outlay, decreased 1.1%, the Ministry of Internal Affairs and Communications reported Friday. 

Spending on housing decreased 9.1%, transportation and communication dropped 9.2%, but healthcare and medical services increased 3.6% from a year ago. 

Japan's household spending data are keenly watched by economists, as consumer spending accounts for more than half of Japan's gross domestic product. 

Household income for two or more salaried people edged down 0.1% after adjusting for inflation to 599,845 yen. 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average decreased 1.1% to 50,434.99, and the broader Topix declined 1% to 3,361.44. 

Trading in technology stocks dominated on the Tokyo Stock Exchange, as investors avoided AI-linked semiconductor equipment makers.

Advantest Corp. decreased 2% to ¥20,200.0, Tokyo Electron fell 2% to ¥33,140.0, and Softbank Corp. fell 1.7% to ¥215.20. 

Japan's Household Spending Declined First Time In Six Months In October

Japan's benchmark indexes turned sharply lower on Friday, and investors turned cautious ahead of rate decisions from major central banks. 

The Nikkei 225 Stock Average declined 1.1%, and the broader Topix declined 1% as Japan's household spending declined in October. 

Spending fell 3% from a year ago after rising 1.8% in the previous month and fell for the first time since April and dropped at the fastest pace since January 2024. 

Spending increased to 306,872 yen, as food spending, which accounts for 30% of total outlay, decreased 1.1%, the Ministry of Internal Affairs and Communications reported Friday. 

Spending on housing decreased 9.1%, transportation and communication dropped 9.2%, but healthcare and medical services increased 3.6% from a year ago. 

Japan's household spending data are keenly watched by economists, as consumer spending accounts for more than half of Japan's gross domestic product. 

Household income for two or more salaried people edged down 0.1% after adjusting for inflation to 599,845 yen. 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average decreased 1.1% to 50,434.99, and the broader Topix declined 1% to 3,361.44. 

Trading in technology stocks dominated on the Tokyo Stock Exchange, as investors avoided AI-linked semiconductor equipment makers.

Advantest Corp. decreased 2% to ¥20,200.0, Tokyo Electron fell 2% to ¥33,140.0, and Softbank Corp. fell 1.7% to ¥215.20. 

China Markets In Holding Pattern Ahead of 2026 Economic Growth Targets

Stocks in China and Hong Kong lacked direction and momentum ahead of rate decisions from major central banks and domestic policy updates.

The Hang Seng index decreased 0.3%, and the mainland-focused CSI 300 index inched up 0.1% as investors await fresh signals after the annual policy meeting in Beijing later this month. 

Investors debated rate outcomes after a meeting of policymakers in Washington, D.C., amid a weakening macroeconomic environment and rapidly cooling labor market. 

Traders held out for a 25 basis-point rate cut at the end of a two-day Fed policy meeting on December 10, as the weakness in international crude oil prices overshadowed tariff-driven inflation.  

The Bank of Japan is more likely to raise rates at the end of its policy meeting later in the month, as policymakers struggle to shore up the faltering yen and tackle resurgent inflation. 

Closer to home, investors are worried that policymakers at the end of the annual economic conference may decide to wait a few more months before announcing a package of economic stimulus measures. 

China's committee of top leaders is expected to lower the annual economic growth target of around 4.5% in 2026 from 5% in 2025 because of headwinds from the weakening domestic demand, persistent malaise in the property market, and uncertain outlook for international trade. 

China Indexes and Stocks 

The Hang Seng Index decreased 0.3% to 25,872.37, and the mainland-focused CSI 300 index inched up 0.1% to 4,551.81. 

Moore Threads Technology soared more than fourfold to 590.81 yuan after the artificial-intelligence chip maker listed its stock on the Shanghai Stock Exchange.  

Moore priced its initial public offering at 114.28 yuan per share and raised gross proceeds of 8 billion yuan, or $1.13 billion. 

Guangdong Tianyu Semiconductor dropped 24% to HK $44.32, and the company priced its initial public offering at HK $58 per share. 

The largest producer of silicon carbide epitaxial wafers sold 30.1 million shares and raised gross proceeds of HK $1.74 billion. 

Guangzhou Xiao Noodles Catering Management plunged 27% to HK $5.08 after the company listed its stock on the Hong Kong Stock Exchange. 

The operator of the noodle restaurant chain Yujian Xiaomian priced its 97.36 million-share initial public offering at HK$7.04 per share and raised gross proceeds of HK$685.4 million.  

China Markets In Holding Pattern Ahead of 2026 Economic Growth Targets

Stocks in China and Hong Kong lacked direction and momentum ahead of rate decisions from major central banks and domestic policy updates.

The Hang Seng index decreased 0.3%, and the mainland-focused CSI 300 index inched up 0.1% as investors await fresh signals after the annual policy meeting in Beijing later this month. 

Investors debated rate outcomes after a meeting of policymakers in Washington, D.C., amid a weakening macroeconomic environment and rapidly cooling labor market. 

Traders held out for a 25 basis-point rate cut at the end of a two-day Fed policy meeting on December 10, as the weakness in international crude oil prices overshadowed tariff-driven inflation.  

The Bank of Japan is more likely to raise rates at the end of its policy meeting later in the month, as policymakers struggle to shore up the faltering yen and tackle resurgent inflation. 

Closer to home, investors are worried that policymakers at the end of the annual economic conference may decide to wait a few more months before announcing a package of economic stimulus measures. 

China's committee of top leaders is expected to lower the annual economic growth target of around 4.5% in 2026 from 5% in 2025 because of headwinds from the weakening domestic demand, persistent malaise in the property market, and uncertain outlook for international trade. 

China Indexes and Stocks 

The Hang Seng Index decreased 0.3% to 25,872.37, and the mainland-focused CSI 300 index inched up 0.1% to 4,551.81. 

Moore Threads Technology soared more than fourfold to 590.81 yuan after the artificial-intelligence chip maker listed its stock on the Shanghai Stock Exchange.  

Moore priced its initial public offering at 114.28 yuan per share and raised gross proceeds of 8 billion yuan, or $1.13 billion. 

Guangdong Tianyu Semiconductor dropped 24% to HK $44.32, and the company priced its initial public offering at HK $58 per share. 

The largest producer of silicon carbide epitaxial wafers sold 30.1 million shares and raised gross proceeds of HK $1.74 billion. 

Guangzhou Xiao Noodles Catering Management plunged 27% to HK $5.08 after the company listed its stock on the Hong Kong Stock Exchange. 

The operator of the noodle restaurant chain Yujian Xiaomian priced its 97.36 million-share initial public offering at HK$7.04 per share and raised gross proceeds of HK$685.4 million.  

U.S. Movers: Marvell Technology, Okta

Okta decreased 3.5% to $78.98 after the cybersecurity company reported results of the fiscal third quarter ending in October.  

Revenue increased 12% to $742 million from $665 million, net income soared to $43 million from $16 million, and diluted earnings per share rose to 24 cents from breakeven a year ago. 

Okta estimated fiscal 2026 revenue to range between $2.906 billion and $2.908 billion, adjusted operating income to fall between $753 million and $755 million, and adjusted diluted earnings per share between $3.43 and $3.44. 

Marvell Technology soared 11.2% to $103.30 after the company reported better-than-expected fiscal third-quarter results and announced an acquisition. 

Revenue increased to $2.1 billion from $1.5 billion, net income swung to a profit of $1.9 billion from a loss of $676.3 million, and diluted earnings per share increased to a profit of $2.20 from a loss of 78 cents a year ago. 

Marvell estimated fiscal fourth-quarter revenue of $2.2 billion and diluted net income per share of 36 cents. 

On August 14, Marvell completed the sale of its automotive Ethernet business to Infineon Technologies AG for $2.5 billion in cash, resulting in a pre-tax gain of $1.8 billion. 

"Marvell's results for the third quarter of fiscal 2026 include the results of the automotive ethernet business through the sale date, while prior periods presented include the results of the automotive ethernet business for the entire period," the company added in a statement released to investors. 

Marvell agreed to acquire Celestial AI for an upfront cost of $3.25 billion, including $1 billion in cash and 27.2 million of its common stock. 

The company agreed to pay an additional $2.25 billion to Celestial AI shareholders if the data datacenter operator meets certain revenue milestones. 

The full earnout would be paid if Celestial AI’s cumulative revenue by the end of Marvell’s fiscal year 2029 exceeds $2.0 billion.

U.S. Movers: Marvell Technology, Okta

Okta decreased 3.5% to $78.98 after the cybersecurity company reported results of the fiscal third quarter ending in October.  

Revenue increased 12% to $742 million from $665 million, net income soared to $43 million from $16 million, and diluted earnings per share rose to 24 cents from breakeven a year ago. 

Okta estimated fiscal 2026 revenue to range between $2.906 billion and $2.908 billion, adjusted operating income to fall between $753 million and $755 million, and adjusted diluted earnings per share between $3.43 and $3.44. 

Marvell Technology soared 11.2% to $103.30 after the company reported better-than-expected fiscal third-quarter results and announced an acquisition. 

Revenue increased to $2.1 billion from $1.5 billion, net income swung to a profit of $1.9 billion from a loss of $676.3 million, and diluted earnings per share increased to a profit of $2.20 from a loss of 78 cents a year ago. 

Marvell estimated fiscal fourth-quarter revenue of $2.2 billion and diluted net income per share of 36 cents. 

On August 14, Marvell completed the sale of its automotive Ethernet business to Infineon Technologies AG for $2.5 billion in cash, resulting in a pre-tax gain of $1.8 billion. 

"Marvell's results for the third quarter of fiscal 2026 include the results of the automotive ethernet business through the sale date, while prior periods presented include the results of the automotive ethernet business for the entire period," the company added in a statement released to investors. 

Marvell agreed to acquire Celestial AI for an upfront cost of $3.25 billion, including $1 billion in cash and 27.2 million of its common stock. 

The company agreed to pay an additional $2.25 billion to Celestial AI shareholders if the data datacenter operator meets certain revenue milestones. 

The full earnout would be paid if Celestial AI’s cumulative revenue by the end of Marvell’s fiscal year 2029 exceeds $2.0 billion.