Japan's Industrial Output and Retail Sales Growth Confirmed Resilient Economic Conditions

Japan's indexes faced selling pressure on Monday amid heightened worries over the yen's direction. 

The Nikkei 225 Stock Average decreased 1.1%, the broader TOPIX declined 0.1%, and the yen hovered at 159.81 against the U.S. dollar. 

U.S. Federal Reserve Chairman Kevin Warsh stressed the need to bring down inflation to the Fed's target rate of 2%, supporting the case for a possible rate hike at the mid-September policy meeting. 

"We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed. Otherwise, we have work to do," remarked Warsh at an annual gathering of central bankers.   

Despite the Fed's tough talk on inflation, nominal prices are still rising at a faster pace and broadening to other sectors in the economy for more than five years.  

Moreover, persistent elevated energy prices are contributing to higher fuel and food prices in the U.S. and stoking broader inflationary pressures.  

The U.S. inflation index surpassed the Fed's target rate for the 65th month in a row in August, confirming the Fed's loose monetary policy. 

The yen faced renewed selling pressure amid concern that the gap between interest rates in the U.S. and Japan will widen.  

On the economic front, Japan's annual industrial production slowed to 4.1% in July from 4.9% in the previous month, according to the Ministry of Economy, Trade, and Industry. 

On a monthly basis, production edged up 0.1% and expanded for the fourth consecutive month, suggesting continued resilience in demand despite uneven global demand and external uncertainties.  

Japan's retail sales advanced for the fifth consecutive month in July, driven by a surge in demand for vehicles and machinery and equipment. 

Retail sales rose 4.0% in July, accelerating from an upwardly revised 0.6% rise in the previous month, said the ministry in a separate report. 

Vehicle sales advanced 16.2% (compared to 16.3% in June), and machinery and equipment sales rebounded 6.3% from the decline of 1.9% in the previous month.    

Japan Indexes and Stocks

The Nikkei 225 Stock Average decreased 1.1% to 65,668.75, and the broader TOPIX decreased 0.1% to 4,141.23. 

AI- and semiconductor-linked stocks led decliners on Monday in Tokyo. 

Tokyo Electron decreased 1.6% to ¥55,330.0, Advantest Corp. declined 5.9% to ¥33,190.0, SoftBank Group edged down 0.02% to ¥5,160.0, and Ibiden Corp. fell 1.8% to ¥19,810.0. 

Japan's Industrial Output and Retail Sales Growth Confirmed Resilient Economic Conditions

Japan's indexes faced selling pressure on Monday amid heightened worries over the yen's direction. 

The Nikkei 225 Stock Average decreased 1.1%, the broader TOPIX declined 0.1%, and the yen hovered at 159.81 against the U.S. dollar. 

U.S. Federal Reserve Chairman Kevin Warsh stressed the need to bring down inflation to the Fed's target rate of 2%, supporting the case for a possible rate hike at the mid-September policy meeting. 

"We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed. Otherwise, we have work to do," remarked Warsh at an annual gathering of central bankers.   

Despite the Fed's tough talk on inflation, nominal prices are still rising at a faster pace and broadening to other sectors in the economy for more than five years.  

Moreover, persistent elevated energy prices are contributing to higher fuel and food prices in the U.S. and stoking broader inflationary pressures.  

The U.S. inflation index surpassed the Fed's target rate for the 65th month in a row in August, confirming the Fed's loose monetary policy. 

The yen faced renewed selling pressure amid concern that the gap between interest rates in the U.S. and Japan will widen.  

On the economic front, Japan's annual industrial production slowed to 4.1% in July from 4.9% in the previous month, according to the Ministry of Economy, Trade, and Industry. 

On a monthly basis, production edged up 0.1% and expanded for the fourth consecutive month, suggesting continued resilience in demand despite uneven global demand and external uncertainties.  

Japan's retail sales advanced for the fifth consecutive month in July, driven by a surge in demand for vehicles and machinery and equipment. 

Retail sales rose 4.0% in July, accelerating from an upwardly revised 0.6% rise in the previous month, said the ministry in a separate report. 

Vehicle sales advanced 16.2% (compared to 16.3% in June), and machinery and equipment sales rebounded 6.3% from the decline of 1.9% in the previous month.    

Japan Indexes and Stocks

The Nikkei 225 Stock Average decreased 1.1% to 65,668.75, and the broader TOPIX decreased 0.1% to 4,141.23. 

AI- and semiconductor-linked stocks led decliners on Monday in Tokyo. 

Tokyo Electron decreased 1.6% to ¥55,330.0, Advantest Corp. declined 5.9% to ¥33,190.0, SoftBank Group edged down 0.02% to ¥5,160.0, and Ibiden Corp. fell 1.8% to ¥19,810.0. 

China's Business Activity Indexes Signaled Slowing Macroeconomic Backdrop

China's indexes receded at the start of a new week as the latest key metric confirmed the slowing economic growth momentum. 

The Hang Seng Index decreased 0.8%, and the mainland-focused CSI 300 Index fell 0.9% as weak economic data reinforced concerns about China's growth outlook. 

China's official Purchasing Managers' Index edged up to 49.8 in August from 49.2 in the previous month, said the National Bureau of Statistics on Monday. 

Factory activities contracted for the second consecutive month after rising for four months in a row amid persistently weak domestic demand and extreme weather conditions.  

The monthly activity index measures production activity across supply chain networks in various sectors, and the 50-mark line separates growth from contraction.   

Meanwhile, China's nonmanufacturing PMI, which tracks activities in construction and services sectors, came in at 49 in August, unchanged from the previous month. 

China's official composite PMI, which tracks manufacturing and non-manufacturing activities, edged up to 49.5 in August from 49.3 in the previous month.  

Recent updates on retail sales, industrial production, and fixed-asset investment fell short of market expectations; however, the top policy committee last week ended with no new announcement to revive economic growth momentum. 

China Indexes and Stocks 

The Hang Seng Index decreased 0.8% to 25,388.53, and the mainland-focused CSI 300 Index fell 0.9% to 4,570.85.

Zijin Mining decreased 5.8% to HK $36.08, Zhongji Innolight declined 0.5% to $1,035.0, and CXMT Corp. fell 1.4% to ¥57.77. 

Mixue Group advanced 2.2% to HK $212.40 and rebounded from the weakness in the previous week following the release of mixed quarterly results.  

China's Business Activity Indexes Signaled Slowing Macroeconomic Backdrop

China's indexes receded at the start of a new week as the latest key metric confirmed the slowing economic growth momentum. 

The Hang Seng Index decreased 0.8%, and the mainland-focused CSI 300 Index fell 0.9% as weak economic data reinforced concerns about China's growth outlook. 

China's official Purchasing Managers' Index edged up to 49.8 in August from 49.2 in the previous month, said the National Bureau of Statistics on Monday. 

Factory activities contracted for the second consecutive month after rising for four months in a row amid persistently weak domestic demand and extreme weather conditions.  

The monthly activity index measures production activity across supply chain networks in various sectors, and the 50-mark line separates growth from contraction.   

Meanwhile, China's nonmanufacturing PMI, which tracks activities in construction and services sectors, came in at 49 in August, unchanged from the previous month. 

China's official composite PMI, which tracks manufacturing and non-manufacturing activities, edged up to 49.5 in August from 49.3 in the previous month.  

Recent updates on retail sales, industrial production, and fixed-asset investment fell short of market expectations; however, the top policy committee last week ended with no new announcement to revive economic growth momentum. 

China Indexes and Stocks 

The Hang Seng Index decreased 0.8% to 25,388.53, and the mainland-focused CSI 300 Index fell 0.9% to 4,570.85.

Zijin Mining decreased 5.8% to HK $36.08, Zhongji Innolight declined 0.5% to $1,035.0, and CXMT Corp. fell 1.4% to ¥57.77. 

Mixue Group advanced 2.2% to HK $212.40 and rebounded from the weakness in the previous week following the release of mixed quarterly results.  

Japan's Jobless Rate Eased In July, Tokyo's Core Inflation Accelerated Third Consecutive Month In August

Japan's indexes edged higher, powered by a rally in technology stocks, as investors reviewed the latest economic data. 

The Nikkei 225 Stock Average edged up 0.7%, the broader TOPIX advanced 1%, and the yen hovered at 159.35 against the U.S. dollar. 

AI- and semiconductor-linked stocks advanced after Nvidia's strong quarterly results and forecasts. 

Japanese technology companies are key beneficiaries of the global boom in artificial intelligence infrastructure, and Nvidia's strong guidance eased worries of stretched valuations.   

Japan's Jobless Rate Edged Lower In July

Japan's jobless rate inched slightly lower to 2.4% in July after holding steady at 2.5% in the previous three months in a row, said the Ministry of Internal Affairs & Communications. 

The jobless rate dropped to the lowest level since July 2025, and the number of unemployed fell by 80,000 to a one-year low of 1.67 million, while employment declined by 150,000 to a four-month low of 68.3 million. 

Japan's labor force shrank by 240,000 to an 11-month low of 70.0 million, meanwhile the number of people not engaged in labor-related activities rose by 30,000 to 39.4 million. 

The participation rate in the labor force eased to 64.1% from 64.4% in June but is higher than the 63.9% recorded one year ago. 

Separately, Japan's jobs-to-applicants ratio held steady at 1.18, unchanged from the previous month as businesses linked to tourism and semiconductor industry continued to hire, according to separate data from the Ministry of Health, Labor and Welfare.

Of the 11 sectors, five sectors, including manufacturing service industries, recorded more job openings, and six booked declines, including wholesale and retail trade and accommodations. 

Tokyo Core Inflation Edged Up In August as Price Pressure Broadened

Core consumer prices in Tokyo's central wards edged slightly higher to 1.8% in August from 1.7% in July, said the Statistics Bureau of Japan. 

Inflation accelerated for the third consecutive month, and advanced at the fastest pace since March, confirming broadening price pressures linked to the Middle East conflict.    

However, inflation stayed below the Bank of Japan's target rate of 2% for the seventh month in a row, as fuel subsidies and favorable base effects mitigated the impact of higher raw materials costs linked to the Middle East conflict. 

Meanwhile, core-core inflation edged up 2.0% from the downwardly revised 1.8% in July, marking the highest reading in five months. 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average increased 0.7% to 66,601.47, and the broader TOPIX advanced 1% to 4,157.59. 

For the week, the Nikkei 2225 Stock Average gained 0.5%, and the broader TOPIX advanced 1.8%. 

Advantest Corp. rose 1.7% to ¥35,220.0. Tokyo Electron advanced 2% to ¥35,280.0, Taiyo Yuden Co. Ltd. gained 3.3% to ¥9,191.0, and Furukawa Co. Ltd. edged up 0.2% to ¥4,470.0. 

Japan's Jobless Rate Eased In July, Tokyo's Core Inflation Accelerated Third Consecutive Month In August

Japan's indexes edged higher, powered by a rally in technology stocks, as investors reviewed the latest economic data. 

The Nikkei 225 Stock Average edged up 0.7%, the broader TOPIX advanced 1%, and the yen hovered at 159.35 against the U.S. dollar. 

AI- and semiconductor-linked stocks advanced after Nvidia's strong quarterly results and forecasts. 

Japanese technology companies are key beneficiaries of the global boom in artificial intelligence infrastructure, and Nvidia's strong guidance eased worries of stretched valuations.   

Japan's Jobless Rate Edged Lower In July

Japan's jobless rate inched slightly lower to 2.4% in July after holding steady at 2.5% in the previous three months in a row, said the Ministry of Internal Affairs & Communications. 

The jobless rate dropped to the lowest level since July 2025, and the number of unemployed fell by 80,000 to a one-year low of 1.67 million, while employment declined by 150,000 to a four-month low of 68.3 million. 

Japan's labor force shrank by 240,000 to an 11-month low of 70.0 million, meanwhile the number of people not engaged in labor-related activities rose by 30,000 to 39.4 million. 

The participation rate in the labor force eased to 64.1% from 64.4% in June but is higher than the 63.9% recorded one year ago. 

Separately, Japan's jobs-to-applicants ratio held steady at 1.18, unchanged from the previous month as businesses linked to tourism and semiconductor industry continued to hire, according to separate data from the Ministry of Health, Labor and Welfare.

Of the 11 sectors, five sectors, including manufacturing service industries, recorded more job openings, and six booked declines, including wholesale and retail trade and accommodations. 

Tokyo Core Inflation Edged Up In August as Price Pressure Broadened

Core consumer prices in Tokyo's central wards edged slightly higher to 1.8% in August from 1.7% in July, said the Statistics Bureau of Japan. 

Inflation accelerated for the third consecutive month, and advanced at the fastest pace since March, confirming broadening price pressures linked to the Middle East conflict.    

However, inflation stayed below the Bank of Japan's target rate of 2% for the seventh month in a row, as fuel subsidies and favorable base effects mitigated the impact of higher raw materials costs linked to the Middle East conflict. 

Meanwhile, core-core inflation edged up 2.0% from the downwardly revised 1.8% in July, marking the highest reading in five months. 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average increased 0.7% to 66,601.47, and the broader TOPIX advanced 1% to 4,157.59. 

Advantest Corp. rose 1.7% to ¥35,220.0. Tokyo Electron advanced 2% to ¥35,280.0, Taiyo Yuden Co. Ltd. gained 3.3% to ¥9,191.0, and Furukawa Co. Ltd. edged up 0.2% to ¥4,470.0. 

Global Investors Ignored Threat of U.S. Sanctions Targeting Chinese Banks Over Iran Ties

China's indexes traded higher despite brewing international trade and geopolitical tensions. 

The Hang Seng Index increased 0.5%, and the mainland-focused CSI 300 Index edged up 0.1% as investors overlooked the threat of a new set of U.S. sanctions targeting Chinese banks. 

The Trump administration intensified its pressure campaign against Iran, issued threats of additional 7.5% tariffs on Chinese goods, and targeted Chinese banks helping the Islamic Republic in selling crude oil. 

Leaders of China and the U.S. are scheduled to meet next month, and President Xi Jinping is set to travel to the U.S. with a business delegation on September 24.  

Investors remained focused on possible policy announcements from the ongoing meeting of top policymakers, bureaucrats, and regulators in Beijing, which is scheduled to conclude on Friday. 

The latest string of China's macroeconomic data confirmed domestic demand growth weakness but resilient industrial activities; however, some investors held out for possible stimulus measures that could revive annual economic growth closer to 5%.  

China Indexes and Stocks 

The Hang Seng Index increased 0.5% to 25,684.28, and the mainland-focused CSI 300 Index eased 0.1% to 4,625.73.

Tech stocks rebounded and extended the weekly rise following solid quarterly results from Nvidia Corp., the key company at the heart of the current artificial intelligence trade. 

Zhongji Innolinght Co. Ltd. gained 3.4% to HK $1,082.0, Eoptolink Technology decreased 0.1% to ¥408.60, Huagong Tech declined 0.4% to ¥104.44, and SMIC added 1% to HK $72.10. 

Global Investors Ignored Threat of U.S. Sanctions Targeting Chinese Banks Over Iran Ties

China's indexes traded higher despite brewing international trade and geopolitical tensions. 

The Hang Seng Index increased 0.5%, and the mainland-focused CSI 300 Index edged up 0.1% as investors overlooked the threat of a new set of U.S. sanctions targeting Chinese banks. 

The Trump administration intensified its pressure campaign against Iran, issued threats of additional 7.5% tariffs on Chinese goods, and targeted Chinese banks helping the Islamic Republic in selling crude oil. 

Leaders of China and the U.S. are scheduled to meet next month, and President Xi Jinping is set to travel to the U.S. with a business delegation on September 24.  

Investors remained focused on possible policy announcements from the ongoing meeting of top policymakers, bureaucrats, and regulators in Beijing, which is scheduled to conclude on Friday. 

The latest string of China's macroeconomic data confirmed domestic demand growth weakness but resilient industrial activities; however, some investors held out for possible stimulus measures that could revive annual economic growth closer to 5%.  

China Indexes and Stocks 

The Hang Seng Index increased 0.5% to 25,684.28, and the mainland-focused CSI 300 Index eased 0.1% to 4,625.73.

Tech stocks rebounded and extended the weekly rise following solid quarterly results from Nvidia Corp., the key company at the heart of the current artificial intelligence trade. 

Zhongji Innolinght Co. Ltd. gained 3.4% to HK $1,082.0, Eoptolink Technology decreased 0.1% to ¥408.60, Huagong Tech declined 0.4% to ¥104.44, and SMIC added 1% to HK $72.10. 

China THURSDAY

China Indexes and Stocks 

The Hang Seng Index 

Nvidia-Powered Tech Rally Lifted Broader Benchmark Indexes

U.S. stocks edged higher in early trading, and investors reviewed the latest batch of earnings from key technology companies. 

The S&P 500 Index edged up 0.4%, and the tech-heavy Nasdaq Composite advanced 0.8% following stronger-than-expected earnings from Nvidia and Salesforce. 

Nvidia Corp., the company at the center of the latest rush to expand and enhance investment in artificial intelligence infrastructure, reported sold revenue and earnings growth. In addition, the company estimated revenue growth of 70% in the fiscal year ending in January 2028. 

CEO Jensen Huang said that the "demand is much greater than 70%"; however, the company is facing capacity restrictions. 

Nvidia's strong guidance fueled another upward surge in chip stocks, and Micron, Marvell Technology, and SanDisk surged between 4% and 7%. 

Cloud computing services providers closely tied to Nvidia—Coreweave and Nebius—soared 6%. 

The West Texas Intermediate crude oil traded around $82 a barrel after three consecutive sessions of losses, as investors weighed improving supply prospects through the Strait of Hormuz against growing disruptions to Russian energy exports. 

Ongoing Ukrainian strikes on Russian refineries and ports are disrupting the country's energy infrastructure and could curtail its ability to export crude and refined products. 

U.S. Movers 

Nvidia said second-quarter revenue more than doubled to $96.2 billion, and the company guided revenue in the current quarter to surpass $108 billion. 

The company at the heart of the AI boom and the bellwether for the AI spending frenzy is benefitting from the data center investments by a few large players, including Alphabet, Amazon, Microsoft, and Meta. 

Nvidia's current quarter revenue outlook signaled that the company sees no near-term slowdown in AI spending.  

The Data Center segment revenue reached $89.0 billion, which is an increase of 117% compared to a year ago. 

Net income jumped 126% to $59.7 billion from $26.4 billion, and diluted earnings per share rose to $2.46 from $1.08 a year ago. 

Nvidia's portfolio of stakes in AI companies boosted net profit by $7.8 billion.

Adjusted earnings per share rose $2.22, sharply higher than the consensus estimate of $2.09.  

Salesforce Inc. soared 11.6% to $229.50 after the company's guidance surpassed market expectations. 

“AI is delivering value across every layer of our platform. We’re seeing incredible demand for our AI and data products, with ARR about to cross $4 billion," said Marc Benioff, Chairman and CEO, Salesforce.

Revenue in the fiscal second quarter ending in July increased 11% to $11.3 billion from $10.2 billion, net income jumped to $3.5 billion from $1.9 billion, and diluted earnings per share advanced to $4.29 from $1.96. 

Operating cash flow in the quarter soared 71% to $1.3 billion, and free cash flow advanced 81% to $1.1 billion. 

The company revised its full-year fiscal 2027 revenue range to between $46.1 billion and $46.4 billion, reflecting an annual increase of 11% to 12%, and retained its full-year growth estimates of operating and free cash flows to between 4% and 5%. 

The company's quarterly earnings report suggested $2.6 billion in gains on strategic investments from AI startup Anthropic.  

Salesforce Inc. soared 11.6% to $229.50 after the company's guidance surpassed market expectations. 

“AI is delivering value across every layer of our platform. We’re seeing incredible demand for our AI and data products, with ARR about to cross $4 billion," said Marc Benioff, Chairman and CEO, Salesforce.

Revenue in the fiscal second quarter ending in July increased 11% to $11.3 billion from $10.2 billion, net income jumped to $3.5 billion from $1.9 billion, and diluted earnings per share advanced to $4.29 from $1.96. 

Operating cash flow in the quarter soared 71% to $1.3 billion, and free cash flow advanced 81% to $1.1 billion. 

The company revised its full-year fiscal 2027 revenue range to between $46.1 billion and $46.4 billion, reflecting an annual increase of 11% to 12%, and retained its full-year growth estimates of operating and free cash flows to between 4% and 5%. 

The company's quarterly earnings report suggested $2.6 billion in gains on strategic investments from AI startup Anthropic.  

Nvidia said second-quarter revenue more than doubled to $96.2 billion, and the company guided revenue in the current quarter to surpass $108 billion. 

The company at the heart of the AI boom and the bellwether for the AI spending frenzy is benefitting from the data center investments by a few large players, including Alphabet, Amazon, Microsoft, and Meta. 

Nvidia's current quarter revenue outlook signaled that the company sees no near-term slowdown in AI spending.  

The Data Center segment revenue reached $89.0 billion, which is an increase of 117% compared to a year ago. 

Net income jumped 126% to $59.7 billion from $26.4 billion, and diluted earnings per share rose to $2.46 from $1.08 a year ago. 

Nvidia's portfolio of stakes in AI companies boosted net profit by $7.8 billion.

Adjusted earnings per share rose $2.22, sharply higher than the consensus estimate of $2.09.  

 

Nvidia-Powered Tech Rally Lifted Broader Benchmark Indexes

U.S. stocks edged higher in early trading, and investors reviewed the latest batch of earnings from key technology companies. 

The S&P 500 Index edged up 0.4%, and the tech-heavy Nasdaq Composite advanced 0.8% following stronger-than-expected earnings from Nvidia and Salesforce. 

Nvidia Corp., the company at the center of the latest rush to expand and enhance investment in artificial intelligence infrastructure, reported sold revenue and earnings growth. In addition, the company estimated revenue growth of 70% in the fiscal year ending in January 2028. 

CEO Jensen Huang said that the "demand is much greater than 70%"; however, the company is facing capacity restrictions. 

Nvidia's strong guidance fueled another upward surge in chip stocks, and Micron, Marvell Technology, and SanDisk surged between 4% and 7%. 

Cloud computing services providers closely tied to Nvidia—Coreweave and Nebius—soared 6%. 

The West Texas Intermediate crude oil traded around $82 a barrel after three consecutive sessions of losses, as investors weighed improving supply prospects through the Strait of Hormuz against growing disruptions to Russian energy exports. 

Ongoing Ukrainian strikes on Russian refineries and ports are disrupting the country's energy infrastructure and could curtail its ability to export crude and refined products. 

U.S. Movers 

Nvidia said second-quarter revenue more than doubled to $96.2 billion, and the company guided revenue in the current quarter to surpass $108 billion. 

The company at the heart of the AI boom and the bellwether for the AI spending frenzy is benefitting from the data center investments by a few large players, including Alphabet, Amazon, Microsoft, and Meta. 

Nvidia's current quarter revenue outlook signaled that the company sees no near-term slowdown in AI spending.  

The Data Center segment revenue reached $89.0 billion, which is an increase of 117% compared to a year ago. 

Net income jumped 126% to $59.7 billion from $26.4 billion, and diluted earnings per share rose to $2.46 from $1.08 a year ago. 

Nvidia's portfolio of stakes in AI companies boosted net profit by $7.8 billion.

Adjusted earnings per share rose $2.22, sharply higher than the consensus estimate of $2.09.  

Salesforce Inc. soared 11.6% to $229.50 after the company's guidance surpassed market expectations. 

“AI is delivering value across every layer of our platform. We’re seeing incredible demand for our AI and data products, with ARR about to cross $4 billion," said Marc Benioff, Chairman and CEO, Salesforce.

Revenue in the fiscal second quarter ending in July increased 11% to $11.3 billion from $10.2 billion, net income jumped to $3.5 billion from $1.9 billion, and diluted earnings per share advanced to $4.29 from $1.96. 

Operating cash flow in the quarter soared 71% to $1.3 billion, and free cash flow advanced 81% to $1.1 billion. 

The company revised its full-year fiscal 2027 revenue range to between $46.1 billion and $46.4 billion, reflecting an annual increase of 11% to 12%, and retained its full-year growth estimates of operating and free cash flows to between 4% and 5%. 

The company's quarterly earnings report suggested $2.6 billion in gains on strategic investments from AI startup Anthropic.  

Japan's Tech Stocks Jumped After Nvidia Signaled AI-Driven Demand Surge to Extend Into 2028

Japan's indexes traded higher after Nvidia's earnings confirmed the sustainability of AI spending. 

The Nikkei 225 stock average inched higher 0.3%, the TOPIX edged up 0.2%, and the yen hovered at 159.35 against the U.S. dollar.  

The company at the heart of the AI boom and the bellwether for the AI spending frenzy is benefitting from the data center investments by a few large players, including Alphabet, Amazon, Microsoft, and Meta. 

Moreover, Japanese technology companies are deeply involved in the U.S. AI infrastructure buildout, which has been a key driver of the country's equity rally over the last eighteen months.   

Nvidia said second-quarter revenue more than doubled to $96.2 billion, and the company guided revenue in the current quarter to surpass $108 billion. 

Nvidia's current quarter revenue outlook signaled that the company sees no near-term slowdown in AI spending.  

The Data Center segment revenue reached $89.0 billion, which is an increase of 117% compared to a year ago. 

Net income jumped 126% to $59.7 billion from $26.4 billion, and diluted earnings per share rose to $2.46 from $1.08 a year ago. 

Nvidia's portfolio of stakes in AI companies boosted net profit by $7.8 billion.

Adjusted earnings per share rose $2.22, sharply higher than the consensus estimate of $2.09.  

Meanwhile, the U.S. measure of inflation stayed well above the Federal Reserve's target rate, reinforcing the hawkish expectations for U.S. interest rates. 

The alternative measure of U.S. inflation, which tracks changes in prices of goods and services, rose an annual 3.7% and monthly 0.2% in July, compared to June's annual rise of 3.7% and monthly decrease of 0.1%. 

The core rate of inflation, which excludes volatile food and energy prices, held at an annual 3.3% and advanced at a monthly rate of 0.2%, according to the report released by the U.S. Bureau of Economic Analysis.  

The bond market is in focus as the yield on a 30-year Treasury bond jumped to a 19-year high last week, forcing the Treasury Department to announce steps to cool long-term yields.  

The yield on 10-year Japanese government bonds edged up to 2.89%, amid rising expectations that the Bank of Japan is ready to raise rates at the end of the next policy meeting.  

Japan Indexes and Stocks 

The Nikkei 225 Stock Average advanced 0.3% to 66,451.08, and the broader TOPIX increased 0.2% to 4,121.94. 

Kioxia Holdings increased 4.8% to ¥52,390.0, Tokyo Electron jumped 1.3% to ¥56,170.0, Advantest Corp. decreased 2.3% to ¥34,880.0, and SoftBank Group Corp. edged up 0.1% to ¥5,165.0.