China Indexes Hover at Multi-Year Highs as Domestic and Foreign Investors Chase Returns

Benchmark indexes in China and Hong Kong advanced and extended recent gains to multi-year highs as investors increased allocation to riskier assets and chased returns. 

The Hang Seng index gained 0.2% and advanced this year's gain to 28.6%, and the CSI 300 index increased 0.1% and extended 2025's rise to 11.1%. 

Steady flows from state-controlled domestic institutions were compounded by rising flows from foreign investors and individual investors. 

Individual investors have been increasing their stock allocation amid low returns in fixed-income investments and persistent weakness in the property market. 

The liquidity-driven rally is also supported by the belief that China's GDP will meet the government target of 5% and the broader economy will sustain its momentum because the rising exports to the Global South will offset the faltering shipments to the U.S.

China Indexes and Stocks 

The Hang Seng index added 0.2% to 25,224.97, and the CSI index advanced 0.1% to 4,244.97. 

Telecom and consumer stocks led gainers in Shanghai and Shenzhen trading. 

Nongfu Spring Co. Ltd edged up 0.9% to HK $46.82, China Foods Ltd. increased 0.2% to HK $3.35, and Mixue Group fell 0.8% to HK $451.40. 

China Unicom Hong Kong decreased 0.6% to HK $10.18, China Mobile Ltd. declined 0.7% to HK $88.35, and China Telecom Corp. fell 2% to HK $6.27. 

China Indexes Hover at Multi-Year Highs as Domestic and Foreign Investors Chase Returns

Benchmark indexes in China and Hong Kong advanced and extended recent gains to multi-year highs as investors increased allocation to riskier assets and chased returns. 

The Hang Seng index gained 0.2% and advanced this year's gain to 28.6%, and the CSI 300 index increased 0.1% and extended 2025's rise to 11.1%. 

Steady flows from state-controlled domestic institutions were compounded by rising flows from foreign investors and individual investors. 

Individual investors have been increasing their stock allocation amid low returns in fixed-income investments and persistent weakness in the property market. 

The liquidity-driven rally is also supported by the belief that China's GDP will meet the government target of 5% and the broader economy will sustain its momentum because the rising exports to the Global South will offset the faltering shipments to the U.S.

China Indexes and Stocks 

The Hang Seng index added 0.2% to 25,224.97, and the CSI index advanced 0.1% to 4,244.97. 

Telecom and consumer stocks led gainers in Shanghai and Shenzhen trading. 

Nongfu Spring Co. Ltd edged up 0.9% to HK $46.82, China Foods Ltd. increased 0.2% to HK $3.35, and Mixue Group fell 0.8% to HK $451.40. 

China Unicom Hong Kong decreased 0.6% to HK $10.18, China Mobile Ltd. declined 0.7% to HK $88.35, and China Telecom Corp. fell 2% to HK $6.27. 

U.S. and World Markets Hover Near Record Highs Amid a Growing List of Worries

Wall Street indexes showed little movement on Monday after rising in the previous two consecutive weeks. 

The S&P 500 index and the Nasdaq Composite decreased 0.1%, but they hovered near record highs amid earnings optimism and receding worries about tariff-linked inflation. 

Last week, two inflation reports showed that importers, wholesalers, and retailers are still not passing over higher import duties to consumers, but that could change in the months ahead.

The U.S. Customs and Border Protection processed $307 billion in imports, identified $30.4 billion in duties, and collected $140.8 billion between January and July. 

In July, the Department of Treasury collected $29.6 billion in "customs and excise taxes," compared to $8.9 billion the same month a year ago. 

In 2024, customs and excise revenue totaled $98 billion, according to the data available from the U.S. Department of Treasury.

While $29 billion is a huge increase compared to a year ago, it pales compared to $725 billion in retail and food services sales in July. 

In the week ahead, U.S. investors will review comments from the Fed Chair, Powell, at a gathering of central bankers.

Moreover, building permits, housing starts, completions, and existing home sales data are set to be released this week.

On the earnings front, Walmart, Target, Home Depot, Lowe’s, TJX Companies, Analog Devices, and Salesforce are scheduled to release their earnings.

Crude oil prices traded around $63 a barrel, and gold edged up 0.2% to $3,342.25 an ounce amid ongoing uncertainty linked to the U.S.-China trade negotiations. 

Moreover, the much ballyhooed Trump-Russia summit in Alaska failed to deliver an agreement, despite the U.S. president claiming more than fifty times that he can end the war in Europe in a day.

Global investors are increasingly worried about the reliability of the U.S. economic data and the unpredictable and erratic Trump administration's interference in global trade and the domestic economy.

Despite better-than-expected quarterly results, global investors are worried that the U.S. financial markets are likely to behave more like emerging markets, where the government actions dominate normal business operations. 

Donald Trump has persistently pressured Fed Chair Powell to lower interest rates, demanded Intel fire its chief executive, asked Goldman Sachs to replace its chief economist, and taken a cut from the sale of advanced chips to China. 

In addition, Trump fired the head of the U.S. Bureau of Labor Statistics, undermining the credibility of the U.S. economic data.

Farmers in Nebraska, Iowa, Kansas, and Tennessee are feeling the burden of the stalled trade negotiations between the U.S. and China and DOGE's killing of the U.S. AID program.

Soybean and corn prices are hovering 50% below the peak prices in April 2022, as China looks to Brazil and Argentina for agriculture imports. 

Nebraska and Iowa tied for the real GDP decline of 6.1% in the first quarter of 2025, according to a report released by the U.S. Bureau of Economic Analysis.

The Trump administration's constant threats and erratic trade policy have forced China to ramp up its import of wheat, soybeans, and corn starting as early as September.

Wall Street indexes showed little movement on Monday after rising in the previous two consecutive weeks. 

U.S. Stock Movers 

Tesla Inc. decreased 0.6% to $328.70 after the U.K.-based The Times reported that the electric vehicle maker has been forced to offer up to a 40% discount to car leasing companies. 

Chief executive Elon Musk has warned that the company's sales could face a few "rough quarters" amid a declining trend in sales in Europe. 

U.S. and World Markets Hover Near Record Highs Amid a Growing List of Worries

Wall Street indexes showed little movement on Monday after rising in the previous two consecutive weeks. 

The S&P 500 index and the Nasdaq Composite decreased 0.1%, but they hovered near record highs amid earnings optimism and receding worries about tariff-linked inflation. 

Last week, two inflation reports showed that importers, wholesalers, and retailers are still not passing over higher import duties to consumers, but that could change in the months ahead.

The U.S. Customs and Border Protection processed $307 billion in imports, identified $30.4 billion in duties, and collected $140.8 billion between January and July. 

In July, the Department of Treasury collected $29.6 billion in "customs and excise taxes," compared to $8.9 billion the same month a year ago. 

In 2024, customs and excise revenue totaled $98 billion, according to the data available from the U.S. Department of Treasury.

While $29 billion is a huge increase compared to a year ago, it pales compared to $725 billion in retail and food services sales in July. 

In the week ahead, U.S. investors will review comments from the Fed Chair, Powell, at a gathering of central bankers.

Moreover, building permits, housing starts, completions, and existing home sales data are set to be released this week.

On the earnings front, Walmart, Target, Home Depot, Lowe’s, TJX Companies, Analog Devices, and Salesforce are scheduled to release their earnings.

Crude oil prices traded around $63 a barrel, and gold edged up 0.2% to $3,342.25 an ounce amid ongoing uncertainty linked to the U.S.-China trade negotiations. 

Moreover, the much ballyhooed Trump-Russia summit in Alaska failed to deliver an agreement, despite the U.S. president claiming more than fifty times that he can end the war in Europe in a day.

Global investors are increasingly worried about the reliability of the U.S. economic data and the unpredictable and erratic Trump administration's interference in global trade and the domestic economy.

Despite better-than-expected quarterly results, global investors are worried that the U.S. financial markets are likely to behave more like emerging markets, where the government actions dominate normal business operations. 

Donald Trump has persistently pressured Fed Chair Powell to lower interest rates, demanded Intel fire its chief executive, asked Goldman Sachs to replace its chief economist, and taken a cut from the sale of advanced chips to China. 

In addition, Trump fired the head of the U.S. Bureau of Labor Statistics, undermining the credibility of the U.S. economic data.

Farmers in Nebraska, Iowa, Kansas, and Tennessee are feeling the burden of the stalled trade negotiations between the U.S. and China and DOGE's killing of the U.S. AID program.

Soybean and corn prices are hovering 50% below the peak prices in April 2022, as China looks to Brazil and Argentina for agriculture imports. 

Nebraska and Iowa tied for the real GDP decline of 6.1% in the first quarter of 2025, according to a report released by the U.S. Bureau of Economic Analysis.

The Trump administration's constant threats and erratic trade policy have forced China to ramp up its import of wheat, soybeans, and corn starting as early as September.

Wall Street indexes showed little movement on Monday after rising in the previous two consecutive weeks. 

U.S. Stock Movers 

Tesla Inc. decreased 0.6% to $328.70 after the U.K.-based The Times reported that the electric vehicle maker has been forced to offer up to a 40% discount to car leasing companies. 

Chief executive Elon Musk has warned that the company's sales could face a few "rough quarters" amid a declining trend in sales in Europe. 

Advance Auto Parts Inc. advanced 0.7% to $49.50 after the automotive aftermarket parts provider company reported a 67% drop in quarterly profit from a year ago.

Consolidated revenue edged down to $2 billion from $2.2 billion, net income dropped to $15 million from $45 million, and diluted earnings per share fell to 25 cents from 75 cents a year ago.

The company's board declared a regular cash dividend of $0.25 per share, payable on October 24 to shareholders on record on October 10. 

During the second quarter the comparable store sales increased by 0.1%.

Advance Auto Parts guided full-year revenue to be between $8.4 billion and $8.6 billion, and adjusted diluted earnings per share for continuing operations between $1.2 and $2.20.

Dillard’s Inc. gained 15 cents to $498.73 after the department store chain reported a slight increase in revenue and a marginal decline in net income in the second quarter.

Consolidated revenue edged higher to $1.53 billion from $1.51 billion, net income fell to $72.8 million from $74.5 million, and diluted earnings per share declined to $4.66 from $4.59 a year ago.

During the second quarter, the company purchased approximately 24,500 shares of Class A shares for $9.8 million, at an average price of $398.67 per share.

During 26-week period ending on August 2, the company purchased $107.8 million, approximately 300,000 shares of Class A shares, at an average price of $359.16 per share.

Applied Materials fell 15% to $161.84 despite the semiconductor equipment and materials engineering company reporting an increase in revenue and earnings in the fiscal third quarter ending on July 27.

Consolidated revenue increased to $7.30 billion from $6.78 billion, net income inched higher to $1.77 billion from $1.70 billion, and diluted earnings per share rose to $2.22 from $2.05 a year ago.

During the quarter, Applied Materials returned a total of $1.42 billion to shareholders through share repurchases and dividends, including the repurchase of 1.05 billion shares of common stock. 

Applied Materials guided fiscal fourth quarter revenue to be $6.7 billion, with a band of $500 million, compared to $7.30 billion and non-GAAP diluted earnings per share to be $2.11, with a band of 20 cents, compared to $2.48 a quarter earlier, respectively.

“We are expecting a decline in revenue in the fourth quarter driven by both digestion of capacity in China and nonlinear demand from leading-edge customers given market concentration and fab timing,” said Brice Hill, Senior Vice President and CFO.

U.S. Movers: Advance Auto Parts

Advance Auto Parts Inc. advanced 0.7% to $49.50 after the automotive aftermarket parts provider company reported a 67% drop in quarterly profit from a year ago.

Consolidated revenue edged down to $2 billion from $2.2 billion, net income dropped to $15 million from $45 million, and diluted earnings per share fell to 25 cents from 75 cents a year ago.

The company's board declared a regular cash dividend of $0.25 per share, payable on October 24 to shareholders on record on October 10. 

During the second quarter the comparable store sales increased by 0.1%.

Advance Auto Parts guided full-year revenue to be between $8.4 billion and $8.6 billion, and adjusted diluted earnings per share for continuing operations between $1.2 and $2.20.

U.S. Movers: Advance Auto Parts

Advance Auto Parts Inc. advanced 0.7% to $49.50 after the automotive aftermarket parts provider company reported a 67% drop in quarterly profit from a year ago.

Consolidated revenue edged down to $2 billion from $2.2 billion, net income dropped to $15 million from $45 million, and diluted earnings per share fell to 25 cents from 75 cents a year ago.

The company's board declared a regular cash dividend of $0.25 per share, payable on October 24 to shareholders on record on October 10. 

During the second quarter the comparable store sales increased by 0.1%.

Advance Auto Parts guided full-year revenue to be between $8.4 billion and $8.6 billion, and adjusted diluted earnings per share for continuing operations between $1.2 and $2.20.

China Stocks Extend Multi-Year Highs as Investors Chase Returns

Stocks in China and Hong Kong advanced to multi-year highs amid rising risk appetite and the sustained buying by the state-owned entities. 

The Hang Seng index gained 0.6%, and the CSI 300 index advanced 1.5% as large state-controlled institutions increased exposure to tech stocks. 

Moreover, the yield on 10-year Chinese government bonds increased to 2.7%. 

Despite the weakness in the macroeconomic outlook, the Hang Seng index and the CSI 300 index continue to advance and extend this year's gains to 29% and 11%, respectively. 

Last week, the National Bureau of Statistics reported a weaker-than-expected rise in retail sales, industrial output, and fixed-asset investment. 

Moreover, jobless rates continue to remain elevated, and home prices across 70 of the largest cities extended their decline. 

Investors reviewed announcements from the U.S. and Russia summit, and the leaders of the two nations failed to provide details of the discussion and a possible timetable to end the invasion of Ukraine. 

Earnings continue to dominate investor sentiment in Monday's trading, and Baidu, Xiaomi, Hong Kong Exchanges and Clearing, China Vanke, and Longfor Group Holdings are set to announce their corporate results later in the week. 

China Indexes and Stocks 

The Hang Seng index increased 0.6% to 25,426.53, and the CSI 300 index advanced 1.5% to 4,265.40. 

Property developers were in focus ahead of the release of quarterly results this week. 

China Vanke Co. Ltd. decreased 0.8% to HK $5.22, and Longfor Group Holdings declined 2.8% to HK $10.56. 

Baidu Inc. increased 2.1% to HK $88.80, Hong Kong Exchanges and Clearing Ltd. gained 0.3% to HK $440.20, and Xiaomi Corp. added 1.2% to HK $53.50. 

China Stocks Extend Multi-Year Highs as Investors Chase Returns

Stocks in China and Hong Kong advanced to multi-year highs amid rising risk appetite and the sustained buying by the state-owned entities. 

The Hang Seng index gained 0.6%, and the CSI 300 index advanced 1.5% as large state-controlled institutions increased exposure to tech stocks. 

Moreover, the yield on 10-year Chinese government bonds increased to 2.7%. 

Despite the weakness in the macroeconomic outlook, the Hang Seng index and the CSI 300 index continue to advance and extend this year's gains to 29% and 11%, respectively. 

Last week, the National Bureau of Statistics reported a weaker-than-expected rise in retail sales, industrial output, and fixed-asset investment. 

Moreover, jobless rates continue to remain elevated, and home prices across 70 of the largest cities extended their decline. 

Investors reviewed announcements from the U.S. and Russia summit, and the leaders of the two nations failed to provide details of the discussion and a possible timetable to end the invasion of Ukraine. 

Earnings continue to dominate investor sentiment in Monday's trading, and Baidu, Xiaomi, Hong Kong Exchanges and Clearing, China Vanke, and Longfor Group Holdings are set to announce their corporate results later in the week. 

China Indexes and Stocks 

The Hang Seng index increased 0.6% to 25,426.53, and the CSI 300 index advanced 1.5% to 4,265.40. 

Property developers were in focus ahead of the release of quarterly results this week. 

China Vanke Co. Ltd. decreased 0.8% to HK $5.22, and Longfor Group Holdings declined 2.8% to HK $10.56. 

Baidu Inc. increased 2.1% to HK $88.80, Hong Kong Exchanges and Clearing Ltd. gained 0.3% to HK $440.20, and Xiaomi Corp. added 1.2% to HK $53.50. 

Trump's Interference in Corporate America, Global Trade, and Fed's Decision Making Unnerves Global Investors

Wall Street indexes advanced on Friday and extended weekly gains after retail sales confirmed resilient consumer spending. 

The S&P 500 index edged up 0.1%, and the Nasdaq Composite gained a fraction as July's retail sales data indicated positive consumer sentiment. 

Benchmark indexes are set to advance 1% after a week of trading, despite a mixed picture on the inflation front. 

Consumer price inflation was steady at 2.7% in July, but producer price inflation rose at an annual pace of 3.4%, the fastest pace since February.

Investors are still holding out for at least a 25 basis point rate cut at the end of a two-day policy meeting on September 17, but the persistent interference by the U.S. president is worrying investors. 

Donald Trump has persistently pressured Fed Chair Powell to lower interest rates, demanded Intel fire its chief executive, asked Goldman Sachs to replace its chief economist, and taken a cut from the sale of advanced chips to China. 

In addition, Trump fired the head of the U.S. Bureau of Labor Statistics, undermining the credibility of the U.S. data.

U.S. Stock Movers 

Circle Internet Group extended two-day losses to 13% to $136.66 after the company filed to sell 10 million shares in a public offering at $130 per share. 

The stablecoin cryptocurrency issuer said it plans to sell 2 million shares, and existing stockholders plan to sell 8 million shares.

UnitedHealth Group soared 10% to $298.70 after Berkshire Hathaway and Scion Asset Management disclosed stakes in the company. 

Warren Buffett's controlled Berkshire Hathaway acquired 5 million shares for $1.6 billion, and David Tepper's controlled Appaloosa and Michael Burry's controlled Scion Asset Management also acquired direct stakes in the beleaguered insurance company.

Burry's Scion Asset Management also acquired direct stakes in Lululemon, Regeneron, Mercado Libre, and Bruker and trimmed its holding in Estee Lauder to 150,000 from 200,000 stocks. 

Intel Corp. jumped 3.4% to $24.69 after a Bloomberg report suggested that the Trump administration is in talks to buy a stake in the company, helping the company to expand its manufacturing capacity in the U.S. 

Applied Materials dropped 14% to $161.94 after the company's forward-looking guidance fell short of market expectations. 

Applied Materials guided fourth quarter revenue to be between $6.7 billion compared to $7.30 billion and non-GAAP diluted earnings per share to be between $2.11 compared to $2.11 a quarter earlier.

“We are expecting a decline in revenue in the fourth quarter driven by both digestion of capacity in China and nonlinear demand from leading-edge customers given market concentration and fab timing,” said Brice Hill, Senior Vice President and CFO.

Dillard’s Inc. gained 15 cents to $498.73 after the department store chain reported a slight increase in revenue and a marginal decline in net income in the second quarter.

Trump's Interference in Corporate America, Global Trade, and Fed's Decision Making Unnerves Global Investors

Wall Street indexes advanced on Friday and extended weekly gains after retail sales confirmed resilient consumer spending. 

The S&P 500 index edged up 0.1%, and the Nasdaq Composite gained a fraction as July's retail sales data indicated positive consumer sentiment. 

Benchmark indexes are set to advance 1% after a week of trading, despite a mixed picture on the inflation front. 

Consumer price inflation was steady at 2.7% in July, but producer price inflation rose at an annual pace of 3.4%, the fastest pace since February.

Investors are still holding out for at least a 25 basis point rate cut at the end of a two-day policy meeting on September 17, but the persistent interference by the U.S. president is worrying investors. 

Donald Trump has persistently pressured Fed Chair Powell to lower interest rates, demanded Intel fire its chief executive, asked Goldman Sachs to replace its chief economist, and taken a cut from the sale of advanced chips to China. 

In addition, Trump fired the head of the U.S. Bureau of Labor Statistics, undermining the credibility of the U.S. data.

U.S. Stock Movers 

Circle Internet Group extended two-day losses to 13% to $136.66 after the company filed to sell 10 million shares in a public offering at $130 per share. 

The stablecoin cryptocurrency issuer said it plans to sell 2 million shares, and existing stockholders plan to sell 8 million shares.

UnitedHealth Group soared 10% to $298.70 after Berkshire Hathaway and Scion Asset Management disclosed stakes in the company. 

Warren Buffett's controlled Berkshire Hathaway acquired 5 million shares for $1.6 billion, and David Tepper's controlled Appaloosa and Michael Burry's controlled Scion Asset Management also acquired direct stakes in the beleaguered insurance company.

Burry's Scion Asset Management also acquired direct stakes in Lululemon, Regeneron, Mercado Libre, and Bruker and trimmed its holding in Estee Lauder to 150,000 from 200,000 stocks. 

Intel Corp. jumped 3.4% to $24.69 after a Bloomberg report suggested that the Trump administration is in talks to buy a stake in the company, helping the company to expand its manufacturing capacity in the U.S. 

Applied Materials dropped 14% to $161.94 after the company's forward-looking guidance fell short of market expectations. 

Applied Materials guided fourth quarter revenue to be between $6.7 billion compared to $7.30 billion and non-GAAP diluted earnings per share to be between $2.11 compared to $2.11 a quarter earlier.

“We are expecting a decline in revenue in the fourth quarter driven by both digestion of capacity in China and nonlinear demand from leading-edge customers given market concentration and fab timing,” said Brice Hill, Senior Vice President and CFO.

Dillard’s Inc. gained 15 cents to $498.73 after the department store chain reported a slight increase in revenue and a marginal decline in net income in the second quarter.