China Indexes Jumped 1%, Evergrande Group to Delist HK Stock

Stock market indexes in China and Hong Kong soared, tracking gains in New York amid hopes of a rate cut. 

The Hang Seng index jumped nearly 2%, and the CSI 300 index advanced 0.9% in the hopes that the cooler-than-expected inflation in the U.S. is likely to spur the Federal Reserve to lower rates at the next policy meeting in September. 

In overnight trading, the S&P 500 index and the tech-focused Nasdaq Composite closed at new record highs after the annual consumer price inflation in July was 2.7%, matching the rate in the previous month. 

The cooler-than-expected overall inflation showed early signs of the sharp escalation in U.S. tariffs, as retailers gradually passed over higher import duties to consumers.

Core inflation, which excludes energy and food prices, accelerated to 3.1%, confirming the building of underlying inflationary forces. 

Benchmark indexes in China and Hong Kong advanced in the hopes that a rate cut in the U.S. will spur more demand for stocks from foreign investors seeking higher returns in emerging markets. 

Investors are also awaiting the release of fixed-asset investments, unemployment rates, retail sales, and new home prices data on Friday. 

China Evergrande Group Plans to Delist Hong Kong Shares

The property market developers were in focus after China Evergrande Group received a delisting notice from the Hong Kong Stock Exchange. 

The company is scheduled to delist its stock on August 25, after the embattled real estate group failed to meet the listing requirements for more than 18 months. 

The company's stock was suspended from trading on January 29, 2024, and last traded at 16 Hong Kong cents.

China Indexes and Stocks

The Hang Seng index jumped 1.8% to 25,425.90, and the CSI 300 index edged up 0.9% to 4,179.77. 

Tencent Holdings Ltd increased 3.6% to HK $577.0, Alibaba Group Holding gained 4.4% to HK $121.80, and Meituan advanced 3.6% to HK $123.70.

China Indexes Jumped 1%, Evergrande Group to Delist HK Stock

Stock market indexes in China and Hong Kong soared, tracking gains in New York amid hopes of a rate cut. 

The Hang Seng index jumped nearly 2%, and the CSI 300 index advanced 0.9% in the hopes that the cooler-than-expected inflation in the U.S. is likely to spur the Federal Reserve to lower rates at the next policy meeting in September. 

In overnight trading, the S&P 500 index and the tech-focused Nasdaq Composite closed at new record highs after the annual consumer price inflation in July was 2.7%, matching the rate in the previous month. 

The cooler-than-expected overall inflation showed early signs of the sharp escalation in U.S. tariffs, as retailers gradually passed over higher import duties to consumers.

Core inflation, which excludes energy and food prices, accelerated to 3.1%, confirming the building of underlying inflationary forces. 

Benchmark indexes in China and Hong Kong advanced in the hopes that a rate cut in the U.S. will spur more demand for stocks from foreign investors seeking higher returns in emerging markets. 

Investors are also awaiting the release of fixed-asset investments, unemployment rates, retail sales, and new home prices data on Friday. 

China Evergrande Group Plans to Delist Hong Kong Shares

The property market developers were in focus after China Evergrande Group received a delisting notice from the Hong Kong Stock Exchange. 

The company is scheduled to delist its stock on August 25, after the embattled real estate group failed to meet the listing requirements for more than 18 months. 

The company's stock was suspended from trading on January 29, 2024, and last traded at 16 Hong Kong cents.

China Indexes and Stocks

The Hang Seng index jumped 1.8% to 25,425.90, and the CSI 300 index edged up 0.9% to 4,179.77. 

Tencent Holdings Ltd increased 3.6% to HK $577.0, Alibaba Group Holding gained 4.4% to HK $121.80, and Meituan advanced 3.6% to HK $123.70.

Overall Inflation Held Steady But Core index Accelerated to Five-Month High In July

Benchmark indexes on Wall Street struggled to stay above the flatline after consumer price inflation steadied in July. 

The S&P 500 index edged down 0.1%, and the Nasdaq Composite decreased 0.2%, after the consumer price inflation held  steady in July. 

The consumer price index increased to an annual 2.7%, driven by retailers gradually passing on higher import duties on furniture and recreational goods. 

Higher used and new car prices and airline fares were offset by a slight decline in shelter costs and gasoline prices at pump stations. 

Core inflation, which excludes volatile food and energy prices, rose to a five-month high of 3.1% from 2.9% in the previous month.

Investors are now looking forward to the release of the producer price index on Thursday. 

Most businesses are expected to begin to pass on higher import duties to their customers starting this month, and average import duties are expected to hover above 19%. 

August's consumer price inflation is expected to shoot up above 3% as retailers pass on higher import duties, following the surge in goods price inflation.

U.S. Stock Movers 

Hanesbrands soared 43.9% to $6.94 after Gildan Activewear was reportedly in talks to acquire the T-shirt maker for $5 billion. 

The Financial Times first reported about the merger talks, and ticker.com could not verify the deal terms. 

Gildan Activewear declined 5.8% to $48.0. 

Circle Internet Group jumped 6.7% to $172.0 after the cryptocurrency company said revenue in the second quarter increased 53% to $658.1 million from $430 million a year ago. 

Net income from continuing operations turned to a loss of $482.1 million from a profit of $32.8 million, and diluted earnings per share was a loss of $4.48 compared to a breakeven a year ago.   

Overall Inflation Held Steady But Core index Accelerated to Five-Month High

Benchmark indexes on Wall Street struggled to stay above the flatline after consumer price inflation steadied in July. 

The S&P 500 index edged down 0.1%, and the Nasdaq Composite decreased 0.2%, after the consumer price inflation held  steady in July. 

The consumer price index increased to an annual 2.7%, driven by retailers gradually passing on higher import duties on furniture and recreational goods. 

Higher used and new car prices and airline fares were offset by a slight decline in shelter costs and gasoline prices at pump stations. 

Core inflation, which excludes volatile food and energy prices, rose to a five-month high of 3.1% from 2.9% in the previous month.

Investors are now looking forward to the release of the producer price index on Thursday. 

Most businesses are expected to begin to pass on higher import duties to their customers starting this month, and average import duties are expected to hover above 19%. 

August's consumer price inflation is expected to shoot up above 3% as retailers pass on higher import duties, following the surge in goods price inflation.

U.S. Stock Movers 

Hanesbrands soared 43.9% to $6.94 after Gildan Activewear was reportedly in talks to acquire the T-shirt maker for $5 billion. 

The Financial Times first reported about the merger talks, and ticker.com could not verify the deal terms. 

Gildan Activewear declined 5.8% to $48.0. 

Circle Internet Group jumped 6.7% to $172.0 after the cryptocurrency company said revenue in the second quarter increased 53% to $658.1 million from $430 million a year ago. 

Net income from continuing operations turned to a loss of $482.1 million from a profit of $32.8 million, and diluted earnings per share was a loss of $4.48 compared to a breakeven a year ago.   

Trade Desk Inc. dropped 38.6% to $54.23 despite the advertising technology company reporting a slight increase in revenue and net income in the latest quarter.

Consolidated revenue in the June quarter increased to $694 million from $585 million, net income inched higher to $90 billion from $85 billion, and diluted earnings per share rose to 18 cents from 17 cents a year ago.

During the second quarter, the company repurchased $261 million of its Class A common stock, and as of June 30, $375 million remained available under the share repurchase program.

For the third quarter, the company estimated revenue of "at least $717 million" and anticipates adjusted EBITDA of approximately $277 million.

GoDaddy Inc. plunged 11.25% to $133.35 despite the domain registrar reporting a 37% increase in net income in the fiscal second quarter.

Consolidated revenue in the June quarter edged higher to $1.21 billion from $1.12 billion, net income advanced to $199.9 million from $146.3 million, and diluted earnings per share rose to $1.41 from $1.01 a year ago.

Year-to-date through August 6, GoDaddy returned approximately $906 million to shareholders through the repurchase of 5.2 million shares of common stock at an average price of $174.42 per share.

The company guided revenue in the third quarter to range between $1.22 billion and $1.24 billion. and full-year revenue to be between $4.89 billion and $4.94 billion, an increase of 7%, respectively. 

Expedia Inc. jumped 4.1% to $195.26 after the online travel booking platform operator reported more than a two-and-a-half-fold jump in earnings in the second quarter. 

Consolidated revenue in the June quarter inched higher to $3.7 billion from $3.6 billion, net income climbed to $322 million from $125 million, and diluted earnings per share soared to $2.48 from 96 paisa a year ago.

During the second quarter, Expedia returned a total of $627 million to shareholders through share repurchases and dividends, including the repurchase of 3.8 million shares in the second quarter and 5.6 million shares for $957 million for the first half of 2025. 

For the second quarter of 2025, the company’s Board of Directors declared a cash dividend of $0.40 per share payable on September 18.

The company estimated third-quarter revenue to rise between 4% and 6%, driven by the increase in gross bookings to between 5% and 7%. 

Datadog fell 4% to $130.91 after the monitoring and security platform provider reported a 98% drop in quarterly profit from a year ago.

Consolidated revenue in the June quarter increased to $826.8 million from $645.3 billion, net income dropped to $2.6 million from $43.8 million, and diluted earnings per share fell to 1 cent from 12 cents a year ago.

The company guided third-quarter revenue between $847 million and $851 million, compared to $826.8 million a quarter earlier; non-GAAP operating income between $176 million and $180 million; and non-GAAP earnings per share between 44 cents and 46 cents.

The company guided full-year revenue between $3.3 billion and $3.3 billion; non-GAAP operating income between $684 million and $694 million; and non-GAAP net income per share between $1.80 and $1.83.

Uber Technologies Inc. fell 0.2% to $89.01, and the ride-hailing and delivery services provider reported a muted increase in sales and earnings in the latest quarter.

Revenue increased to $12.6 billion from $10.7 billion, net income jumped to $1.4 billion from $1.0 billion, and diluted earnings per share rose to $0.63 from $0.47 a year ago.

For the six-month period, revenue edged higher to $24.2 billion from $20.8 billion, net income soared to $3.1 billion from $361 million, and diluted earnings per share advanced to $1.47 from 15 cents a year ago.

The company's board authorized a new share repurchase program for an additional $20 billion.

During the second quarter, the company returned $1.3 billion to shareholders through its stock repurchase program. 

 Looking ahead to the third quarter of 2025, the company projected "robust year-over-year growth, driven by strong underlying demand and recent strategic acquisitions."

Gross bookings are expected to range between $48.25 billion and $49.75 billion, reflecting a 17% to 21% increase year-over-year on a constant currency basis. 

This outlook factors in a neutral to modestly positive foreign exchange impact on total reported growth.

Adjusted EBITDA is projected to fall between $2.19 billion and $2.29 billion, representing a 30% to 36% increase compared to the same period last year.

Shopify Inc. declined 0.2% to $154.7 despite the Canada-based e-commerce company reporting more than a five-fold jump in earnings in the second quarter. 

Consolidated revenue in the June quarter increased to $2.6 billion from $2.0 billion, net income jumped to $906 million from $171 million, and diluted earnings per share rose to 70 cents from 13 cents a year ago.

For the six-month period, revenue advanced to $5.0 billion from $3.9 billion, net income swung to a profit of $224 million from a loss of $102 million, and diluted earnings per share rose to an income of 17 cents from a loss of 8 cents a year ago.

Management has reiterated that cash dividends are not expected to be distributed for the foreseeable future.

Shopify guided third-quarter revenue to grow at a mid-twenties percentage rate a year ago.

DoorDash Inc. rose 8.5% to $280 after the food delivery company’s net income swung to a profit from a year ago in the June quarter.

Consolidated revenue in the June quarter increased to $3.3 billion from $2.6 billion, net income swung to a profit of $285 million from a loss of $157 million, and diluted income per share swung to a profit of 65 cents from a loss of 38 cents a year ago.

For the six-month period, revenue advanced to $6.3 billion from $5.1 billion, net income swung to a profit of $478 million from a loss of $180 million, and diluted income per share swung to a profit of $1.09 from a loss of 44 cents a year ago.

During the six-month period, the company returned $7 million to stockholders in the form of share repurchases.

The company guided adjusted EBITDA in the next quarter to range between $680 million and $780 million and Marketplace GOV to range between $24.2 billion and $24.7 billion.

During the second quarter the company acquired Deliveroo plc for about $3.9 billion.

“We continue to expect our proposed acquisition of Deliveroo plc to close during Q4 2025.” The company noted.

Airbnb Inc. dropped 5.6% to $122.7, and the online vacation rental company said net income advanced in the second quarter.

Consolidated revenue in the June quarter increased 13% to $3.1 billion from $2.7 billion, net income advanced 16% to $642 million from $555 million, and diluted earnings per share rose to $1.03 from 86 cents a year ago. 

The company guided third-quarter revenue between $4.02 billion and $4.10 billion and adjusted earnings to increase to $2.0 billion. 

The company used $1 billion of its authorization to purchase its own shares, and the company announced a new $6 billion stock repurchase plan.

Over the last twelve months ending in the second quarter, the company spent $3.7 billion to acquire its class A common stock and lowered its fully diluted shares to 652 million from 673 million a year ago. 

Japan's Indexes Closed at New Record Highs, SoftBank Group Jumped 6%

Japan's benchmark indexes soared to new record highs after investors returned from a three-day holiday.

The Nikkei 225 Stock Average jumped 2.7%, and the Topix advanced 1.8%, and both indexes closed at new record highs amid optimism over the international trade. 

China and the U.S. confirmed the extension of the trade tariff deadline by 90 days to November 10, supporting the market sentiment across Asia. 

The U.S. tariff on Chinese goods averaged about 50% in July, but import duties were scheduled to increase as high as 145% on some products. 

For now, the extension of the tariff deadline avoided the worst-case scenario, but the U.S. is likely to impose a "punitive tariff" of 25% for China's continued import of Russian oil and natural gas. 

On the domestic economic front, investors remained divided about the Bank of Japan's next move, and traders continued to bet that the central bank will hike rates by at least 25 basis points before the year's end. 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average soared 2.7% to 42,942.96, and the broader Topix added 1.8% to 3,077.35. 

SoftBank Group added 6.5% to ¥14,765.0 after the investment company committed to invest as much as $32.7 billion in OpenAI. 

In addition, the company agreed to acquire chip design firm Ampere Computing for $5.6 billion.

Sanrio Co. Ltd. soared 15.7% to ¥7,180.0 after the parent company of the Hello Kitty brand reported strong quarterly results. 

Net sales in the June quarter soared 49.1% to 43 billion yen, operating profit jumped 88% to 20.1 billion yen, and the profit attributable to owners of the parent company advanced 37.8% to 14.1 billion yen.

The sales growth in the quarter was driven by the global popularity of the company's characters, increased sales in domestic stores and theme parks, and solid growth in its licensing business in North America and China. 

Tokyo Electron advanced 2.2% to ¥21,760.0 and rebounded from a one-week low after the company's quarterly results last week fell short of investor expectations.

Japan's Indexes Close at New Record Highs, SoftBank Group Jumped 6%

Japan's benchmark indexes soared to new record highs after investors returned from a three-day holiday.

The Nikkei 225 Stock Average jumped 2.7%, and the Topix advanced 1.8%, and both indexes closed at new record highs amid optimism over the international trade. 

China and the U.S. confirmed the extension of the trade tariff deadline by 90 days to November 10, supporting the market sentiment across Asia. 

The U.S. tariff on Chinese goods averaged about 50% in July, but import duties were scheduled to increase as high as 145% on some products. 

For now, the extension of the tariff deadline avoided the worst-case scenario, but the U.S. is likely to impose a "punitive tariff" of 25% for China's continued import of Russian oil and natural gas. 

On the domestic economic front, investors remained divided about the Bank of Japan's next move, and investors continued to bet that the central bank will hike rates by at least 25 basis points before the year's end. 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average soared 2.7% to 42,942.96, and the broader Topix added 1.8% to 3,077.35. 

SoftBank Group added 6.5% to ¥14,765.0 after the investment company committed to invest as much as $32.7 billion in OpenAI. 

In addition, the company agreed to acquire chip design firm Ampere Computing for $5.6 billion.

Sanrio Co. Ltd. soared 15.7% to ¥7,180.0 after the parent company of the Hello Kitty brand reported strong quarterly results. 

Net sales in the June quarter soared 49.1% to 43 billion yen, operating profit jumped 88% to 20.1 billion yen, and the profit attributable to owners of the parent company advanced 37.8% to 14.1 billion yen.

The sales growth in the quarter was driven by the global popularity of the company's characters, increased sales in domestic stores and theme parks, and solid growth in its licensing business in North America and China. 

Tokyo Electron advanced 2.2% to ¥21,760.0 and rebounded from a one-week low after the company's quarterly results last week fell short of investor expectations.

China Stocks Lacked Direction as Investors Awaited Retail Sales and Fixed-Investment Data

China and Hong Kong stocks wavered as investors remained focused on earnings results and economic data. 

The Hang Seng index edged up 0.1%, and the CSI 300 index advanced 0.5% in lackluster trading as the U.S. and China confirmed the extension of the trade tariff deadline.

The U.S. president extended the deadline by 90 days to November 10, citing progress in talks, but Chinese negotiators in Beijing confirmed that the two sides remain far apart. 

China is also bracing for an additional "punitive tariff" of 25% for its continued import of Russian oil, in addition to tariffs that average about 50% on goods shipments to the U.S. 

On the economic front, the National Bureau of Statistics is scheduled to release retail sales and fixed-asset investments on Friday. 

Both economic measures are likely to show a slight easing in activities amid persistent malaise in the property market, falling consumer confidence, and a weakening job market. 

In addition, investors are awaiting the release of earnings from Tencent Holdings, NetEase Inc., and JD.com later in the week.

China Indexes and Stocks 

The Hang Seng index edged up 0.1% to 24,911.45, and the CSI 300 index gained 0.5% to 4,143.85. 

Tencent Holdings Ltd decreased 0.3% to HK $559.50, NetEase Inc edged up 0.6% to HK $203.80, and JD.com added 0.2% to HK $122.50. 

Zijin Mining Group advanced 0.5% to HK $22.96 after the U.S. president said that gold bullion imports will not attract import taxes. 

 Nongfu Spring Company Ltd. added 1.5% to HK $47.20, BYD Electronic International gained 1.4% to HK $40.02, and Zhongsheng Group Holdings Ltd. added 5.5% to HK $14.48.