Wall Street Indexes Set to Scale New Highs as Investors Ignore Tariff Impacts

Stocks on Wall Street advanced on Friday and extended weekly gains, but market sentiment remained cautious after the start of sky-high Trump tariffs. 

The S&P 500 index edged up 0.3%, and the Nasdaq Composite advanced 0.4%, as investors attempted to understand the impact of high import tax on the U.S. and global economy, supply chains, and corporate investment plans. 

For now, high tariffs are not showing in inflation and jobless numbers, but as import tax collection accelerates from today, businesses will begin to pass higher prices to consumers. 

In addition, hundreds of thousands of small importers and retailers are likely to fold, limiting the choice to consumers.

Higher goods prices are set to fuel inflationary forces, contribute to services inflation, and lift building costs of new homes, keeping the overall inflation higher for longer. 

Donald Trump campaigned on the promise of lowering prices and ending the Russia-Ukraine war on the first day; instead, consumers are facing a sharp increase in prices at retail stores. 

The U.S. economy will have to adjust to the largest increase in import tax since the Great Depression, about a century ago. 

Trump, with the help of the Republican Party, has unleashed the largest increase in import tax in a century on American families and businesses, as average tariffs now hover over 17% compared to less than 3% a year ago. 

The import tax is likely to jump close to 25% in the months ahead, as generic drugs from India face close to 50% tariffs, goods from China incur over 52% tariffs, and the European and Japanese automobiles face between 15% and 25% duties.

U.S. Stock Movers 

Under Armour Inc. dropped 15.6% to $5.60 after the specialty apparel retailer reported weaker-than-expected fiscal first-quarter results and issued a downbeat second-quarter estimate. 

The retailer confirmed that escalating Trump tariffs are impacting its costs, and the demand is likely to shift downward amid a higher price environment.

The sportswear retailer reported revenue of $1.01 billion and adjusted earnings per share of 2 cents, and the company guided revenue to fall between 6% and 7% and adjusted earnings per share to range between 1 cent and 2 cents. 

Pinterest Inc. dropped 12% to $34.49 after the digital content platform operator reported weaker-than-expected second-quarter earnings per share of 33 cents. 

Wall Street Indexes Set to Scale New Highs as Investors Ignore Tariff Impacts

Stocks on Wall Street advanced on Friday and extended weekly gains, but market sentiment remained cautious after the start of sky-high Trump tariffs. 

The S&P 500 index edged up 0.3%, and the Nasdaq Composite advanced 0.4%, as investors attempted to understand the impact of high import tax on the U.S. and global economy, supply chains, and corporate investment plans. 

For now, high tariffs are not showing in inflation and jobless numbers, but as import tax collection accelerates from today, businesses will begin to pass higher prices to consumers. 

In addition, hundreds of thousands of small importers and retailers are likely to fold, limiting the choice to consumers.

Higher goods prices are set to fuel inflationary forces, contribute to services inflation, and lift building costs of new homes, keeping the overall inflation higher for longer. 

Donald Trump campaigned on the promise of lowering prices and ending the Russia-Ukraine war on the first day; instead, consumers are facing a sharp increase in prices at retail stores. 

The U.S. economy will have to adjust to the largest increase in import tax since the Great Depression, about a century ago. 

Trump, with the help of the Republican Party, has unleashed the largest increase in import tax in a century on American families and businesses, as average tariffs now hover over 17% compared to less than 3% a year ago. 

The import tax is likely to jump close to 25% in the months ahead, as generic drugs from India face close to 50% tariffs, goods from China incur over 52% tariffs, and the European and Japanese automobiles face between 15% and 25% duties.

U.S. Stock Movers 

Under Armour Inc. dropped 15.6% to $5.60 after the specialty apparel retailer reported weaker-than-expected fiscal first-quarter results and issued a downbeat second-quarter estimate. 

The retailer confirmed that escalating Trump tariffs are impacting its costs, and the demand is likely to shift downward amid a higher price environment.

The sportswear retailer reported revenue of $1.01 billion and adjusted earnings per share of 2 cents, and the company guided revenue to fall between 6% and 7% and adjusted earnings per share to range between 1 cent and 2 cents. 

Pinterest Inc. dropped 12% to $34.49 after the digital content platform operator reported weaker-than-expected second-quarter earnings per share of 33 cents. 

Japan Indexes Stretched Weekly Gains to 5%, SoftBank In Focus After Earnings Results

Japan's benchmark indexes extended their weekly rise amid easing trade woes and positive earnings results from domestic corporations. 

The Nikkei 225 Stock Average gained 2%, the broader Topix advanced 1.5%, and they extended their weekly rise to 4.7%. 

Stocks advanced after SoftBank Group reported better-than-expected quarterly results, supported by a recovery in its tech fund. 

Sony Group extended its 2-day gain over 10% after the diversified entertainment company lifted its annual operating earnings outlook by 4%.

The broader Topix index jumped to a record high and traded above 3,000 for the first time amid an improving earnings outlook. 

Japan's Real Household Spending Advanced In June

Japan's household spending in real terms rose for the second consecutive month in June, the Ministry of Internal Affairs and Communications said on Friday. 

The average of monthly consumption expenditures per household for June was 295,419 yen, up 5.2% in nominal terms and up 1.3% in real terms from the previous year. 

Transportation and communication spending rose 8.6%, after automakers ramped up shipments following the certification scandal last year. 

Food expenditures decreased 2.1% after rising in the previous three months, driven by a 12.1% fall in rice prices after the government released from the emergency supply.

The average monthly income per household with two or more people stood at 976,268 yen, up 2.0% in nominal terms but down 1.7% in real terms from the previous year.

Household spending is a key indicator of consumption, which makes up more than half of Japan's gross domestic product. 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average gained 2% to 41,908.34, and the broader Topix added 1.5% to 3,031.79. 

Tokyo Electron inched up 1.5% to ¥21,330.0, as the company struggles with the accusation levied by TSMC that it leaked sensitive data to a competitor. 

SoftBank Group jumped 11.9% to ¥13,935.0 after the company swung to profit in the June quarter. 

Revenue in the quarter increased 7.8% to 1.8 trillion yen from 1.7 trillion yen, net income attributable to shareholders swung to a profit of 421.8 billion yen from a loss of 174.2 billion yen, and diluted earnings per share rose to 291.28 yen from a loss of 123.67 yen a year ago. 

The company said it has completed cumulative stock repurchase worth 330 billion yen by the first quarter-end from the 500 billion authorized by the board of directors in August 2024.

The company confirmed the completion of a $10 billion investment in the U.S.-based OpenAI Global, of the announced total investment of $40 billion.

Japan Indexes Stretched Weekly Gains to 5%, SoftBank In Focus After Earnings Results

Japan's benchmark indexes extended their weekly rise amid easing trade woes and positive earnings results from domestic corporations. 

The Nikkei 225 Stock Average gained 2%, the broader Topix advanced 1.5%, and they extended their weekly rise to 4.7%. 

Stocks advanced after SoftBank Group reported better-than-expected quarterly results, supported by a recovery in its tech fund. 

Sony Group extended its 2-day gain over 10% after the diversified entertainment company lifted its annual operating earnings outlook by 4%.

The broader Topix index jumped to a record high and traded above 3,000 for the first time amid an improving earnings outlook. 

Japan Indexes and Stocks 

The Nikkei 225 Stock Average gained 2% to 41,908.34, and the broader Topix added 1.5% to 3,031.79. 

Tokyo Electron inched up 1.5% to ¥21,330.0, as the company struggles with the accusation levied by TSMC that it leaked sensitive data to a competitor. 

SoftBank Group jumped 11.9% to ¥13,935.0 after the company swung to profit in the June quarter. 

Revenue in the quarter increased 7.8% to 1.8 trillion yen from 1.7 trillion yen, net income attributable to shareholders swung to a profit of 421.8 billion yen from a loss of 174.2 billion yen, and diluted earnings per share rose to 291.28 yen from a loss of 123.67 yen a year ago. 

The company said it has completed cumulative stock repurchase worth 330 billion yen by the first quarter-end from the 500 billion authorized by the board of directors in August 2024.

The company confirmed the completion of a $10 billion investment in the U.S.-based OpenAI Global, of the announced total investment of $40 billion.

China Indexes Trimmed Weekly Advances Ahead of Inflation Reports

Market sentiment weakened in China and Hong Kong after a string of weak earnings dampened enthusiasm, and investors awaited the release of inflation reports this weekend. 

The Hang Seng index decreased 0.7%, and the mainland-focused CSI index inched up a fraction, as investors turned cautious after disappointing earnings results weakened the outlook. 

Wharf Real Estate and Semiconductor Manufacturing International Corp. reported weaker-than-expected interim results, but China Mobile's results surpassed expectations. 

The National Bureau of Statistics will release two inflation reports over the weekend, predicting a declining trend in prices. 

The consumer price inflation in July is likely to decrease at least 0.1% from a  year ago, and the producer price index is expected to fall for the 34th consecutive month in July and fall 3.5%.  

China Indexes and Stocks 

The Hang Seng index decreased 0.7% to 24,916.15, and the mainland-focused CSI 300 index added 0.06% to 4,117.20. 

For the week, the Hang Seng index advanced 2%, and the CSI 300 index gained 1.9%. 

Wharf Real Estate Company dropped 9% to HK$23.38 after the company reported a 5% decline in profit in the first half. 

China Mobile Ltd. edged up 1% to HK $86.80 after the wireless telecom company reported a 5% increase in profit in the first half. 

Semiconductor Manufacturing International Corp. decreased 5.5% to HK $50.05 after the company's interim results fell short of market expectations.

China Indexes Trimmed Weekly Advances Ahead of Inflation Reports

Market sentiment weakened in China and Hong Kong after a string of weak earnings dampened enthusiasm, and investors awaited the release of inflation reports this weekend. 

The Hang Seng index decreased 0.7%, and the mainland-focused CSI index inched up a fraction, as investors turned cautious after disappointing earnings results weakened the outlook. 

Wharf Real Estate and Semiconductor Manufacturing International Corp. reported weaker-than-expected interim results, but China Mobile's results surpassed expectations. 

The National Bureau of Statistics will release two inflation reports over the weekend, predicting a declining trend in prices. 

The consumer price inflation in July is likely to decrease at least 0.1% from a  year ago, and the producer price index is expected to fall for the 34th consecutive month in July and fall 3.5%.  

China Indexes and Stocks 

The Hang Seng index decreased 0.7% to 24,916.15, and the mainland-focused CSI 300 index added 0.06% to 4,117.20. 

For the week, the Hang Seng index advanced 2%, and the CSI 300 index gained 1.9%. 

Wharf Real Estate Company dropped 9% to HK$23.38 after the company reported a 5% decline in profit in the first half. 

China Mobile Ltd. edged up 1% to HK $86.80 after the wireless telecom company reported a 5% increase in profit in the first half. 

Semiconductor Manufacturing International Corp. decreased 5.5% to HK $50.05 after the company's interim results fell short of market expectations.

Stock Movers: Uber Technologies, Shopify, DoorDash, Airbnb

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. 

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 a quarter earlier.

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.

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.

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.

Stock Movers: Uber Technologies, Shopify, DoorDash, Airbnb

Airbnb Inc. dropped 5.6% to $122.7, and the online vacation rental company said net loss shrank 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 per share 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. 

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 a quarter earlier.

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.

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.

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.

Stocks Power Ahead On Wall Street as Investors Overlook Start of Trump's Tariffs

Stocks on Wall Street meandered, and the U.S. president unveiled new tariffs on India and on imported advanced chips.

The S&P 500 index edged up 0.6%, the Nasdaq Composite gained 0.8%, and Donald Trump announced tariffs of 100% on advanced chips but offered broad exemptions. 

The vague and misleading posts by the U.S. president on his social media platform raised more questions than answers, because they lacked a specific timetable, nature of duty, and applicable product ranges.

The latest Trump announcements follow a string of dubious claims made by the Trump administration about a deal with China, the European Union, and Japan. 

The so-called deal with Japan is not even in writing, allowing both sides to walk away at a later date. 

Trump slapped an additional 25% import duty on imports from India, with a 21-day delay, for the continued purchase of Russian oil, which was previously encouraged by the Biden administration and the European Union. 

The international community deems the Trump administration's weaponization of tariffs as a double-edged sword, and countries are laying groundwork to ramp up their trade negotiations that exclude the U.S. 

China has ramped up its exports of electric vehicles to Brazil, Mexico, Nepal, ASEAN, the Middle East, and Russia. 

Japan is looking to increase its exports to India, the ASEAN region, and the Middle East. 

India and China are negotiating a broader trade deal, paving the way for the shift of manufacturing of electric appliances and semiconductors to the third-largest economy in Asia. 

U.S. Stock Movers 

DoorDash Inc. jumped 7.9% to $278.50, and the food delivery company reported better-than-expected quarterly results. 

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.

Shopify Inc. jumped 22% to $154.90 after the online shopping platform operator reported strong quarterly results, driven by a surge in revenue in its European operations. 

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.

Airbnb Inc. dropped 6.5% to $121.95, and the online vacation rental company said net loss shrank 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 per share to increase to $2.0 billion. 

Duolingo Inc. soared 25% to $430.0 after the free language-learning app reported a 42% jump in revenue in the second quarter. 

The daily active users rose 40% to 47.7 million, and the company guided third-quarter revenue between $257 million and $261 million. 

“We exceeded our own high expectations for bookings and revenue this quarter and did it while expanding profitability,” said CEO and co-founder Luis von Ahn in a note to investors. 

Stocks Power Ahead On Wall Street as Investors React to Earnings Results

Stocks on Wall Street meandered, and the U.S. president unveiled new tariffs on India and on imported advanced chips.

The S&P 500 index edged up 0.6%, the Nasdaq Composite gained 0.8%, and Donald Trump announced tariffs of 100% on advanced chips but offered broad exemptions. 

The vague and misleading posts by the U.S. president on his social media platform raised more questions than answers, because they lacked a specific timetable, nature of duty, and applicable product ranges.

The latest Trump announcements follow a string of dubious claims made by the Trump administration about a deal with China, the European Union, and Japan. 

The so-called deal with Japan is not even in writing, allowing both sides to walk away at a later date. 

Trump slapped an additional 25% import duty on imports from India, with a 21-day delay, for the continued purchase of Russian oil, which was previously encouraged by the Biden administration and the European Union. 

The international community deems the Trump administration's weaponization of tariffs as a double-edged sword, and countries are laying groundwork to ramp up their trade negotiations that exclude the U.S. 

China has ramped up its exports of electric vehicles to Brazil, Mexico, Nepal, ASEAN, the Middle East, and Russia. 

Japan is looking to increase its exports to India, the ASEAN region, and the Middle East. 

India and China are negotiating a broader trade deal, paving the way for the shift of manufacturing of electric appliances and semiconductors to the third-largest economy in Asia. 

U.S. Stock Movers 

DoorDash Inc. jumped 7.9% to $278.50, and the food delivery company reported better-than-expected quarterly results. 

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.

Shopify Inc. jumped 22% to $154.90 after the online shopping platform operator reported strong quarterly results, driven by a surge in revenue in its European operations. 

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.

Airbnb Inc. dropped 6.5% to $121.95, and the online vacation rental company said net loss shrank in the second quarter.

Consolidated revenue in the June quarter increased to $760.9 million from $637.2 billion, net loss dropped to $3.2 million from $14.4 million, and diluted losses per share declined to 6 cents from 28 cents a year ago.

The company guided third-quarter revenue between $785 billion and $787 billion, compared to a million; net earnings between $156 million and $157 million; and diluted earnings per share between $2.56 and $2.58 a quarter earlier, respectively.

Duolingo Inc. soared 25% to $430.0 after the free language-learning app reported a 42% jump in revenue in the second quarter. 

The daily active users rose 40% to 47.7 million, and the company guided third-quarter revenue between $257 million and $261 million. 

“We exceeded our own high expectations for bookings and revenue this quarter and did it while expanding profitability,” said CEO and co-founder Luis von Ahn in a note to investors. 

Japan Indexes Extended 3-Day Rally, Sony and Toyota Motor In Focus

Japan's stock market indexes advanced for the third consecutive session on Thursday, as investors reacted to domestic corporate news. 

The Nikkei 225 Stock Average increased 0.5%, and the broader Topix advanced 0.6%, as investors worry that the U.S. trade policy will negatively impact corporate earnings in the second half.

The Bank of Japan is more likely to raise rates in the near future, but policymakers are taking a wait-and-see approach in assessing the impact of U.S. tariffs on Japan's exports.

Pharmaceutical companies are bracing for 250% U.S. tariffs, and automobile makers are likely to face higher tariffs despite the 25% level agreed upon during the latest negotiations between Japan and the U.S. 

Moreover, China is likely to face additional tariffs of 25%, mirroring the similar duties on India, after the U.S. president slapped secondary tariffs on countries importing Russian oil.

Japan Indexes and Stocks 

The Nikkei 225 Stock Average increased 0.5% to 40,995.93, and the broader Topix index added 0.6% to 2,983.61.

Toyota Motor Corp. declined 1.4% to ¥2,680.0, and the vehicle maker reported a 37% decline in net profit in the fiscal first quarter ending in June. 

The company lowered its annual operating profit to 3.2 trillion yen, or $21.7 billion, from the previous estimate of 3.8 trillion yen. 

Sony Group Corporation increased 4.2% to ¥3,860.0, after the diversified company reported a 36% increase in profit in the latest quarter. 

Revenue increased 2.2% to 2.62 trillion yen from 2.56 trillion yen, net income surged 22.6% to 262.8 billion yen from 214.3 billion yen, and diluted earnings per share rose to 42.84 yen from 34.37 a year ago. 

The company guided fiscal year revenue to decline 2.8% to 11.7 trillion yen, operating income to increase 4.2% to 1.33 trillion yen, and net income attributable to shareholders to fall 9.1% to 970 billion yen.

Japan Indexes Extended 3-Day Rally, Sony and Toyota Motor In Focus

Japan's stock market indexes advanced for the third consecutive session on Thursday, as investors reacted to domestic corporate news. 

The Nikkei 225 Stock Average increased 0.5%, and the broader Topix advanced 0.6%, as investors worry that the U.S. trade policy will negatively impact corporate earnings in the second half.

The Bank of Japan is more likely to raise rates in the near future, but policymakers are taking a wait-and-see approach in assessing the impact of U.S. tariffs on Japan's exports.

Pharmaceutical companies are bracing for 250% U.S. tariffs, and automobile makers are likely to face higher tariffs despite the 25% level agreed upon during the latest negotiations between Japan and the U.S. 

Moreover, China is likely to face additional tariffs of 25%, mirroring the similar duties on India, after the U.S. president slapped secondary tariffs on countries importing Russian oil.

Japan Indexes and Stocks 

The Nikkei 225 Stock Average increased 0.5% to 40,995.93, and the broader Topix index added 0.6% to 2,983.61.

Toyota Motor Corp. declined 1.4% to ¥2,680.0, and the vehicle maker reported a 37% decline in net profit in the fiscal first quarter ending in June. 

The company lowered its annual operating profit to 3.2 trillion yen, or $21.7 billion, from the previous estimate of 3.8 trillion yen. 

Sony Group Corporation increased 4.2% to ¥3,860.0, after the diversified company reported a 36% increase in profit in the latest quarter. 

Revenue increased 2.2% to 2.62 trillion yen from 2.56 trillion yen, net income surged 22.6% to 262.8 billion yen from 214.3 billion yen, and diluted earnings per share rose to 42.84 yen from 34.37 a year ago. 

The company guided fiscal year revenue to decline 2.8% to 11.7 trillion yen, operating income to increase 4.2% to 1.33 trillion yen, and net income attributable to shareholders to fall 9.1% to 970 billion yen.

China's Global Exports Growth In July Defy U.S. Tariff Headwinds

China and Hong Kong stocks fluctuated as investors reviewed the latest international trade data and awaited corporate results. 

The Hang Seng index increased 0.5%, and the mainland-focused CSI 300 index edged up a fraction in a busy week of economic releases. 

China's Export Growth Accelerated in July

China's exports accelerated in July, driven by an increase in non-U.S. demand, and imports advanced at a faster-than-expected pace. 

Exports increased 7.2% to $321.8 billion, and imports advanced 4.1% to $223.6 billion, driving the trade surplus higher by 15% to $98.2 billion.

For the first seven months of 2025, China's total trade surplus increased to $683.5 billion, with exports up 6.1%, while imports declined by 2.7% compared to the same period a year ago.

Higher U.S. tariffs continue to negatively impact shipments, and exports to the U.S. fell 21.7% in July, after falling 16.1% in June. 

Chinese goods are facing an average of 51% U.S. import taxes, forcing many suppliers to seek alternative markets in Europe, Africa, and Latin America.

Exports to the ASEAN region advanced by 16.6%, matching the 16.8% in the previous month; to the European Union accelerated to 9.2% from 7.6%; to Africa soared 42%; and to Latin America advanced 7.7%, respectively.

China Indexes and Stocks 

The Hang Seng index increased 0.5% to 25,038.90, and the mainland-focused CSI 300 index edged up 0.1% to 4,115.54. 

Ahead of earnings, Semiconductor Manufacturing International advanced 3.4% to HK $54.20, and China Mobile decreased 0.1% to HK $85.50. 

ZTO Express increased 5% to HK $164.40, Alibaba Group Holding 2.4% to HK $119.50, and Tencent Holdings decreased 0.6% to HK $565.50.