Mixed Trends in Asian Markets, Sharp Decline in Japanese Banks

The Nikkei index is up 1.3%, the Kospi is down 0.7%, the Hang Seng is down 0.4%; oil retreat: Brent crude is down 1.4% to $89.5 per barrel, WTI is down 1.1% to $83.5 per barrel; chip equipment giant Advantest jumps 11.5% after reports; in Tokyo banks: Nomura falls 6% after a weak forecast - Mitsubishi Financial is down 3%.

Meta fell 7.5% in after-hours trading. The social media giant ended the second quarter with a decrease in net profit to $15.85 billion, compared to $18.34 billion in the same quarter last year.

Earnings per share were $6.18, analysts expected $7.22 per share; revenue totaled $60.80 billion, market expectations were $60.17 billion.

The company's expenses totaled $42.03 billion, a 55% jump compared to the same quarter. This amount includes legal expenses of $2.4 billion and expenses related to employee layoffs, in the amount of $1.18 billion.

The number of daily active users on the company's networks was 3.6 billion, slightly below forecasts of 3.61 billion.

The revenue forecast published by Meta for the current quarter (third quarter of 26) is in the range of $61-64 billion. The midpoint, $62.5 billion, is lower than analysts' expectations, which stand at $63.15 billion.

Microsoft jumped 8.9% in after-hours trading: the company recorded a net profit of $35.77 billion in the fourth fiscal quarter, compared to $27.23 billion in the same quarter.

Adjusted earnings per share were $4.74, analysts expected only $4.24. Capital expenditures (Capex) were $41 billion, a 69% jump compared to the same quarter.

Microsoft's revenue was $90.1 billion, an 18% growth compared to the same quarter, and again above expectations of $87.62 billion.

Revenue of the cloud division, which includes Azure, climbed 31.6% to $39.31 billion, market expectations were $38.16 billion.

Azure's activity alone grew by 43%, expectations were for 40% growth, similar to the growth rate in the previous quarter. For the entire fiscal year, Azure's revenue crossed $100 billion for the first time.

Starbucks rose 4.7% in after-hours trading after strong reports - including a fourth consecutive quarter of growth in same-store sales, and an increase in the annual forecast. This is in addition to an improvement in operating profitability to 13.6%, compared to 13.3% in the same quarter.

The coffee shop giant recorded a net profit of $100.5 billion in the third fiscal quarter, compared to $558.3 million in the same quarter. Earnings per share were 85 cents, analysts' expectations were 66 cents per share.

Revenue fell 1% to $9.32 billion, expectations were $9.16 billion. Sales in same-store (open at least a year) grew by 5.7% globally and jumped 8.1% in North America.

Starbucks upgraded the annual forecast to adjusted earnings in the range of $2.55-2.65 per share. The chain's previous forecast was $2.25-2.45 per share.

The forecast for same-store sales was improved to an annual growth of 6%, in North America and global operations. The previous forecast was an increase of at least 5% in both cases.

Qualcomm fell 4.7% in after-hours trading, after reports and a forecast that did not excite investors. The chip company recorded a profit of $2.21 per share in the third fiscal quarter, analysts' expectations were $2.23 per share.

Revenue totaled $9.95 billion, the market expected $9.67 billion. Revenue from the sale of chips for smartphones fell 20% compared to the same quarter, and totaled $5.1 billion.

The forecast published by Qualcomm for the current quarter (fourth fiscal) is for adjusted earnings of $2.05-2.25 per share, and revenue of $9.7-10.5 billion.

Analysts' expectations for the current quarter are for adjusted earnings of $2.36 per share and revenue of $10.2 billion.

Chipotle jumped 6.3% in after-hours trading: the net profit of the Mexican food chain in the second quarter was $403.5 million, compared to $436.1 million in the same quarter.

Earnings per share were 33 cents, analysts expected 32 cents per share; Chipotle's revenue in the quarter was $3.35 billion, a 9.3% increase compared to the same quarter.

Analysts expected slightly lower revenue of $3.33 billion; same-store sales rose 2%.

The chain upgraded its annual forecast to a single-digit percentage increase in same-store sales, compared to stagnation in its previous forecast.

Trade crisis between the USA and China again?

China's Ministry of Commerce accused the US Federal Communications Commission (FCC) today of repeatedly ignoring the restrained position taken by Beijing regarding the ban on Chinese products, and threatened retaliatory measures.

This is after the FCC announced on Tuesday that due to cybersecurity concerns, it added advanced foreign-made robotic devices, including humanoids, to the list of products whose import to the US is restricted.

China's Ministry of Commerce stated that the continued tightening of restrictions by the FCC on Chinese products "seriously harms the stability of economic and trade relations between China and the USA." The ministry called on the USA to reverse the decision, and warned that if it does not do so, China will take countermeasures.

Increases in Tokyo, retreat in Seoul

Mixed trend in Asian stock markets, after an evening of sharp declines on Wall Street (Dow Jones fell 2.2% and lost 1,153 points - the sharpest daily point drop in the index since April 2025; Nasdaq fell 1.7% and S&P 500 fell 1.5%).

After Microsoft and Meta reports yesterday - investors are waiting today for Apple and Amazon reports, which will be published after the close in New York.

Nikkei index is up 1.3%, Kospi is down 0.7%, Hang Seng is down 0.4%, Shanghai is down 1%. Oil is moving to declines, after a jump of up to 7% yesterday: Brent is down 1.4% to $89.5 per barrel, WTI is down 1.1% to $83.5 per barrel.

Advantest is jumping 11.5% at the top of the Nikkei index after strong reports: the giant equipment supplier for the chip industry (value of about $117 billion) reported an operating profit of 241.27 billion yen ($1.64 billion) in the first financial quarter - a jump of 53% compared to the same quarter.

The company's revenue grew by 39% and net profit almost doubled. Advantest also upgraded its annual revenue forecast to 1.714 trillion yen, compared to 1.430 trillion yen in the previous forecast. The operating profit forecast was upgraded to 846 billion yen, compared to 627.5 billion yen in the previous forecast.

On the other hand, sharp declines in Japanese bank stocks: the giant investment bank Nomura is falling 6%, after a relatively weak forecast it published yesterday; Mitsubishi Financial is down 3.2%, Mizuho Financial is down 3%.

Samsung is up 0.7% in Seoul after the first financial quarter reports: revenue totaled 171.5 trillion won ($117.1 billion), a jump of 130% compared to the same quarter last year - thanks to demand for memory chips and 28% compared to the previous quarter.

Analysts' forecasts were 172.65 trillion won. The operating profit of the chip and mobile giant was 89.5 trillion won ($61.1 billion), a surge of 1,814% compared to the same quarter and an increase of 56% compared to the previous quarter. In this case, above market expectations, which were 88.13 trillion won.

Korean competitor SK Hynix is losing 5.7%; in Hong Kong: Chinese chip company SMIC is down 6.9% and Lenovo is weakening by 6.7%.