Chinese Stocks in Focus Before Earnings, Oil Drops: Markets Wrap

(Bloomberg) — Chinese stocks were in focus with investors awaiting earnings from its top banks as well as Alibaba Group Holding Ltd. and BYD Co., companies seen as barometers of corporate health.

Goldman Sachs strategists raised their 12-month target for the CSI 300 Index to 4,900 from 4,500 on Thursday. The index traded higher Friday while shares in Shanghai edged up 0.5% in the busiest day for Chinese earnings this week, with 441 locally listed companies reporting, according to Bloomberg-compiled data. Indexes elsewhere in Asia were mixed while US stocks set a new high, lifted by data that underscored economic strength ahead of the Federal Reserve’s favored price gauge due Friday.

Oil fell 0.7% after gaining in the previous session on waning prospect of a peace agreement between Russia and Ukraine. Treasuries and a gauge of the dollar steadied.

China’s stock market is heading for a record turnover this month, underscoring the intensity of a bull run that’s bringing in more investors by the day. Market excitement in China is running high even as banks and regulators hint they might try to cool things down, with US tariffs and a deep-rooted property crisis straining the economy.

Liquidity of mainland shares “is expected to remain relatively high in the future,” said Dickie Wong, executive director of research at Kingston Securities Ltd. “Although there may be profit-taking in the short term, A-shares have already entered a bull market and are looking ahead.”

While investors are awaiting Alibaba’s results, earnings from its peers make clear that hyper-competition in the sector is taking a toll. JD.com Inc.’s recent food delivery losses were bigger than expected, while Meituan’s shares tumbled this week after it warned of big losses due to “irrational competition.”

Also, Chinese artificial intelligence chipmaker Cambricon Technologies Corp.’s stock fell as much as 8.7% after it issued a warning to investors about elevated trading risks.

Meanwhile, the S&P 500 rose 0.3% to a record Thursday after data showed the US economy expanded faster than initially estimated, highlighting the resilience of consumer spending. While that soothed recession jitters, it raised doubts about the upcoming inflation report, which is expected to show core personal consumption expenditures prices rising 2.9% in July, the fastest pace in five months.

“In-line or lower results will likely cement investors’ confidence in a September rate cut,” said Bret Kenwell at eToro. “While a higher-than-expected print may not take a rate cut off the table next month, it could sour Wall Street’s mood as inflation concerns grow.”

Inflation-adjusted gross domestic product, which measures the value of goods and services produced in the US, increased at a 3.3% annualized pace in the second quarter. That compared with an initially reported 3% increase.

While the latest GDP report provides a bit more clarity, the focus remains on the delicate balance between elevated inflation and a softening labor market, according to Jim Baird at Plante Moran Financial Advisors.

Baird noted that Fed Chair Jerome Powell threw an additional lifeline of hope to investors looking for a September rate cut at his Jackson Hole speech last week.

In commodities, oil gave up some of its gains in the prior session amid waning hopes for peace in Ukraine, which reduced the likelihood of more of Moscow’s supplies reaching broader markets in the near term.

Oil is headed for a monthly loss, as investors weighed concerns about a looming glut along with geopolitical tensions, including US-led efforts to end the war in Ukraine.

A meeting between Ukrainian President Volodymyr Zelenskiy and Russia’s Vladimir Putin is unlikely to materialize, according to German Chancellor Friedrich Merz, even though it was touted earlier by US President Donald Trump. The president will make a statement on Russia and Ukraine later, the White House said.

Corporate News:

Dell Technologies Inc. shares declined in extended trading after the company booked fewer sales of artificial intelligence servers and reported profit margins on the powerful machines that fell short of analysts’ estimates. Gap Inc. expects its margins will shrink this year, a sign tariffs are slowing recent turnaround momentum. Super Micro Computer Inc. cautioned that weaknesses in its controls related to financial disclosures could, if not fixed, hurt the company’s ability to report results “in a timely and accurate manner.” Some of the main moves in markets:

Stocks

S&P 500 futures were little changed as of 10:54 a.m. Tokyo time Nikkei 225 futures (OSE) fell 0.5% Japan’s Topix fell 0.4% Australia’s S&P/ASX 200 fell 0.2% Hong Kong’s Hang Seng rose 0.4% The Shanghai Composite rose 0.4% Euro Stoxx 50 futures fell 0.2% Currencies

The Bloomberg Dollar Spot Index rose 0.1% The euro fell 0.2% to $1.1659 The Japanese yen was little changed at 147.05 per dollar The offshore yuan was little changed at 7.1219 per dollar The Australian dollar was little changed at $0.6538 Cryptocurrencies

Bitcoin fell 0.3% to $111,561.67 Ether was little changed at $4,462.96 Bonds

The yield on 10-year Treasuries was little changed at 4.21% Japan’s 10-year yield was unchanged at 1.615% Australia’s 10-year yield was little changed at 4.29% Commodities

West Texas Intermediate crude fell 0.7% to $64.14 a barrel Spot gold fell 0.2% to $3,410.36 an ounce This story was produced with the assistance of Bloomberg Automation.

–With assistance from Zhu Lin and Charlotte Yang.

©2025 Bloomberg L.P.

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