Key News

Asian equities were mostly lower overnight, though Malaysia and Pakistan managed gains while Vietnam and Taiwan underperformed.

China’s markets continued a downtrend from yesterday as US tariff uncertainty continued to rattle global markets. Mainland investors continued their net buying streak, though at a level much lower than yesterday, which was near the all-time daily record. Meanwhile, there was a slight rotation factor as value sectors managed gains. Gold miners and oil led gains on geopolitical uncertainty and some reports bullish on commodity and rare earth prices. Government bonds continued to sell off, sending yields slightly higher.

Weibo Q4 Earnings Overview

Social media and online advertising platform Weibo reported Q4 and 2025 results this morning after the close in Hong Kong and before the US market opened. Revenue was slightly lower than expected, while net income was slightly higher than most estimates.

• Revenue -1.5% to $456 million
• Net Income $92.8 million
• Earnings per Share (EPS) $0.39

User growth was better than expected, while advertising revenue was down year over year. The company is in a similar position to Baidu, in which the macroeconomic environment does not lend itself well to advertising spending. At the same time, competition in space is increasing from short video platforms and AI enablers such as Alibaba. However, the company did announce a significant dividend of $0.82 per share, which represents a payout ratio of over 40%.

The electric vehicle (EV) ecosystem was lower overnight, and China EV names are selling off in the US this morning. This was after a run-up on positive vehicle sales growth in China. This is one of the many recently outperforming sectors that sold off overnight, including AI, robotics, and consumer plays. This is likely stemming from some short-term profit taking, which we have noticed can be more of a factor in China compared to the US and Europe.

One of China’s top financial publications, the Securities Daily, published an article about the potential for the CNY to rise further against the US dollar. This would run counter to the narrative of long-term higher tariffs, though if domestic consumption really increases, then demand for China assets could rise despite the trade situation weighing on the currency.

The Hang Seng and Hang Seng Tech indexes both closed lower by -0.58% and -1.67%, respectively, on volume that decreased by -16% from yesterday. Mainland investors bought a net $698 million worth of Hong Kong-listed stocks via Southbound Stock Connect. The top-performing sectors were Energy, which gained +1.08%, Materials, which gained +0.47%, and Information Technology, which gained +0.43%. Meanwhile, the worst-performing sectors were Consumer Staples, which fell –1.84 %; Consumer Discretionary, which fell –1.75 %; and Real Estate, which fell -1.27%.

Shanghai, Shenzhen, and the STAR Board all closed lower by -0.39%, -1.12%, and -2.11%, respectively. The top-performing sectors were Energy, which gained +2.66%; Utilities, which gained +0.85%; and Materials, which gained +0.39%. Meanwhile, the worst-performing sectors were Information Technology, which fell –2.22 %; Communication Services, which fell –0.94 %; and Real Estate, which fell -0.84%.

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Last Night’s Performance

Last Night’s Exchange Rates, Prices, & Yields

• CNY per EUR 7.25 versus 7.24 yesterday
• CNY per USD 7.85 versus 7.88 yesterday
• Yield on 10-Year Government Bond 1.86% versus 1.83% yesterday
• Yield on 10-Year China Development Bank Bond 1.87% versus 1.86% yesterday
• Copper Price -0.30%
• Steel Price +0.25%