News

The yield on Japan's 2-year government bonds fell, dropping 2 basis points to 1.67%.

The yield on Japan's 5-year government bonds continued its decline, falling 2 basis points to 2.14%.

NetEase (09999.HK) will announce its second-quarter results on Thursday. According to a FactSet survey of nine analysts, NetEase's second-quarter net profit is expected to increase by 13% year-on-year to RMB 9.72 billion, while adjusted net profit is expected to increase by 7.3% year-on-year to RMB 10.23 billion. Nomura analysts cautioned that due to NetEase's holdings in Alibaba and Pinduoduo, related investment losses may widen, thus the actual net profit may be lower than expected. NetEase's second-quarter revenue is expected to increase by 4.3% year-on-year to RMB 29.1 billion, mainly supported by the solid performance of long-running games such as *Fantasy Westward Journey* and *Egg Party*. Furthermore, Nomura analysts predict that NetEase's game *Forgotten Sea*, launched in July, will generate monthly revenue of RMB 200 million to 300 million, potentially accelerating the growth of NetEase's game revenue in the second half of the year. According to Citigroup, NetEase currently has 57 games in development, of which 23 have been approved for release in China. Updates to the release schedule for new games by management could be an additional catalyst for the share price.

The yield on Japan's 5-year government bonds fell 1 basis point to 2.15%.

According to the Financial Times, Libya is seeking up to $40 billion in funding to develop its oil resources.

Data from the U.S. Treasury Department shows that foreign holdings of U.S. Treasury securities declined in June, primarily due to reductions in holdings by Japan, the UK, and China. Total foreign holdings fell to $9.299 trillion in June from $9.371 trillion in May, but still increased by 2.3% year-on-year. Japan remains the largest holder outside the U.S., although its holdings declined by 2.3% to $1.116 trillion, well below the peak of $1.325 trillion in November 2021. Data from the U.S. Treasury Department's International Capital System shows that foreign investors net liquidated approximately $72 billion in U.S. Treasury securities in June, with Japan, China, and some custody centers being net sellers, and Canada, Belgium, and Switzerland being net buyers. Foreign net selling over the past three months totaled $56 billion, while net buying over the past 12 months totaled $205 billion. Total inflows into the U.S., including equities, remained strong in June at $173 billion. ING stated that with the 60-day U.S.-Iran ceasefire agreement expiring without a resolution, coupled with continued issuance pressure from mega-corporations, the tone of the U.S. Treasury market remains bearish and may decline further. The bank attributes the recent rise in real yields to a return to pre-financial crisis levels, rather than a genuine market misalignment. In the Eurozone, the ECB's balance sheet reduction has led to tighter liquidity, which will ultimately support a structurally bearish outlook for German government bonds.

NI225's decline widened to 2%.

The UK Maritime Trade Operations Office: The remaining crew members are currently receiving assistance from the Omani Coast Guard.

The UK Maritime Trade Organization stated that the incident caused damage to the engine room and resulted in crew injuries and fatalities.

UK Maritime Trade Operations Office: Received a report of an incident in the Strait of Hormuz.

Euro Stoxx 50 futures fell 0.3%, German DAX futures fell 0.3%, and UK FTSE 100 futures rose 0.1%.

U.S. stock index futures weakened, with S&P 500 futures down 0.2% and Nasdaq futures down 0.4%.

Hong Kong stocks' two major MINIMAX-W stocks declined, with Zhipu (02513.HK) falling more than 10% and MINIMAX-W (00100.HK) falling more than 8%.

NI225 fell by 1.00% within the day.

The Hang Seng Index (HSI) opened down 84.36 points, or 0.33%, at 25368.87 on Tuesday, August 18th; the Hang Seng Tech Index opened down 13.22 points, or 0.28%, at 4768.81 on Tuesday, August 18th; the Hang Seng China Enterprises Index opened down 24.59 points, or 0.29%, at 8415.38 on Tuesday, August 18th; and the Hang Seng Red Chip Index opened up 0.91 points, or 0.02%, at 4162.39 on Tuesday, August 18th.

Hong Kong stocks opened lower, with the Hang Seng Index down 0.33% and the Tech Index down 0.28%. Chow Sang Sang (00116.HK) opened 11% higher, expecting interim attributable profit of HK$2.1 billion to HK$2.2 billion.

The yield on Japan's 20-year government bonds rose 2.5 basis points to 3.835%.

Crop survey by Pro Farmer, a subsidiary of Farm Futures magazine, predicts that the average number of soybean pods in South Dakota will be 945.98 in 2026, compared to 1188.45 in 2025.

ProFarmer, a subsidiary of Farm Futures magazine, projects South Dakota corn yields of 149.09 bushels per acre in 2026 and 174.18 bushels per acre in 2025.

ProFarmer, a subsidiary of Farm Futures magazine, projects an average of 1,197.25 soybean pods in Ohio in 2026, compared to 1,287.28 pods in 2025.