Daily focus：Fast Retailing Group (6288)
announced its first-quarter results ending November 3025, showing strong overall performance. Consolidated revenue increased by 14.8% year-on-year to JPY 1,027.7 billion, operating profit jumped significantly by 33.9% to JPY 210.9 billion, and profit attributable to owners of the parent company increased by 11.7% to JPY 147.4 billion. Benefiting from global business expansion and improved operational efficiency, the Group's gross margin improved by 0.7 percentage points to 55.2%. Based on its strong first-quarter performance, the Group has raised its full-year earnings forecast, expecting full-year revenue to reach ¥3.8 trillion and operating profit to reach ¥650 billion. The full-year dividend per share is projected to be ¥540, an increase from the previous year, demonstrating confidence in the business outlook.
Defense Budget Ignites Defense Stocks
The Trump administration's announcement of a $1.5tn defense budget triggered a strong rally in defense stocks, driving the DJIA up 0.6% to 49,266 points on Thursday, reflecting market optimism about increased defense spending. Meanwhile, the S&P 500 remained largely flat, focusing on the House's potential military intervention risks in Venezuela and Greenland. With Friday's crucial non-farm payroll data revealing the strength of the labor market, the Federal Reserve's future monetary policy direction faces a major test.
Hong Kong Stock Connect saw a net outflow of HK$4.9bn on Thursday, with Xiaomi Group-W (1810) experiencing the largest net inflow at HK$1.07bn, followed by Tencent Holdings (0700); the Tracker Fund of Hong Kong (2800) saw the largest net outflow at HK$6.28bn, followed by Hang Seng China Enterprises (2828).
Hong Kong stocks traded in a narrow range during the morning session, with the Hang Seng Index opening higher but then narrowing its gains. The Hang Seng Index rose 8 points, or 0.03%, to 26,158; the Hang Seng China Enterprises Index rose 3 points, or 0.04%, to 9,042; and the Hang Seng Tech Index fell 3 points, or 0.3%, to 5,674. Total turnover for the morning session was HK$135.2 billion. Six leading mainland photovoltaic companies and industry associations were summoned for talks, and were told they could not agree on production capacity and sales prices, etc. GCL System Integration Technology (3800) fell 8.8%.
Source: KGI Investment Products and Solutions Department
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Minutes from the December FOMC meeting showed notable division among officials on the policy path, raising the likelihood of a pause at an upcoming meeting. Most officials believe shifting policy toward neutral would help avoid further labor-market deterioration…