Before the bell: Nikkei jumps more than 4% this morning

Investors went through a rollercoaster on the markets. Japan starts the week with good news, while US-based Hims takes a beating.

Investors who enjoy rollercoasters and wild rides certainly got their money’s worth on the stock market last week. The difference between the weekly low and high for an average stock exceeded 3%. On the US technology exchange Nasdaq, the gap was even more than 5%. Despite that volatility, Belgium’s flagship index still managed a weekly gain of 2.5%. The Euro Stoxx 50 and Japan’s Topix index also advanced over the week, with gains of 0.9% in Europe and as much as 3.7% in Japan. On the Brussels exchange, Lotus Bakeries stood out. Shares in the biscuit maker rose 3.5% on Friday after the company’s annual report was well received. On Euronext Amsterdam, carmaker Stellantis took a pounding, plunging 25.2% after announcing that it would have to adjust its electrification strategy, like other European car manufacturers. Across the Atlantic, heavyweight Nvidia surged 7.9% on Friday, while Amazon, which plans to invest 200 billion dollar in AI data centres, shed 5.6%.

In Tokyo, the Topix index is up 2.3% this morning. The Nikkei is doing even better, jumping 4.1%. Investors are reacting euphorically to the election victory of Prime Minister Sanae Takaichi and are already looking ahead to the stimulus measures her government is expected to introduce to give Japanese companies extra breathing room. In Hong Kong, stocks are up an average of 1.4% this morning. Toy maker Pop Mart (+6.5%) and insurers China Life (+4.7%) and Ping An (+4.4%) are investor favourites. It is also still earnings season. In the US, results are due from chipmaker Onsemi, tyre producer Goodyear and timber construction materials specialist Simpson.

Hims vs Novo Nordisk

Last Thursday, Hims announced a pill version of its weight-loss treatment. The pill would be a copy of Novo Nordisk’s weight-loss drug Wegovy, but at just one third of the price. Because Hims’ medicines are compounded to individual patients, the company circumvents certain strict regulations imposed by the US drug regulator, the FDA. Thanks to this “back door”, Hims was able for some time to fish in the pond of giants such as Denmark’s Novo Nordisk and US-based Eli Lilly. But that may now be changing. An investigation is likely to be launched into the potential abuse of this loophole and the aggressive advertising of exceptionally approved, tailor-made medicines. Over the weekend, Hims announced it was halting sales of the pill. Investors are worried about the company’s business model and sent the stock almost 16% lower in after-hours trading. At Spaarvarkens, we have never been fans of Hims and its management, which often cuts corners. We prefer sustainable businesses.

Lotus Bakeries becomes a dividend aristocrat

The Biscoff baker from Lembeke posted revenue growth of 10% over 2025. At the bottom line, Lotus Bakeries delivered earnings of 218 euro per share, an increase of 13.2% compared with a year earlier. CEO Jan Boone proposes raising the dividend by 18.4% to 90 euro per share. This marks the 25th consecutive year in which the company has increased its dividend, earning it the title of “dividend aristocrat”. As a result, the stock can be included in various lists and ETFs that focus on such companies, provided it also meets other criteria, such as sufficient liquidity. Meanwhile, Biscoff biscuits are now baked on three continents. At the end of 2025, the first biscuits rolled off the production line at the new factory in Thailand. The partnership with Mondelēz in India has also contributed nicely.

Did you know…

that Amazon founder Jeff Bezos owns The Washington Post? Warren Buffett held a stake in the newspaper for 40 years, but sold his shares to Bezos in 2013. Buffett was a mentor to Katharine Graham, who inherited the paper from her husband.