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StreetAccount Summary - Asian Market Recap: Nikkei +1.30%, Hang Seng +2.58%, Shanghai Composite +0.48% as of 04:10 ET

Aug 13 ,2025

• Synopsis:

  • Asia equities ended higher across the region Wednesday, ex Australia. Australia stocks weighed by disappointing bank earnings but elsewhere, Asia markets saw more strong gains. Japan's Nikkei and Topix ended at fresh record highs, while the Hang Seng and mainland China benchmarks were also notably higher. South Korea, Taiwan, Singapore all posted solid gains; India and Southeast Asia also higher. US futures higher, Europe markets gaining at the open. US dollar sinking in afternoon trade, AUD and yen among those crosses rallying. Gold a little higher; base metals mixed. Crude futures lower after IEA lowered oil demand forecasts for this year and next.

  • Asia markets ploughed ahead following overnight moves on Wall Street. Fed Fund Futures now pricing in a 96% chance of a rate cut in September following headline CPI that remained steady at 2.7% while core accelerated to 3.1% from 2.9%. The impact of tariffs appeared evident but uneven. Overall, it was enough to give US equity and bond markets the impetus to rally further, which read across to Asia's markets Wednesday. The Hang Seng outperformed noticeably in a broad advance led by IT & internet stocks just as Beijing rolled out two loan subsidy programs in a bid to boost consumption. Little movement on the tariff front. US Treasury Secretary Bessent said the US and China would meet again within 2-3 months while he also called India 'a little recalcitrant' in trade talks.

  • In regional developments, Japan manufacturer sentiment improved in August, wholesale inflation declined while food and other agriculture prices remained elevated, and July machine tool orders rebounded. India headline CPI dipped below the RBI's target band and core inflation also fell, fueling expectations of a RBI rate cut in October. Australia wage inflation steady. South Korea unemployment rate fell while household borrowing slowed markedly following a tightening of restrictions in a boost for the BOK. The Bank of Thailand trimmed its benchmark interest rate 25 bps, as expected by slim majority of analysts.

  • China Evergrande's (3333.HK) debt load is far larger than previously thought and restructuring is 'out of reach', according to a liquidators report; the stock is set to be delisted on 25-Aug. Tyro Payments (TYR.AU) confirmed it had received two separate approaches with a view to a takeover. Commonwealth Bank of Australia (CBA.AU) posted in-line net profit but also cost growth and a softer NIM outlook. Paytm's (One 97 Communications, 543396.IN) payment services unit received an 'in principle' approval from the RBI to operate as online payment operator.

• Digest:

  • Bessent says FDI won't be part of trade deal with China:

    • In a Fox Business interview, US Treasury Secretary Bessent commented on the 90-day trade truce extension with China indicating the next round of bilateral negotiations would be conducted within the "next two or three months." Noted President Xi has invited Trump for talks though no date has been set and Trump hasn't accepted yet. Said rare earth magnet trade has resumed as a result of recent negotiations, adding the US government is working with several companies to ween dependance away from China supplies. Asked about tariff levels going forward, mentioned levies tied to fentanyl as an example and suggested US would need to see extensive progress before levels come down. On the FDI component of agreements with EU, Japan, South Korea, indicated this would not be part of a China deal given part of the aim is to reshore production of critical industries, many of which need to be diverted away from China. Did not clarify how the arrangement with other countries would work, emphasizing the appeal of US discretion on how/where resources would be allocated. Touted total proceeds from trade talks amount to "well over $10T" when combining tariff revenues, sovereign FDI and private investment.

  • China to offer interest subsidies for loans to boost consumption:

    • China is to offer interest subsidies for businesses and consumers in two separately announced programs Wednesday. Businesses in eight consumer service sectors including tourism and catering can apply for subsidies; will include loans for fixed asset and working capital up to maximum of CNY1M ($139K) (Reuters). Central government to bear 90% of costs, provincial governments 10%. Financial regulators also to offer interest subsidies for individual loans worth up to CNY3K for each borrower over next 12 months. Will apply to loans up to CNY50K for designated items including cars, education, healthcare. Analysts cited by Bloomberg said subsidy program could spur CNY5T ($696B) in new loans. Second analyst said, based on 1% interest subsidy ratio, every CNY10B of fiscal expenditure could theoretically leverage CNY1T of consumer demand, significantly higher than leverage effect of consumption subsidies. Consumer plan to include six major state-owned banks, 12 commercial banks, five consumer finance firms.

  • Bank of Thailand cuts benchmark lending rate in move to support economy:

    • Bank of Thailand cut its one-day repurchase rate 25 bps to 1.5% as expected by slim majority of economists with remainder forecasting no change. MPC voted unanimously for cut. Bank kept economic growth forecast at 2.3%, warned US trade policies will exacerbate structural problems, weaken competitiveness, leave certain sectors including SMEs vulnerable. Economy expected to slow in H2 amid tariffs, decline in short-haul tourists. Noted credit growth remained negative because of increased credit risks at SMEs and low-income households amid heightened debt repayments. Previously bank said had 'limited ammunition' with monetary easing however country under increased pressure from US tariffs, border clash with Cambodia, domestic political instability, growing deflation. Governor Sethaput chaired final MPC meeting after battling with government for several years over lower rates. Economists expect possibility of lower terminal rate with new governor Vitai Ratanakorn expected to support growth over deleveraging efforts.

  • BofA Asia FMS sentiment consolidates:

    • Latest BofA Asia FMS showed mild pullback in regional economic and profit expectations over the next year, following earlier notable improvements spurred by de-escalation in US tariff concerns. Main development was increased optimism towards China. Country ranking ascended to second place behind Japan after having lagged in the previous month. Economic growth expectations improved to a five-month high (albeit still slight net pessimistic), amid hopes for Beijing to take further steps to end deflation. However, monetary easing expectations moderated further from a record-high in April. China positioning remained constructive amid underlying expectations for better household risk appetite/discretionary spending. Elsewhere, Taiwan and South Korea remained among the preferred markets, while India fell out of favor in reaction to Trump tariffs. Little change in sector preferences. Japan banks, semis still outright favorites, though investors no longer skewed towards value over growth. Asia ex-Japan portfolios remain biased to growth (tech hardware, semis, software, financial services). AI/semis the standout in China. India interest shifted notably to infrastructure.

  • China probing purchases of Nvidia H20 chips by big tech companies:

    • US-China tech tensions in the news this week amid reports China closely more scrutinizing NVDA H20 chips. Press sources say China probing purchases of H20 chips by big tech companies including Alibaba (9988.HK), Tencent (700.HK) and Baidu (9888.HK) (Reuters, FT). Some firms said to be weighing reducing H20 orders with regulators voicing concerns about security risks. H20 purchases also seen running counter to Chinese efforts to promote AI chip self-sufficiency with firms asked to consider sourcing from domestic suppliers. Sources told The Information China tech companies were ordered to suspend purchases altogether, though Reuters could not corroborate report. Bloomberg sources on Tuesday noted China issued directive to some firms to avoid using H20s, particularly for government or national security purposes. Developments comes after China state media outlets amplified concerns H20s pose backdoor security risks after NVDA was summoned by country's cyberspace authority. On Monday President Trump said he'd consider allowing NVDA to sell downgraded version of Blackwell chips to China, labelling H20s obsolete.

  • Notable Gainers:

    • +19.6% 772.HK (China Literature): reports H1 non-IFRS profit attributable CNY507.6M vs FactSet CNY356.6M

    • +10.4% 1208.HK (MMG Ltd): reports H1 results; revenue $2.82B, +47% vs year-ago $1.92B

    • +8.0% C09.SP (City Developments): reports H1 PATMI SG$91.2M, +4% vs year-ago SG$87.8M

    • +6.3% 6666.HK (Evergrande Property Services Group): China Evergrande liquidators reportedly looking for buyers for Evergrande Property Services

    • +2.1% 069620.KS (Daewoong Pharmaceutical): proves 80% bioavailability for microneedle patch containing semaglutide for obesity treatment

  • Notable Decliners:

    • -24.2% 263750.KS (PearlAbyss): reports Q2 earnings operating profit (KRW11.78B) vs FactSet (KRW5.15B), revenue KRW79.56B vs FactSet KRW82.68

    • -6.7% 3231.TT (Wistron): reports Q2 earnings with EPS NT$2.19 vs FactSet NT$2.54

    • -5.4% CBA.AU (CBA): reports FY earnings; analysts broadly agree results met forecasts, however highlight lack of fresh growth catalysts

• Data:

  • Economic:

    • Japan

      • August Reuters Tankan manufacturers sentiment index +9 vs +7 in prior month

      • July CGPI +2.6% y/y vs consensus +2.5% and +2.9% in prior month

    • Australia Q2

      • Wage price index +0.8% q/q vs consensus +0.8% and +0.9% in Q1

        • Wage price index +3.4% y/y vs consensus +3.3% and +3.4% in Q1

      • Housing finance +1.9% q/q vs (3.5%) in Q1

    • South Korea July

      • Unemployment rate 2.5% vs FactSet consensus 2.5% and 2.6% in prior month

  • Markets:

    • Nikkei: 556.50 or +1.30% to 43274.67

    • Hang Seng: 643.99 or +2.58% to 25613.67

    • Shanghai Composite: 17.55 or +0.48% to 3683.46

    • Shenzhen Composite: 29.98 or +1.33% to 2289.10

    • ASX200: (53.70) or (0.60%) to 8827.10

    • KOSPI: 34.46 or +1.08% to 3224.37

    • SENSEX: 279.58 or +0.35% to 80515.17

  • Currencies:

    • $-¥: (0.38) or (0.25%) to 147.4640

    • $-KRW: (5.84) or (0.42%) to 1378.3400

    • A$-$: +0.00 or +0.36% to 0.6554

    • $-INR: +0.01 or +0.01% to 87.6173

    • $-CNY: (0.00) or (0.06%) to 7.1748