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StreetAccount Summary - Asian Market Recap: Nikkei (1.45%), Hang Seng (0.37%), Shanghai Composite (0.46%) as of 04:10 ET

Aug 14 ,2025

• Synopsis:

  • Asia equites ended mixed Thursday. Nikkei and Topix came sharply off their respective record highs, Greater China boards all fell, modest losses in Taiwan and Singapore. South Korea's Kospi ended flat. Australia reversed some of yesterday's losses, India and Southeast Asia also slightly higher with Jakarta at a record high. US futures slightly lower, Europe opened slightly higher. US dollar flat, yen notably stronger post Bessent comments on rates, AUD pared early gains. Treasuries higher at the short end, lower at the long; JGB yields all higher. Precious metals unchanged, crude contracts trading higher, some weakness in iron ore and copper. Cryptocurrencies slightly lower with bitcoin off record highs.

  • Regional equities took a breather from recent gains to trade largely lower although country benchmarks remain robustly ahead WTD. The Hang Seng partially reversed yesterday's gains as several large cap internet names fell but Tencent outperformed after quarterly earnings beat expectations. Japan equities fell as the yen surged and JGB yields rose after US Treasury Secretary Bessent said he expected the BOJ to raise interest rates to tame inflation.

  • In regional developments, China new loans posted after the close Wednesday saw lending shrink for the first time since 2005. Australia unemployment rate was in line with expectations. South Korea import prices rose for the first time in six months while Seoul house price growth slowed to potentially pave the way for a BOK rate cut. Ahead Friday, China economic activity data for July, which are forecast to show contraction in industrial output and softer retail sales growth.

  • Beijing ordered Alibaba (9988.HK) and ByteDance to stop buying Nvidia H20 chips. China Evergrande (3333.HK) liquidators are targeting the founder's assets although he still refuses to disclose his assets. Road King Infrastructure (1098.HK) suspended all offshore debt interest and principal payments on $1.51B in bank debt and $890M in perpetual securities, company will seek a holistic solution. Tencent (700.HK) Q2 results beat on the top and bottom line thanks to gaming momentum and AI capabilities. Pegatron (4938.TT) said it will sell a 18.5% stake in Lizhen Precision Industry to Luxsan Precision for CNY1.48B. ASX (ASX.AU) said growing expenses tied to a regulatory inquiry over governance and risk will impact this year's performance.

• Digest:

  • Japan markets react to Bessent comments on Fed rate cuts, BOJ policy:

    • Japan market price action Thursday primarily reflected follow-through reverberations from US Treasury Secretary Bessent's assertion that Fed rates should be 150, 175 bp lower, starting with a 50 bp cut in September (Bloomberg). Other remarks that he believes BOJ is behind the curve and will be hiking rates added to momentum. Volatility accentuated by light volumes during the obon holiday period. Yen outperforming among majors, weighing on equities, while intermediate JGB yields higher. Stocks were susceptible for consolidation following recent strong gains that drove Nikkei and Topix to back-to-back all-time highs as valuations became stretched and the technical analysis picture turned increasingly challenging. Holiday period also leaving FX market devoid of notable corporate flows. Recall there was mounting speculation earlier this year the US would pressure Japan to reverse yen weakness as part of trade talks. However, key meeting between Bessent and Japan Finance Minister Kato only reaffirmed the status quo and avoided discussion of specific FX levels. Nor did the US-Japan trade agreement contain any FX stipulations. Yet, trade deal lifted much of the outlook uncertainty to a level that placed BOJ rate hikes back on track with some forecasters looking for the next move as early as September while a bigger cohort looking to December or January.

  • Hon Hai quarterly profits beat expectations, upbeat on AI server demand:

    • Hon Hai Precision (2317.TT) posted better-than-expected 27% rise in Q2 earnings largely on beat in AI server sales. Company, also known as Foxconn Technology, reported Q2 EBIT of NT$56.6B versus FactSet consensus at NT$49.57B, slightly lower gross margin y/y of 6.3%. EPS at NT3.19 versus forecast NT$2.71, revenue marginally higher from previously announced NT$1.79T. Company continues to juggle tepid consumer demand for its iPhone production versus AI growth: in Q2 revenue from cloud and networking (including AI servers) exceeded that from smart consumer electronics for first time. Said Q3 revenue from consumer electronics will likely be lower y/y, Q3 AI server revenue to grow 170% y/y. For FY, company lowered FY guidance as it expected segment revenue to decline in Q3. Hon Hai CEO said Q3 AI Server rack shipments to rise 300% q/q after assembly saw 'major breakthrough' and improving yield in Q2. Analysts said long-term, company expected to benefit from Apple US investment commitment; short-term share price could fluctuate on tariffs, macro uncertainty, consumer demand weakness offset by AI server demand.

  • China bond market selloff continues as rally in onshore stocks lifts risk appetite:

    • China bond market selloff deepening Thursday (Bloomberg). 30Y treasury bond futures dropped as much as 0.7%, hitting four-month low and extending this week's decline to 1.5%. 10Y futures fell by more than 0.1% before paring some losses. Movements in cash bond market were less drastic with yields on 30Y CGB up one bp. Came as onshore equities hit fresh 3.5-year high with Shanghai Composite briefing topping 3,700 level for first time since Dec-2021 as bullish sentiment continued to accumulate on strong technology gains and return of investor appetite. Meanwhile bond market under pressure in recent weeks due to easing US-China trade tensions and efforts to crack down on overcapacity and price wars. Hopes of short-term stimulus, such as monetary easing, also diminished after stronger-than-expected economic data (Reuters) and restoration of taxation on bond interest income after decades of exemption has also damped sentiment (Bloomberg). Analysts noted sea-saw effect between stocks and bonds appears to be driving force for now and loose liquidity condition driving risk-on sentiment with funds flowing to stocks at expense of bond fund redemptions.

  • Australian employment in-line:

    • Australian headline employment rebounded 24.5K in July from June's 2.0K increase, in-line with consensus for 25.0K gain. Unemployment rate fell back to 4.2% from 4.3% as expected. Participation rate dropped to 67.0% from 67.1%. Job composition was stronger with full-time employment rising 60.5K, offsetting 35.9K fall in part-time employment. Growth in monthly hours worked ticked up to 0.3% from 0.2%. Indicators of labor market slack tightened with underemployment rate falling to 5.9% from 6.0%. RBA kept unemployment rate forecasts unchanged in its August statement, projecting 4.3% rate though forecast horizon. Stil assessed some tightness in labor market though previously hawkish assessment was toned down a touch, suggesting increased RBA sensitivity to employment side of its mandate. However, also lot of focus on RBA downgrading productivity growth estimate, implying lower ceiling for wage growth without generating inflation pressures. Economists still see 1-2 more rate cuts with November seen as most likely month for next reduction following Q2 CPI (late Oct).

  • China new lending contracts for first time in 20 years:

    • New loans contracted CNY50B in July in contrast to an expected CNY300B expansion, following CNY2.24T in the previous month. Marks the first negative print since Jul-05 and the largest since Dec-99 (Reuters). Outstanding loan growth slowed to 6.9% y/y from 7.1%, softer than consensus 7.0%. While lending typically fades in July as negative payback for a seasonal spike in June, result was well below the range of forecasts. Weakness reflected an outright contraction in household loans as an indication of deleveraging while corporate credit also came to a near standstill. Data release followed announced interest rate subsidies of 1 ppt on loans for businesses in eight consumer service sectors as well as consumer loans. Bloomberg cited some thoughts the initiative could have been motivated by advanced knowledge of the data. Underlying credit dynamics remain largely unchanged -- private sector sentiment remains suppressed by the ongoing property market slump and slower economic growth against the backdrop of US-China trade tensions. Debt swap program also holding back headline growth. However, impact was mitigated by upside surprise in money supply with M2 up 8.8% y/y vs consensus 8.2% and 8.3% in June. Takeaways indicated weaker credit augurs for more monetary easing, though action not seen imminent given resilient GDP growth in H1, and policymakers reserving stimulus ammunition in case of a US trade war fallout.

  • Notable Gainers:

    • +6.7% 3659.JP (NEXON Co.): reports Q2 revenue ¥118.85B vs FactSet ¥105.97B, operating income ¥37.70B vs FactSet ¥28.57B; to launch up to 11.0M-share buyback for up to ¥25B

    • +6.2% 138040.KS (MERITZ Financial Group): reports Q2 results; operating profit KRW949.73B vs FactSet KRW937.23B

    • +4.8% 035900.KS (JYP Entertainment): reports Q2 earnings operating profit KRW52.91B vs FactSet KRW44.02B

    • +3.0% 1910.HK (Samsonite Group): reports H1 adjusted net income $123.4M vs StreetAccount $120.3M

    • +2.3% JFC.PM (Jollibee Foods): reports Q2 earnings with revenue PHP77.63B, +15% vs year-ago PHP67.22B

    • +1.0% VC2.SP (Olam Group): reports H1 revenue SG$15.27B, +50% vs year-ago SG$10.19B, operational PATMI SG$327.1M vs year-ago SG$73.5M

    • +0.7% 700.HK (Tencent Holdings): reports Q2 non-IFRS net income attributable CNY63.05B vs FactSet CNY61.35B

  • Notable Decliners:

    • -12.4% 161390.KS (HANKOOK TIRE & TECHNOLOGY Co.): reports Q2 operating profit KRW353.64B vs StreetAccount KRW383.94B

    • -7.7% 4938.TT (Pegatron): reports Q2 EPS NT$0.11 vs FactSet NT$1.16; revenue NT$267.34B vs FactSet NT$258.93B; sells 18.5% stake in Lizhen Precision Industry (Kunshan) to Luxsan Precision Itech (Kunshan) for CNY1.48B (NT$6.06B)

    • -7.6% 1098.HK (Road King Infrastructure): provides offshore debt update; suspends all offshore debt payments

    • -7.2% 3088.JP (MatsukiyoCocokara & Co.): reports Q1 earnings; net income attributable ¥12.94B vs FactSet ¥13.20B; to acquire drugstore business SHINSEIDOYAKKYOKU

    • -3.2% 9CI.SP (CapitaLand Investment): reports H1 total PATMI SG$287M, (13%) vs year-ago SG$331M

• Data:

  • Economic:

    • China July

      • New loans (CNY50B) vs consensus CNY300B and CNY2.24T in prior month

        • Outstanding loan growth +6.9% y/y vs consensus +7.0% and +7.1% in prior month

        • Outstanding total social financing +9.0% y/y vs +8.9% in prior month

        • M2 money supply +8.8% y/y vs consensus +8.2% and +8.3% in prior month

    • Australia July

      • Employment +24.5K m/m vs consensus +25.0K and +2.0K in June

        • Unemployment rate 4.2% vs consensus 4.2% and 4.3% in June

        • Participation rate 67.0% vs consensus 67.1% and 67.1% in June

  • Markets:

    • Nikkei: (625.41) or (1.45%) to 42649.26

    • Hang Seng: (94.35) or (0.37%) to 25519.32

    • Shanghai Composite: (17.02) or (0.46%) to 3666.44

    • Shenzhen Composite: (27.45) or (1.20%) to 2261.66

    • ASX200: 46.70 or +0.53% to 8873.80

    • KOSPI: 1.29 or +0.04% to 3225.66

    • SENSEX: 86.82 or +0.11% to 80626.73

  • Currencies:

    • $-¥: (0.81) or (0.55%) to 146.5800

    • $-KRW: +5.02 or +0.36% to 1384.7400

    • A$-$: (0.00) or (0.22%) to 0.6533

    • $-INR: +0.15 or +0.17% to 87.6065

    • $-CNY: (0.00) or (0.03%) to 7.1732