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StreetAccount Summary - Asian Market Recap: Nikkei +3.14%, Hang Seng (1.03%), Shanghai Composite (2.04%) as of 04:10 ET

May 21 ,2026

• Synopsis:

  • Asia stocks ended mostly higher Thursday. Very strong gains for the Kospi after Samsung Electronics and its major trade union came to a deal to avoid a strike. Read through to tech-led Nikkei 225 and Taiwan's Taiex. Strong gains for the Topix and in Sydney. Hang Seng saw another weak day, Shanghai Composite also finished slightly lower; more steep declines in Jakarta following yesterday's surprise BI rate hike. US futures mixed; Europe higher in opening trades. US dollar unchanged, more declines for the AUD and won, quiet elsewhere. Crude futures slightly higher but Brent still well below $110/bl. Precious metals reversing early gains, base metals mixed.

  • Asia equities higher Wednesday with strong gains for tech-led boards in South Korea, Taiwan and Japan after Nvidia's better-than-expected results overnight, and news Samsung Electronics (005930.KS) had come to an agreement that would prevent a strike from starting today. SEC ended more than 8% higher while LG Electronics (066570.KS) gained almost 30% and SK Hynix (000660.KS) 11% as AI sentiment improved. In Japan, Softbank (9984.JP) led with an almost 20% gain on reports OpenAI would file for an IPO as soon as Friday.

  • No substantive newsflow from the Gulf today with Tehran reviewing Washington's latest proposal and Trump saying he can wait for a response. Meanwhile crude prices remain elevated with Brent hovering just below $110/bl and WTI just below $100/bl with higher energy prices again showing up in May's flash PMIs from Australia, Japan and India. Elsewhere, PM Modi today said he could no longer shield citizens from the impact of high prices while South Korea producer prices rose at their fastest rate in 28 years. In other South Korea data, exports for the first 20 days surged again on chip shipments, while Seoul apartment prices rose again just a week before the BoK meets on rates. Australia April employment numbers dipped unexpectedly, dampening expectations for a RBA rate hike.

  • Rakuten Bank (5838.JP) said it would issue shares to Rakuten Group (4755.JP) and Mizuho Bank (Mizuho Financial, 8411.JP) as part of the group's reorganization of its fintech business. CK Hutchison (1.HK) said it has no plans to sell its supermarket business to DFI Retail. Samsung Electronics (005930.KS) management and its biggest union came to an agreement over bonus structure, avoiding a strike that was due to start today. Adani Power (533096.IN) is to buy a 'significant' stake in Jaiprakash Power, expanding its thermal power sector presence.

• Digest:

  • South Korea equities surge on Samsung Electronics deal, economic developments:

    • South Korea's Kospi index ended more than 8.4% higher by lunchtime Thursday, KOSDAQ Composite up around 4.7% after Samsung Electronics (005930.KS) management and biggest trade union came to last-minute agreement to avoid strike action (KoreaHerald). SEC stock up 8.5% while there are strong gains at LG Electronics (066570.KS), SK Hynix (000660.KS) on read through while several large-cap exporters also higher on improved sentiment, overnight dip in the US dollar. Late on, a group of SEC shareholders vowed legal action against deal (Yonhap).

    • Wage deal comes after economist warnings that lack of deal would lead to KRW100T ($66.7B) hit to South Korea economy, hints from President Lee that government would use emergency powers to halt strike from taking place. Management-union deal includes special semiconductor performance bonus equivalent to 10.5% of business performance earnings, without a cap, but most contentious decision on how to divide pool between loss-making divisions postponed for year (Yonhap).

    • Strength of underlying chip cycle and contribution to economy evident again in 1-20D May export data that rose 65% y/y to $52.7B with imports up 29.3%, equally reflecting higher import energy costs. Semiconductor exports rose 202% y/y while petroleum product shipments rose 46.3% (Yonhap); exports to China rose 96.5%, to the US 79.3%, Vietnam 70.2%. Separate data from BOK showed South Korea April PPI increased at fastest pace since Oct-22 mainly on higher petroleum, raw materials prices stemming from middle east conflict. Gauge rose 2.5% m/m and 6.9% y/y with above mean increases in industrial goods and petroleum products.

  • Early May PMIs show sharp decline in manufacturing:

    • Asia manufacturing seeing notable slowdown in May so far, according to three flash PMIs published Thursday. Japan's early reading shows growth at five month low with manufacturing PMI at 54.5 from 55.1 in April while services growth stagnated at 50.0 versus April's 51.0. S&P said factory output maintained by stockpiling efforts as middle east conflict impacted product availability, as input costs rose at steepest pace in 3.5 years, selling inflation accelerated to survey-record high.

    • Australia PMI showed manufacturing fell back into contraction MTD. Its composite index fell to 47.8 from April's expansive 50.4 with services also underperforming relative to manufacturing. Demand environment deteriorated further, underpinned by fall in new orders, output, and employment. Inflation softened, albeit still at elevated levels while business sentiment is at its lowest since first pandemic lockdown in Mar-20.

    • India PMI also seeing slowdown in growth as output and new order growth moderate, new export orders slow sharply, offset by continued inventory build. Composite index at 58.1 from 58.2, services PMI marginally improved. Firms looked to absorb price increases as input prices rose at fastest pace since Jul-22.

  • Disappointing Australian jobs figures dampen RBA rate hike expectations:

    • Headline employment fell 18.6K m/m in April, contrasting with expectations of a 15K increase. Follows significant revision to March to +23.3K from +17.9K, ending a run of strong growth in the past four months. Full-time and part-time jobs fell on the month. Participation rate ticked down to 66.7% vs consensus and prior month's 66.8%, edging further down from its peak in the low 67% range around 2H24. Standout metric was the unemployment rate rising to 4.5% (highest since Nov-21) vs consensus and prior month's 4.3%. Main silver lining was an 0.8% rise in total hours worked, starting to run ahead of employment growth. In light of the magnitude of surprise, implications overshadowed attention on the details. AUD fell notably on the news as RBA rate hike pricing retreated broadly, taking August odds below 50% and only 23 bp priced in for the year. Market reactions broadly consistent with a dovish pivot in commentaries suggesting this result is enough to keep RBA sidelined for the time being or at least present a high bar for another rate hike. Similar result next month would confirm this was more signal than noise, providing mounting evidence for speculation the current rate hike cycle may be over. Softening labour market fits with relentless local press coverage of the cumulative burdens from prior hikes combined with renewed inflation pressures, and Middle East impacts yet to fully permeate through the economy.

  • Japan PM Takaichi lays stimulus cards on the table:

    • Prime Minister Takaichi at a party leaders debate in parliament officially confirmed the administration is looking at an FY26 supplementary budget in response to the Middle East situation (Nikkei) while pledging to restrain new debt issuance as much as possible. Framed the objective is to shore up reserve provisions in the unlikely case existing funding for policy support measures becomes inadequate. One prominent proposal seeks to avoid broad stimulus measures and limit the budget to topping up reserves. Main schemes in mind are the gasoline price cap introduced in March and another round of electricity & gas subsidies over July through September. Declaration of an extra budget opened up debate for other spending measures. Notably, opposition DPP party leader Tamaki called for cash distributions of JPY50K per person among low-income workers, though there wasn't much follow through after Takaichi requested more specifics. Tamaki reiterated calls for a JPY3T extra budget to ease uncertainties. Takaichi talked up plans to freeze the consumption tax on food products and wants to implement this as soon as possible once a bipartisan committee compiles an interim report this summer (Kyodo). The measure is becoming increasingly controversial with opposition parties appearing to grow cold to the idea in recognition concerns about feasibility.

  • BOJ board member Koeda joins chorus of rate hike advocates:

    • In a speech, BOJ board member Koeda acknowledged ongoing Middle East uncertainties and stressed this needs to be monitored further. Described the broad-based channels through which Japan's economy stands to be impacted, though was still generally treated as a risk scenario.

    • That aside, noted little evidence that current rate levels are becoming a notable burden and financing conditions remain accommodative. Accordingly, expressed the view that underlying inflation is already around 2% and believes BOJ needs to continue rate hikes in response to economic activity, prices and financial conditions.

    • Shifted discussion to how much policy should address potential price rises against the backdrop of prolonged Middle East uncertainties increasing the likelihood of crude oil prices remaining higher for longer. With firm demand led by AI, conditions augur for continued inflation across a wider range of items going forward. Koeda sees some possibility that underlying inflation may exceed 2%, which needs to be address via rate hikes at an appropriate pace. Discussing natural rate parameters, highlighted natural rate tends to move with long term potential growth. Implied inflation expectations the more likely swing factor, leading to fluctuations in real rates -- pushed into negative territory when inflation rises -- presented as even more important justification to continue policy normalization.

    • Concluded with balance sheet normalization, though only briefly explained the BOJ's existing stance. With the interim purchase reduction plan review coming up in the June MPM, deferred substantive discussions to a later date.

  • Notable Gainers:

    • +19.8% 9984.JP (SoftBank Group): Open AI reportedly could file confidentially for IPO as soon as Friday

    • +9.8% 9072.JP (NIKKON Holdings): reportedly considering take-private deal with first round of bidding early next month

    • +8.5% 005930.KS (Samsung Electronics): labor union, management reportedly reach tentative wage deal; strike suspended; shareholders group reportedly says tentative deal is illegal, will seek injunction if approved

    • +5.7% 068270.KS (Celltrion): to conduct 0.05-for-1 bonus issue, KRW100.00B buyback

    • +4.6% 8411.JP (Mizuho Financial): Rakuten Bank to issue shares to Rakuten Group and Mizuho Bank as part of reorganization of Rakuten Group's fintech business

    • +3.9% 5016.JP (JX Advanced Metals): to launch share buyback offer at ¥3,401/share

    • +1.2% 7203.JP (Toyota Motor): to split logistics optimization system business

  • Notable Decliners:

    • -15.4% 5838.JP (Rakuten Bank): to issue shares to Rakuten Group and Mizuho Bank as part of reorganization of Rakuten Group's fintech business

    • -10.7% 8630.JP (Sompo): reports FY results; net income beat FactSet estimates; analyst views generally negative in absence of capital level adjustment

    • -5.2% Z74.SP (Singtel): reports FY underlying NPAT SG$2.77B vs FactSet SG$3.10B

    • -4.2% 2039.HK (China International Marine Containers (Group)): US DOJ charges CIMC and executives in alleged shipping container price-fixing case

• Data:

  • Economic:

    • Japan

      • May flash manufacturing PMI 54.5 vs 55.1 in prior month

        • Services PMI 50.0 vs 51.0 in prior month

        • Composite PMI 51.1 vs 52.2 in prior month

      • April trade balance ¥301.9B vs consensus ¥44.5B and revised ¥643.0B in prior month

        • Exports +14.8% y/y vs consensus +9.2% and revised +11.5% in prior month

        • Imports +9.7% y/y vs consensus +8.5% and +10.9% in prior month

      • March core machinery orders (9.4%) m/m vs consensus (8.4%) and 13.6% in prior month

        • Q1 core orders +6.4% q/q, Q2 survey projection +0.3%

    • Australia

      • April employment (18.6K) m/m vs consensus +15.0K and revised +23.3K in March

        • Unemployment rate 4.5% vs consensus 4.3% and 4.3% in March

        • Participation rate 66.7% vs consensus 66.8% and 66.8% in March

    • New Zealand

      • April trade balance NZ$1,920M vs revised NZ$430M in March

        • Exports +12.3% y/y vs revised +3.5% in March

        • Imports +3.4% y/y vs revised +9.4% in March

  • Markets:

    • Nikkei: 1,879.73 or +3.14% to 61684.14

    • Hang Seng: (264.60) or (1.03%) to 25386.52

    • Shanghai Composite: (84.91) or (2.04%) to 4077.28

    • Shenzhen Composite: (68.80) or (2.40%) to 2800.37

    • ASX200: 125.10 or +1.47% to 8621.70

    • KOSPI: 606.64 or +8.42% to 7815.59

    • SENSEX: (212.95) or (0.28%) to 75105.44

  • Currencies:

    • $-¥: +0.06 or +0.04% to 158.9810

    • $-KRW: +4.85 or +0.32% to 1502.7700

    • A$-$: (0.00) or (0.40%) to 0.7123

    • $-INR: (0.20) or (0.20%) to 96.3619

    • $-CNY: (0.00) or (0.02%) to 6.8000