Sep 15 ,2026
Synopsis:
Asian equities lower Tuesday. Hang Seng fell to two-month low and led losses in Greater China markets. South Korea and Taiwan also declined as AI trade remained volatile following preceding selloff. Nikkei was flat. Singapore was worst performer in Southeast Asia. India trading lower after long weekend. US futures also down. Bond selloff continues with Treasury and JGB yield curves steepening. Crude strengthening as Brent approaches $108/bl while gold and silver continue to slip. Dollar firmer against other majors, at one-week high against yen. Bitcoin retreating.
Rising bond yields were key market focus during Asian session with 10Y Treasury yield surpassing 2023 peak and rising to highest since 2007, latest milestone in relentless global bond selloff driven by elevated oil prices and associated concerns about inflation pass-through, hawkish shift in monetary policy expectations, widening fiscal deficits, and AI-driven ramp in corporate issuance. Bond slump increases stakes ahead of FOMC meeting with markets pricing in 90% chance of a rate hike, which will be first time since Jul-23. Analysts warned bond investors may demand even higher yields if Fed doesn't hike or Chairman Walsh signals more dovish stance in coming months than what's priced in by money markets. In another major development, investors assessing outlook for AI-related stocks as there was no bounce for AI stocks following Monday's selloff that came after Anthropic's call to slow pace of model development, which invited pushback from both President Trump and China.
China's August activity data came mixed, which underlined continued weakness in domestic consumption. Retail sales growth unexpectedly slowed, weighed down by autos. Fixed asset investment declined with infrastructure going backward. Property metrics weak with real estate investment declining 20%, home price declines maintaining prior months' pace and credit metrics showing sharp drop in personal lending. Industrial production was a bright spot and rose by more than forecast, driven by high-tech manufacturing sectors. Strong industrial output also corroborated China's booming exports amid booming global demand for AI-related products. More economists expected economic growth at risk of falling below official target of 4.5% to 5% as policymakers under growing pressure to deploy more stimulus. Elsewhere Japan's cabinet approved plan to temporarily reduce consumption tax on food to 1% from 8% for two years and Tokyo considering new mid-term defense spending target of 3.5% of GDP.
Kioxia (285A.JP) said details of its ADR listings have not been determined yet after Bloomberg reported company considering raising at least $10B in US offering that may take place next year. CATL (3750.HK) gets regulatory approval to acquire battery firm linked with Geely Auto (175.HK), indicating China's backing for battery sector consolidation. CATL shares fell 6%, worst performer in Hang Seng Index. GAC Group (2238.HK) resumed trading Tuesday and rose 2.6% after company announced it plans to issue A-share to acquire equity in JV automaker FAW Toyota held by China's FAW Group.
Digest:
Notable Gainers:
+29.9% 424870.KS (Immuneoncia Therapeutics): Korea's MFDS approves ImmuneOncia Therapeutics' IND amendment for phase 1 trial of IMC-002
+2.6% 2238.HK (Guangzhou Automobile Group): to acquire stake in China FAW Group's joint venture in all-stock deal
+2.3% 285A.JP (Kioxia Holdings): reportedly considering raising ~$10B in US listing
+1.9% 4502.JP (Takeda Pharmaceutical): FDA accepts NDA of zasocitinib under priority review
Notable Decliners:
-4.8% 9627.JP (Ain Holdings): reports Q1 results; operating profit below FactSet estimates
-2.3% 960.HK (Longfor Group Holdings): China new-home prices in 70 major cities (0.17%) m/m in August vs month-ago (0.18%) m/m
-1.1% 042700.KS (HANMI Semiconductor): reportedly to supply packaging equipment for system semiconductors to TeraFab
-1% 9435.JP (Hikari Tsushin): offers to acquire Leopalace21 at ¥1,000/share
Data:
Economic:
China August
Industrial production +5.2% y/y vs consensus +4.8% and +4.5% in prior month
Retail sales +0.4% y/y vs consensus +0.8% and +0.6% in prior month
Fixed asset investment (YTD) (7.2%) y/y vs consensus (7.1%) and (6.7%) in prior month
Unemployment rate 5.3% vs consensus 5.2% and 5.2% in prior month
New house prices (0.1%) m/m vs (0.1%) in prior month
Markets:
Nikkei: (8.89) or (0.01%) to 63484.10
Hang Seng: (250.36) or (1.00%) to 24667.24
Shanghai Composite: (21.05) or (0.54%) to 3864.28
Shenzhen Composite: (20.25) or (0.82%) to 2444.04
ASX200: (77.40) or (0.88%) to 8672.50
KOSPI: (57.11) or (0.85%) to 6627.26
SENSEX: (279.20) or (0.37%) to 74502.56
Currencies:
$-¥: +0.83 or +0.54% to 155.1750
$-KRW: +15.43 or +1.14% to 1363.2700
A$-$: (0.00) or (0.29%) to 0.7119
$-INR: +0.10 or +0.11% to 95.9366
$-CNY: (0.00) or (0.00%) to 6.7142
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