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StreetAccount Summary - Asian Market Recap: Nikkei +0.73%, Hang Seng (0.81%), Shanghai Composite +1.14% as of 04:10 ET

Aug 28 ,2025

• Synopsis:

  • Asian equities ended mixed Thursday as its recent directionless trend continued. Solid gains for Japan, Australia, South Korea and several Southeast Asia boards. Taiwan closed lower as Nvidia supplier TSMC fell. India is also trading lower. Greater China was once again mixed as Hong Kong fell on consumer stock weakness, Shanghai rallied in afternoon trade, and Shenzhen surged to a more than 2% gain. European markets building on opening gains, US futures now higher having been lower for much of the day. US dollar off early lows, yen paring gains, quiet elsewhere. Treasury yields mixed, JGB yields lower across tenors. Crude futures slipping but within this week's range. Precious and base metals little changed. Cryptocurrencies higher with Ether gaining more ground.

  • Asia equity markets drifted for a second consecutive day although most main benchmarks likely to score a fifth consecutive month of gains as the month ends tomorrow. A mixed reception for Nvidia results overnight that topped analysts forecasts but not the most optimistic of ones while it also flagged declining growth and problems in China. A $60B share buyback was also announced. The underwhelming results weighed on the stock post market as well as on TSMC today, which dragged the Taiex to an underperformance Thursday. China's semiconductor sector took another leg higher after the FT reported Beijing intends to triple AI chip output next year; Cambricon Tech (~688256.IN~) gained almost 16% and SMIC (~981.HK~) almost 11%. Offsetting gains in tech were steep losses in internet-consumer names following poor Meituan results.

  • In other regional developments, the Bank of Korea left its policy rate unchanged as expected and nudged up its FY25 growth forecast. But it also warned over short- and long-term economic growth risks associated with US tariffs and South Korean companies pledges of US investment. The Philippine central bank lowered its base rate 25 bps to 5.0%, also as expected, with economists expecting more to come. Japan's negotiator Akazawa canceled his planned trip to US citing more work was needed on a working level before a final agreement can be signed. Thailand industrial output contracted by more than expected in July.

  • Sompo Holdings (8630.JP) is to acquire US-listed Aspen Insurance for $3.5B as Japan's financial sector expansion continues. Meituan (3690.HK) said it had seen a significant decline in Q2 earnings on lower revenue, warned on ongoing price competition. Qantas Airways (QAN.AU) reported a jump in FY earnings and said it had ordered more short-haul Airbus jets. Air New Zealand (AIR.NZ) admitted it remains in a long-haul quagmire as soft demand and engine problems persist. Lynas Rare Earths (LYC.AU) posted a sharp slide in annual profit and launched a $487M capital raising program. Mineral Resources (MIN.AU) posted a large annual loss after lithium prices fell sharply weakness while it moved to quell speculation its founder and MD would stay at the company.

• Digest:

  • Japan Finance Ministry flags potential further cutbacks to superlong JGB issuance:

    • Nikkei, citing multiple market sources, reported MOF distributed a questionnaire to participants in the lead-up to an expected primary dealer meeting in September, containing a proposal to trim superlong JGB issuance via smaller tap auctions. Specifically mentioned proposals to reduce auctions targeting 15.5~39y zone from current JPY350B ($2.4B) to either JPY250B or zero. Culling to be made up by equivalent increases to 1y~5y zone. This would mark the second cutback this fiscal year after MOF in July downsized each specific auction size by ¥200B in in 20y and ¥100B each in 30y and 40y. However, these adjustments have been outweighed by sharper depletion in demand -- insurer appetite has dropped off after having ramped up buying earlier to meet regulatory requirements while foreigners have retreated sharply in the wake of the upper house election result amid fiscal policy concerns. Headline effects provided a notable boost to superlong sector, driving the yield curve flatter. Also coincided with a recovery in 2y that was sold down in reaction to a comprehensively soft auction result against the backdrop BOJ rate hike expectations.

  • Japan trade negotiator Akazawa abruptly cancels US visit:

    • Reuters, citing a government source, reported Japan lead negotiator Akazawa cancelled a visit to the US at the last minute on Thursday, further delaying talks designed to finalize a $550B investment package offered by Tokyo in exchange for tariff relief. Akazawa was due to fly to Washington to craft a written confirmation of the terms of the package, such as the split of investment returns between the US and Japan. US Commerce Secretary Lutnick has also said there would be an announcement this week on Japan's investment framework. Chief Cabinet Secretary Hayashi told reporters there were "points that need to be discussed at the administrative level during coordination with the American side." Japanese officials have repeatedly said they would rather have an amended presidential executive order first to remove overlapping tariffs on Japanese goods beforehand. According to Nikkei, Akazawa reaffirmed at a Wednesday press conference that he would push for the executive order amendment on tariffs. Further reiterated Japan does not see the need for a document on the investment commitment though is complying at the US's request. Akazawa didn't even mention the document specifically at the briefing. Follows a post-cabinet meeting presser Tuesday, mentioning the document is of more benefit to the US rather than Japan, and does not consider it to be legally binding.

  • Bank of Korea keeps base interest on hold, warns of short- and long-term risks from tariffs:

    • Bank of Korea (BOK) kept its 7D repo rate unchanged at 2.5%, as expected by majority of economists, saying it needed to further monitor rising house prices, household debt, forex volatility before further rate cuts can be made. It raised FY25 GDP growth forecast to 0.9% from prior 0.8%, left FY26 growth forecast unchanged at 1.6%; expects FY25 inflation at 2.0% from prior 1.9%, raised FY26 forecast to 1.9% from 1.8%. Five of six MPC members voted for no change, same ratio saw possibility of cuts within three months (Yonhap). Governor Rhee said US tariffs expected to knock 0.45 ppt off FY25 GDP growth, 0.6 ppt in FY2026 (Bloomberg). Would also press on inflation by 0.15 ppt in FY25, 0.25 ppt next year while expected global inflation trajectories to diverge. Added higher export costs to weigh on competitiveness, reduce overseas manufacturing orders. Over long term, country faces disrupted supply chain risk, brain drain from investment pledges, hollowing out of local industry.

  • Philippines central bank lowers base rate 25 bps to support growth:

    • Bangko Sentral Philippines (BSP) lowered target reverse repo rate 25 bps to 5.0% Thursday with parallel cuts to overnight deposit and lending facilities. The bank joined several other Asia central banks in dovish tilt, warning over growth outlook due to US tariffs. However, BSP kept inflation forecasts broadly unchanged at 1.7% for FY25, 3.3% for FY26 despite risk of higher electricity prices in short term. Base rate now at lowest in nearly three years following third consecutive trim that had been widely expected following Governor Eli Remolona's flagging of likely easing last month. BSP acknowledged domestic demand remained resilient but warned emerging risks will continue to require close monitoring. Will decide on futures cuts based on evolving outlook for Philippine economy but economists widely expect further cuts amid benign inflation, peso strength that has dampened imported rice costs (Bloomberg).

  • China chipmakers said to be aiming for triple AI chip output next year:

    • FT reported China chipmakers seeking to triple nationwide output of AI chips next year, in a race with US to develop the most advanced AI. Sources indicated three fabs supplying Huawei processors due to be operational next year. Article noted ownership of these plants are unclear. Huawei has denied plans to operate its own fabs. Huawei's latest products seen as among those viable to run DeepSeek. Combined capacity from the three fabs could exceed similar lines at China market leader SMIC (981.HK), which is also said to be planning to double its capacity next year for 7 nm architecture currently the most advanced mass-produced type in China. Huawei is currently SMIC's largest customer for such processor lines. Expansion would leave room for larger allocations to smaller chip designers such as Cambricon (688256.CH), MetaX and Biren, spurring competition for a fast-growing market left by Nvidia (NVDA) following US export bans. Article also discussed China's forays into other critical areas such as memory chips, noting leading domestic player CXMT testing samples of HBM3 targeting a launch next year, a standard only one generation behind leading edge memory products used in Nvidia chips.

  • Notable Gainers:

    • +10.8% 981.HK (SMIC): trading higher on report China plans to triple AI chip output next year

    • +10.6% 009540.KS (HD Korea Shipbuilding & Offshore Engineering Co.): merger of subsidiaries, HD Hyundai Heavy Industries and HD Hyundai Mipo

    • +8.8% 2607.JP (Fuji Oil Holdings): new mid-term management plan; targets FY27 business profit ¥45.0B

    • +7.4% 6957.JP (Shibaura Electronics): Yageo expects to receive FDI approval for Shibaura Electronics acquisition by 10-Sep

    • +3.3% 8630.JP (Sompo): confirms agreement to acquire Aspen Insurance for $37.50/share, transaction valued at around $3.5B

    • +3.1% 2328.HK (PICC Property & Casualty): reports H1 earnings; original insurance premium income CNY323.28B vs year-ago CNY312.00

    • +1.8% 8058.JP (Mitsubishi): Berkshire Hathaway increases stake to 10.2% from 9.7%

  • Notable Decliners:

    • -12.6% 3690.HK (Meituan): reports Q2 adjusted net income CNY1.49B vs year-ago CNY13.61B

    • -6.5% 2172.HK (MicroPort NeuroScientific): reports H1 net income attributable CNY92.9M, (35%) vs year-ago CNY143.5M

• Data:

  • Economic:

    • Australia Q2

      • Private capital expenditure +0.2% q/q vs consensus +0.8% and (0.1%) in Q1

    • New Zealand August

      • ANZ Business Confidence +49.7 vs +47.8 in July

  • Markets:

    • Nikkei: 308.52 or +0.73% to 42828.79

    • Hang Seng: (202.94) or (0.81%) to 24998.82

    • Shanghai Composite: 43.25 or +1.14% to 3843.60

    • Shenzhen Composite: 37.04 or +1.55% to 2431.32

    • ASX200: 19.50 or +0.22% to 8980.00

    • KOSPI: 9.16 or +0.29% to 3196.32

    • SENSEX: (579.78) or (0.72%) to 80206.76

  • Currencies:

    • $-¥: (0.13) or (0.09%) to 147.2700

    • $-KRW: (5.51) or (0.40%) to 1387.7900

    • A$-$: +0.00 or +0.07% to 0.6509

    • $-INR: (0.07) or (0.08%) to 87.5863

    • $-CNY: (0.02) or (0.21%) to 7.1389