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StreetAccount Summary - Asian Market Recap: Nikkei (0.57%), Hang Seng +0.00%, Shanghai Composite (0.30%) as of 04:10 ET

Sep 19 ,2025

• Synopsis:

  • Asia equities ended mostly lower Friday to complete a mixed week for stocks. Japan's Nikkei and Topix opened higher but pared gains on BOJ's rate decision and ETF selldown plan. Greater China boards ended mixed as Shenzhen and Hong Kong ended flat while Shanghai's Composite fell. Small losses for South Korea and Taiwan on negative read through from Nvidia's deal with Intel. India trading lower despite Adani Group stocks rising on a regulator reprieve. Southeast Asia mixed. Australia's ASX closed higher but still underperformed over the week. US futures a smidge lower, Europe opened higher. US dollar hovering around the flatline, yen flat, AUD and NZD weakening further. Treasury yields higher across tenors, JGB yields higher with 2Y and 10Y yields at fresh multi-year highs. Crude futures down, gold and silver trading higher. Base metals leaning higher.

  • Asia equities ended the week with a slight dip but many benchmarks still hovering close to record highs. For the week, MSCI's Asia Pac ex Japan index is slightly higher with gains in Hong Kong, Shenzhen, South Korea and Taiwan; and losses for Australia, Singapore and Shanghai. The Nikkei was slightly higher, the Topix slightly lower. Friday, the Nikkei and Topix both touched fresh records before dipping after the Bank of Japan held rates steady as widely expected, and announced broad plans to sell its large ETF and J-REIT stockpile as soon as preparations are complete. Decision comes as August inflation eased to a ten-month low as government electricity subsidies bedded in while core dipped to a nine-month low.

  • In other developments, Taiwan's central bank late Thursday kept its base interest rate on hold, as expected, and raised its FY25 growth target. But it also warned Trump's tariffs could blunt the island's competitive edge if ongoing negotiations fail. Presidents Trump and Xi to speak this evening (Asia time) with Nvidia, TikTok and trade on the agenda; Soyabean and aircraft purchases could also be discussed. Analysts said a substantive breakthrough is unlikely but a tariff deadline extension is possible. Malaysia's exports grew in August albeit at a slower pace than in July as shipments to China grew.

  • Omron (6645.JP) said it will spin off its device and module business by Apr-26. Sumitomo Mitsui Financial Group (8316.JP) is mulling increasing its ownership of Jefferies to above 15%, Jefferies said to have approved the deal. Xiaomi (1810,HK) is to deploy an over-the-air assisted driver fix for almost 40% of its SU7 EVs over a collision risk. Hyundai Motor (005380.KS) said it will increase investment into the US by around 10% over next five years. The India securities regulator, SEBI, dismissed Hindenburg allegations against Adani group companies (Adani Enterprises, 512599.IN; Adani Power, 533096.IN)

• Digest:

  • Notable knee-jerk reactions to BOJ:

    • Early BOJ takeaways drew attention to the two dissenters calling for a rate hike (Takata, Tamura), viewed as more of a leading indicator rather than outliers, fanning October rate hike speculation. Headline effects triggered notable knee-jerk reactions in terms of yen strength, higher 2y and 5y JGB yields and equity declines. Also some sense from Governor Ueda's press conference that the outlook has not changed much in terms of domestic dynamics remaining intact and tariff effects so far limited (Reuters). However, uncertainties are still high and rate hike conditions shaping up to be a matter of confidence level, which may be resolved by sufficient clarity from the releases of the September BOJ Tankan and branch mangers meeting/regional economic report before the October MPM. Key stock market catalyst was the ETF/J-REIT disposal guidelines that came as a genuine surprise (Reuters) despite Governor Ueda having noted in March that it would take more than century to unwind ETFs at the same pace as the shares purchased from financial institutions, which was a recurring discussion at the press conference. ETF disposal prompted some debate over whether the size would be enough to significantly impact supply-demand balance though was also interpreted as a broader hawkish sign that BOJ remains intent on policy normalization despite uncertainties, laying the groundwork for another rate hike (Bloomberg).

  • BOJ leaves rates unchanged as expected, releases guideline for ETF/J-REIT disposal:

    • BOJ kept the policy rate unchanged at 0.50% as widely expected. Still looks for moderation in economic growth as tariff policies lead to slower global demand and declining corporate profits. Reaffirmed projection for inflation to undergo a sluggish phase as a consequence of slower growth while pressures from food prices expected to wane. Inflation still seen reaching target in the second half of the projection period. Vote count was 7-2 and dissenters proposed a 25 bp rate hike. Takata argued price stability target has already been more or less achieved, Tamura sees upside risks to inflation and wanted to see the policy rate a little closer to neutral. Main surprise came in an appendix to the policy statement, outlining disposal of ETFs and J-REITs at a pace roughly consistent with the recently completed unwinding of stock purchases from financial institutions for the time being, or about 0.05% of turnover. Stipulated annual ETF sales of about a JPY330B on book value basis (JPY620B by market value as of Mar-25). J-REIT pace set at about JPY5B book value (JPY5.5B market value). Sales to commence once necessary preparations are completed. Guideline qualified that trajectory may be tweaked at future MPMs.

  • Trump, Xi set to talk Friday:

    • Bloomberg reported Trump and Xi due to speak at 9 am ET Friday about a framework agreement unveiled this week to shift control of TikTok's US operations from ByteDance to a consortium of American investors. Details of the deal haven't been announced, and Trump remained noncommittal in an interview with Fox News Thursday, signaling that a lot rides on how Xi responds. Yet, Trump sounded upbeat and of the impression that China has approved the deal. At a London press conference with British PM Starmer, Trump indicated the possibility of another extension though terms would not change (Reuters). With frictions surrounding semiconductors and rare earths still looming large, Trump said they are "very close to deals on all of it," alluding to trade talks as well as TikTok. Bloomberg noted the call may set up the first in-person meeting since Trump returned to office, which should open the path for broader dialogue on issues such as China's purchases of Boeing planes and geopolitics (Ukraine, Middle East, South China Sea). In latest China rhetoric, Commerce Ministry reaffirmed Thursday that Beijing would not sacrifice its principles for the sake of a deal (Xinhua) though after a People's Daily commentary noting China was receptive to the TikTok discussions in Madrid that were based on "win-win" cooperation (Reuters).

  • Japan CPI inflation in line:

    • Nationwide core CPI rose 2.7% y/y in August, matching expectations. Follows 3.1% in the previous month and marks the softest since November. Ex-fresh food & energy inflation edged lower to 3.3%, also in line, from 3.4% in July. Bulk of moderation at the headline came from larger energy drags, in turn a function of reinstated electricity and gas subsidies. Yet, other notable drivers also eased pressure on the headline to some extent, led by non-fresh food. Closely watched rice prices logged the second straight sequential decline albeit moderate, though y/y increases tailing off rapidly as base effects come into play. Broadest rice category decelerated to +69.7% in August from +90.7% in July, tumbling from a peak +101.7% in May. Chocolate and coffee remain elevated due to international prices though weightings are small. Goods inflation little changed outside of energy and food impacts. Services inflation was also steady. Rice factor playing out according to the BOJ's outlook which sees pressures as temporary. Near term prospects for trend inflation seen as subdued reflecting lackluster economic growth. September JCER consensus looks for a Q3 GDP contraction. Continues to look for underlying dynamics to reach target in the second half of the projection period (from H2 FY26).

  • Japan LDP leadership candidate Takaichi endorses tax breaks with hints of fiscal discipline:

    • Nikkei reported contents of LDP leadership candidate Takaichi's policy platform ahead of today's press conference where she pledged a pro-growth stance (Bloomberg). Main stimulus policies comprise a combination of tax breaks and cash payouts -- latter to supplement lower income earners unable to extract full benefits of tax cuts. Ruling coalition leaders met with DPP and agreed to enter talks on the proposal starting next week (Nikkei). Takaichi also backing a higher income tax threshold and elimination of a special gasoline levy with both ideas pushed by opposition parties. Stimulus tempered by slogan of 'responsibly proactive fiscal policy.' Eyeing sustainability, consideration will be given to gradual reduction in debt-to-GDP ratio. On the broader election race, Nikkei noted Chief Cabinet Secretary Hayashi has joined the short-list of top contenders alongside Takaichi and Agriculture Minister Koizumi with fiscal policy set to be the key battleground. Consumption tax will be the focal point given significant budget implications. Recall last year's contest saw Takaichi taking the most votes in the first round, though lost to Ishiba in the runoff in what was seen as an upset. Koizumi came third in the first round, taking a narrow lead over Takaichi among Diet votes.

  • Notable Gainers:

    • +12.5% 6920.JP (Lasertec): NVIDIA and Intel to develop AI infrastructure and personal computing products; NVIDIA will invest $5B in Intel's common stock at a purchase price of $23.28 per share

    • +4.2% 012510.KS (DOUZONE BIZON): reportedly to be acquired by EQT Partners

    • +3.2% 008770.KS (HOTEL SHILLA Co.): to suspend operations at some Incheon Airport duty-free branches, effective 17-Mar

    • +1.6% 8316.JP (Sumitomo Mitsui Financial): Jefferies holder Sumitomo Mitsui reportedly considering increasing stake over 15%

    • +1.5% H78.SP (Hongkong Land Holdings): to divest MCL Land to Sunway, with expected transaction proceeds of SG$739M ($579M)

  • Notable Decliners:

    • -76.0% 412.HK (Shandong Hi-Speed Holdings Group): SFC issues high concentration of shareholding warning

    • -5.4% 1801.HK (Innovent Biologics): Ollin announces clinical updates on IBI324

• Data:

  • Economic:

    • Japan August

      • Nationwide core CPI +2.7% y/y vs consensus +2.7% and +3.1% in prior month

        • Overall CPI +2.7% y/y vs consensus +2.8% and +3.1% in prior month

        • CPI excl. fresh food & energy +3.3% y/y vs consensus +3.3% and +3.4% in prior month

    • New Zealand August

      • Trade balance (NZ$1,185M) vs revised (NZ$716M) in July

        • Exports +23.0% y/y vs +10.0%% in July

        • Imports (0.4%) y/y vs +2.6% in July

  • Markets:

    • Nikkei: (257.62) or (0.57%) to 45045.81

    • Hang Seng: 0.25 or +0.00% to 26545.10

    • Shanghai Composite: (11.57) or (0.30%) to 3820.09

    • Shenzhen Composite: (7.56) or (0.31%) to 2472.63

    • ASX200: 28.30 or +0.32% to 8773.50

    • KOSPI: (16.06) or (0.46%) to 3445.24

    • SENSEX: (354.88) or (0.43%) to 82659.08

  • Currencies:

    • $-¥: (0.05) or (0.04%) to 147.9360

    • $-KRW: +7.09 or +0.51% to 1395.3300

    • A$-$: (0.00) or (0.23%) to 0.6597

    • $-INR: (0.02) or (0.02%) to 88.1842

    • $-CNY: (0.00) or (0.00%) to 7.1123