Back to Daily DR Market Summary

StreetAccount Summary - Asian Market Recap: Nikkei (1.74%), Hang Seng (0.79%), Shanghai Composite (0.41%) as of 03:10 ET

Nov 04 ,2025

• Synopsis:

  • Asia equities ended mostly lower Tuesday. South Korea's Kospi retreated and pared Monday's gains on profit taking and regulator warnings over valuations. Steep losses for the Nikkei 225 and China's Shenzhen boards, Taiwan also lower. Less pronounced losses in Shanghai and Hong Kong. Australia with a sharp decline, Singapore and India also lower. Modest gains in Manila and Jakarta, New Zealand's NZX 50 closed at record high. US futures lower, Europe opened with steep declines. US dollar DXY index hovering near 100 after a brief break higher early on; yen stronger on finance minister comments, AUD weaker after RBA decision, rupee near record lows despite RBI intervention, won notably weaker. Treasury yields mostly lower, JGB yields higher and Australia yields at month-long highs. Crude futures down, precious metals lower with gold dipping below $4K. Base metals also under pressure. Cryptocurrencies steeply lower with bitcoin at five-month low.

  • Asia equities - and specially the technology sectors - saw steep declines Tuesday following overnight hawkish comments from Fed member Cook that sent the dollar higher, while there were warnings over the potential for a correction in the US (Bloomberg) and in Asia (FT). South Korea's Kospi hardest hit today with SK Hynix (000660.KS) and Samsung Electronics (005930.KS) down around 5.5% each after the market regulator issued a rare 'investment caution' warning over SK's stock.

  • In regional developments, the RBA left its official cash rate unchanged at 4.6% as widely expected and raised its short-term CPI forecasts. South Korea inflation rose by more than expected in October on food and energy prices, solidifying case for another BOK hold decision later this month. Yen notably stronger and outperforming other Asia currencies after finance minister Katayama warned over one-sided movements in forex, seen as a alert over a possible finmin intervention. Rupee also a little stronger following more intervention from the RBI in the offshore currency markets to avoid a fresh market low.

  • Mitsubishi Heavy Industries (7011.JP) is to build a $1.3B urea plant in Turkmenistan with completion scheduled for 2028-29. Nintendo (7974.JP) raised its sales forecast for its Switch 2 console, reported stronger-than-expected profits. Sinopec (386.HK) and LG Chem (051910.KS) have signed a pact to jointly develop sodium-ion batteries that have been promoted as the next generation technologies for energy storage. Hyundai Motor (005380.KS) said global sales had fallen to 351K from 378K last year. Samsung SDI (006400.KS) is in talks with Tesla to supply energy storage batteries that could be worth up to KRW3T ($2.11B). Grab (GRAB) said Q3 revenue was supported by robust consumer spending in Southeast Asia on ride hailing and food delivery.

• Digest:

  • RBA on hold, remains cautious amid likely persistence of inflation pressures:

    • RBA left cash rate unchanged at 3.60%, as expected. Governor Bullock said board did not consider rate cut or rate hike, just hold. Said possible no more cuts with cash rate very close to neutral, noting cash rate didn't peak as high and may not trough as low. Cautious stance reflects dual rise in unemployment rate and inflation, but board focused on returning inflation to midpoint. Statement noted recent data suggests some inflationary pressure may remain, necessitating cautious stance. This was reflected in upgraded CPI forecasts with trimmed mean inflation seen above 3% midpoint through H1 2026 while longer-run forecast nudged up further above 2.5% midpoint, reflecting return of growth to trend and capacity constraints feeding into services inflation. RBA assesses slightly more capacity pressures than previously assessed with demand above potential supply. Unemployment rate forecasts nudged higher though RBA still assesses some labor market tightness remains and conditions not expected to ease much further. GDP forecasts revised down slightly as upgrade to private demand offset by weaker outlook for public demand. Central forecasts based on technical assumption of one more rate cut in 2026 (market not pricing in next rate cut until May 2026).

  • Yen market on alert for possible FX intervention on Katayama's remarks:

    • Tuesday's notable yen strength was mainly attributed to comments by Finance Minister Katayama, reiterating last Friday's language that authorities are observing one-sided and rapid movements and they continue to monitor the situation with a "high level of urgency" (Reuters). Article noted FX rhetoric has been the strongest since Katayama assumed her role last month. Headline effects were verified by local press. Nikkei discussed how recent volatility places Katayama's tolerance range to the test. Yen has fallen almost 5% over the space of three weeks, a pace that compelled former FX chief Kanda to intervene in July last year after having remarked that '5% over a month was a substantial move.' Article went on to note the complications caused by the BOJ vs government dynamic. Katayama on Friday simultaneously issued verbal intervention while also commenting the BOJ's decision to stay on hold was "extremely reasonable" under current circumstances. Yen depreciation resumed after the BOJ meeting, prompting thoughts it would be incongruous if this was followed by FX intervention. Recall that political considerations were cited by several economists as a key reason for BOJ not to hike, especially in October so soon after Takaichi became prime minister, as well as perhaps in December around the formulation of the stimulus package and amid some speculation Takaichi might dissolve the lower house in the current session (albeit she has so far denied). At the same time, sharp yen depreciation was raised as the main catalyst to warrant a rate hike sooner rather than later.

  • Growing concentration of Asian tech majors playing into AI bubble concerns:

    • AI bubble concerns not just confined to US with handful of big tech firms driving bulk of the gains on key Asian benchmarks this year. According to FT calculations, six tech firms driven 50% of Hang Seng's gains this year, two tech majors responsible for Kospi's 40% return and TSMC (2330.TT) has fueled more than 50% of Taiwan benchmark's advance. Growing concerns about potential spillovers from any major pullback in big US tech stocks with Mag 7 responsible for 42% of S&P 500's year-to-date advance. Asian markets at risk given heavy concentration with TSMC comprising 45% of Taiex, and SK Hynix (000660.KS) and Samsung (005930.KS) representing 30% of Kospi (Bloomberg). That is also complicating traditional investment strategies with index trackers having to increase allocation to an increasingly concentrated list of stocks, further inflating the rally. Strategists noted top five stocks comprise 29% of MSCI Asia Pacific ex-Japan, near highest since 2019. Still, broader narrative remains bullish with Asia AI seen as multi-year theme amid ongoing ramp in US hyperscaler capex that is fueling chip demand. China tech majors also trading at lower valuations than US counterparts (Nasdaq P/E of 35x vs Hang Seng tech's 20x), with positive outlook underpinned by Beijing's self-sufficiency drive.

  • Japan PM Takaichi launches growth strategy HQ, says sustainable inflation still only at halfway point:

    • NHK reported Prime Minister Takaichi established a national growth strategy headquarters, delegating 17 strategic areas (examples mentioned were AI, shipbuilding, defense) to cabinet ministers with the task of formulating new initiatives next summer. Takaichi indicated one of the aims is to derive growth strategies through bolstering Japan's supply structure funded by multi-year funding commitments to improve predictability of investment. Chief Cabinet Secretary Kihara said the council will take up matters discussed under previous administrations such as Kishida's council for the realization of new capitalism. DPP leader Tamaki expressed support, emphasizing the task of finding ways to redistribute corporate sector internal reserves toward domestic investments. Later in Takaichi's first parliamentary question time as PM, argued Japan was still only "halfway" toward achieving sustainable inflation accompanied by wage gains (Reuters). Hopes BOJ conducts appropriate monetary policy towards sustainably and stably achieving its 2% inflation target, which the article interpreted as a signal of her preference for the BOJ to go slow in raising interest rates. Takaichi also said her administration will "strategically" deploy fiscal spending to increase household income, improve consumer sentiment and strengthen the economy.

  • China local governments offer energy subsidies to tech firms using domestic AI chips:

    • FT sources said China has boosted subsidies that defray energy bills for some of country's biggest data centers. Local governments in data center-heavy provinces including Gansu, Guizhou and Inner Mongolia have enhanced incentives by as much as 50% to help domestic big techs such as ByteDance, Alibaba (9988.HK) and Tencent (700.HK), which have been grappling with higher electricity costs as Chinese authorities restrict them from purchasing Nvidia's (NVDA) AI chips. Local replacements such as Huawei and Cambricon (688256.CH) are less energy-efficient than Nvidia's, which are about 30% to 50% higher to generate same amount of tokens. Data centers running chips from foreign vendors are not qualified for such benefits. Article noted this is further signal of how China is incentivizing local tech firms to reduce dependence on Nvidia and boost domestic semiconductor industry amid tech race with US. Meanwhile noted despite higher costs associated with local chips, China's more centralized grid network still provides cheaper and greener electricity than US with no near-term shortage. Unit costs of industrial electricity in several provinces in west China will be cut to CNY0.4 ($0.056) per kWh after new subsidies, 30% cheaper than coastal areas in east China and compares with $0.091 per kWh in US.

  • Notable Gainers:

    • +18.3% 302440.KS (SK bioscience Co.): reports Q3 operating profit (KRW19.37B) vs year-ago (KRW39.61B)

    • +5.1% 6954.JP (FANUC Corp.): reports Q2 net income attributable ¥42.0B vs StreetAccount ¥38.11B

    • +1.4% 006360.KS (GS Engineering & Construction): reports Q3 operating profit KRW148.47B vs FactSet KRW98.68B

    • +1.0% 068270.KS (Celltrion): signs a license-in agreement with Kaigene for a rare autoimmune disease treatment new drug substance

  • Notable Decliners:

    • -5.3% 005380.KS (Hyundai Motor): reports October global sales 351,753 units vs year-ago 377,917 units

    • -4.9% 9104.JP (Mitsui O.S.K. Lines): guides FY26 net income attributable ¥180.00B vs prior guidance ¥200.00B and FactSet ¥204.46B

    • -3.9% 267250.KS (HD HYUNDAI Co.): reports Q3 net income attributable KRW174.60B vs FactSet KRW357.50B

    • -1.1% 8766.JP (Tokio Marine Holdings): completes acquisition of Ignyte Insurance's US collector vehicle insurance agency business for $615M (¥94.7B)

• Data:

  • Economic:

    • Japan

      • October final manufacturing PMI 48.2 vs flash 48.3 and 48.5 in prior month

    • South Korea

      • October CPI +2.4% y/y vs FactSet consensus +2.2% and +2.1% in prior month

        • CPI ex-food & energy +2.2% vs +2.0% in prior month

  • Markets:

    • Nikkei: (914.14) or (1.74%) to 51497.20

    • Hang Seng: (205.96) or (0.79%) to 25952.40

    • Shanghai Composite: (16.33) or (0.41%) to 3960.19

    • Shenzhen Composite: (33.84) or (1.34%) to 2486.78

    • ASX200: (81.10) or (0.91%) to 8813.70

    • KOSPI: (100.13) or (2.37%) to 4121.74

    • SENSEX: (312.53) or (0.37%) to 83665.96

  • Currencies:

    • $-¥: (0.68) or (0.44%) to 153.5300

    • $-KRW: +6.76 or +0.47% to 1436.7300

    • A$-$: (0.00) or (0.35%) to 0.6514

    • $-INR: (0.08) or (0.09%) to 88.6471

    • $-CNY: +0.00 or +0.05% to 7.1248