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StreetAccount Summary - Asian Market Recap: Nikkei (3.22%), Hang Seng (1.72%), Shanghai Composite (0.81%) as of 03:10 ET

Nov 18 ,2025

• Synopsis:

  • Asian equities sharply lower Tuesday. South Korea, Japan and Taiwan benchmarks saw heaviest selling. Hang Seng led China market declines. Australia also fell sharply. Southeast Asia saw narrower losses. India trading slightly lower. US futures retreating further. Treasury yields lower across tenors. JGB curve bear steepened with 40Y hitting highest since debt debuted in 2007 while 10Y at 17-year high amid worries about Japan's spending plans. Dollar strongest against Korean won. Yen firming against dollar after hitting lowest level since January earlier Tuesday. Crude and gold extending overnight declines. Bitcoin dropping to lowest since April.

  • Asian markets in broad risk-off mode after selloff on Wall Street ensnared everything from tech stocks to gold and crypto. MSCI Asia Pacific ex Japan index fell to lowest level since mid-October and Japan's Nikkei had biggest one-day decline since Liberation Day shock in April. Steep losses in Asia's big tech and semis in lead-up to all-important NVDA earnings on Wednesday, as it is set to test investor confidence over high valuations on AI that has driven stock market rally over recent months. Market calibration of Fed's December rate cut with Fed Funds Futures now pricing in less than 50% probability also contributed to jitters as policymakers divide on making calls with little new economic data amid stubborn inflation and weaker employment conditions.

  • In macro developments, BOJ Governor Ueda told PM Takaichi that central bank is operating a process of gradually adjusting monetary easing and stressed focus on smooth landing towards 2% inflation target. Takaichi said her focus on lowering debt/GDP ratio. November RBA minutes showed board members debated conditions that could warrant a rate cut (weaker labor market or economic growth) or keeping cash rate on hold (higher household spending and persistently high inflation) at coming meetings. Ahead of next week's meeting, BOK data showed Korean household credit hit fresh record high in Q3 though growth fell from prior quarter due to government regulations aimed at stabilizing pace of mortgage lending.

  • Xpeng (9868.HK) sharply narrowed its losses in Q3 while revenue surged on record deliveries. Meanwhile its Q4 revenue guidance came below estimates. Stock down 10.5% as worst performer in Hang Seng Tech. China Hongqiao Group (1378.HK) increased share sale to HK$11.7B via 400M shares at HK$29.2 each, the third largest additional share sale by company YTD. Honda (7267.JP) recalling over 256k Accord hybrid cars in US over a software error.

• Digest:

  • Japan PM Takaichi to hold first meeting with BOJ Governor Ueda:

    • Nikkei cited a Prime Minister's Office announcement that Takaichi will hold her first meeting with BOJ Governor Ueda after noon today presumably to exchange views on financial, economic and price developments. BOJ policy normalization may also be on the agenda. Recounting recent rhetoric, the article noted the two have met formally at last week's Council for Economic and Fiscal Policy meeting where Takaichi stressed the importance for BOJ to conduct policy appropriately to foster both strong economic growth and stable inflation. At her inaugural press conference as prime minister, Takaichi said it was imperative for BOJ to coordinate closely with the government. Key remark was that Takaichi is not considering an immediate review of the BOJ-government accord established in 2013. Yet, PM has refrained from expressing her stance on policy rate since taking office. Some in the markets see a higher bar for a BOJ rate hike based on earlier dovish comments. Recall economists' rationale against an October move included a political component -- that it was essentially too soon after Takaichi's delayed ascension to prime minister, leaving insufficient time for dialogue with BOJ to clarify policy direction. Going forward, views remain split between December and January while yen weakness was cited as a swing factor that may well tip the scales in favor of December.

  • RBA outlines conditions for rate cut or more hold decisions at coming meetings:

    • November RBA minutes showed board debated conditions that could lead them to cut or hold cash rate steady at future meetings. Said could ease if labor market weakened materially or if economic recovery proves weaker than expected. Conversely, board could remain on hold if incoming data signals recovery in demand proves stronger-than-expected from a larger-than-anticipated rebound in household spending, which could happen if inflation remains high in coming months or productive growth lags. Board changing its current assessment that policy is "slightly restrictive" could also limit scope for further easing, noting possibility that financial conditions were no longer restrictive. Noted that since September meeting, probability had increased that aggregate demand is proving stronger than forecast, and that economy was operating with reduced capacity. Noted Q3 inflation was "materially" larger than expected in August, and that strength in several components (new dwelling costs and market services) suggested part of the increase might prove persistent. Labor market also considered little tight, notwithstanding recent data softness.

  • As Japan stimulus talk gains traction, tax revenues pose a key issue for markets:

    • Stimulus talk picking up notably this week starting with a Nikkei report citing Finance Minister Katayama's comments over the weekend signaling the forthcoming economic package will exceed JPY17T ($110B). Crucially for markets, the FY25 supplementary budget looks set to total around JPY14T, larger than last year's extra budget, while headline size expected to be north of JPY20T when including FILP funding. In today's main story, Nikkei reported the Takaichi administration will discuss tax reforms this week including strategies to encourage corporate investment and consumer spending while searching for alternative revenue sources mainly through rollbacks of past tax breaks. Immediate focus on enacting broad agreement among six coalition and opposition parties to scrap surcharges on gasoline on 31-Dec and diesel fuel on 1-Apr-26 that will leave a revenue void of some JPY1.5T. Administration aims to pass legislation on the tax cuts while tax reform discussions at year-end will tackle alternative revenues. Main rollbacks under consideration are corporate tax breaks on R&D, where impact is said to have been limited as well as an incentive program to encourage wage hikes. These look to be supplanted by new 'bold' initiatives to stimulate capex innovated by the newly formed Japan Growth Strategy Council. Article noted that advancing tax cuts without nailing down alternative revenues stand to attract more scrutiny over lack of fiscal discipline, which has pushed up long JGB yields from last week.

  • Street Takeaways: Japan Q3 GDP

    • Economist takeaways from the Q3 GDP data were broadly benign with near term implications limited. Headline GDP was somewhat better than expected and the contraction reflected two temporary factors -- negative payback in exports following tariff front-loading, and a major drop in residential investment, also a consequence of front-loading ahead of stricter housing energy conservation standards taking effect from April. With the underlying trend little changed, these areas expected to rebound in Q4 as mean reversion takes hold. However, upside for exports seen limited amid ongoing global growth challenges. Most of the attention on core domestic private demand and most views took a glass-half-full stance, encouraged by recent stability against the backdrop of persistent inflation hampering consumption and tariff uncertainties affecting capex. Furthermore, drag from private inventories was discounted in recognition of the limited hard data inputs going into the first preliminary estimates and has been a notorious swing factor in subsequent revisions. Nomura noted rising GDP deflator indicates inflation is becoming more homegrown while higher ULC means per-capita wages are growing faster than labor productivity. However, dynamics are still not fully endogenous, warranting some more caution from BOJ toward rate hikes.

  • Notable Gainers:

    • +17.2% 9666.HK (Jinke Smart Services Group): Boyu Group raises mandatory offer for Jinke Smart Services; Enhanced HK$8.69/sh subject to delisting conditions

    • +2.3% 688506.CH (Sichuan Biokin Pharmaceutical): meets primary endpoint in interim analysis of Phase III trial of iza-bren

    • +0.2% 1712.JP (Daiseki Eco. Solution): Daiseki completes tender offer bid for Daiseki Eco. Solution shares at ¥1,850/share

  • Notable Decliners:

    • -7% 1378.HK (China Hongqiao Group): launches 400M-share top-up placement at HK$29.20/share

    • -3.5% 6902.JP (DENSO Corp.): signs basic agreement with Maruyasu Industries for sale of DENSO Air Systems

    • -3.2% 068270.KS (Celltrion): obtains European Commission approval of additional line extension for Omlyclo (omalizumab) 300mg

• Data:

  • Markets:

    • Nikkei: (1,620.93) or (3.22%) to 48702.98

    • Hang Seng: (454.25) or (1.72%) to 25930.03

    • Shanghai Composite: (32.22) or (0.81%) to 3939.81

    • Shenzhen Composite: (26.04) or (1.04%) to 2485.79

    • ASX200: (167.30) or (1.94%) to 8469.10

    • KOSPI: (135.63) or (3.32%) to 3953.62

    • SENSEX: (77.38) or (0.09%) to 84873.57

  • Currencies:

    • $-¥: (0.27) or (0.17%) to 154.9940

    • $-KRW: +1.98 or +0.14% to 1464.2500

    • A$-$: +0.00 or +0.01% to 0.6495

    • $-INR: (0.02) or (0.02%) to 88.6176

    • $-CNY: +0.00 or +0.04% to 7.1107