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StreetAccount Summary - Asian Market Recap: Nikkei +0.17%, Hang Seng (0.34%), Shanghai Composite +0.34% as of 03:10 ET

Nov 28 ,2025

• Synopsis:

  • Asia equities ended mixed Friday in a quiet session. Benchmarks that did rise did so only modestly with Japan's two main benchmarks, mainland China, Taiwan and Singapore all closing higher, while India is also a few points higher in late trade. On the downside, the Hang Seng closed slightly lower while the main Kospi fell sharply on a retreat in chip stocks but its Kosdaq small cap index surged. US futures higher before trading suspended late afternoon Friday, Europe opened a smidge lower. US dollar flat, little movement of note in Asia currencies. Treasury yields higher. Crude oil contracts higher before trading suspended. Gold extending recent gains, base metals mixed.

  • Asia equities ending the week with a quiet few days as the US markets remained closed or had limited trade, while a data glitch at CME caused futures trading in commodity, equity and currency futures to be suspended reducing trading volumes and appetite further. For the week, all country-based Asia benchmarks rose, ex Philippines, but not enough to prevent a monthly loss for most markets, capping a seven-month winning streak as technology valuations and a stronger US dollar impeded progress for the region.

  • For Friday, Tokyo core inflation was unchanged against expectations for a slight drop. Japan industrial production growth beat expectations while retail sales also beat consensus. South Korea industrial production declined by more than forecast but on a strong September base effect while retail sales grew by more than expected. South Korea authorities drafted package of tax incentives and revised listing rules for Kosdaq stocks leading to a substantial gain in the Kosdaq small cap index.

  • Tokyo Electric Power (9501.JP) is expected to restart its Kashiwazaki-Kariwa nuclear power plant as soon as January, says local press reports. China Vanke's (2202.HK) short-term loan request has been rejected by at least two local banks and S&P downgraded the company. The EU may investigate Blackrock and MSC's bid for CK Hutchison's (1.HK) Barcelona terminal. LG Chem (051910.KS) said it plans to lower its stake in LG Energy Solution (373220.KS) to around 70% from 80% to improve long-term financing and boost shareholder returns.

• Digest:

  • Japan industrial production unexpectedly rises, but guidance soft:

    • Industrial production rose 1.4% m/m in October, contrasting with expectations of a 0.6% decline, following 2.6% growth in the previous month. Main drivers were autos, electrical machinery & IT equipment and ex-auto transportation equipment. Shipments logged comparable gains, though still left a mild increase in inventories. Core capital goods shipments reversed strength in September, representing a somewhat soft start to Q4. Going forward, METI survey projections point to declines of 1.2% in November and 2.0% in December. Most sectors bearish on November, while December was skewed by isolated weakness in production machinery, electronics and transport equipment. At face value, guidance still implies moderate growth in Q4. However, adjusted November estimate of -2.6% would leave the quarterly trajectory flat. Retail sales rose 1.6% m/m in October, beating consensus 0.8% and follows revised unchanged reading in September. Aggregate skewed by a spurious 11.0% m/m increase in autos. Appliances grew moderately, while food & beverages edged higher. Positives outweighed fourth straight decline in apparel. Others (incl. drugs & cosmetics) edged lower. Broader real GDP private consumption still regarded as anemic amid cost-of-living pressures, though economists have been upbeat on recent stability in private demand as a sign of resilience. Anecdotal evidence on inbound tourism tailwinds starting to turn mixed following a period of rapid growth.

  • Tokyo core CPI inflation steady, nationwide labor market softer on the margins:

    • Tokyo core CPI inflation remained a 2.8% y/y in November, slightly above consensus 2.7%. Ex-fresh food & energy inflation was also steady at 2.8%, matching expectations. Energy contributions little changed with few notable developments elsewhere. Non-fresh food slowed marginally as broadest rice category continued to moderate, now down to the smallest increase since Aug-24. Surging rice prices was always thought to be temporary, though risks now lie in permeation effects and duration. Dining has been cited as a key example, where prices slowed to the lowest since March, though 4.8% y/y pace remains well above the BOJ's 2% target. Other rice-based products such as prepared sushi have been up double digits since March. Unemployment rate was unchanged at 2.6% in October vs consensus 2.5%. Total employment logged back-to-back solid growth sequentially, largely absorbing a comparable increase in labor force. Job offers to applicants ratio was 1.18 vs consensus and prior month's 1.20, marking the lowest since Dec-21. Sequential offers fell notably, extending the current down streak to a fifth month while applications were little changed. Apparent gradual softening has not garnered much attention against the backdrop of historic labor supply shortages and negative signs generally put down to struggles in attracting new hires rather than lower demand for labor.

  • South Korea activity data mostly slumps:

    • Industrial production fell 4.0% m/m in October, well below FactSet consensus forecast of a 2.1% drop, following revised 1.1% decline in the previous month. Marks a notably sluggish start to Q4. Shipments fell relatively moderately, translating to lower inventory. Domestic shipments dropped 13.1% while exports logged a mild 0.7% decline. Ministry official said main driver was payback for a 20% m/m surge in September chip production (Yonhap). Nonetheless, supply-side macro metrics were broadly soft as services industry output also declined. In contrast, retail sales rebounded a sharp 3.5% rebounding from a 0.1% slide in September, marking the first rise in three months. Major weakness in fixed investment indicators with equipment down 14.1%, reversing 12.6% growth in the prior month while construction completions tumbled 20.9%, wiping out a 12.3% increase in September. Leading construction orders fell 41.6% y/y with dwellings down 63.3%. Recall that BOK's assessment of an overall improving domestic economy factored into its decision to leave the base rate unchanged yesterday. Support from consumption and exports were seen to be outweighing sluggish construction investment. Consumption expected to continue leading growth in domestic demand while prospects for exports looking relatively better on the back of chip sector strength and the US-Korea trade agreement.

  • China pledges to boost domestic consumption and lays out key growth sectors:

    • NDRC head Zheng Shanjie wrote in People's Daily, emphasizing strategic importance of boosting domestic demand in next five years. Said China would innovate spending scenarios and reduce restrictions in near term and will make efforts to boost residents' income in national income distribution over long term. Came after six government ministries released 19-point action plan to further spur consumer demand (SCMP, Yicai) and various provinces have announced extension of marriage leave (jiemian). Plan laid out goals for 2027 to cultivate three "trillion-yuan-level consumption sectors", including elderly care products, intelligent connected vehicles and consumer electronics and ten "hundred-billion-yuan-level consumption hotspots", including baby products, cosmetics, jewelry, fitness equipment, pet food, smart wearables and designer toys etc. Aiming to steadily increase rate of consumption to economic growth by 2030. News had sent Pop Mart (9992.HK) and Sands China (1928.HK) sharply higher as top two gainers in Hang Seng Index this week. JPMorgan has also raised recommendations for China stocks to OW as analysts cited AI adoption, consumption measures and government reforms as key catalysts (Bloomberg).

  • Record proportion of Chinese companies post net losses in Jan-Sep:

    • Nikkei analysis of about 5,300 non-financials listed in mainland China bourses found 24% reported net losses over the Jan-Sep period, the highest proportion on record going back to 2002, weighed down by overproduction and sluggish domestic demand. Percentage was up 1 ppt from a year earlier and has risen steadily from a low of 7% in 2017 due to factors including a slow recovery in domestic demand after the COVID-19 pandemic. 2025 composition showed more than 30% logging declines in net profit vs 40% reporting growth. Real estate sector stood out as a particular laggard, where performance has been struggling since government lending curbs were imposed in 2020. This year, 48 out of 100 companies were in the red with industry-wide losses totaling CNY64.7B ($9.14B). Cited official data showing new housing sales slumped 6% y/y in floor space terms. China Vanke (2202.HK) posted the biggest loss among all industries at CNY28B. Market weakness hit other sectors such as construction where over 30% were in the red. Overcapacity hung over sectors such as solar power. In autos, six of 21 car makers posted losses with sector aggregate earnings down 10% y/y. Guangzhou Automobile (2238.HK) logged a CNY4.3B loss, while BYD (1211.HK) profits fell 8%. Total car sales grew 13% to 24.36M units, though supported by subsidies while prices have fallen for NEVs. Bright spots largely limited to areas the government considers priorities such as semis.

  • Notable Gainers:

    • +16.4% 348370.KS (Enchem): report of signing electrolyte supply contract worth KRW1.5T with CAT

    • +1.5% 2502.JP (Asahi Group Holdings): EU (3%), APAC +3.1% y/y

    • +1.0% 9104.JP (Mitsui O.S.K. Lines): report of looking to maintain annual total dividends of at least ¥200/share after FY26

    • +0.2% 9501.JP (Tokyo Electric Power Co. Holdings): report of its Kashiwazaki-Kariwa nuclear power plant is expected to restart as early as January

    • +0.1% 6762.JP (TDK): issues FY27 financial target of net sales ¥2.500T, representing CAGR of 5% and mid/long-term financial targets of net sales CAGR 10% or more

    • +0.1% 1.HK (CK Hutchison Holdings): report of MSC, BlackRock bid for Hutchison's Barcelona terminal faces EU probe

  • Notable Decliners:

    • -5.4% 051910.KS (LG Chem): CEO Shin Hak-cheol to step down

• Data:

  • Economic:

    • Japan

      • November Tokyo core CPI +2.8% y/y vs consensus +2.7% and +2.8% in prior month

        • CPI excl. fresh food & energy +2.8% y/y vs consensus +2.8% and +2.8% in prior month

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

      • October unemployment rate 2.6% vs consensus 2.5% and 2.6% in prior month

        • Job offers to applicants ratio 1.18 vs consensus 1.20 vs 1.20 in prior month

      • October industrial production +1.4% m/m vs consensus (0.6%) and +2.6% in prior month

        • METI survey projections (1.2%) in November, (2.0%) in December

    • Australia October

      • Private sector credit +0.7% m/m vs consensus +0.6% and +0.6% in September

    • South Korea October

      • Industrial production (4.0%) m/m vs FactSet consensus (2.1%) and revised (1.1%) in prior month

        • Industrial production (8.1%) y/y vs FactSet (2.2%) and revised +11.9% in prior month

  • Markets:

    • Nikkei: 86.81 or +0.17% to 50253.91

    • Hang Seng: (87.04) or (0.34%) to 25858.89

    • Shanghai Composite: 13.34 or +0.34% to 3888.60

    • Shenzhen Composite: 23.27 or +0.96% to 2453.81

    • ASX200: (3.20) or (0.04%) to 8614.10

    • KOSPI: (60.32) or (1.51%) to 3926.59

    • SENSEX: 69.82 or +0.08% to 85790.20

  • Currencies:

    • $-¥: (0.13) or (0.08%) to 156.3420

    • $-KRW: (2.94) or (0.20%) to 1468.6300

    • A$-$: +0.00 or +0.09% to 0.6522

    • $-INR: +0.32 or +0.36% to 89.4789

    • $-CNY: (0.00) or (0.05%) to 7.0770