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StreetAccount Summary - Asian Market Recap: Nikkei (0.90%), Hang Seng (0.04%), Shanghai Composite (0.70%) as of 03:10 ET

Dec 11 ,2025

• Synopsis:

  • Asia equities ended mostly lower Thursday as support from the Fed rate cut was offset by concerns over AI-monetization following Oracle's miss overnight. Steep declines in Japan although exporters and trading houses limited further losses. South Korea and Taiwan fell while Greater China markets pared early gains to trade lower. Australia, India and parts of Southeast Asia slightly higher but Thailand's SET was markedly down. US futures down, Europe opened a few points down. Dollar consolidating overnight losses, AUD weaker post soft employment print. Treasury and JGB yields lower across tenors. Precious metals volatile, crude slightly down post overnight spike on Venezuela escalation. Base metals mixed. Cryptocurrencies under pressure.

  • Asia financial assets pared early gains to finish mixed after the Fed cut interest rates by 25 bps and revealed a clear schism among board members, but with accompanying comments that were less hawkish than feared. The very mildly dovish tone pushed Treasury yields and the US dollar lower overnight however both assets stabilized during Asia market hours. Meanwhile, Oracle's quarterly earnings miss weighed on technology stocks amid resurfaced concerns over AI monetization. The Taiex and Nikkei 225 were lower as their AI-related stocks fell, while the Kospi was further weighed by the South Korea exchange issuing a second, higher level warning over SK Hynix's valuation, banning margin trading on the stock.

  • In regional developments, Australia's employment dropped by 21K in November against market expectations for a rise however the unemployment rate steadied at 4.3%, slightly below expectations. Japan's business sentiment rose in November to a 12-month high despite prospects for the BOJ to hike rates this week. Monetary authorities in Hong Kong and Macau lowered their base interest rate 25 bps in line with the Fed. Singapore's Q3 unemployment rate was steady at 2%. The Philippines central bank lowered its base rate 25 bps to 4.5% but warned it was probably the final cut in this cycle. In geopolitical moves, President Trump said he would call Thailand and Cambodia leaders in an attempt to stop their border conflict. Mexico's senate passed tariff hikes on China imports and shipments from other parts of Asia. The US sent bombers to join Japanese jets in a show of force in the wake of the China-Japan diplomatic spat over Taiwan.

  • Japan Airlines (9201.JP) CFO said the company's passenger aviation business was strong despite fall in revenue from China-related flights on geopolitical tensions. South Korea's Exchange authority issued a second, higher level warning over SK Hynix (000660.KS) stock, and banned margin trading; stock underperformed Thursday. ZTE (763.HK) could pay more than $1B in fines to the US over bribery allegations. ByteDance and Alibaba (9988.HK) said to be keen to order H200 chips after US lifted its ban on exports to China. Keppel REIT (K7IU.SP) is to up its stake in a $1.12B office tower in Singapore in a more than $700M deal.

• Digest:

  • Asia financial assets volatile post Fed decision; yuan at 14-month high:

    • Asia assets lost early momentum Thursday and mostly fell by the close. Positive moves in wake of Fed's rate cut and indications it will trim just once more in 2026 reversed course mid-morning amid soft local economic data, oil price increases, and economist commentary that hinted at volatile period ahead as Powell comments and fractious Fed meeting priced in (Bloomberg). Stocks volatile with most benchmarks well off opening highs and trading lower mid-morning. US dollar DXY index down around 1% since decision announced, weakened slightly more Thursday as economists said Fed meeting was less-hawkish-than-feared (Reuters). Initial surge in Japan- and South Korea-based exporters reversed on Oracle quarterly miss, bond prices also stabilized over day. Soft Australia employment data weighed on AUD and Australian sovereigns; steep decline in Softbank (9984.JP) on Oracle readthrough offset recent tech gains; yuan at 14-month high but CGB yields continued yesterday's decline post hotter-than-expected inflation data.

  • Australia employment unexpectedly falls, jobless rate steady:

    • Headline employment fell 21.3K m/m in November contrasting with expectations of a 20K rise. Follows revised 41.2K growth in the previous month and marks the first decline in three months. Full-time jobs dropped 56.5K to outweigh 35.2K increase in part-time. Participation rate declined to 66.7% from revised 66.9% in prior month, leaving the unemployment rate steady at 4.3% vs consensus 4.4%. Yet, underemployment rate rose notably to 6.2% from 5.7% as total working hours were marginally lower. No notable readthroughs in the ABS report. Bond yields sharply lower across the curve with headline effects compounding momentum from overnight strength in US Treasuries, AUD on a softer footing. Recall RBA policy expectations have swung hawkish after the latest remarks from Governor Bullock following this week's policy meeting that emphasized capacity constraints on top of ongoing concerns about elevated inflation. Attention now turns to incoming data ahead of the next RBA meeting on 2-3 February.

  • Mexico lawmakers greenlight bill to levy tariffs up to 50% on China and some other Asian countries:

    • Mexico's Senate voted in favor of legislation that will impose tariffs up to 50% on more than 1,400 products from Asian countries that don't have a trade deal with the country, seen to bring in MXN52B ($2.8B) in extra revenue next year by finance ministry estimates (Bloomberg). Bill passed with 76 votes in favor with five against and 35 abstentions. New tariffs to take effect from 2026 with Chinese exports to the country as its main focus that will hit wide range of products from apparel to metals and auto parts. Move came as President Sheinbaum under pressure from Washington to match President Trump's trade priorities as US flags concerns about transshipment of Chinese products via third country, which is likely to ease US tariffs on Mexican steel and aluminum, despite her public denial of any connection. China criticizes the move with Global Times saying tariff hikes will cause major disruptions to Mexico's industries, especially auto sector. Noted Chinese auto sectors now hold 20% of Mexican market, up from almost zero just six years ago.

  • Most BOJ forecasters see terminal rate in the 1.00-1.50% range:

    • Nikkei QUICK monthly BOJ Watcher survey (n=29) highlighted terminal rate projections with 76% of respondents bunched in the 1.00-1.50% range. Remainder leaned toward higher levels. Conservative view cited undulations in inflation in FY26 and implications for debt servicing burden, while aggressive estimates generally see inflation remaining elevated. Other main takeaway was that median projections for benchmark JGB yields of 2.00% in 10y and 3.40% in 30y, indicating skepticism toward further upside with current levels already not far off. In a Bloomberg interview, former BOJ official Hideo Hayakawa suggested rate hike pace will likely revert to roughly once every six months to a terminal rate of around 1.5%. Story noted key point is whether BOJ will offer any guidance on the neutral rate after board members previously indicated a broad range between 1% and 2.5%. Hayakawa said it's possible authorities might narrow the estimated range of the rate based on updated data, although he expects more information to come in January, when the bank updates its quarterly economic outlook.

  • Philippines central bank says today's rate cut may be its final:

    • Philippines central bank (BSP) Governor Eli Remolona said today's interest rate cut could be final in cycle as consumer spending should gradually recover. BSP reduced overnight target reverse repo rate 25 bps to 4.5%, fifth consecutive meeting it trimmed rate, and as forecast by most economists. Remolona said MPC saw easing cycle nearing end, additional moves may be limited and bank will be guided by data. BSP acknowledged country's GDP growth unlikely to reach target 5.4-6.5% on hit from reduced government spending amid graft scandal involving public flood control works but said consumption will increase as full impact of monetary easing so far works through economy. Bank raised inflation forecasts for 2026 to 3.2%, within bank's 2-4% target. Next week, Bank Indonesia and Bank of Thailand due to decide on base rates with economists expecting both to trim 25 bps.

  • Notable Gainers:

    • +1.8% 7453.JP (Ryohin Keikaku): reports November mainland China LFL sales +16.3% y/y

    • +1.6% 9992.HK (Pop Mart International Group): appoints LVMH Greater China president Andrew Wu as non-executive director

    • +1.1% 068760.KS (Celltrion Pharm): proposes final DPS KRW200; company did not pay cash dividend previously

  • Notable Decliners:

    • -13.1% 763.HK (ZTE): could pay more than $1B in fines to the US over bribery allegations

    • -4.5% 2454.TT (MediaTek): reports November revenue NT$46.90B, (9.8%) m/m

    • -2.0% 2330.TT (TSMC): reports November revenue NT$343.61B, (6.5%) m/m

    • -1.1% 8411.JP (Mizuho Financial): able to pursue large-scale M&A deals after completing integration of Greenhill

    • -0.7% 9201.JP (Japan Airlines): CFO Yuji Saito says company's aviation business strong despite drop in revenue from China flights amid geopolitical tension

• Data:

  • Economic:

    • Japan Q4

      • MOF BSI large manufacturing index 4.7 vs 3.8 in prior quarter

        • Large non-manufacturing index 5.1 vs 5.2 in prior quarter

        • Large all-industry index 4.9 vs 4.7 in prior quarter

    • Australia November

      • Employment (21.3K) m/m vs consensus +20.0K and revised +41.2K in October

        • Unemployment rate 4.3% vs consensus 4.4% and 4.3% in October

        • Participation rate 66.7% vs consensus 67.0% and revised 66.9% in October

    • Singapore Q3

      • Unemployment rate 2% versus consensus 2% and 2% in prior quarter

  • Markets:

    • Nikkei: (453.98) or (0.90%) to 50148.82

    • Hang Seng: (10.27) or (0.04%) to 25530.51

    • Shanghai Composite: (27.18) or (0.70%) to 3873.32

    • Shenzhen Composite: (35.22) or (1.41%) to 2457.15

    • ASX200: 12.60 or +0.15% to 8592.00

    • KOSPI: (24.38) or (0.59%) to 4110.62

    • SENSEX: 288.52 or +0.34% to 84679.80

  • Currencies:

    • $-¥: (0.08) or (0.05%) to 155.9380

    • $-KRW: +2.49 or +0.17% to 1471.5090

    • A$-$: (0.00) or (0.40%) to 0.6646

    • $-INR: +0.61 or +0.68% to 90.4748

    • $-CNY: (0.01) or (0.09%) to 7.0581