Jan 05 ,2026
Synopsis:
Asia equities poised to open higher, extending yesterday's strength. Futures in Japan, Hong Kong and South Korea were higher while Australia trading flat. Almost all Japan ADRs logged gains while Golden Dragon China index advanced 0.58%. US contracts maintaining gains in the cash session which closed near best levels. Tech leads were positive overall as SOX index added another 1% on top of the 4% in the prior session. However, big tech was mixed. Dollar index down 0.2%, reversing some early strength. Gold finished up 2.8%. Silver settled up 8%; copper finished up 5.1%. Bitcoin futures up 5.0%, above $94K. WTI crude settled up 1.7% after an initially muted reaction to the US intervention in Venezuela.
Sanguine US price action in the wake of Venezuela developments apt to reinforce clarity for Asia markets after regional semis emerged as the frontrunner, some of which reflected optimism ahead of CES presentations. Semblance of haven trades remained generally secondary to established macro/micro themes (US macro, Fed rates, AI, valuations, earnings fundamentals). Strength in energy stocks garnered the most attention as the main Venezuela-driven trade, followed by defense. Tight memory chip supply driving inflated prices also coming more into focus as an extension of AI dynamics.
Regional attention still largely on diplomacy/geopolitics accentuated by the US intervention in Venezuela which represents a substantial setback for China investment in Latin America. Latest press discussions canvassed China's economic exposure to Venezuela (notably crude oil access) though complications not seen reaching levels that might provoke direct confrontation with US. China NFRA asked major lenders to report lending exposure to Venezuela and to step up risk monitoring. Also, ongoing debate over how the US precedent might influence China's territorial claims. Latest report indicated Taiwan sees this as a deterrent against Beijing aggression. South Korea President Lee's meeting with China's Xi yielded notable windfalls amid speculation Beijing aims to woo Seoul support amid tensions with Japan over PM Takaichi's Taiwan remarks. On trade, President Trump indicated he could impose higher tariffs on India amid dissatisfaction with curbs on Russian oil purchases.
Tech spotlight on Las Vegas CES. Nvidia (NVDA) CEO Huang stoked interest in next-gen Rubin chip series "in full production" on track for release this year with major performance boosts over Blackwell. Also announced AI models/tools (Alpamayo) catered to autonomous vehicles and robots. Samsung (005930.KS) touted AI integration into its devices alongside latest TV launches. China presence at the event continues to grow. Qualcomm (QCOM) AI powered robotics technology on display. Elsewhere, Hon Hai Precision Industry (2317.TT) reported strong December sales that capped off above-consensus Q4 and 2025 aggregates.
Pre-open Company News:
601127.CH -- SERES Group reports December vehicle production 57,782, +46.6% y/y
6446.TT -- PharmaEssentia reports December revenue NT$1.92B, +69.9% y/y
540750.IN -- ndian Energy Exchange reports December electricity traded volume 11.44 BU, +2.8% y/y
600276.CH -- NMPA approves trial of combination treatment of Hengrui Pharmaceuticals and units' HRS-4357 and HRS-5041 for PSMA-positive prostate cancer
CANG -- Cango reports December Bitcoin production 569.0 vs month ago 546.7
2382.HK -- Sunny Optical applied to HKEx in November to spin off, list vehicle-related optical business on HKEx main board
AIY.SP -- iFAST Corp. enters into conditional agreement to acquire 30% stake in Financial Alliance Corporation for SG$19.6M
002236.CH -- Zhejiang Dahua Technology president Fu Liquan steps down to focus on chairman position, effective immediately
533519.IN -- L&T Finance provisional business update: Q3 retail disbursements INR226.90B, +49% y/y
7203.JP -- Toyota Motor North America reports Dec 2025 sales of 231,513 vehicles vs SA consensus 226,000
500440.IN -- Hindalco Industries upgraded to buy from hold at Geojit Financial
7581.JP -- Saizeriya reports December net sales for existing stores +18.7% y/y
524816.IN -- Natco Pharma publishes Sustainability Report for FY2024-25
002422.CH -- Sichuan Kelun Pharmaceutical launches CNY50.0-100.0M buyback programme at up-to-CNY35/share
On Deck:
Japan:
Earnings:
Takashimaya (8233.JP), Hisamitsu Pharmaceutical (4530.JP), Hiday Hidaka (7611.JP), Arclands (9842.JP)
Philippines:
Economic:
09:00 SST: CPI Y/Y; consensus
Market Data:
Gold (Feb 26): +$7.70 or +0.17% to $4459.20
WTI Crude (Feb 26): ($0.14) or (0.24%) to $58.18
$-¥: (0.29) or (0.19%) to 156.5380
$-KRW: +2.99 or +0.21% to 1445.5600
A$-$: +0.00 or +0.26% to 0.6711
$-INR: +0.26 or +0.29% to 90.2329
$-CNY: (0.01) or (0.09%) to 6.9877
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