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StreetAccount Summary - Asian Market Recap: Nikkei +0.29%, Hang Seng +0.45%, Shanghai Composite +0.33% as of 03:10 ET

Jan 23 ,2026

• Synopsis:

  • Asia equities ended mostly higher Friday. Taiwan's Taiex, South Korea's Kospi and Singapore's STI among the indices that saw fresh record highs today alongside the MSCI Asia Pac ex Japan index. Japan's Nikkei and Topix boards also higher, Australia a few points ahead. Some losses in New Zealand, India and another sharp decline in Indonesia. For the week, there were gains for Sydney, Seoul, Taipei, Bangkok and Singapore; losses for Tokyo, Jakarta and Mumbai. Greater China was mixed with Shanghai and Shenzhen slightly higher but Hong Kong lower. US futures trading higher, Europe opened slightly lower. US dollar flat, yen weaker post BOJ decision but strengthened sharply late on in a possible intervention move, NZD lower after high inflation print. Treasuries and JGBs mixed. Crude blends higher; silver, gold and platinum at record high. Base metals higher.

  • Asia equities closed the week with another rally as the positive sentiment fully returned following Trump's bellicose Greenland threats late last week. The underlying drivers of AI build out and improving economic growth thus returned to trigger record highs in several equity benchmarks and near records in others. Sentiment supported further today by news ByteDance had reached a final agreement with Washington over the structure of its US TikTok ownership, and reports Beijing was set to post a 4.5-5.0% growth target for 2026 with an emphasis on 'high quality' development. Two exceptions remain, India and Indonesia, with markets both suffering from an ongoing overseas investor exodus, with main benchmarks in both nations seeing weekly declines.

  • The Bank of Japan kept base interest rates unchanged, as fully expected, and marginally increased inflation and GDP growth forecasts. One board member dissented by voting for a rate increase, suggesting hikes were still on the table. Meanwhile, Japan's December headline and core inflation prints eased from November but food inflation remained above 5.0%. Elsewhere, India, Japan and Australia January flash PMIs showed strong expansion. New Zealand's inflation rose in December back above the RBNZ's target rate. Thailand's December exports accelerated sharply but imports also rose steeply.

  • ByteDance said it had finalized a deal with Oracle, MGX and Silver Lake to take TikTok's US assets out of Chinese hands. New World Development (17.HK) says it will sell a minimum of one asset by end of June to be cashflow positive, said to be accelerating asset sales to plug multi billion dollar cash hole. Italian-Thai Development (ITD.NBK) faces a Thailand public works ban that could impact its overseas contracts following several accidents. IndiGo (InterglobeAviation, 539448.IN) warned over higher costs after mass December cancellations hit profits.

• Digest:

  • BOJ leaves rates steady as expected, Ueda reaffirms readiness to respond 'nimbly' to rapid rise in JGB yields:

    • BOJ left the policy rate unchanged at 0.75% as widely expected. Vote count was 8-1 with Takata now the lone dissenter. Proposed a 25 bp rate hike, reiterating his view the price stability target had more or less been achieved and inflation risks skewed to the upside. Tamura stayed with consensus, apparently satisfied with the December hike. Also generally in line were the economic forecast revisions in the January Outlook Report with FY25/26 GDP upgraded mildly to factor in expected fiscal stimulus effects. However, FY27 was shaved as fiscal support fades. Some tweaks to CPI forecasts (ex-fresh food & energy inflation broadly higher) were not seen as significant. Basic view still holds that core inflation will likely soften to below 2% in H1 reflecting a combination of waning strength in food prices and permeation of government cost of living relief measures. However, this will eventually give way to positive underlying mechanisms including the wage-price cycle. Risks to both GDP and inflation generally balanced. This was consistent with the dot plot indicating bulk of board members see core inflation risks balanced. Policy guidance was unchanged, noting real rates are significantly low and rates hikes to continue with economic improvements in line with the outlook. At the following press conference, Governor Ueda observed JGB yields had risen at a very rapid pace though only recited the existing stipulation in the BOJ purchase reduction plan that BOJ is ready to respond nimbly to exceptional circumstances via purchase operations (Reuters).

  • China seen likely to set 2026 GDP growth target range of 4.5-5.0%:

    • SCMP, citing three sources briefed on the matter, reported China is likely to set a 2026 growth target range of 4.5-5.0%. Such a target would build in tolerance for modest deceleration from 5% growth in 2025, reflecting Beijing's prioritization of "high-quality" development while urging local officials to embrace "the right concept of political performance." Change in target would also serve as another indication of a tilt towards economic rebalancing and stability, both highly valued in the first year of a new five-year plan (FYP) and even more so in advance of the CCP national congress expected to take place in late 2027. More immediate attention on the March NPC when the growth target will be officially unveiled. After the target was set at 'about 5%' and attained for the past three years, lower range said to put a floor under growth, necessary to achieve longer-term goals, offers flexibility amid uncertainties including US tariff policies and real estate weakness, while also consistent with FYP target to become a "moderately developed country" by 2035 via doubling 2020 per capita GDP. One source said the central government expected to increase efforts to reduce deflationary pressure this year, with decision-makers agreeing that "deflation is a cancer for economic growth." CPI inflation target is likely to stay at no more than 2% this year, though ackowledging the notable gap with actual inflation of 0% last year.

  • Japan PM Takaichi dissolves lower house for 8-Feb snap election:

    • As expected, Prime Minister Takaichi dissolved the lower house Friday for a snap election on 8-Feb (Kyodo), hoping to capitalize on her high approval ratings. Currently with a razor-thin majority in the house (owing to a few independents allied with LDP), a gain of just three seats would meet Takaichi's victory line for the coalition to secure majority control. Meanwhile, opposition parties mounting a formidable challenge with CDP (the largest party) and Komeito (formally a longstanding LDP ally) forming a new Centrist Reform Alliance party. Komeito's well-known capacity to mobilize their voter base to swing battleground districts seen as a key factor. Consumption tax cut on food items has quickly emerged as the main debate, though market hot topic has been the lack of credible revenue sources that stand to exacerbate a deterioration in fiscal standing that triggered a free-fall in superlong JGBs early this week. Nikkei discussed Cabinet Office calculations showing FY26 primary balance will remain in deficit, falling short of a prior goal to reach surplus in FY25/26. According to analysis submitted to the Council for Economic and Fiscal Policy Thursday, debt-to-GDP ratio projected to decline over the next decade, though with an underlying assumption that potential GDP growth will increase to the 1.1-1.5% range. Under a more conservative scenario (potential growth remaining around 0.5%), debt ratio would be little changed.

  • ByteDance seals deal to create US venture, averts shutdown by hours:

    • TikTok and owner ByteDance have formed venture to transfer parts of US business to consortium including Oracle (ORCL), Abu Dhabi's MGX, Private Equity group Silver Lake just hours ahead of deadline that would have closed US service. Deal previously outlined by company, approved by Beijing and Washington although details including core algorithm ownership and control not thrashed out until now. US venture will have seven-member board with majority US citizens; operate as independent entity, control algorithm security, data protection, content moderation. ByteDance will continue to own 19.9%; new investors including Oracle 50%, affiliates of existing ByteDance investors 19.9% (SCMP). ByteDance to maintain control of US advertising, e-commerce units. Critics of deal said arrangement fails to adhere to 2024 US national security law that forced full spinoff, stipulated ByteDance should have no operational relationship with US TikTok; Bloomberg said unclear if they will challenge deal; company said adheres to Trump's Sep-24 executive order.

  • PBOC sets yuan midpoint to stronger than 7 per dollar level for first time since May-23:

    • Yuan hovering near 32-month high against dollar on Friday. Earlier in the day, PBOC set yuan's daily reference rate at 6.9929 per dollar, 90 pips stronger than previous fixing, which came stronger than closely watched 7 per dollar level for first time since May 2023. Bloomberg citing ANZ noted the fixing signaling that authorities still comfortable with more yuan appreciation and willing to accommodate further upside given a weaker dollar, adding USD/CNY heading towards 6.9 in coming weeks heading into LNY holiday. Still fixing is 448 pips weaker than Reuters consensus of 6.9481, largest weak bias since at least 2022 as authorities have been guiding midpoint to the weaker side than estimates since November. Recall PBOC deputy governor Zou Lan said last week China will not use yuan exchange rate to gain competitive edge in international trade, adding yuan exchange rate expected to see two-way fluctuations while maintaining flexibility (Xinhua).

  • Notable Gainers:

    • +13.7% 000250.KS (SAM CHUN DANG PHARM): enters into development and commercialization agreement with Daiichi Sankyo Espha for oral semaglutide in Japan

    • +11.5% 1208.HK (MMG Ltd): reports Q4 copper production 108,638 tonnes, (7%) y/y

    • +8.7% 028050.KS (Samsung E&A Co.): reports Q4 results;operating profit KRW277.37B vs StreetAccount KRW206.09B

    • +5.0% 000720.KS (HYUNDAI ENGINEERING & CONSTRUCTION CO.): analyst notes high likelihood of inclusion in MSCI Index

    • +4.5% 4203.JP (Sumitomo Bakelite): to acquire new subsidiary carved out from Kyocera's chemical business

    • +3.4% 853.HK (MicroPort Scientific): guides FY net income not less than $20M vs FactSet ($48.8M)

    • +2.2% 9988.HK (Alibaba Group): reportedly preparing to conduct IPO for semiconductor manufacturing unit T-Head

    • +2.2% 241560.KS (Doosan Bobcat): discussions between Wacker Neuson and Doosan Bobcat regarding acquisition of majority stake and takeover of Wacker Neuson will not be continued

  • Notable Decliners:

    • -7.3% 015760.KS (Korea Electric Power): JPMorgan downgrades to neutral from overweight

    • -7.3% 179.HK (Johnson Electric Holdings): reports 9M revenue $2.73B vs year-ago $2.73B

    • -6.2% 3306.HK (JNBY Design): launches HK$273.0M placement at HK$18.78/share

    • -5.7% 542066.IN (Adani Total Gas): reports Q3 results

• Data:

  • Economic:

    • Japan

      • December nationwide core CPI +2.4% y/y vs consensus +2.4% and +3.0% in prior month

        • CPI excl. fresh food & energy +2.9% y/y vs consensus +2.8% and +3.0% in prior month

        • Overall CPI +2.1% y/y vs consensus +2.2% and +2.9% in prior month

      • January flash manufacturing PMI 51.5 vs 50.0 in prior month

        • Services PMI 53.4 vs 51.6 in prior month

        • Composite PMI 52.8 vs 51.1 in prior month

    • New Zealand

      • Q4 CPI +0.6% q/q vs consensus +0.5% and +1.0% in Q3

        • CPI +3.1% y/y vs consensus +3.0% and +3.0% in Q3

    • Singapore December

      • CPI +1.2% y/y versus consensus +1.2% and +1.2% in prior month

        • Core CPI +1.2% y/y vs consensus +1.2% and +1.2% in prior month

    • India January

      • Flash manufacturing PMI 56.8 vs final 55.0 in prior month

        • Services PMI 59.3 vs 58.0 in prior month

        • Composite PMI 59.5 vs 57.8 in prior month

    • Markets:

      • Nikkei: 157.98 or +0.29% to 53846.87

      • Hang Seng: 119.55 or +0.45% to 26749.51

      • Shanghai Composite: 13.59 or +0.33% to 4136.16

      • Shenzhen Composite: 32.51 or +1.20% to 2746.01

      • ASX200: 11.40 or +0.13% to 8860.10

      • KOSPI: 37.54 or +0.76% to 4990.07

      • SENSEX: (526.89) or (0.64%) to 81780.48

    • Currencies:

      • $-¥: (0.09) or (0.06%) to 158.3310

      • $-KRW: +2.40 or +0.16% to 1466.5800

      • A$-$: (0.00) or (0.03%) to 0.6838

      • $-INR: +0.12 or +0.13% to 91.6855

      • $-CNY: (0.01) or (0.15%) to 6.9634