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StreetAccount Summary - Asian Market Recap: Nikkei (0.10%), Hang Seng (2.08%), Shanghai Composite (0.96%) as of 03:10 ET

Jan 30 ,2026

• Synopsis:

  • Asian equities lower Friday. Momentum swung to downside with US futures falling amid speculation Kevin Warsh will be chosen as next Fed chair. Across Asia, Greater China markets saw biggest declines with Hang Seng shedding 2%, ending seven-session winning streak. Taiwan also notably lower. Japan was mixed while South Korea was flat. India trading lower. Treasury yields higher along the curve. JGBs were mixed with strength in the short to long end and declines in superlongs. Dollar stronger against other currencies. Gold and silver both falling sharply. Oil retreating after Brent hit $70/bbl for first time since July on Thursday. Bitcoin extending selloffs to level last seen in Apr-2025.

  • Multiple press reports tipped President Trump will select former Fed Governor Kevin Warsh as next Fed chair after the two met on Thursday and Trump's advisers have been told with Trump to make an announcement on Friday morning. Speculation has drawn attention to Warsh's past hawkishness, dampening prospects of a more dovish Fed post-Powell. Meanwhile Warsh has aligned himself more closely with Trump's policies recently, including those on tariffs and he called last year for Fed to cut rates faster. Still outsized reaction on markets with Treasury yield curve bear steepening and dollar rebounding. Fallout extending to commodity markets with precious metals veering sharply lower.

  • In Asia macro developments, Tokyo core inflation slowed by more than expected to lowest since Oct-2024. Ex-energy series saw milder decline, reflecting base year effects. Japan industrial production missed with chipmaking equipment a drag. Retail sales shrank for first time in four months. South Korea industrial production growth picked up in December, led by semiconductor output. Retail sales rose though facilities investment shrank. New Zealand consumer confidence rose to highest since Aug-2021 as rate cuts lifted buying sentiment. South Korean and US commerce chiefs failed to reach consensus on tariff issues. Taiwan Q4 GDP grew at fastest pace since 1987, boosted by AI demand for tech goods. Indonesia Stock Exchange CEO resigned in wake of stock market rout triggered by MSCI warning.

  • Panama Supreme Court ruled concession held by Panama Ports Company (PPC), subsidiary of CK Hutchinson (1.HK), to operate ports at either end of Panama Canal was unconstitutional. PPC insisted concession was result of transparent international bidding. New World Development (17.HK) shares surged to two-year high after reports that Blackstone (BX) in advanced talks to become single largest shareholder. AstraZeneca (AZN.LN) will license experimental drugs for obesity and weight-related conditions from CSPC Pharmaceutical (1093.HK), which will receive $1.2B upfront and up to $17.3B more if development and sales milestones are achieved. Two companies will also collaborate on new medicines, using CSPC's long-acting peptide technology. CSPC Pharmaceutical and mainland-listed CSPC Innovation Pharmaceutical (300765.CH) both fell sharply. Apple (AAPL) saw its China revenue rebound to first $25B quarter since 2021.

• Digest:

  • Trump administration prepares for Kevin Warsh to be chosen as next Fed chair:

    • According to multiple press sources, President Trump is preparing to nominate Kevin Warsh as next Fed chair (Bloomberg, FT). Two reportedly met on Thursday with Trump saying he will make announcement Friday morning. Speculation about Warsh's nomination has driven a hawkish market reaction in Asian trade Friday with Treasury yield curve bear steepening and dollar rebounding against other currencies. According to Kalshi, Warsh's odds have risen to more than 90%. Prediction markets have oscillated over recent weeks after BlackRock's Rick Rieder had emerged as favorite to succeed Powell following a Bloomberg article White House had a favorable view on his Wall Street background. NEC Director Hassett was a previous favorite before his odds declined after Trump said he preferred that Hassett remained in his current role. Media reports highlighted how Fed chair finalists had yet to satisfy Trump's demand for lower rates while keeping credibility with Wall Street. Of the candidates, Warsh was perceived as the more hawkish owing in part to his past views on inflation and reducing size of Fed's balance sheet, though over the past year aligned himself more closely with Trump by advocating for lower interest rates.

  • Japan industrial production builds on outsized optimism, retail sales miss:

    • Industrial production fell 0.1% m/m in December, narrower than an expected 0.4% decline. Follows 2.7% drop in the previous month, though still left Q4 up 0.8% q/q for the third straight positive quarter to underpin cyclical momentum. While chipmaking equipment was among the biggest drags in the latest month, semis and autos logged expansion. Shipments fell again, leaving inventories higher, though Q4 aggregates showed shipments kept pace with output, while inventories were lower. Core capital goods shipments fell on the month though similarly logged a Q4 increase. Historical data overshadowed by METI survey projections, where January was revised up to +9.3% from +8.0%, followed by (4.3%) in February as payback. This implies an outsized 10.6% q/q non-annualized jump in Q1. Even the smoothed January estimate came up as +7.2% which would not change the trajectory that much. Transportation equipment sector maintained expectations for more than 20% growth driven by autos, while electronic parts & devices also reaffirmed sharp gains (integrated circuits and electronic devices while semis weren't highlighted). Electrical machinery saw a sharp upward revision, outweighing a downgrade in IT equipment. Retail sales fell 2.0% m/m in December, weaker than consensus forecast of a 0.5% decline. Follows 0.7% rise in the prior month, marking the first slide in four months. Most categories were lower with notable drags from apparel and fuel while autos fell for the second straight month and food & beverages also declined.

  • Japan Tokyo inflation moderates, labor market little changed:

    • Tokyo core CPI rose 2.0% y/y in January, below consensus 2.2%. Follows 2.3% in the previous month and marks the lowest since Oct-24. Ex-fresh food & energy inflation also eased to 2.4% vs consensus and prior month's 2.6%. Energy contributions showed marginally higher drags from sharper declines in gasoline from a combination of sequential declines and base effects. Electricity and gas remained moderately lower reflecting negative base effects. Main factor was a relatively sharp deceleration in heavily weighted non-fresh food prices, also subject to unfavorable base effects from a pickup last January. Encapsulating this dynamic is rice prices which have generally stabilized in absolute terms, while base effects will become increasingly negative through Apr/May when prices nearly doubled on the year. BOJ now focused on permeation and duration of elevated levels which stand to impact inflation expectations. Core goods inflation slowed by 0.2 ppt, explained mostly by rice, gasoline and other food products. Services inflation was marginally softer, driven mainly by smaller growth in dining. Labor market data were little changed. Unemployment rate was unchanged at 2.6%, matching expectations. Rounding masked a marginal 50K sequential decline in employment and equivalent increase in unemployed. Job offers to applicants ratio ticked up to 1.19 vs consensus and prior month's 1.18. Offers edged up sequentially for the first time in seven months, combining with ongoing declines in applications.

  • Not much new in US Treasury FX monitoring report:

    • US Treasury Department's FX monitoring report maintained vigilance against currency manipulation among trading partners though without major new implications. Monitoring List comprised of China, Japan, Korea, Taiwan, Thailand, Singapore, Vietnam, Germany, Ireland, and Switzerland. Thailand was the only addition since Jun-25. China continued to be highlighted in light of yuan depreciation over the report period, emphasizing ongoing lack of transparency in its FX policy and practices while still avoiding formal designation as currency manipulator. Report highlighted basic opposition to excessive intervention which begets market distortions. Highlighted bilateral joint statements established with trading partners that have regularly appeared on the Monitoring List, extracting commitment to avoid manipulating FX rates to prevent effective balance of payments adjustment or to gain an unfair competitive advantage. Yet, Treasury did not express a zero tolerance for intervention -- one of the key stipulations in the joint statement qualified that such action should be reserved for combatting excess volatility and disorderly movements in FX rates. Recall recent focus within Asia has largely revolved around Japan and South Korea, though situation has evolved to where Treasury Secretary Bessent recently called out yen and won misalignment with fundamentals, implying tacit approval of intervention.

  • China regional economic growth targets shifting lower:

    • Bloomberg noted that 13 out of the 20 Chinese provinces that have published 2026 economic growth targets so far have been lowered from 2025. Downgrades have manifested in a 0.5 ppt cut or a range with a lower end. Article noted that targets set across the 31 mainland regions usually correlate with goals eventually adopted at the central level, with changes by the biggest provincial economies usually read as a strong signal of a nationwide adjustment to come. Hence, signals affirm earlier indications the 2026 nationwide target will likely be eased to 4.5-5.0% after maintaining at "around 5%" for three straight years. This would reflect a more pragmatic approach to economic policy in the face of challenges including sluggish consumer spending. Tolerance of slightly slower growth would also give policymakers more flexibility in the use of stimulus (largely alleviating pressure for policy support). Article cited Citi's suggestion that monetary easing could be delayed as well. Consensus currently looks for a 10 bp cut to the policy rate and 25 bp cut in RRR by March-end. Still, recall that policymakers have reaffirmed guidance for an accommodative policy mix. PBOC Governor Pan this month repeated there is still room for rate cuts this year. Finance Ministry said China will continue to implement a more proactive fiscal policy including funding via ultra-long special treasury bonds.

  • Notable Gainers:

    • +5.9% 4519.JP (Chugai Pharmaceutical): reports Q4 results; core operating income ¥172.7B vs FactSet ¥144.94B

    • +5.6% 6501.JP (Hitachi): reports Q3 results; adjusted operating income ¥317.6B vs FactSet ¥288.53B

    • +2.9% 7751.JP (Canon): reports Q4 results; operating income ¥153.04B vs StreetAccount ¥139.57B

    • +2.2% 17.HK (New World Development): confirms controlling holder Chow Tai Fook Enterprises has been approached by potential investors following report that Blackstone in advanced talks to become largest shareholder of New World Development

    • +1.5% 7267.JP (Honda Motor): December global vehicle production +4.3% y/y to 283,161 units

  • Notable Decliners:

    • -19.5% 298380.KS (ABL Bio): Sanofi has deprioritized development of ABL301 (SAR446159), licensed from ABL Bio

    • -17.3% 4307.JP (Nomura Research Institute): reports Q3 results; operating income ¥39.98B vs StreetAccount ¥41.51B

    • -10.3% 9696.HK (Tianqi Lithium): guides FY net income attributable CNY369.0-553.0M vs FactSet CNY652.9M

    • -9.5% 051910.KS (LG Chem): holds Q4 conference call; guides FY26 revenue (excluding LG Energy Solution) KRW23.000T vs FY25 revenue (ex-LGES) KRW23.764T

    • -4.6% 1.HK (CK Hutchison Holdings): concession agreement contract reportedly ruled unconstitutional by Panama's highest court

    • -4.5% 005490.KS (POSCO): Morgan Stanley downgrades to equal-weight from overweight following Q4 results

    • -4% 6861.JP (KEYENCE): reports 9M results

    • -0.5% 2382.HK (Sunny Optical Technology (Group)): guides FY net income attributable CNY4.59-4.72B vs FactSet CNY3.42B

• Data:

  • Economic:

    • Japan

      • January Tokyo core CPI +2.0% y/y vs consensus +2.2% and +2.3% in prior month

        • CPI excl. fresh food & energy +2.4% y/y vs consensus +2.6% and +2.6% in prior month

        • Overall CPI +1.5% y/y vs consensus +1.7% and +2.0% in prior month

      • December industrial production (0.1%) m/m vs consensus (0.4%) and (2.7%) in prior month

        • METI survey projections +9.3% in January, (4.3%) in February

      • December retail sales (0.9%) y/y vs consensus +0.7% and revised +1.1% in prior month

        • Retail sales (2.0%) m/m vs consensus (0.5%) and revised +0.7% in prior month

      • December unemployment rate 2.6% vs consensus 2.6% and 2.6% in prior month

        • Job offers to applicants ratio 1.19 vs consensus 1.18 vs 1.18 in prior month

    • South Korea

      • December industrial production +1.7% m/m vs FactSet consensus +0.2% and revised +0.8% in prior month (08:00 KST)

        • Industrial production (0.3%) y/y vs FactSet consensus (1.8%) and revised (1.2%) in prior month

    • Australia

      • December private sector credit +0.8% m/m vs consensus +x% and +0.6% in November

      • Q4 PPI +0.8% q/q vs +1.0% in Q3

        • PPI +3.5% y/y vs +3.5% in Q3

  • Markets:

    • Nikkei: (52.75) or (0.10%) to 53322.85

    • Hang Seng: (580.98) or (2.08%) to 27387.11

    • Shanghai Composite: (40.04) or (0.96%) to 4117.95

    • Shenzhen Composite: (21.07) or (0.78%) to 2683.73

    • ASX200: (58.40) or (0.65%) to 8869.10

    • KOSPI: 3.11 or +0.06% to 5224.36

    • SENSEX: (581.41) or (0.70%) to 81984.96

  • Currencies:

    • $-¥: +0.71 or +0.46% to 153.8050

    • $-KRW: +8.20 or +0.57% to 1439.8900

    • A$-$: (0.01) or (0.74%) to 0.6998

    • $-INR: +0.11 or +0.12% to 91.8996

    • $-CNY: (0.00) or (0.01%) to 6.9478