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StreetAccount Summary - Asian Market Recap: Nikkei (1.25%), Hang Seng (2.23%), Shanghai Composite (2.48%) as of 03:10 ET

Feb 02 ,2026

• Synopsis:

  • Asian equities sharply lower Monday. South Korea's Kospi down nearly 5.3% in biggest drop in ten months, which triggered trading curb for first time in three months. Greater China across mainland and Hong Kong both dropped more than 2%. Japan pared initial gains to end lower too. Taiwan, Australia and Singapore all ended session down. India rebounding after benchmarks posted worst budget-day performance in six years on Sunday. US futures down more than 1%. Treasury yields lower across tenors. Dollar strongest against Korean won. Yen bounced off session low after PM Takaichi's social media post clarifying rally speech was not meant as endorsement of weak yen. Plunge in gold and silver deepening as traders unwind crowded trades in precious metals. Crude tracking broader commodity sell-off. Bitcoin falling to ten-month low.

  • Commodity volatility the big market-moving story as gold and silver tumble, extending Friday's plunge, where gold experienced its biggest daily drop in decades and silver suffered record decline. Slump in precious metals triggering margin calls and fueling domino effect in other risk assets with Asian stocks under intense selling pressure for their worst two-day slide since Liberation Day rout in Apr-25. Markets getting reality check after prolonged rally in precious metals and record highs in various equity benchmarks across Asia. Investors also recalibrating monetary expectations under potential Fed Chair Warsh as his nomination was seen as more hawkish than the other choices.

  • In Asia macro developments, BOJ Summary of Opinions showed members retained normalization bias. Japan final manufacturing PMI confirmed pickup in activity with output and new orders marking strongest growth in almost four years. China official PMIs showed both manufacturing and non-manufacturing activity unexpectedly swung back into contraction in January. Private RatingDog PMI showed manufacturing activity unexpectedly improved. Private survey showed growth in China new home prices eased last month while existing home price declines little changed from prior month. South Korea export growth rose sharply in January amid LNY base year effects, underpinned by 103% surge in semiconductor exports. India budget for FY27 focuses on manufacturing and infrastructure but falls short of more bold reforms.

  • In corporate news, FT sources said Ford (F) held talks with Xiaomi (1810.HK), BYD (1211.HK) and other Chinese autos about potential partnership in US. Ford denied the report. BYD and XPeng (9868.HK) both reported sharp declines in January auto sales, leading to China EV selloff on Monday. South Korea's chipmakers, including SK Hynix (000660.KS) and Samsung (005930.KS) among biggest drags with sentiment taking a hit after Nvidia CEO Jensen Huang downplaying likelihood $100B deal with OpenAI.

• Digest:

  • Japan stocks sell off from highs with strong LDP election performance largely priced in:

    • Japan stock market volatility Monday largely put down to election dynamics (Nikkei). Attention drawn to an Asahi weekend opinion poll showing LDP stands to gain well above the 233 seats required for a standalone majority in the lower house. And combined with JIP, coalition could reach 300 seats (which would be in striking distance of the best-case scenario two-thirds majority effectively enabling full control of legislation with the ability to overturn any bill rejected in the upper house). LDP gain coming at the expense of the new Centrist Reform Alliance in particular, failing to gain any traction after forming just before the lower house dissolution, and might lose half their combined 167 seats. Prospects for a strong election outcome for LDP was not a surprise -- this was the central assumption fueling the stock market since election talk first ramped up in earnest, while signals were preceded by similar results in the Nikkei poll, albeit not to the same extent and it highlighted there are too many tight races for the projections to be taken at face value. Still, equity momentum came as a surprise, drawing in sellers under the argument that a positive scenario for LDP was largely priced in. Meanwhile, yen bounced off a session low 155.51 in the morning after Prime Minister Takaichi's social media post clarifying her campaign speech Saturday was not meant as an endorsement of weak yen. Uncertainties starting to outweigh optimism from yen weakness alone, with no clarity on Fed chair pick Warsh's policy stance since his nomination last Friday and the approach of peak earnings season.

  • Korean market sell-off triggers trading halt:

    • Volatility extending to equity markets Monday with Korean stocks the hardest hit. Kospi fell as much as ~6% with futures plunge triggering sell side 'sidecar' circuit breaker for first time since November. Sidecar was also triggered in January, but on buy side amid huge run-up in small caps. Selling driven largely by foreign investors and institutional funds, offsetting support from retail investors (Korea Herald). Kevin Warsh's nomination as Fed chair and ensuing dollar rebound cited as common factor behind pickup in risk aversion. Memory chipmakers among biggest drags with sentiment taking a hit after Nvidia CEO Jensen Huang downplayed likelihood $100B deal with OpenAI will be finalized (link). Profit-taking an easy excuse after Korean stocks led globally in January with Kospi and Kosdaq logged monthly gains of 24%. That also shaped views that stocks ran too hard, too fast, pushing technical indicators into overbought territory with 14-day RSI above 80 through last two weeks of January. Bullish narrative still considered intact longer-term with Kospi benefiting from positive AI sentiment (memory), corporate governance reform traction (Value-Up), and rise in demand for shipbuilding and defense equipment.

  • Japan PM Takaichi denies her weekend campaign speech endorsed weak yen:

    • Prime Minister Takaichi discussed FX in a speech Saturday on the campaign trail in Kawasaki city that Nikkei framed as biased in favor of yen weakness. Excerpts quoted Takaichi as stopping short of expressing explicit support for yen weakness, while advocating for stronger domestic investment and building up resilience against FX volatility. Recalled the hardships of acute yen appreciation in the 70 level vs dollar during the former Democratic Party administration that made domestically produced goods uncompetitive and led to an exodus of manufacturing capacity. Added the unemployment rate was also very high. Despite current opposition to yen weakness, argued this gives exporter industries a chance and has provided a buffer against US tariffs. Furthermore, highlighted the government's FX Special Account (used for intervention) as a safety net against yen depreciation and is "very pleased" with the current management of these funds. Press takes prompted Takaichi to issue a response on X to stress her advocation was for a stronger domestic economy rather than yen depreciation and the speech conveyed the pros and cons of a weaker currency. Latest MOF official intervention disclosure Friday reported no activity from 29-Dec to 28-Jan following reports the NY Fed conducted a USD/JPY rate check that reverberated throughout last week including speculation of potential coordinated intervention.

  • BOJ January Summary of Opinions retains normalization bias:

    • Summary of Opinions for the January MPM indicated primary attention for policy was the monitoring of impacts after the December rate hike. Observations were that financial conditions remain accommodative, corporate sector interest burden being absorbed and adverse impacts seen as low-risk under gradual rate hikes. Yen depreciation was also a topic, much of it attributed to negative real rates, warranting continued normalization. Behind-the-curve risks were also discussed -- one comment indicated such risk has not necessarily become more evident, though stressed it is becoming more important to conduct policy in a timely manner. Another warned that a change in external conditions may place BOJ unintentionally behind the curve with the likelihood FX markets will focus on real rate differentials. Timing was another key theme with one member cautious about not taking too much time in analyzing rate hike impacts given the urgency in addressing rising prices and should move on to the next step (specifying a rate hike) without missing the appropriate timing. One member reiterated a call to hike every few months as a baseline. Finally, board members discussed JGB volatility with a couple calling for more attention/analysis while others reaffirmed endorsement of adhoc responses through increasing size of purchase operations.

  • China PMIs unexpectedly return to contraction:

    • Official manufacturing PMI was 49.3 in January, below consensus and previous month's 50.1 that proved to be a brief momentum of growth (only the one month since Mar-25). NBS mainly attributed seasonal slowdown combined with insufficient demand conditions. Production softened while remaining positive while new orders fell back amid a bigger drag from exports. All pipeline metrics from purchase volume to finished goods inventories remained in contraction. Notable development in inflation -- input price inflation accelerated notably and has consistently increased since July, while output prices swung into positive territory for the first time in nearly 20 months. NBS highlighted constructive pricing dynamics in nonferrous metal processing and electrical equipment. Hi-tech remained the broader bright spot at the headline level. Nonmanufacturing PMI also surprised to the downside at 49.4 vs consensus 50.3 and prior 50.2. Construction volatility was the main factor, falling back notably after a solid December amid cold weather and the wind-down towards LNY. Below neutral sector outlook index at 49.8 signaled caution towards underlying prospects. On the margins, services sector logged a slightly deeper contraction. Input prices were neutral while output prices extended declines, implying further pressure on profitability. Composite PMI fell to 49.8 from 50.7 for a sluggish start to the new year.

  • Notable Gainers:

    • +4.1% 2327.JP (NS Solutions): reports Q3 earnings; operating income ¥12.70B vs FactSet ¥11.61B

    • +4.1% 1928.HK (Sands China): Macau January GGR +24.0% y/y to MOP22.63B

    • +2% 5332.JP (TOTO Ltd): reports 9M results; operating income ¥40.42B, (3%) vs year-ago ¥41.51B

    • +1.4% 009150.KS (Samsung Electro-Mechanics Co.): reportedly to start supplying FC-BGA substrates to NVIDIA

  • Notable Decliners:

    • -14% 6920.JP (Lasertec): reports Q2 results; revenue ¥74.09B vs FactSet ¥57.83B

    • -12.6% 1787.HK (Shandong Gold Mining): guides FY CAS net income attributable CNY4.6-4.9B vs FactSet CNY6.07B; sharp sell-off in precious metals on Friday

    • -12.4% 010130.KS (Korea Zinc Co.): following gold and silver sell-off on Friday

    • -11.3% 042700.KS (HANMI Semiconductor): Citi downgrades to sell from buy citing valuation

    • -7.7% 8604.JP (Nomura Holdings): reports Q3 earnings

    • -6.9% 1211.HK (BYD Co.): reports January vehicle production volume 232,358 units, (29.1%) y/y

    • -6.8% 9868.HK (XPeng, Inc.): delivers 20,011 vehicles in January; StreetAccount notes the year-ago figure was 30,350

    • -5.8% 2202.HK (China Vanke): guides FY net income attributable (CNY82.00B) vs year-ago (CNY49.48B)

    • -2.3% 941.HK (China Mobile): China adjusts telecommunications services VAT to 9% from 6%

• Data:

  • Economic

    • China January

      • Official manufacturing PMI 49.3 vs consensus 50.1 and 50.1 in prior month

        • Non-manufacturing PMI 49.4 vs consensus 50.3 and 50.2 in prior month

        • Composite PMI 49.8 vs 50.7 in prior month

      • RatingDog Manufacturing PMI 50.3 vs consensus 50.3 and 50.1 in prior month

    • Japan

      • January final manufacturing PMI 51.5 vs flash 51.5 and 50.0 in prior month

    • Australia

      • January ANZ-Indeed job advertisements +4.4% m/m vs revised (0.8%) in December

    • South Korea

      • January trade balance $8.7B vs FactSet consensus $5.9B and $12.2B in prior month

        • Exports +33.9% y/y vs FactSet consensus +33.1% and revised +13.3% in prior month

        • Imports +11.7% y/y vs FactSet consensus +15.1% and +4.6% in prior month

    • India

      • January final manufacturing PMI 55.4 vs flash 56.8 vs 55.0 in prior month

  • Markets:

    • Nikkei: (667.67) or (1.25%) to 52655.18

    • Hang Seng: (611.54) or (2.23%) to 26775.57

    • Shanghai Composite: (102.20) or (2.48%) to 4015.75

    • Shenzhen Composite: (68.30) or (2.54%) to 2615.43

    • ASX200: (90.50) or (1.02%) to 8778.60

    • KOSPI: (274.69) or (5.26%) to 4949.67

    • SENSEX: 274.36 or +0.34% to 80997.30

  • Currencies:

    • $-¥: +0.04 or +0.02% to 154.8170

    • $-KRW: +7.06 or +0.49% to 1457.8690

    • A$-$: (0.00) or (0.27%) to 0.6945

    • $-INR: (0.39) or (0.43%) to 91.5828

    • $-CNY: (0.00) or (0.01%) to 6.9509