Back to Daily DR Market Summary

StreetAccount Summary - Asian Market Recap: Nikkei +2.28%, Hang Seng +0.58%, Shanghai Composite +0.13% as of 03:10 ET

Feb 10 ,2026

• Synopsis:

  • Asia equities ended mostly higher Tuesday. Japan's main benchmarks at record highs for a second day driven in part by a 10% gain in Softbank. Mainland China benchmarks a few points higher, Hang Seng held on to early gains. South Korea's Kospi higher, Taiwan up on fresh tariff reprieve talk. India higher for a third day as sentiment improves further. Singapore lower, Australia ended a few points down. US futures slightly lower, Europe opened with small gains. US dollar consolidating overnight losses to trade at four-year lows; The yuan hit its strongest in 2.5 years, yen strengthened but AUD under some pressure. Treasury yield curve steepening, JGB yields lower across tenors. Crude lower again, precious metals also down, base metals mixed. Cryptocurrencies back under pressure with bitcoin below $69K.

  • Asia equities added to Monday's gains although progress was slower and concentrated in technology stocks, and on Japan's boards following the weekend's general election. JGBs seeing improved buying as fears faded over Takaichi's fiscal spending plans while the yen is back at week-long lows. Asia-ex, the MSCI Asia Pac ex Japan index reapproaching its record high propelled by renewed optimism in AI-related stocks although several names such as Samsung Electronics (005930.KS) and SK Hynix (000660.KS) dipped slightly.

  • The yuan strengthened to a 2.5-year high after Beijing Monday asked banks to cap their Treasury holdings and the PBOC set a stronger fixing point this morning. Singapore's economy grew 5.0% in 2025, slightly higher than the advanced estimate, and upgraded its 2026 forecast to 2-4%. Australia business sentiment inched higher but consumer sentiment fell for a third consecutive month. Indonesia retail sales growth fell to a four-month low; US cut Bangladesh tariffs to 19% in a broad trade agreement.

  • Softbank's (9984.JP) telecom unit raised its FY outlook amid a record quarterly group revenue haul; shares substantially higher. Hanwha Aerospace (012450.KS) posted weaker-than-expected Q4 revenue and pre-tax and operating profits, weighing significantly on its shares. TSMC (2330.TT) January sales grew 37% y/y to NT$401.3B ($12.7B) and above the 30% rise the company expects for the full year although from a lower LNY-impacted 2025 comparison. Treasury Wines (TWE.AU) reached a settlement with US distributor over its California exit which will allow for a repurchase of inventory. Macquarie Group (MQG.AU) profit supported by asset management and commodities units, gives upbeat outlook. Adani Enterprises (512599.IN) said the US has sought information from the company following media reports it has imported Iranian oil products.

• Digest:

  • Japan foreign equity inflows might be just getting started:

    • Nikkei discussed the boost to Japan's bullish stock market outlook provided by the LDP's historic victory in Sunday's lower house election. With the Nikkei 225 having renewed an all-time high Monday, further analysis of election-driven trading patterns showed a tendency for sustained foreign inflows into Japan equities lasting a year or more after an LDP landslide victory, suggesting this could be just the beginning for the 'Takaichi markets' era. Election euphoria has brought Nikkei projections as high as the 60K range into view. UBS noted that with no national election on the calendar until 2028, there stands to be no reason to sell Japan on the politics angle. Article focused on Koizumi's snap election in 2005 and Abe's victory in 2012 as the main comparable precedents. Foreign inflows peaked two years into the Koizumi administration, amassing a cumulative JPY19T ($122B), while the Abe era ran somewhat further closer to three years and peaked at JPY21T. So far, Takaichi has attracted some JPY5T since taking the LDP leadership in early October. Discussions turned to what is required for Takaichi markets to achieve comparable results to those of her prominent predecessors. Takaichi trades have so far been concentrated in defense and AI, though several names such as Mitsubishi Heavy (7011.JP) have more than doubled since 2024-end as indication of limited further upside. Anecdotal evidence broadly called for implementation of a clear growth strategy as well as continued momentum in structural reforms, particularly those that would break away from conservative norms and unlock more productivity.

  • Japan PM Takaichi aims to compile consumption tax framework before summer:

    • Nikkei coverage of Prime Minister Takaichi's post-election press conference Monday evening highlighted focus on setting up a panel to deliberate the coalition's consumption tax cut proposal and have a framework put together before the summer. Suggested the two-year suspension of the tax on food items would be funded by a review of subsidies and special tax measures as well as nontax revenues. Described the move as a temporary bridge to offer some relief until the planned implementation of a refundable tax credit system designed to reduce the burden on middle- and low-income earners. Broad strokes on economic policy were reaffirmed. Called for a complete departure from excessive fiscal austerity and underinvestment (blaming this for Japan's longstanding lag in growth potential among advanced economies), reiterating the 'responsibly proactive fiscal policy' slogan. Continued to pledge an achievement of fiscal sustainability through steady reduction in debt-to-GDP ratio and a priority on securing market confidence. As the primary channel for strategic outlays, cabinet has promoted a growth strategy centered on what it calls "crisis-management investment" -- public-private partnerships aimed at assisting industries it sees as key growth drivers, including AI, semiconductors, shipbuilding, and energy security.

  • Yuan reaches 2.5-year high as Beijing asks banks to limit Treasury holdings:

    • Yuan reached more than 2.5-year high against US dollar Tuesday after Beijing asked banks Monday to limit holdings of US Treasuries and another strong fixing by PBOC. Analysts cited by Bloomberg said move away from holding US debt will likely reinforce USD diversification trends, potentially accelerate repatriation of capital back into China and provide tailwind for yuan. Yuan strengthening aided by resumption of weakening dollar trend overnight with DXY index trading at below 97, a near four-year low, and after PBOC set daily fixing point at 6.9458 from 6.9523 Monday. YTD offshore yuan appreciated 1.0% against 1.5% dollar depreciation; analysts say move reflects PBOC's change of strategy from stable exchange rate policy to one tolerating strong yuan. Monday, Bloomberg cited people familiar with the matter saying regulators advised financial institutions to rein in US Treasury holdings, cited concerns over risk concentration, market volatility.

  • Singapore upgrades 2026 growth forecast on strong AI investment boom:

    • Singapore economy grew 5% in 2025, higher than advance estimate of 4.8%. Data marks slowdown from 5.3% in 2024 but still exceeded government's official forecast of "around 4%", as city-state rode global resilience to global tariff shocks. Ministry of Trade and Industry (MTI) upgraded 2026 growth forecast to 2% to 4% from 1% to 3% estimated in Nov-25. Upgrade came after economy expanded 6.9% y/y in Q4 2025, up from earlier estimate of 5.7%, beating 4.6% growth in Q3. Economy expanded 2.1% q/q on seasonally adjusted basis in Q4, up from advance estimate of 1.9% while moderating from revised 2.6% in Q3. Growth in 2025 largely driven by manufacturing, wholesale trade, finance and insurance sectors. Notably strong AI-related electronics demand led to robust growth in manufacturing's electronics cluster and wholesale trade sector's machinery, equipment and supplies segment. Most analysts see momentum in AI capex will continue and support key Singapore exports in electronics hardware. Bloomberg added MAS chief economist Robinson said central bank policy will depend on incoming data and updates as some analysts saw accelerating growth may push it to tighten policy settings later 2026.

  • Trump's frustration with delayed US investment said to be spreading:

    • Nikkei discussed the contrast between US President Trump's unequivocal support for Prime Minister Takaichi and reports of his outrage that Japan has yet to follow through on its commitment to invest $550B in the US as part of the tariff deal. The day before declaring "total endorsement" of Takaichi on social media Thursday, Japanese officials were informed by US counterparts that Trump was furious at Japan. So far, investments in three projects, including in gas power generation, are being negotiated, but no agreement has been reached. Commerce Secretary Lutnick originally told Trump that the first project would be decided by 2025-end. But after a few delays, Trump is growing suspicious that Japan is intentionally dragging its feet. However, article noted Japan thinks it would be advantageous to be the first major country to make a massive investment in the US and curry favor with Trump. Japan and the US have a summit meeting scheduled for March, before a planned visit by Trump to China in April. Developments follow Trump's impatience with South Korea, threatening to take reciprocal tariffs back up to 25% citing delays in legislating their deal which includes $350B in US investment commitments. Seoul is currently laying the groundwork for preliminary reviews of potential investment projects, though final implementation could still take around three months (Yonhap). Foreign Minister Cho was told by USTR Greer the tariff rate would go back to 25% unless there was progress in addressing non-tariff barriers (Yonhap).

  • Notable Gainers:

    • +16.7% 000120.KS (CJ Logistics): reports Q4 results; operating profit ahead of FactSet estimates

    • +10.6% 4385.JP (Mercari): reports Q2 results with strong GMV growth in both Japan and the US; raises FY guidance

    • +10.4% 8802.JP (Mitsubishi Estate): reports 9M results; raises FY operating profit guidance

    • +9.8% 4151.JP (Kyowa Kirin): reports Q4 results with revenue and core operating income ahead of FactSet estimates; announces FY guidance

    • +9.4% 5838.JP (Rakuten Bank): reports Q3 with net income attributable above FactSet estimates; raises FY guidance

    • +9.4% 9636.HK (JF SmartInvest Holdings): guides FY non-HKFRS adjusted net income CNY1.00-1.03B vs year-ago CNY351M

  • Notable Decliners:

    • -4.4% 001430.KS (SeAH Besteel Holdings): reports FY earnings; revenue and operating profit below FactSet estimates

    • -3.9% 012450.KS (HANWHA AEROSPACE): reports Q4 results; operating profit below StreetAccount estimates

    • -2.0% 001979.CH (China Merchants Shekou Industrial Zone Holdings): reports January contracted sales CNY7.67B; StreetAccount notes the year-ago figure was CNY9.01B

    • -1.1% 600115.CH (China Eastern Airlines): sells 49% stake in Eastern Supply Chain to Eastern Air Logistics for CNY199.8M

• Data:

  • Economic:

    • Australia

      • February Westpac-MI consumer sentiment index 90.5 vs 92.9 in January

      • January NAB business confidence +3 vs revised +2 in December

        • Business conditions +7 vs +9 in December

    • Singapore

      • Q4 GDP final +6.9% y/y versus consensus +5.7% and +4.6% in prior quarter

  • Markets:

    • Nikkei: 1,286.60 or +2.28% to 57650.54

    • Hang Seng: 155.99 or +0.58% to 27183.15

    • Shanghai Composite: 5.28 or +0.13% to 4128.37

    • Shenzhen Composite: 1.46 or +0.05% to 2701.68

    • ASX200: (2.70) or (0.03%) to 8867.40

    • KOSPI: 3.65 or +0.07% to 5301.69

    • SENSEX: 215.70 or +0.26% to 84281.45

  • Currencies:

    • $-¥: (0.29) or (0.18%) to 155.5930

    • $-KRW: +0.88 or +0.06% to 1458.7900

    • A$-$: (0.00) or (0.31%) to 0.7071

    • $-INR: (0.21) or (0.23%) to 90.5399

    • $-CNY: (0.01) or (0.16%) to 6.9117