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StreetAccount Summary - Asian Market Recap: Nikkei (3.61%), Hang Seng (2.01%), Shanghai Composite (0.98%) as of 03:10 ET

Mar 04 ,2026

• Synopsis:

  • Asia equities ended steeply down for a third day Wednesday as risk-off sentiment dominated to send the MSCI Asia Pac ex Japan index down 4.2%. South Korea's Kospi underperformed for a second day with a 12% loss, Nikkei and Topix steeply lower again, Hang Seng sharply down although finished off its lows, while mainland China boards also lost ground. Southeast Asia all lower as Thailand's SET tanked, India also trading down. US futures still down but well off their troughs, Europe rallying in early trades. US dollar steady, most Asia currencies steady following a weak open but the rupee remains under pressure. Treasury yields lower across tenors, JGBs mixed. WTI and Brent futures higher again. Precious metals up, base metals mixed. Cryptocurrencies also steadying during the day.

  • Asia stocks lower for a third consecutive day Wednesday with very sharp declines in Seoul as elements of panic selling and margin call sales detected by traders, prompting a trading halt mid-morning before the selling resumed all the way to the close. Investors across region sensitive to prolonged rise in crude prices that could impact economic recovery: South Korea and Thailand - another market that saw a heavy selling trigger a trading halt today - exposed to middle east oil but India accepted as the market most vulnerable to oil price hikes with low inventories exacerbating concerns.

  • Stocks initially tried to rally on overnight reports the US would escort and insure shippers through the Strait of Hormuz but questions over implementation remain. Also overnight, attacks by Israel and the US on Iran continued with more retaliation strikes by Tehran across the region although discussion also turning to sustainability of the conflict given armament constraints on both sides, as well as Iranian political succession plans. Forex markets steadier Wednesday than Tuesday but rupee continues to trade near record lows with the RBI is likely intervening, while the PBOC set a stronger fixing point after last week moving to slow its advance. Sovereign bonds also relatively more stable.

  • In regional developments, Australia GDP growth rose in-line with expectations on expansion in public and private demand. China official manufacturing PMI contraction worsened, partially reflecting LNY factory shutdowns while non-manufacturing declines also deepened. Private sector RatingDog PMI showed activity firmed with manufacturing at highest since Dec-20 and services highest since May-23. Japan final services PMI confirmed activity expanded at two-year high, final India composite PMI revised lower, and Singapore PMI hit its highest since May-22. South Korea January industrial production unexpectedly contracted but consumption and investment both grew.

  • Nidec (6594.JP) published a third-party report into recent fraud allegations, said its chairman would resign. Alibaba's (9988.HK) chief AI model architect has left his post, raising questions over the company's pivot to artificial intelligence. The White House is considering allowing Tencent (700.HK) to keep its gaming investments, according to reports in the FT. Singapore's largest bank by assets DBS (D05.SP) said its China unit has been granted a principal underwriting license for non-financial corporate bonds in China.

• Digest:

  • Middle East conflict hasn't swayed BOJ Governor Ueda (yet):

    • Little attention on BOJ Governor Ueda's remarks in parliament Wednesday, reiterating the core stance that rate hikes will continue if economic developments evolve in line with their outlook scenario (Reuters). Assessment of Middle East implications were generally symmetric -- Rising crude prices stand to worsen Japan's terms of trade and the economy, which could hold back underlying inflation. However, if higher oil prices persist, it could also push up underlying inflation via influencing inflation expectations. Rhetoric was consistent with Deputy Governor Himino's Q&A Monday when he indicated BOJ's stance hasn't changed since the Iran campaign began last weekend while also noting the need to make sound decisions in response to elevated market volatility and uncertainty. An earlier Reuters report was the first to sound out caution towards an early rate hike in light of the new developments, and sources said BOJ will likely hold off from raising rates at the March 18-19 policy meeting unless USD/JPY approaches 160. That story noted Himino takeaways leaned dovish as his speech did not signal an imminent move. To be sure, market-implied odds for a March hike were low and now down to single digits while April was still mostly priced in after Himino's speech and still standing in contrast to economist consensus pointing to the next move in June.

  • China official PMIs softer than expected, RatingDog gauges notably more upbeat:

    • Official manufacturing PMI was 49.0 in February, below consensus 49.2. Follows 49.3 in the previous month, marking the second straight month in contraction and lowest since Oct-25. Despite seasonal adjustments, NBS noted the susceptibility of the series to LNY holidays which fell in mid to late February this year. Output turned negative for the first time in four months while new orders and exports logged stronger declines. Other pipeline components broadly remained in contraction. Inflation metrics showed input price increases easing somewhat though still well outpacing a marginal rise in output prices, implying margin compression. High-tech sectors continued to outperform, consumer goods producers saw mildly narrower declines. Nonmanufacturing PMI was 49.5, also below consensus 49.7 and follows 49.4 in the prior month. New orders fell to its lowest since Apr-25. Construction activity declines accelerated (attributed to seasonal shortage of workers over LNY) though mitigated by a relative improvement in services. However, holiday effects boosted accommodation, catering, culture, sports & entertainment sectors above 60, while capital market services and real estate remained low. In contrast, RatingDog PMIs were better than expected. Manufacturing index was 52.1 vs consensus 50.1 and 50.3 in the prior month. Strongest reading since Dec-20 with demand looking starkly better than the official gauge. Services index was 56.7 vs consensus and prior month's 52.3, highest in 33 months.

  • South Korea equities sell off sharply for second day:

    • South Korea's Kospi index closed 12.1% lower Wednesday, its biggest two-day decline since 2008, as traders reported panic selling, margin calls which added to underlying market concerns over impact of Middle East conflict on broader economy (Yonhap). Main Kospi index lost 7.2% Tuesday having been closed Monday, gapped lower Wednesday and triggered trading halt when it hit loss of 8.0%; fell again once exchange reopened. Kosdaq benchmark closed 14% lower. Stock losses greatest in technology and export-orientated sectors, energy complex exposed to oil prices: Samsung Electronics (005930.KS) down 11.7% Wednesday (-20.5% WTD), SK Hynix (000660.KS) down 9.6% (-20.0% WTD), SK Innovation (096770.KS) down 16.7% (-14.6%), Hyundai Motor (005380.KS) down 15.8% (-25.7%), Kepco (0157760.KS) down 10.5% (-22.1%). Bloomberg cited analysts saying selloff feels like positioning unwind investors de-risk amid forex volatility, energy price hikes. Won depreciated sharply Tuesday amid evidence of investor outflow, steadier Wednesday. Sovereign bond yields bouncing back today from sharp declines Tuesday.

  • Middle East energy disruptions driving market angst:

    • Iran conflict continues with markets navigating multiple uncertainties, including length of conflict (Trump gave 4-5 week timeline but said could go on longer), shifting war aims, and persistent Iranian attacks against Gulf states. Strait of Hormuz traffic has slowed sharply and insurance premiums have spiked, leading President Trump to announce US International Development Finance Corporation will offer insurance for ships "at a very reasonable price" to keep energy flowing through Gulf (Bloomberg). Trump did not elaborate and there are questions around length of time to implement order. There is also the more pressing issue of combating Iran's ability to mine the Strait and attack ships. Trump said US may aid tanker traffic with US naval escorts. Prolonged Hormuz disruption fueling concern Gulf states will be forced to shut in production - Bloomberg sources noted Iraq halting crude production at its biggest fields. Meanwhile, gas futures rose sharply again in wake of Qatar halting production at Ras Laffan LNG plant, which supplies ~20% of global LNG (CNBC). Surging oil and gas prices have been a more prominent market overhang this week with bond yields backing up amid pickup in inflation concerns (Reuters).

  • Australia GDP growth picks up, details mixed:

    • Australia GDP grew an in-line 0.8% q/q in Q4 from upwardly revised 0.5% in Q3 (from 0.4%). Took yearly rate of growth to 2.6% from 2.1%, better than consensus 2.3%. Growth was broad-based with public and private demand contributing 0.3% each. Household consumption growth slowed to 0.3% from 0.5%, weighed down by weaker growth in essential consumption. Partially offset by faster growth in discretionary spending, which made a slightly more positive contribution amid strength in tourism and retail categories. Household saving ratio rose to highest since Q3-2022 amid rise in comes driven by employee compensation. Growth in public and private investment saw notable slowdowns. Inventories were a positive contributor to growth, reflecting payback from prior quarter's rundown. Net trade again made negligible contribution. Productivity metrics improved with GDP per hour worked logging quicker growth while unit labor costs shrunk. Data promoted initially dovish market reaction with Australian yields reversing lower and Aussie dollar weakening.

  • Notable Gainers:

    • +9.8% 3036.TT (WT Microelectronics): reports Q4 results; EPS NT$3.46 vs FactSet NT$3.37

    • +6.8% 6594.JP (Nidec): publishes third-party committee report and company's response; estimates 3Q25 revenue to be ¥677.7B; chairman Hiroshi Kobe resigns

    • +4.4% 522.HK (ASMPT): reports Q4 adjusted net income (cont ops) HK$119.9M vs year-ago HK$24.4M, revenue HK$3.96B vs StreetAccount $3.91B

    • +3.6% D01.SP (DFI Retail Group Holdings): reports FY underlying net income attributable $270.3M vs guidance $250-270M and FactSet $264.3M

    • +3.2% 3563.JP (Food & Life Companies): reports February same-store sales +12.4% y/y

    • +2.5% 1112.HK (Health & Happiness (H&H) International Holdings): guides FY adjusted net income to increase by 15-25% y/y

  • Notable Decliners:

    • -14% 000270.KS (Kia Corp.): reports February global sales 247,401 units vs year-ago 254,415 unit

    • -13.5% 032350.KS (Lotte Tour Development): reports February casino revenue; casino drop amount KRW151.47B; (35.1%) m/m

    • -10.4% 2343.HK (Pacific Basin Shipping): reports FY results; underlying profit $59.2M vs FactSet $77.5M

    • -6.3% 5105.JP (Toyo Tire): launches FY26-30 mid-term plan; targets ¥120B operating income, 18% margin by FY30

    • -4.3% 1208.HK (MMG Ltd): reports FY net income attributable $509.4M vs guidance $500-520M and FactSet $675.3M

• Data:

  • Economic:

    • China February

      • Official manufacturing PMI 49.0 vs consensus 49.2 and 49.3 in prior month

        • Non-manufacturing PMI 49.5 vs consensus 49.7 and 49.4 in prior month

        • Composite PMI 49.5 vs 49.8 in prior month

      • RatingDog Manufacturing PMI 52.1 vs consensus 50.2 and 50.3 in prior month

        • RatingDog Services PMI 56.7 vs consensus 52.3 and 52.3 in prior month

        • RatingDog Composite PMI 55.4 vs 51.6 in prior month

    • Japan

      • February final services PMI 53.8 vs flash 53.8 and 53.7 in prior month

        • Composite PMI 53.9 vs flash 53.8 and 53.1 in prior month

    • Australia

      • Q4 GDP +0.8% q/q vs consensus +0.8% and revised +0.5% in Q3

        • GDP +2.6% y/y vs consensus +2.3% and +2.1% in Q3

    • South Korea

      • January industrial production (1.9%) m/m vs consensus +1.7% and revised +1.5% in prior month (08:00 KST)

        • Industrial production +7.1% y/y vs consensus +3.2% and revised 1.4% in prior month

  • Markets:

    • Nikkei: (2,033.51) or (3.61%) to 54245.54

    • Hang Seng: (518.60) or (2.01%) to 25249.48

    • Shanghai Composite: (40.20) or (0.98%) to 4082.47

    • Shenzhen Composite: (14.02) or (0.53%) to 2641.79

    • ASX200: (176.10) or (1.94%) to 8901.20

    • KOSPI: (698.37) or (12.06%) to 5093.54

    • SENSEX: (1,204.99) or (1.50%) to 79033.86

  • Currencies:

    • $-¥: (0.47) or (0.30%) to 157.2680

    • $-KRW: (8.41) or (0.57%) to 1470.9400

    • A$-$: (0.00) or (0.14%) to 0.7025

    • $-INR: +0.22 or +0.24% to 92.2679

    • $-CNY: +0.01 or +0.14% to 6.9101