Back to Daily DR Market Summary

StreetAccount Summary - Asian Market Recap: Nikkei +1.90%, Hang Seng +0.28%, Shanghai Composite +0.64%

Mar 05 ,2026

• Synopsis:

  • Asia equities somewhat recovered from the week's selloff Thursday although many boards finished off their highs. Best advances were in South Korea which saw the main Kospi gain more than 9% and the Kosdaq 14%. Japan also higher but off its peaks, Hang Seng largely pared morning advances, mainland China boards closed higher. Small gains for India, Australia and Singapore. Southeast Asia saw modest gains. US futures remain down, Europe seeing a soft opening. US dollar higher, AUD and NZD weaker, won also weakening again, rupee recovering from record low amid RBI intervention. Treasury yields higher across tenors as inflationary pressures seen building, JGBs mixed. Crude higher again with Brent approaching $85/bl; precious metals higher, industrial metals mixed. Cryptocurrencies steady following overnight gains.

  • Asia equities stabilized a little following a three-day selloff although the Hang Seng's afternoon decline capped the MSCI Asia Pac-ex Japan index's gain to around 2.4%. South Korea's Kospi advanced the most of the main boards after a strong gap higher at the open but with little advances intraday; related was President Lee's order to implement the KRW100T ($68.4B) financial market stabilization plan and measures to support sectors directly affected by the conflict. There was a good recovery in Taiwan's tech stocks too while Japan's main boards also bounced back albeit closing off their peaks; by sector, defense, shipbuilding and AI-related technology outperformed.

  • In regional developments, China's National People's Congress announced a FY26 GDP growth target of 4.5-5.0%, its lowest target since the 1990s, increased spending on the military of just 7% - its slowest rate of growth in four years - and kept its budget deficit target at 4% of GDP to support the economy. Monetary policy will be kept 'appropriately accommodative' while there were stimulus pledges to support consumption growth. More funding will be provided to replenish bank capital but there was no specific new plan to support the housing market.

  • Elsewhere, Asia markets remain sensitive to energy disruption and Brent crude prices. China barred its referrers from exporting petroleum products, and there were more warnings in India of gas supplies running out. The country reported to have less than three weeks of crude oil in storage while the oil-exposed rupee reached record lows yesterday amid reports of the RBI intervention. In other developments, US Treasury Secretary Bessent said a temporary 15% global tariff was likely to be implemented sometime this week just as he and China's VP Lifeng He prepare to meet in Paris for talks. Australia February household spending growth improved but missed expectations, exports fell 0.9% m/m to a five-month low; Singapore January retail sales fell to an 11-month low; Malaysia's central bank kept rates on hold, as widely expected; Thailand's consumer inflation accelerated its contraction from January.

  • CATL's (3750.HK) founder says the company will increase the use of AI in its R&D programs. YC Corp (232140.KS) said it had agreed a KRW403B contract with Samsung Electronics (005930.KS) to supply semiconductor testing equipment. Nanya Technology (2408.TT) had approved a capex budget of up to NT52B and a dividend of NT$1.5/share. Local South Korea media reported LIG Nex1 (079550.KS) has received expanded orders for its missile interceptors from Gulf states; stock substantially higher.

• Digest:

  • China lowers 2026 growth target, maintains easy policy mix:

    • Xinhua reported the government work report set a 2026 GDP growth target of 4.5-5.0%, confirming earlier reports and in line with expectations. Other targets maintained urban unemployment rate of around 5.5%, creation of over 12M new jobs and CPI inflation of 2%.

    • Reaffirmed proactive fiscal policy, guiding an increase of CNY230B ($33.3B) in the government deficit over last year (Xinhua). Maintained deficit-to-GDP ratio at around 4% with total deficit of CNY5.89T. General public expenditure to increase CNY1.27T to reach CNY30T for the first time.

    • Pledged measures to boost investment with CNY755B earmarked from the central budget, while CNY800B raised from ultra-long special treasury bonds will be allocated to implement major national strategies and enhance security capacity in key areas. Added new types of policy-backed financial instruments will be issued totaling CNY800B to stimulate private sector investment.

    • Special debt issuance quotas unchanged at CNY1.3T ($188.5B) for central government, CNY4.4T for local governments (Reuters).

    • Monetary policy will also remain "appropriately accommodative" with steady economic growth and rebound in inflation cited as key considerations (Xinhua). Reiterated a range of policy tools will be used including cuts to RRR and rates.

    • On household stimulus, pledged measures to actively boost consumption and incomes specifically mentioning low-income groups, increase in property income and refinements to social security. Added CNY250B in ultra-long special treasury bonds to be earmarked for consumer goods trade-in programs and a CNY100B special fiscal-financial coordination fund to be created to facilitate domestic demand expansion (Xinhua).

    • CNY300B in central government special bonds to be issued to replenish core tier-1 capital at large commercial banks (Bloomberg).

    • Defense budget to grow 7% in 2026, slightly slower than the 7.2% in each of the previous three years (Xinhua). Argued China's defense spending has been kept below 1.5% of GDP for many years in contrast to the ramp among NATO countries and Japan.

  • Bessent says 15% global tariff to take effect this week, US to roll out measures to stabilize oil shipments:

    • On CNBC's "Squawk Box," US Treasury Secretary Bessent said the 15% global tariff will likely be implemented sometime this week, up from current 10%. Added his belief that by August, levels would effectively return to those before the Supreme Court ruling against President Trump's invocation of IEEPA. Bessent noted the marginal tariffs are being imposed under Section 122 and can only last for 150 days unless Congress approves and extension. During that time USTR and Commerce Department will complete trade-related studies that can allow them to impose more tariffs. On crude oil, Bessent signaled yesterday's announcement by Trump the DFC will provide insurance for tankers and cargo ships around the Gulf was the first of a series of measures Washington will roll out with the aim of stabilizing shipments through the Persian Gulf. Echoed Trump's pledge the US Navy will escort oil tankers if necessary. Bloomberg reported supertankers have started to take detours to avoid the Persian Gulf where lack of carriers is leading local producers to fill up storage. Reuters discussed Iran's capability to disrupt Strait of Hormuz for months, mainly using drones and could then deploy sea mines.

  • Next round of Japan investments under US tariff deal coming to light:

    • Nikkei reported US and Japan considering a Westinghouse nuclear power plant and a Falcon copper refining facility as candidates for the second phase of Japan's $550B investment and loan pledge to the US. Follows first phase that included three projects valued at $36B. METI Minister Akazawa will be in Washington from Thursday to Sunday and seeking a meeting with Commerce Secretary Lutnick on Friday to discuss the next round. An announcement could come at the Japan-US summit scheduled for 19-Mar. Fact sheet released in October stated that a nuclear power plant project would be worth $100B, while a copper refining facility would be worth $2B. Reuters sources corroborated the Westinghouse proposal that includes building pressurized water reactors and small modular reactors. Fact sheet also indicated Japanese firms such as Mitsubishi Heavy (7011.JP), Toshiba and IHI (7013.JP) could be involved. Akazawa also seeking confirmation that new global tariffs won't stack as per the original agreement. Recall USTR Greer said the administration would seek continuity with countries that have struck trade deals.

  • China lifts yuan reference rate to highest in nearly three years:

    • PBOC set yuan guidance at 6.9007 per dollar on Thursday, strongest since 25-Apr-2023 and 3 pips firmer than Reuters' estimate of 6.9010. Recall central bank has been mostly setting weaker-than-expected guidance rate since late November with today's move seen as aimed at stabilizing market amid ongoing Middle East conflict and opening of NPC. Bloomberg noted Iranian war from Saturday is forcing Chinese authorities into sudden change of course in setting stronger reference rate. Came just after PBOC said last Friday it would remove reserve requirement of 20% on foreign-currency forward contracts from 2-Mar, effectively cutting cost of buying dollar forwards to rein in rally in yuan. Pivot aimed at mitigating risks from stronger dollar and higher oil prices with PBOC trying to insert some influence of yuan stability to calm market nerves. In Government Work Report delivered Thursday, Premier Li Qiang reaffirmed stance to maintain yuan stable at "reasonable and balanced levels".

  • Nikkei VIX spike surpasses Liberation Day shock:

    • Nikkei discussed the surge in implied vol in the wake of US-Israeli attacks on Iran. Nikkei VIX reached an intraday high in the 64 range Wednesday, topping the peak levels of 62 seen in Apr-25 amid the Liberation Day tariff turmoil, and marks the highest since the 85 range seen in Aug-24 after BOJ began to hike in combination with concerns about US economic weakness that triggered acute yen appreciation. Narrative has skewed sharply bearish. Nikkei 225 lost 4% Wednesday and the article noted expectations that further position liquidations are in store. Market now eyeing key technical levels on the downside. Correction thresholds of 10% from the peak at 52,965 and 20% at 47,080 where breach poses risks of snowballing momentum via stop-outs. In between is the 2025-end level of 50,339 which could be a support line inviting dip-buying. Major gauge is the 200-day moving average 46,269 that represents the break-even for the broadest set of investors. Futures in Japan, Hong Kong and South Korea rebounded sharply since Wednesday, though offering little reassurance for sentiment, still reeling as the last three sessions have wiped out all of the post-election euphoria. Attention set to remain on crude oil and the duration of conflict for the time being.

  • Notable Gainers:

    • +16.4% 232140.KS (YC Corporation): signs KRW40.30B contract with Samsung Electronics to supply semiconductor testing equipment

    • +9.8% 2408.TT (Nanya Technology): approves FY26 capex budget of up to NT$52.00B; declares FY dividend NT$1.5/share; StreetAccount notes year-ago was nil

    • +4.2% 6857.JP (Advantest): provides update on cybersecurity incident: no indication of public release of data

    • +3.1% 7004.JP (Kanadevia): to transfer its all-solid-state battery business to Suzuki Motor, transfer price not disclosed

    • +1.3% 8591.JP (ORIX): to sell Sugiko Group Holdings to SPV organized by Carlyle Group for ¥95.8B ($608.2M)

    • +0.8% 220.HK (Uni-President China Holdings): reports FY net income attributable CNY2.05B vs StreetAccount CNY2.21B, revenue CNY31.71B vs StreetAccount CNY32.18B

  • Notable Decliners:

    • -26.6% 2233.HK (West China Cement): guides FY results; outlook below some expectations

    • -8.9% 1458.HK (Zhou Hei Ya International Holdings): guides FY net income attributable CNY150.0-165.0M vs FactSet CNY178.1M

• Data:

  • Economic:

    • Australia January

      • Household spending +0.3% m/m vs consensus +0.4% and revised (0.5%) in December

        • Household spending +4.6% y/y vs consensus +5.1% and +5.0% in December

      • Trade balance A$2.63B vs consensus A$3.80B and A$3.37B in December

        • Exports (0.9%) y/y vs +1.0% in December

        • Imports +0.8% y/y vs (0.8%) in December

  • Singapore

    • January Retail Sales Nominal NSA Y/Y (0.4%) versus +2.7% in prior month

• Markets:

  • Nikkei: 1,032.52 or +1.90% to 55278.06

  • Hang Seng: 71.86 or +0.28% to 25321.34

  • Shanghai Composite: 26.09 or +0.64% to 4108.57

  • Shenzhen Composite: 31.03 or +1.17% to 2672.82

  • ASX200: 39.10 or +0.44% to 8940.30

  • KOSPI: 490.36 or +9.63% to 5583.90

  • SENSEX: 432.50 or +0.55% to 79548.69

• Currencies:

  • $-¥: +0.25 or +0.16% to 157.3150

  • $-KRW: +4.25 or +0.29% to 1466.8900

  • A$-$: (0.01) or (0.76%) to 0.7021

  • $-INR: (0.53) or (0.57%) to 91.6232

  • $-CNY: +0.00 or +0.00% to 6.8976