Mar 12 ,2026
Synopsis:
Asia equities poised for a broadly softer open Friday. All major benchmarks on track for weekly losses except for mainland China. Futures in Japan and Hong Kong fell sharply overnight while Australia opened moderately lower. Japan ADRs were all weaker while Golden Dragon China index fell 1.02%. US contracts stabilizing after posting sharp losses in the cash session. Most sectors lower with consumer discretionary, financials and IT among the laggards. Tech leads were notably weak with SOX index down a sharp 3.43% and almost all big tech lower, many posting sharp losses. US Treasuries extended weakness with sharp curve flattening. Dollar index rose 0.5%. WTI crude ended up 9.7%, above $95, while Brent settled above $100 mark for first time since Aug-22. Gold finished down 1%, Bitcoin futures down 0.2%.
Brent crude oil closing above $100 accentuated focus on oil prices, combining with stronger dollar and extended declines in Treasuries. Sharp rise in short end yields of particular note, now pricing in less than 25 bp of Fed easing this year, consistent with Fed Funds futures. Signs of a near-term resolution to Iran conflict remain largely absent. Iranian supreme leader Mojtaba Khamenei issued a statement vowing to keep the Strait of Hormuz closed. Trump said destroying Iranian regime a bigger priority than energy prices. Private credit remains an overhang while tariff concerns were renewed with yesterday's Section 301 investigations on countries including China, EU, South Korea, Japan and India.
Asia attention similarly dominated by Middle East implications. Press exploring broader supply chain challenges caused by closure of Strait of Hormuz beyond crude oil. TSE data showed foreign investors turned notable net sellers of Japan equities last week after attacks on Iran began. A lot of FX discussion yesterday after USD/JPY breached the level that prompted a US rate check on 23-Jan, reviving FX intervention speculation. Yet, some discussion that current conditions don't meet the criteria for intervention in light of the Middle East conflict. After Japan announced unilateral release of crude oil reserves as early as Monday, procedure will forgo competitive bidding to expedite delivery. Taiwan to increase LNG imports from US. China Five-Year Plan indicated plans to increase oil reserves as part of its self-sufficiency drive. Iran reportedly continuing to ship crude to China since the war began.
Pre-open Company News:
2191.HK -- SF Real Estate Investment Trust reports FY total distribtable income HK$240.0M, +2% vs year-ago HK$234.4M
2880.TT -- Hua Nan Financial Holdings reports February PBT NT$2.55B; StreetAccount notes year-ago figure NT$2.10B
600765.CH -- Avic Heavy Machinery releases 2025 Sustainable Development (ESG) Report
688256.CH -- Cambricon Technologies releases 2025 sustainability report
SLS -- SELLAS Life Sciences notes enrollment of first patient in newly diagnosed first-line AML trial of SLS009
9939.HK -- Kintor Pharmaceutical signs strategic partnership agreement with Zhejiang Fonuw Medicine on KT-939
688256.CH -- Cambricon Technologies confirms prelim. FY results announced on 27-Feb
316.HK -- Orient Overseas (International) reports FY net income attributable $1.51B vs FactSet $1.61B [1 est]
1795.TT -- Lotus Pharmaceutical declares FY cash dividend NT$2.56/share; StreetAccount notes the year-ago figure was NT$5.73/share
2345.TT -- Accton Technology declares FY dividend NT$15/share; StreetAccount notes year-ago was NT$11/share
Hong Kong stock connect daily turnover
2883.TT -- KGI Financial Holdings reports February net income attributable NT$4.02B; StreetAccount notes the year-ago figure was NT$3.46B
TKA.GR -- Thyssenkrupp officials doubt deal to sell steel division to Jindal Steel - Bloomberg
500271.IN -- Max Financial Services approves equity fund raise of up-to INR20.00B through QIP
6273.JP -- SMC Corp upgraded to equal-weight from underweight at Morgan Stanley
On Deck:
China:
Economic:
08:00 CST: Foreign Direct Investment Y/Y; consensus
08:00 CST: New Yuan Loans; consensus
08:00 CST: M2 NSA Y/Y; consensus
08:00 CST: Loan Growth Y/Y; consensus
Earnings:
Cambricon Technologies (688256.CH)
Hong Kong:
Earnings:
FIH Mobile (2038.HK), SINOPEC Engineering (Group) (2386.HK), Yunji Technology (2670.HK), Bloks Group (325.HK)
Japan:
Earnings:
Kobe Bussan (3038.JP), SanBio (4592.JP), Kura Sushi (2695.JP), Tri Chemical Laboratories (4369.JP), H.I.S. (9603.JP), Ain Holdings (9627.JP)
Taiwan:
Earnings:
Evergreen Marine (2603.TT), Giant Manufacturing (9921.TT), Ruentex Development (9945.TT)
Philippines:
Earnings:
Universal Robina (URC.PM)
Market Data:
Gold (Apr 26): ($28.10) or (0.55%) to $5097.70
WTI Crude (Apr 26): +$0.88 or +0.92% to $96.61
$-¥: +0.34 or +0.22% to 159.2940
$-KRW: (13.09) or (0.89%) to 1465.4100
A$-$: (0.01) or (1.06%) to 0.7076
$-INR: +0.17 or +0.19% to 92.3898
$-CNY: +0.00 or +0.02% to 6.8680
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