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StreetAccount Summary - Asian Market Recap: Nikkei (0.13%), Hang Seng +1.45%, Shanghai Composite (0.26%) as of 04:10 ET

Mar 16 ,2026

• Synopsis:

  • Asian equities mixed Monday. Japan's Nikkei down for third consecutive session, although off worst intraday level. Hang Seng outperformed with sharp rebound in tech stocks. Mainland China mixed. South Korea also advanced on rally in memory chip giants. Australia and Taiwan also lower. India inching lower after worst weekly performance in years. US futures gaining in choppy trading. US Treasuries advancing with 10Y yield dropping two bp to 4.26% for their first decline in five sessions. Aussie and JGBs saw yields rise at the long end. Dollar slipping against majors. Oil higher in volatile, headline-driven trading. Gold and silver extending declines. Bitcoin rising.

  • Asian markets were in a cautious mood as Iran war enters the third week with concerns still largely on energy supply disruptions and short-term market moves likely to stay erratic as traders respond to fast-changing news flow. Strait of Hormuz situation fluid with shipping at a standstill despite Iranian foreign minister saying passage only shut to ships from "enemies". President Trump demanded several countries help reopen the strait, warning NATO faces "a very bad" future if US allies fail to help and adding he could delay his planned summit with Chinese President Xi later this month. Meanwhile Trump said US is prepared to launch new strikes on Kharg Island, after last Friday's bombing raid, and could target its oil infrastructure. Separately many key central banks due to hold first policy meetings after start of war with higher energy prices looming them. RBA expected to hike on Tuesday.

  • In regional developments, China's economy gained early momentum in 2026 as Jan-Feb activity data came better-than-expected with retail sales growth surprising higher amid extended LNY holiday. Industrial production grew at fastest pace since Sep-2025. Fixed asset investment turned positive following run of declines, aided by growth in manufacturing and infrastructure while real estate investment contraction unexpectedly narrowed sharply. Japan finance minister Katayama said in parliament that Tokyo ready to take decisive actions to support yen. Comments came after yen neared lowest since mid-2024 and approached 160-handle that preceded that year's intervention. She and her South Korean counterpart also issued joint statement vowing readiness to act against FX volatility over the weekend. US and China top officials also set to conclude their trade talks in Paris today, laying final groundwork for Trump's summit with Xi in Beijing later this month, although whether the trip would occur is in doubt now.

  • Hua Hong Semiconductor (1347.HK) readying 7nm chipmaking production at its Shanghai plant as China pushes for tech self-sufficiency. JD.com (9618.HK) launched Joybuy online marketplace in UK and some other EU countries, ramping up its global expansion. Alibaba (9988.HK) set to launch agentic AI service, based on its Qwen model and tailor-made for enterprise customers as soon as this week. Lynas Rare Earths (LYC.AU) signed binding letter of intent with Pentagon to finalize four-year rare earth oxide supply agreement worth $96M.

• Digest:

  • China activity data mostly better than expected:

    • Industrial production rose 6.3% y/y in Jan-Feb, above consensus 5.0% and 5.2% in December. Industrial robots, smartphones and integrated circuits among the main bright spots. PCs, solar panels and steel declined, while passenger cars fell a sharp 25.6%. Retail sales increased 2.8% vs consensus 2.1% and follows 0.9% in December. Pickup was broadly based across goods and services (catering). Sub-categories broadly positive outside of autos (preceded by weak CAAM data), fuel and building materials. Biggest surprise came in fixed asset investment, up 1.8% against expectations of a record 4.2% drop. Follows unprecedented 3.8% decline in 2025 and current momentum strongest since H1. Manufacturing rose a moderate 3.1%, while infrastructure was up a solid 11.4%. Much of the improvement owed to real estate investment, where declines narrowed to 11.1% from 17.2% in 2025 (also best since H1). However, headline contrasted with key details as commercial sales fell at a notably stronger pace while available financing steadily deteriorated. New construction starts continued to drop by more than 20%. NBS described results as a significant rebound, though did not point to anything specific, while expressing caution toward deepening impacts from external conditions, geopolitical risks amid persistent domestic structural challenges.

  • US strikes Iran's main oil hub, Trump calls for coordinated effort to reopen Strait of Hormuz:

    • Markets highly attuned to Middle East energy disruptions as Iran conflict enters third week (Bloomberg). President Trump announced US struck targets on Iran's main oil export terminal, Kharg Island, which predominantly ships to China (Bloomberg). Trump spared oil facilities but will reconsider if Iran interfered with safe passage through Strait of Hormuz and later told NBC News may hit Kharg again "just for fun." Strait of Hormuz situation fluid after Trump said US would coordinate with other countries to alleviate blockage and told NBC several nations committed to idea. Media sources added White House expected to announce multiple countries agreed to form coalition to escort ships through Strait though talks ongoing whether this will take place before or after conflict ends. Sources told euronews EU foreign ministers meeting Monday to discuss extending naval mission to Hormuz. Tehran also giving conflicting signals after Foreign Minister Araghchi said Strait open for every country except US and Israel (NY Post), which may fit with reports about countries negotiating carve-outs (FT, FT). Prospect of a negotiated end uncertain after Trump said Iran wants to make a deal but terms aren't to his liking. Iran again dismissed notion of ceasefire while Pentagon and Israel see war extending few more weeks (CNN, Bloomberg).

  • US-China officials continue talks, Trump says Xi summit may be delayed amid Iran conflict:

    • On Sunday Treasury Secretary Bessent and China Vice Premier He Lifeng led bilateral talks aimed at paving way for Trump-Xi summit later this month. Spokespeople did not provide details on meeting though Reuters sources described Sunday's talks as "remarkably stable". China signaled openness to increasing purchases of agricultural goods such as poultry, beef and non-soybean row crops, while remaining committed to buying 25Mt of soybeans annually over next three years. Bessent and USTR Greer also made clear US intention for China to increase purchases of US coal, oil and LNG, and Boeing (BA) aircraft. Talks continue Monday with previews having mentioned other topics such as tariffs/fentanyl, tech export controls and rare earths. Bloomberg previously highlighted how China's dissatisfaction with US preparation for summit may leave untouched contentious issues such as Taiwan and limit deliverables to business deals. Iran conflict shaping as another potential obstacle. In interview with FT President Trump said his summit with Xi could be delayed. Trump reiterated his call for China to help with unblocking Strait of Hormuz and that he wanted an answer before summit, noting China received 90% of its oil from Hormuz.

  • China new home prices decline at slower pace in February:

    • New home prices in China (70 cities surveyed by NBS) fell 0.3% m/m in February based on Reuters calculations of NBS data, moderating from 0.4% drop in January. New home prices fell in 53 cities on m/m basis, down from 62 in January. On annual basis, prices dropped 3.2% after declining 3.1% in January. 65 cities saw lower prices from a year ago, same as in previous three months. Prices in Shanghai and Hangzhou continued to outperform other urban towns with biggest gains. Bloomberg added value of resale homes fell 0.43% from January, smallest m/m decline in ten months. 66 cities, down from 67, saw declines in resale prices on m/m basis while all 70 saw lower resale values from year ago. Recall this year's government work report delivered at NPC stressed need to stabilize property sector, pledging to use city-specific measures to manage new supply and reduce inventory. Came after top-tier cities, including Shanghai (link) and Beijing (link), announced easing measures over past few months. Investors will scrutinize sales in March and April, typically high season for property transactions, to see whether policy tailwinds will translate to rebound in home sales.

  • BOJ seen on hold until April while they assess uncertainties:

    • Early Nikkei preview of the Mar 18-19 policy meeting was largely observational, noting BOJ widely expected to remain on hold despite caution towards rising energy prices and market volatility stemming from the Iran war. Recalled Takata was the only member calling for a rate hike in January, while there is still no widespread urgency to move among the rest. Board members will discuss the sharp increase in crude oil and LNG prices. Governor Ueda told parliament on 4-Mar that oil prices "could exert downward pressure on economic activity and underlying inflation, yet "could also lead to higher inflation expectations among households and companies, thereby pushing up the underlying inflation rate." Some in the BOJ argue it is better not to change policy when market uncertainty is elevated. Article also cited some thoughts crude oil prices of around $80 to $90 per barrel would not hit the Japanese economy too hard. The bank is keeping an eye on whether the escalation of Middle East tensions prolongs the surge in crude oil prices, potentially forcing a change to its economic and price outlook. As of Friday afternoon, markets had priced in a 9% chance of a rate hike in March, 57% in April and a 29% in June. Market expectations have changed little since before the attacks on Iran, and the BOJ is said to be considering raising rates as early as April.

  • Notable Gainers:

    • +29.9% 007340.KS (DN AUTOMOTIVE): financial authorities reportedly plan to announce regulatory measures on parent-subsidiary listing

    • +14.2% 2513.HK (Knowledge Atlas Technology): launches GLM-5-TURBO

    • +9.1% 6787.JP (Meiko Electronics): to buy Nagano FCL Components, which designs and manufacturers electric devices; terms undisclosed

    • +6% 001040.KS (CJ Corp): financial authorities reportedly plan to announce regulatory measures on parent-subsidiary listing

    • +4.7% 047810.KS (KOREA AEROSPACE INDUSTRIES): Hanwha System acquires 567K shares

    • +1.3% 1548.HK (Genscript Biotech): reports FY adjusted net income $230.3M vs guidance $207.3-241.9M

    • +0.2% 003670.KS (POSCO Future M Co.): wins KRW1.015T contract to supply artificial graphite anode materials

  • Notable Decliners:

    • -15.9% 500116.IN (IDBI Bank): India reportedly to halt sale of IDBI Bank as bids were deemed too low

    • -15.4% 881.HK (Zhongsheng Group Holdings): guides FY net income attributable (CNY2.0B) vs FactSet CNY2.22B

    • -11.4% 2386.HK (SINOPEC Engineering (Group)): reports FY net income attributable CNY1.80B vs FactSet CNY2.59B

    • -4.4% 3038.JP (Kobe Bussan): reports Q1 results; revenue and net income attributable miss FactSet estimates

    • -1.7% 302.HK (CMGE Technology Group): guides FY net loss of not more than (CNY1.50B) vs year-ago (CNY2.08B)

• Data:

  • Economic:

    • China Jan-Feb

      • Industrial production +6.3% y/y vs consensus +5.0% and +5.2% in December

      • Retail sales +2.8% y/y vs consensus +2.1% and +0.9% in December

      • Fixed asset investment (YTD) +1.8% y/y vs consensus (4.2%) and (3.8%) in 2025

      • Unemployment rate 5.3% vs consensus 5.1% and 5.1% in December

      • February new house prices (0.3%) m/m vs (0.4%) in prior month (Reuters)

  • Markets:

    • Nikkei: (68.46) or (0.13%) to 53751.15

    • Hang Seng: 368.42 or +1.45% to 25834.02

    • Shanghai Composite: (10.66) or (0.26%) to 4084.79

    • Shenzhen Composite: 4.24 or +0.16% to 2705.65

    • ASX200: (33.70) or (0.39%) to 8583.40

    • KOSPI: 62.61 or +1.14% to 5549.85

    • SENSEX: 54.90 or +0.07% to 74618.82

  • Currencies:

    • $-¥: (0.47) or (0.30%) to 159.2580

    • $-KRW: (5.24) or (0.35%) to 1497.3960

    • A$-$: +0.00 or +0.51% to 0.7016

    • $-INR: (0.06) or (0.07%) to 92.4008

    • $-CNY: +0.00 or +0.05% to 6.9002