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StreetAccount Summary - Asian Market Recap: Nikkei (0.09%), Hang Seng +0.13%, Shanghai Composite (0.85%) as of 04:10 ET

Mar 17 ,2026

• Synopsis:

  • Asia equities ended mostly higher Tuesday although many finished away from their peaks. Japan's main boards gapped higher at the open but the Nikkei closed lower and the Topix with only modest gains. Mainland China benchmarks ended lower, Hong Kong surged at the open but ended close to unchanged. Seoul and Taipei held on to solid gains, Singapore higher, Southeast Asia and India slightly stronger. Australia higher as RBA hiked rates as expected. US futures lower, European markets down a few points in early trades. US dollar drifting higher, yen, AUD and offshore yuan near unchanged. Treasury yields higher across tenors, JGB yields lower. Crude futures higher with Brent around $104/bl; more outsized gains in LNG, heating oil, gasoline among others. Precious metals higher, base metals lower.

  • Asia equities largely reversed early gains Tuesday as oil futures crept higher and crude downstream product prices jumped again. Benchmarks gapped higher at the open on the back of a positive end on Wall Street as oil prices fell on reports several tankers had made it through the Strait of Hormuz and hopes an international escort route could open. However, these hopes were dashed over the day as European and Asia leaders ruled out such a move just as Iran attacked a tanker and oil installation off Abu Dhabi to send Brent crude back above $100/bl. Several petrochemical and other industrial plants reportedly running short of feedstock with authorities warning over shortages of naphtha in Japan, jet fuel in Vietnam, and natural gas used by steel plants in India.

  • Australia's central bank hiked rates by 25 bps as expected with the board vote split five to four, while the bank's accompanying statement read hawkish. Bank Indonesia kept its base rates unchanged as expected and confirmed it would continue to support the rupiah, while more economists forecasted the BOJ will keep rates steady later this week despite Governor Ueda warning underlying inflation is accelerating towards the bank's target. In other developments, Singapore February non-oil export growth dipped as electronic shipments slowed slightly. South Korea said import prices rose for an eighth consecutive month in February as oil prices rose, even before the Iran war broke out.

  • Nvidia set to add BYD (1211.HK) and Hyundai Motor (005380.KS) and Nissan Motor (7201.JP) to its autonomous vehicle development business. Samsung Electronics (005930.KS) unveiled its seventh-generation HBM expected to support speeds of 16 gigabits per second per pin, and bandwidth of 4.0 terabytes per second. Hon Hai Precision (2317.TT) Q4 profit missed forecasts but the company said maintained its strong revenue growth outlook and said it was bullish on AI server growth. Alibaba (9988.HK) is to reorganize its structure to bring its AI businesses under one unit. SK Group (034730.KS) chair said the chip wafer shortage could last another four years, and the company is considering an ADR listing.

• Digest:

  • RBA hikes cash rate amid risk of prolonged inflation overshoot:

    • RBA raised cash rate by 25 bp to 4.10% as expected. Decision close call with board voting 5-4 in favor. Governor Bullock revealed debate mostly centered on timing with all members agreeing inflation too high. Those voting hold decision held view another rate rise needed but better to wait until May given Middle East uncertainty. Bullock added March hike was not front-loading and doesn't signal anything about rate path. Statement commentary leaned hawkish with board judging material risk of inflation remaining above target for longer than previously anticipated. With inflation risks tilting further to upside board felt it appropriate to tighten policy. Based in part on view labor market has tightened recently with unemployment rate lower than expected. Capacity pressures greater than previously assessed, reflecting greater momentum in demand. Middle East conflict poses substantial risks with longer conflict presenting upside risks to near-term inflation. Bullock stressed risk of second-round inflation effects that permeate through supply chains if conflict drags on, necessitating need to ensure longer-run inflation expectations remain anchored. Acknowledged uncertainty may weigh on growth but indicated board more concerned about inflation given starting position was excess demand in economy.

  • No change in BOJ rhetoric ahead of policy meeting:

    • Reuters cited comments from BOJ Governor Ueda at an upper house budget affairs committee meeting, reiterating underlying inflation is accelerating toward the 2% target, stressing ‌that price rises must be matched by solid wage gains. Still expects underlying inflation to be at a level consistent with the price stability target from H2 of FY26 and into FY27. Added that wages and prices are rising moderately in tandem as firms grow bolder in passing on higher raw material and labor costs. There was no mention of any discussion about Middle East implications. The other focus was on JGB yields; Ueda again reiterating their stance from the outset of their purchase tapering plan that BOJ will take nimble action in exceptional cases, where long-term interest rates rise sharply in a way deviating from normal market moves. Remarks come just ahead of the MPM starting tomorrow. Board still widely expected to leave rates unchanged, while the April meeting attracting more attention since Nikkei QUICK consensus was the first to indicate analyst forecasts converging to markets which have mostly priced in a rate hike by April. Yet, Reuters and JCER polls remained split between June and July. While there was still no outright majority converging to any single month, both surveys showed cumulative forecasts of at least 50% by June, making Q2 the key window.

  • Trump confirms request to delay summit with Xi:

    • US President Trump said he has requested to push back his China trip by about a month from the original plan for the end of March to meet Xi Jinping (CNBC). Cited the need to remain in Washington to oversee the war in Iran. Asserted there was no ulterior motive after having told FT that China should help break Iran's effective blockade of the Strait of Hormuz, and that making a decision after the Trump-Xi summit would be too late. Remarks were echoed by Treasury Secretary Bessent, who told CNBC that a summit delay would be caused by war "logistics" and not over demands for China's help in the Strait. Article suggested this indicates White House is anticipating the war will be an ongoing concern. Xinhua cited a China international trade representative Li Cheggang as saying senior level Paris talks were constructive, reached preliminary consensus on some issues, and agreed to continue the consultation process. Tariffs were the main topic, though did not disclose specifics and only noted China's opposition to the new Section 301 investigations and concern over the uncertainty stemming from the recent changes. USTR Greer said they floated the idea of a US-China Board of Trade type of mechanism that would oversee bilateral ties and manage concerns (Bloomberg).

  • Asia downstream oil product supplies dwindle, prices soar, amid Iran conflict disruption:

    • Several media reports highlight Asia downstream oil products started to run short amid Iran war supply-chain disruption. Bloomberg reported multiple Japan-based petrochemical plants announced production cuts in past few days on worries conflict will dent naphtha supplies used in plastics production. Noted Japan imports 60% of naphtha usage, 70% of which comes from Gulf while Japan domestic naphtha prices now above $1,000 per cargo from around $600 in late February. Reuters said India steel producers facing shortages of LNG, one unit at JSW Group may have to close. Separate Reuters article said Vietnam's airlines may face jet fuel shortages after China and Thailand halted exports. Warnings add to existing fertilizer supply disruption derived from Qatar LNG sources (Reuters). Reports also come as Goldman Sachs warned oil market shock likely to have bigger impact on downstream product prices including fuel oil, diesel. Noted crude prices up around 40% since outbreak while some downstream product prices have doubled (Bloomberg).

  • Bank Indonesia holds rates unchanged as rupiah remains under pressure:

    • Bank Indonesia kept base interest rates unchanged Tuesday as rupiah comes under fresh pressure from higher oil prices, concerns over fiscal spending plans. Decision fully expected by economists given added pressure on rupiah from higher imported oil prices, investor concerns government would at least temporarily breach budget deficit cap of 3% of GDP although Jakarta said in prior days it would cut budgets, not increase deficit cap as first resort. Bank said inflation under control although oil price shock yet to impact data. Said decision made to strengthen rupiah stability from 'worsening global conditions', added would continue to intervene to provide support. Would lower cash threshold for buying overseas currency, increase selling threshold, and increase swaps trading threshold to strengthen currency. Would move to strengthen coordination with fiscal policy. Said will maintain FY26 GDP growth outlook of 4.9-5.7%.

  • Notable Gainers:

    • +5.3% 051910.KS (LG Chem): LG Chem looking to sell battery separator business of Hungarian subsidiary - Chosun

    • +3.0% 068270.KS (Celltrion): Celltrion signs supply contract with global pharmaceutical company worth KRW294.9B-375.4B

    • +2.7% 001740.KS (SK Networks): SK Networks to sell 90% stake in MINTIT to T&K Private Equity for KRW45.0B

  • Notable Decliners:

    • -4.7% 9698.HK (GDS Holdings): DayOne Data Centers close to filing confidentially for US IPO - Bloomberg

    • +0.0% BDO.PM (BDO Unibank): BDO Unibank completes sale of 70% stake in Dominion Holdings to Monte Sur for PHP2.54B

• Data:

  • Economic:

    • Japan January

      • Retail sales y/y +1.8% versus +1.8% in prior month

    • Singapore February

      • Non-Oil domestic exports y/y +4.01% versus +9.2% in prior month

  • Markets:

    • Nikkei: (50.76) or (0.09%) to 53700.39

    • Hang Seng: 34.52 or +0.13% to 25868.54

    • Shanghai Composite: (34.88) or (0.85%) to 4049.91

    • Shenzhen Composite: (50.61) or (1.87%) to 2655.04

    • ASX200: 30.90 or +0.36% to 8614.30

    • KOSPI: 90.63 or +1.63% to 5640.48

    • SENSEX: 431.44 or +0.57% to 75934.29

  • Currencies:

    • $-¥: +0.10 or +0.06% to 159.1500

    • $-KRW: (0.15) or (0.01%) to 1489.4640

    • A$-$: (0.00) or (0.09%) to 0.7065

    • $-INR: +0.18 or +0.19% to 92.4377

    • $-CNY: (0.01) or (0.13%) to 6.8872