Apr 06 ,2026
Synopsis:
Asia equities poised for a positive open Tuesday, largely after US markets climbed following the Easter break. Japan futures traded moderately firmer. Most of Asia comes back online, except for Hong Kong, though lacking futures indications. Japan ADRs were mixed while Golden Dragon China index fell 0.21%. US contracts softer after main benchmarks finished broadly higher in the cash session on relatively light volumes. Sectors mostly higher. Some positive tech leads with SOX index up 1.06% though US big tech mixed. US Treasuries were mostly firmer in the main session with some curve flattening; yields down 1-2 bp at the long end vs Friday's close. Dollar index was little changed. WTI crude settled up 0.8% in choppy trading. Gold finished up 0.1%. Bitcoin futures were up 4.2%.
Despite overnight US gains, narrative was defined mostly by intraday volatility, particularly in stocks and oil, as a reflection of the continuation of mixed signals from Middle East developments. Additionally, potential binomial outcomes moving further apart with a ceasefire on one hand or escalation in US-Israeli strikes to inflict permanent damage to Iran's bridges and power infrastructure ahead of Trump's final deadline at 8 pm tomorrow US time. Iran still rejecting idea of a temporary ceasefire (despite the 45-day truce proposal reported yesterday having been presented to both sides and would come into effect immediately) and arguing for a permanent solution before reopening Strait of Hormuz. TACO theme so far helping to temper perceived risks of a worst-case scenario.
Notable Asia developments remain light as Middle East developments dominate attention. Much of the relevant news flow has focused on countries scrambling to secure stable oil/petrochemical supplies. Japan marine transportation sector outperformed yesterday after a Mitsui OSK Lines (9104.JP) LPG tanker was one of the ships confirmed to have passed through the Strait. Japan oil imports via alternative Red Sea route expected to begin in earnest from next month. South Korea similarly planning to reroute some oil tankers through the Red Sea while sending special envoys to Saudi Arabia, Oman and Algeria to negotiate for crude oil. Cabinet also mulling optimal plan to release oil reserves. Naphtha remains a concern for both countries. Japan Prime Minister Takaichi posted on X that there are at least four months' worth of domestic demand with room to expand imports from outside the Middle East. South Korea conducting intensive daily checks on supply chains. Industry ministry last week confirmed purchases from Russia enabled by a temporary US sanctions waiver.
Enduring regional theme has been AI/tech optimism. Samsung Electronics (005930.KS) guided strong Q1 earnings well above consensus ahead of a full financial statement slated for later this month. Buoyant expectations cited as the main support factor for the broader market yesterday, leading to notable gains in in KOSPI. Chip prices surged as AI demand led to tight supplies and stand to be compounded by supply chain implications from Middle East. Recent strength curbed by Google's unveiling of TurboQuant memory-saving technology last month. Similarly, Japan tech majors were broadly higher Monday, chalked up to general AI optimism spanning from semis to AI infrastructure, even though there were no specific catalysts implying haven demand in a sector seen able to weather geopolitical turbulence.
Pre-open Company News:
PAYP -- PayPay initiated hold at Deutsche Bank
5296.MK -- MR. D.I.Y. Group (M) declares additional interim DPS MYR0.02
512455.IN -- Lloyds Metals & Energy initiated buy at Choice Equity
AKTX -- Akari Therapeutics announces partnership with WuXi XDC to advance development of its ADC payload targeting RNA splicing
NVNI -- Nuvini to acquire 51% controlling stake in the American business of Beyondsoft Corporation for ~$80.7M
524804.IN -- Aurobindo Pharma's CuraTeQ Biologics reports positive top-line results from BP11 phase 3 study
533248.IN -- Gujarat Pipavav Port reports Q4 container volumes (000 TEUs) 165 vs year-ago 172
PAYP -- PayPay initiated buy at Jefferies
4188.JP -- Mitsubishi Chemical downgraded to neutral from buy at SBI Securities Japan
336260.KS -- Doosan Fuel Cell downgraded to neutral from buy at UBS
8766.JP -- Tokio Marine Holdings reports March total sales ¥339.45B, +3.4% y/y
PAYP -- PayPay initiated buy at BofA
542399.IN -- Chalet Hotels initiated buy at Choice Equity
Morgan Stanley upgrades 2433.JP, 3092.JP, 4385.JP; downgrades 4324.JP
On Deck:
China:
Economic:
16:00 CST: FX Reserves; consensus
Japan:
Economic:
08:30 JST: Real Household Income Y/Y; consensus
08:30 JST: Real Household Consumption Expenditure Y/Y; consensus
08:50 JST: FX Reserves M/M; consensus
14:00 JST: Leading Index (Preliminary); consensus
Earnings:
Sakata Seed (1377.JP), SAN-A CO. (2659.JP), PAL GROUP Holdings (2726.JP), Daiseki (9793.JP)
Thailand:
Economic:
07:00 SAST: CPI NSA Y/Y; consensus +0.3%
Philippines:
Economic:
09:00 SST: CPI Y/Y; consensus +4.06%
Market Data:
Gold (Jun 26): ($4.50) or (0.10%) to $4680.20
WTI Crude (May 26): +$1.19 or +1.06% to $113.60
$-¥: +0.10 or +0.06% to 159.6900
$-KRW: (2.39) or (0.16%) to 1507.8500
A$-$: +0.00 or +0.22% to 0.6914
$-INR: (0.03) or (0.03%) to 92.9634
$-CNY: (0.00) or (0.06%) to 6.8816
Editor's Note: This comment was revised to correct the headline as Hang Seng and ASX futures were closed. We apologize for the error. (06-Apr-2026, 19:46 ET)
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