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StreetAccount Summary - Asian Market Recap: Nikkei (1.02%), Hang Seng (0.95%), Shanghai Composite (0.19%) as of 04:10 ET

Apr 28 ,2026

• Synopsis:

  • Asian equities mostly lower Tuesday. South Korea extended record-setting rally while Japan markets mixed following BOJ hold with Nikkei off record high. Greater China dropped with bigger losses in China tech stocks. Australia, Taiwan, Southeast Asia and India all lower. US futures edging lower as tech-fueled rally faces major test this week with big tech earnings due. Treasury yields higher along the curve. JGB curve flattened with longer bonds rallying while shorter notes dropping following BOJ rate decision. Dollar stronger against major peers while yen pared intraday gains to trade lower in Asian afternoon against greenback. Crude adding to overnight gains with Brent for June hovering around $110.7 a barrel. Gold near one-month low while silver around three-week low. Bitcoin slightly lower.

  • Investors largely looked through latest Iran developments with ceasefire holding up and two sides continuing backchannel talks despite public posturing while attention shifting to global monetary policy. Bank of Japan kicked off busy week for major central banks and left interest rates unchanged as expected. Most notable development was the 6-3 vote count (vs 8-1 in March) with all three dissenters proposing a rate hike. April Outlook Report contained downward revision to FY26 growth forecasts and notably higher core inflation projection. Statement noted Middle East developments pose downside risk to economic activity and upside risks to inflation. Added necessary to be cognizant of risk of inflation deviating significantly higher. Reiterated rate hikes will continue with underlying inflation approaching 2% and real rates significantly low, timing and pace the considerations while monitoring Middle East situation. Also in Japan, unemployment rate edged up in March and PM Takaichi ruled out immediate need to compile a supplementary budget.

  • In other regional developments, Chinese policymakers emphasized push for technology self-sufficiency and strengthen control of industrial supply chains in April Politburo meeting. Press discussions focused on complexities of the follow-ups after China blocked Meta Platforms (META) acquisition of AI startup Manus as Beijing eyes broader AI competition with US. South Korea business confidence hit highest since Jul-2024 amid strength in manufacturing and exports, though supply disruptions led firms to draw down inventories. New Zealand filled jobs hit 14-month high with low interest rates supporting labor market. Australian weekly consumer confidence rose slightly though remains among lowest readings since series inception.

  • SoftBank (9984.JP) down nearly 10% following media report OpenAI missed internal goals on user targets, revenue and subscriber defection rates. Hitachi (6501.JP) net profit guidance underwhelmed, overshadowing buyback announcement. Advantest (6857.JP) profit guidance underwhelmed, overshadowing Q4's AI-driven earnings beat. Nissan (7201.JP) upgraded profit guidance on winding back of US emissions regulations, cost improvements and FX tailwinds. LG Electronics (066570.KS) jumped 7.7% after partnering with NVDA to enhance AI robotics capabilities. CATL (3750.HK) raised $5B after pricing Hong Kong share placement at 7% discount to previous closing price. Stock was worst performer in HSI.

• Digest:

  • BOJ leaves policy rate unchanged as expected, but details skewed hawkish:

    • As expected, BOJ left rates unchanged at 0.75%. Most notable development was the 6-3 vote count given decisions rarely see more than two dissenters. All three proposed a 25 bp rate hike:

      • Takata continued to take a consistently hawkish position. Sees price stability target more or less achieved and risks skewed higher by overseas developments.

      • Tamura returned to the hawkish camp after having voted for no change since the December rate hike. Echoed the view that inflation risks significantly skewed to the upside and urged to take policy rate as close to neutral as possible.

      • Nakagawa was the new addition, also arguing inflation risks skewed to the upside under accommodative financial conditions, despite Middle East uncertainties.

    • April Outlook Reportshowed notable changes to economic forecasts, attributed mainly to higher crude oil prices. Acknowledged 'significant' upward revisions to core CPI inflation -- FY26 to 2.8% from 1.9%, FY27 to 2.3% from 2.0%. Press had flagged the likelihood of an upgrade though magnitude was unclear.

    • Additionally, ex-fresh food & energy inflation projections were also raised, set to remain in the upper 2% range until FY28. GDP forecasts revised lower with FY26 cut by half to 0.5%.

    • Risks to forecasts described as upside for inflation and downside for growth, concentrated in FY26. Notably emphasized vigilance to materialization of upside inflation risks.

    • Assessment fit with the dot plot showing seven out of nine members placed upside risks to inflation for FY26 and FY27. Majority five members saw downside risks to FY27 GDP growth, while FY27 was balanced.

    • Constructive domestic dynamics expected to remain intact. Middle East headwinds currently expected to erode some growth momentum without derailing the recovery. Key support factors remain -- government policy, accommodative financial conditions, high corporate profits. Virtuous wage-price cycle also seen continuing. Reaffirmed price stability target expected to be achieved from H2 FY26 and FY27. Recall prior language used 'second half of the projection period' though required tweaking now that FY28 was included in the forecast horizon.

    • Forward guidance explicitly reaffirmed a rate hike stance given underlying inflation is approaching 2% and real rates are significantly low. Simplified the language to signal Bank will continue to raise rates in response to economic and financial developments. Timing and pace to be the main considerations while monitoring Middle East developments.

    • No major surprises out of Governor Ueda's press conference (Nikkei). Asked about behind-the-curve risks, only responded that appropriate policy decisions will be made to avoid that issue. Reaffirmed board members who voted to stay on hold were mindful of upside inflation risks though not to the extent that a rate hike is urgently needed.

  • Japan policymakers guiding FX market expectations ahead of Golden Week:

    • Nikkei editorial offered an early BOJ take that a 'hawkish hold' was aimed at setting market expectations to help place a floor on yen ahead of the extended Golden Week holidays, when liquidity tends to thin out in the absence of domestic participants, conducive to outsized volatility driven by foreign investors (who are short yen).

    • Recalled lessons from 2024 when BOJ similarly kept policy unchanged in April and Governor Ueda's press conference comments were interpreted as tolerant of yen weakness, which set markets off just before Golden Week, ultimately prompting FX intervention operations later.

    • Article suggested BOJ cognizant of market pricing where erosion of April rate hike odds dragged down cumulative probabilities in later months, particularly June and July, and sought to promote a clear separation to place a floor on mid-year scenarios.

    • BOJ facing a challenge in messaging around that time as attention in the June meeting will go to its interim review of its JGB purchase reduction plan, and such a distraction has been raised by some in the market as a reason to believe they won't compound complications by hiking at that meeting.

    • This is part of the rationale proposed by the July camp. When Jun/Jul are the main choices, the next BOJ Tankan due in July is a notable reason to lean to the latter. However, if BOJ doesn't hike by June, that poses the risk that markets may start to speculate that a July move is also unlikely, placing yen under more pressure.

    • Explicit pre-holiday warnings came separately from Finance Minister Katayama, who said at a regular press conference Tuesday that oil price volatility remains elevated and affecting speculative moves in FX. Leveraged the US-Japan finance ministers accord to justify a response. Even during Golden Week and Katayama's upcoming diplomatic schedule, said authorities are ready to respond around the clock (Nikkei).

  • China Politburo emphasizes push for greater tech self-sufficiency:

    • Xinhua published readout of April Politburo meeting that emphasized China's push for technology self-reliance and strengthening "autonomy and controllability" of industrial supply chains. Meeting chaired by President Xi Jinping reiterated that China will implement more proactive fiscal policy and moderately loose monetary policy with greater precision and efficacy. Added will enhance forward-looking, flexible and targeted nature of monetary policy while maintaining ample liquidity and keeping yuan exchange rate basically stable. Will expand offerings of good-quality products and services and accelerate launch of major engineering projects when conditions are met. On industrial policy, China will keep manufacturing sector at "reasonable weight" and continue to crackdown on excessive competition or so-called "involution". Will launch comprehensive AI action plan. Policymakers also vowed to enhance energy security to counter external shocks. On property, readout noted will stabilize real estate market to push for urban renewal. Notably China will push for stabilization of pork prices. Recall China's pig prices have plunged to near eight-year low amid supply glut and drop in meat consumption (SCMP).

  • Trump skeptical about latest Iranian proposal:

    • US-Iran headlines revolved largely on Axios report detailing Iranian proposal to reopen Strait of Hormuz in return for end to US blockade and punting nuclear issue to future negotiations. Proposal drew immediate skepticism US would accept notion of giving up its main leverage (blockade), while delaying talks on nuclear issue. Secretary of State Rubio added that allowing Iran to retain control over Hormuz would be unacceptable (Bloomberg).

    • President Trump had national security meeting on Monday with NY Times sources noting he expressed dissatisfaction with Iran's proposal. Other media sources also noted Trump skeptical about Iran's latest offer and signaled his view regime not acting in good faith about nuclear issue. White House Press Secretary Leavitt said Trump maintaining his red lines on nuclear and would be addressing issue very soon (Bloomberg).

    • While talks are expected to continue, two sides appear at a stalemate over key sticking points of nuclear and Strait of Hormuz. Administration officials believe Iranian negotiators not authorized to make concessions on nuclear deal with IRGC hardliners having consolidated power. Concerning Strait of Hormuz, both sides believe they can withstand economic pain longer than the other. Doubts whether resumption of military strikes will change Iran's calculus with Trump also reportedly hesitant to restart hostilities.

  • Japan foreign equity inflows stand to surpass Abenomics era:

    • In an extension of the bullish Japan narrative, Nikkei discussed tailwinds that have helped propel the Nikkei beyond 60K yesterday for the first time in closing price. Analysis benchmarked equity flows since Warren Buffett's visit to Japan in Apr-23 when he bolstered endorsement of Japan's trading houses and raised stakes and compared them to the 'Abenomics' era in 2012-15.

    • Buffett's visit encapsulated growing foreign interest in Japan equities amid a TSE drive to improve corporate governance. This theme has facilitated a doubling of the Nikkei index from 28K at the end of Mar-23.

    • Two main drivers have been corporates via buybacks and foreign investors, which have totaled a cumulative JPY24T ($151B) and JPY17T respectively since Apr-23. Buybacks which have already dwarfed the Abenomics phase were a key catalyst for foreign inflows. Latter closing in on the peak JPY20T amassed through 2015 and prospects still look bright with favorable valuations and governance dynamics remaining in place.

    • In addition to buybacks, current phase boasts additional tailwinds of positive inflation and the tech boom. Top 10 performers since Buffett's visit dominated by semis and heavy machinery names.

    • Separate Nikkei article highlighted underperforming marine transportation stocks as a sleeper with potential for upside with activist investors seen as the driving force. Sector down 5% on the week as of Monday, outright bottom of performance rankings by sector.

    • To be sure, Middle East anxiety stands as a key reason for bearish views on marine transportation. Sector also lagging in metrics such as forward PER (third worst ahead of utilities and air transportation) and PBR below 1. However, ROE in the 10% is ahead of 9% average for all listed stocks and such a level is not significantly behind US or European firms.

    • Activist involvement in the sector drew recent attention with Elliott Investment Management's disclosure of stakes in Mitsui OSK Lines (9104.JP) just before the company unveiled its medium-term business strategy in mid-March. Sources indicated Elliott advocating for a relisting of its real estate subsidiary and strengthening buybacks.

    • Article showed positive impacts from activism overall. Okasan Securities tracked a basket of stocks where companies saw notable shareholder actions with at least 5% stakes held by activists and found these stocks have risen 4-fold over the past decade, notably outperforming a 3-fold increase in Topix.

  • Notable Gainers:

    • +13.6% 2359.HK (WuXi AppTec): reports Q1 results; adjusted non-IFS net income attributable +72% y/y

    • +11.9% 047040.KS (Daewoo Engineering & Construction): reports Q1 results; operating profit beats FactSet estimates

    • +9.8% 8591.JP (ORIX): to transfer all stake in ORIX Bank to Daiwa Next Bank for ¥370B by October 2026

    • +9.1% 8308.JP (Resona): reportedly in final stages of talks for capital and business alliance with JR West

    • +8.6% 192080.KS (DoubleUGames): to acquire remaining stake in DoubleDown Interactive for $183.7M (KRW272.4B)

    • +7.7% 066570.KS (LG Electronics): reportedly partnering with NVIDIA to strengthen its physical AI robots

    • +7.1% 006400.KS (Samsung SDI): reports Q1 results; headline figures ahead of FactSet estimates

    • +5.3% 9501.JP (Tokyo Electric Power Co. Holdings): Japanese goverment reportedly considers proposal for golden share in Tokyo Electric Power

    • +3.3% 7201.JP (Nissan Motor): raises FY guidance; guides FY operating income ¥50.00B vs prior guidance (¥60.00B)

  • Notable Decliners:

    • -9.1% 6988.JP (Nitto Denko): reports FY results with headline figures below FactSet estimates

    • -7.3% 1958.HK (BAIC Motor): reports Q1 results; revenue (26%) y/y

    • -6.9% 3750.HK (Contemporary Amperex Technology): launches 62.4M-share H-share placement at HK$628.20/share, raising ~HK$39.11B

    • -5.8% 6501.JP (Hitachi): reports Q4 results; net income miss FactSet estimates

    • -5.6% 6857.JP (Advantest): reports Q4 results; FY operating profit guidance miss FactSet estimates

    • -2% 6902.JP (DENSO Corp.): reports FY results; withdraws proposed acquisition of ROHM; to conduct tender offer to acquire up to 184.9M of own shares at ¥1,696/share

• Data:

  • Economic:

    • Japan March unemployment rate 2.7% vs consensus 2.6% and 2.6% in prior month

      • Job offers to applicants ratio 1.18 vs consensus 1.19 vs revised 1.19 in prior month

  • Markets:

    • Nikkei: (619.90) or (1.02%) to 59917.46

    • Hang Seng: (245.87) or (0.95%) to 25679.78

    • Shanghai Composite: (7.71) or (0.19%) to 4078.64

    • Shenzhen Composite: (29.44) or (1.07%) to 2727.23

    • ASX200: (55.70) or (0.64%) to 8710.70

    • KOSPI: 25.99 or +0.39% to 6641.02

    • SENSEX: (254.78) or (0.33%) to 77048.85

  • Currencies:

    • $-¥: +0.18 or +0.11% to 159.6020

    • $-KRW: (1.09) or (0.07%) to 1472.6600

    • A$-$: (0.00) or (0.15%) to 0.7175

    • $-INR: +0.43 or +0.45% to 94.6259

    • $-CNY: +0.01 or +0.17% to 6.8351