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StreetAccount Summary - Asian Market Recap: Nikkei (0.47%), Hang Seng +0.05%, Shanghai Composite +1.08% as of 04:10 ET

May 11 ,2026

• Synopsis:

  • Asia stocks ended with a positive tilt Monday. South Korea's technology stocks again surged with an outsized gain in Shenzhen and more strength in Taipei. Shanghai's main benchmark was higher but Hong Kong ended near unchanged in a quiet session. Japan's Topix higher but the Nikkei closed lower. Southeast Asia mixed, India seeing some sharp declines. US futures soft, Europe lower at the open. US dollar notably higher for a time, Asia currencies trending lower, rupee seeing RBI support but still weaker. Treasury and JGB yields higher across tenors. Crude blends higher with Brent at around $105/bl, WTI just below $100/bl. Precious metals mixed with gold down but silver prices holding. Base metals mixed.

  • Asia equities leaned higher by the close in a cautious day's trading as chipmakers in Seoul and Taipei again surged, encouraged by big gains on Friday by Micron and Intel. SK Hynix (000660.KS) led with another 10%-plus surge with Samsung Electronics (005930.KS) also strong again, while in Taiwan, Nanya Tech (2408.TT) and MediaTek (2408.TT) outperformed again. Stocks largely brushed off the latest setback in the Gulf where President Trump pushed back on Tehran's latest peace proposal, calling it 'totally unacceptable'. Brent crude up over the day but at least off its peaks while the US dollar largely pared early gains and gold bounced back from its lows.

  • In other developments, China's April consumer and producer inflation accelerated and beat expectations with the latter partially blamed on higher commodity prices. Trade data released over the weekend showed a very sharp acceleration in exports caused by clients building inventory, and imports growing well beyond expectations despite a decline in energy imports. India stocks underperforming Monday with notable declines in jewellery and airline stocks after PM Modi urged citizens to stop buying gold and not travel overseas on unnecessary trips to ease fuel supply concerns and reduce pressure on the rupee.

  • Sony's (6758.JP) semiconductor unit and TSMC (2330.TT) are to form a strategic partnership to develop next-generation image sensors. Nintendo (7974.JP) forecast a decline in hardware and software sales, warned higher memory chip costs were eating into margins; shares fell sharply. Alibaba (9988.HK) said it will integrate its Qwen AI with Taobao for end-to-end agentic shopping. Reliance Industries (500325.IN) plans for its Jio Platforms (+RJIO.IN) IPO to offer new shares instead of those from existing shareholders; draft prospectus filed at SEBI within two weeks.

• Digest:

  • Trump rejects Iran's proposal, stalemate continues:

    • US-Iran talks hit another roadblock after President Trump rejected Iran's latest proposal, which appeared to fall far short of US demands (Bloomberg). According to Iranian and other media sources, proposal calls for immediate end to US naval blockade. Two sides would establish 30-day negotiation period with Iran demanding release of frozen assets, end to sanctions on Iranian oil sales, definitive end to war on all fronts including Lebanon, and guarantees against future military action.

    • Large gaps on critical issues remain with Iran reportedly offering to dilute part of its highly enriched uranium stockpiles and ship rest to third country with right to get them back if US breaks agreement. Iran proposed shorter moratorium on uranium enrichment than 20 years demanded by US and rejected demands to dismantle nuclear facilities. Tehran continued to assert right over Strait of Hormuz. Iran's counterproposal contrasts with reports last week claiming two sides nearing deal that would see Iran commit to not pursuing nuclear weapons, agree to enhanced inspections and remove HEU stockpiles from country.

    • In interview with Axios, Trump said he spoke with Israel PM Netanyahu but not divulge contents of conversation, noting only "Iran negotiations are my situation, not everybody else's." Way forward unclear with latest development leaving two sides at stalemate. Two sides have clashed in Strait of Hormuz lately with US countering Iranian fire on vessels attempting to transit and Iran striking facilities in UAE. Trump has not stated how he'd respond if no agreement, last week alluding to expanded naval mission dubbed 'Project Freedom Plus'. Netanyahu told CBS News' 60 Minutes war not over until uranium stockpiles removed and nuclear facilities dismantled. Israel's Channel 12 reported Israel pushing US to resume strikes focusing on destroying energy infrastructure.

  • China CPI and PPI accelerate in April, beating expectations:

    • China headline CPI rose 1.2% y/y in April, beating consensus 0.8% and quickening from 1.0% rise in March. Goods increased 1.4%, up from 1.3% rise in prior month and services growth also higher to 0.9% from 0.8% in March. Core inflation rose to 1.2% from 1.1% in March. CPI rose 0.3% m/m, compared with consensus of 0.1% growth and 0.7% drop in prior month. NBS said industrial consumer goods saw bigger price increases as gasoline prices rose 19.3% y/y while rate of growth in gold jewelry prices fell but still gained 46.9% y/y. Among services, medical services, education and travel all saw faster expansions. Meanwhile, pork prices remained notable drag, down 15.2% y/y, as compared with 11.5% fall in March. Fresh vegetables and fruits also dropped.

    • PPI rose 2.8% y/y in April to highest since Jul-22, exceeding consensus 1.5% and 0.5% rebound in March. NBS said acceleration in PPI driven by factors including rapid rise in global commodity prices, better demand in certain domestic sectors and improved market competition. Price increases in non-ferrous metals' mining and processing industries accounted for nearly 1.6 ppt of y/y increase PPI, followed by crude oil extraction and processing as well as chemical materials manufacturing. Bloomberg noted energy disruptions caused by Iran war helped end China's factory deflation in 3.5 years in March, but corporate profits under growing pressure as companies struggle to pass on higher costs to customers as RatingDog Services PMI suggested.

    • Added to China economic data in April that showed some resilience despite war in Iran. Saturday's trade data showed China's exports grew 14.1% y/y in April, beating consensus 7.9% and 2.5% growth in March, as buyers rushed to stockpile components amid fears of drawn-out Iran war despite shipping disruptions. Imports rose 25.3% y/y, exceeding consensus 15.2% while slightly below 27.8% in March. However energy imports fell sharply last month (Bloomberg).

  • South Korean equity rally maintains pace as strategists upgrade Kospi targets:

    • Semi/memory bull run continues with Asian majors taking cues from Friday's tech rally in US, where Intel's 15% surge capped off 38% weekly gain. South Korea's memory-driven rally similarly showing no signs of slowing down with Kospi extending month-to-date gain to 20%. SK Hynix (000660.KS) the standout gainer, now up 50% in May. Reuters sources noted global tech firms lining up SK Hynix with investment offers amid rush to secure memory chips, a signal of confidence in the staying power of the current boom. Industry shift towards multi-year supply contracts seen smoothing out earnings volatility and reducing investment risks.

    • JP Morgan upgraded its Kospi year-end target to 9K from April forecast 7K, coming after Goldman Sachs last week raised its forecast to 9K from 8K and Citi hiked its year-end target to 8,500 from 7K (Bloomberg). Expectations for a multi-year memory supercycle remains the dominant market theme in South Korea, with demand outstripping supply and driving forecasts for ASP- and volume-driven earnings growth. FOMO attracting growing retail participation as individuals direct cash to stocks (Korea Times).

    • Rally accompanied by concerns about near-term overheating with technicals moving further into overbought territory. Narrow breadth highlighted with Kospi's surge Monday driven by about 150 out of benchmark's 835 constituents. Concentration risks with memory giants comprising almost 50% of Kospi and contributing more than 70% of index's gains lately. Retail participation accompanied by accelerating growth in margin debt with personal overdraft accounts at five major banks hitting highest in more than three years (Seoul Economic Daily).

  • US-Iran diplomatic stalemate leaves Strait of Hormuz paralyzed:

    • Latest US-Iran diplomatic setback heightens uncertainty surrounding normalization of energy supplies. Aramco CEO the latest to warn of long disruption to crude supply even if Strait of Hormuz is reopened immediately, anticipating it wont be until 2027 before market normalizes if closure persists by more than a few weeks from today (Bloomberg). Renewed Iranian threats against commercial vessels, Tehran's self-declared right to control Strait of Hormuz, mine-laying activity during US blockade and clashes with US over past week further complicating path back to normalcy in the Strait.

    • Oil prices being capped by unsustainable inventory drawdowns with Morgan Stanley estimating global stockpiles have shrunk by 4.8M barrels between 1-Mar and 25-Apr, far larger than previous peak for quarterly drawdown (Bloomberg). Goldman noted global visible oil stocks close to lowest since 2018 and JP Morgan warned inventories could fall to 'operational stress' levels early June and 'operational minimum' in September. Citi maintained 0-3M Brent projection of $120 (vs last $104.65) before easing to $95 in Q3 under base case of Hormuz reopening by end-May, but warned oil market underpricing duration and tail risks (Reuters).

    • Upside risks to already elevated oil prices continue to underpin central bank concerns about de-anchoring of inflation expectations. Bond yield remains higher with markets having wound back rate cut expectations. Goldman Sachs delayed Fed rate cut expectations to Q4-2026 and Q1-2027 amid thoughts cost passthrough will see core PCE inflation closer to 3% (Bloomberg). PIMCO noted possibility of Fed turning to rate hikes (FT). There has been a hawkish turn in Asia with RBA last week hiking third straight time, RBNZ expected to begin tightening by July, BOK Deputy Governor Ryoo saying time to start thinking about rate increase and market weighing prospect of BOJ moving in July.

  • India PM Modi urges limits on fuel usage, travel and imports to save forex reserves:

    • India PM Narendra Modi urged citizens to adopt measures to conserve fuel, reduce pressure on rupee which fell to record low 95.2 per dollar last week (Mint). Modi said people should prioritize work-from-home; use public transport, EVs or carpool to save on fuel; avoid buying gold, cut non-essential overseas travel for 12 months to save foreign exchange. Modi urged families to reduce cooking oil consumption, asked farmers to cut fertilizer use by up to half. Said country had to preserve foreign reserves 'by any means', cited country needed to resume habits adopted during Covid (Reuters). Morgan Stanley report cited in TimesofIndia noted India fuel stockpiles at 10-year low, naphtha and LPG supplies have tightened significantly since start of Iran conflict. Brent crude price up more than 4% early Monday, rupee weaker following President Trump rejection of Iran's peace offer; traders reported RBI selling dollars again to limit rupee's decline (Reuters).

  • Notable Gainers:

    • +10.3% 011070.KS (LG Innotek Co.): analyst notes operating profit estimates raised to KRW1.1T for 2026 and KRW1.4T for 2027

    • +8.3% 6758.JP (Sony): Sony Semiconductor Solutions, TSMC form strategic partnership to develop and produce next-gen image sensors

    • +7.3% 7211.JP (Mitsubishi Motors): reports Q4 results; revenue and operating income ahead of StreetAccount estimates

    • +6.8% 2914.JP (Japan Tobacco): reports Q1 results; revenue and operating income beat FactSet estimates

    • +1.9% 9706.JP (Japan Airport Terminal): reports FY results; formulates FY26-30 medium-term management plan

  • Notable Decliners:

    • -8.4% 7974.JP (Nintendo): reports FY results; revenue and operating profit miss FactSet estimates

    • -7.5% 2282.JP (NH Foods): reports FY results

    • -5.1% 010950.KS (S-Oil Corp): reports Q1 results; operating profit beats StreetAccount estimates

    • -4.0% 120110.KS (Kolon Industries): reports Q1 results

    • -1.5% 7203.JP (Toyota Motor): to build new plant for new SUV in India; to start production in 1H29

• Data:

  • Economic:

    • China April

      • Trade balance $84.8B vs consensus $83.1B and $51.1B in March

        • Exports +14.1% y/y vs consensus +7.9% and +2.5% in March

        • Imports +25.3% y/y vs consensus +15.2% and 27.8% in March

      • CPI +1.2% y/y vs consensus +0.8% and +1.0% in prior month

        • PPI +2.8% y/y vs consensus +1.5% and +0.5% in prior month

  • Markets:

    • Nikkei: (295.77) or (0.47%) to 62417.88

    • Hang Seng: 13.13 or +0.05% to 26406.84

    • Shanghai Composite: 45.07 or +1.08% to 4225.02

    • Shenzhen Composite: 46.62 or +1.62% to 2922.37

    • ASX200: (42.60) or (0.49%) to 8701.80

    • KOSPI: 324.24 or +4.32% to 7822.24

    • SENSEX: (845.59) or (1.09%) to 76482.60

  • Currencies:

    • $-¥: +0.42 or +0.27% to 157.0890

    • $-KRW: +9.34 or +0.64% to 1471.0900

    • A$-$: (0.00) or (0.10%) to 0.7239

    • $-INR: +0.79 or +0.84% to 95.2557

    • $-CNY: (0.01) or (0.09%) to 6.7947