May 17 ,2026
Synopsis:
Asian markets set for negative start to Monday trade. Futures signaling mild opening declines in Japan, Hong Kong and Australia. S&P 500 futures weakening further. Australian bonds under pressure after Treasury yields rose sharply on Friday. Crude pushing higher amid hawkish Middle East headlines. Gold and silver extending Friday selloff. Bitcoin down to early May low. Dollar index nearing early April highs with yen continuing to pull lower.
US-Iran headlines leaning hawkish after President Trump renewed threat to bomb Iran if it doesn't quickly make deal. Reported US red lines underlined still-wide gap between the two sides, clouding prospect of negotiated settlement. Diplomatic stalemate, risk of renewed hostilities and Iranian threat against Middle East energy facilities underpinning continued rise in crude prices with no line of sight towards reopening of Strait of Hormuz. IEA the latest to warn unsustainable crude inventory drawdowns risk surge in prices.
AI rally hit roadblock with Asia memory/semi selloff extending into US session on Friday with SOX ending down 4%. Comes after Kospi unwound most of preceding week's gains after briefly touching 8K. Extended positioning and sentiment in momentum trade, overbought technical signals, narrow breadth, and speculative excess were among the talking points. Samsung's stalled wage negotiations with unions also getting more attention amid potentially disruptive strike threat from 21-May.
China activity data (Mon) to provide more detailed snapshot of economic activity after PMIs eased slightly last month. Tepid retail sales growth forecast to have nudged higher, partly weighed down by underwhelming spending activity over Golden Week. Industrial production growth forecast to have quickened on the back high-tech and semiconductor-related output. No change expected in fixed asset investment growth with property sector remaining week. New home prices also due out.
Pre-open Company News:
2378.HK -- Prudential to acquire 75% stake in Bharti Life Insurance for initial cash consideration of INR35.00B (HK$2.86B)
500470.IN -- Tata Steel downgraded to neutral from overweight at JPMorgan
543276.IN -- Craftsman Automation approves up to INR20.00B fundraising through share issuance or other means
UTHR -- United Therapeutics long-term pivotal, phase 3 ADVANCE OUTCOMES study met its primary endpoint, achieves statistically significant 55% reduction in risk of clinical worsening in predominantly pre-treated patients with PAH
981.HK -- SMIC upgraded to buy from neutral at Citi
JLR, GM among carmakers hoping for £900M ($1.20B/INR115.119T) UK defence contract - The Guardian
541154.IN -- Hindustan Aeronautics downgraded to add from buy at JM Financial
3800.HK -- GCL Technology Holdings announces strategic transformation plan; pivot to LFP as core growth engine
3769.JP -- GMO Payment Gateway upgraded to outperform from hold at CLSA
South Korea reports April outstanding household loans KRW1,174.9T, +KRW2.1T m/m
361610.KS -- SK ie technology downgraded to underperform from buy at BofA
524208.IN -- AARTI Industries downgraded to reduce from add at Equirus Securities
544569.IN -- Tata Motors Commercial Vehicles acquires additional 18% stake in Freight Commerce Solutions from existing shareholders for INR956.6M
600208.CH -- Quzhou Xin'an Development terminates proposed acquisition of Vital Thin Film Materials; deal first announced in July 2025
EB5.SP -- First Resources downgraded to neutral from buy at RHB Research
On Deck:
China:
Economic:
08:00 CST: Foreign Direct Investment Y/Y; consensus
10:00 CST: Industrial Output NSA Y/Y; consensus +5.8%
10:00 CST: Retail Sales NSA Y/Y; consensus +1.9%
Hong Kong:
Earnings:
CLP Holdings (2.HK), Sun Art Retail Group (6808.HK)
Japan:
Economic:
13:30 JST: Retail Sales NSA Y/Y (Final); consensus
Australia:
Earnings:
Elders (ELD.AU)
India:
Earnings:
Zydus Wellness (531335.IN), JK Paper (532162.IN), Sun Pharma Advanced Research (532872.IN), Gujarat Narmada Valley Fertilizers & Chemicals (500670.IN), Timken India (522113.IN), Indraprastha Gas (532514.IN), Astral (532830.IN), Triveni Turbine (533655.IN), DOMS Industries (544045.IN)
Malaysia:
Earnings:
Kuala Lumpur Kepong (2445.MK)
Thailand:
Economic:
09:30 SAST: GDP NSA Y/Y; consensus +2%
Market Data:
Gold (Jun 26): ($21.00) or (0.46%) to $4540.90
WTI Crude (Jun 26): +$1.84 or +1.75% to $107.26
$-¥: +0.10 or +0.06% to 158.8660
$-KRW: (0.90) or (0.06%) to 1496.9700
A$-$: (0.00) or (0.25%) to 0.7136
$-INR: +0.06 or +0.07% to 96.0268
$-CNY: (0.00) or (0.01%) to 6.8092
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