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StreetAccount Summary - Asian Market Recap: Nikkei (1.23%), Hang Seng (0.57%), Shanghai Composite (0.18%) as of 04:10 ET

May 20 ,2026

• Synopsis:

  • Asia stocks ended mostly lower Wednesday although many finished off their lows. Steepest falls for South Korea, weighed down by Samsung Electronics and other tech stocks. Japan's Topix and Nikkei also ended sharply down, Australia another underperformer. Greater China and Taiwan relative outperformers with Shenzhen a few points higher, India back near the flatline, Southeast Asia led lower by Indonesia; a small gain for Thailand. US futures mixed, Europe slightly higher in the first hour. US dollar hovering near its week high with DXY above 99 again; Asia currencies weaker across the board. US Treasury yields lower at the short end, higher at the long end, JGBs also mixed, Asia sovereigns trading just off recent highs. Crude oil slightly lower. Precious metals down, base metals lower. Cryptocurrencies finding support.

  • Asia stocks fell again Wednesday but many closed off their troughs as US futures edged higher and Europe opened with small gains. The region's currencies also bounced mid-session although the rupee touched a fresh record low despite more RBI intervention while sovereign bond yields largely came off yesterday's highs, all coming just as crude prices eased lower amid reports of several ships successfully transiting the Strait of Hormuz. Nevertheless, inflation concerns remain strong with markets expecting further hawkish pivots from the region's central banks. Today, Bank Indonesia fulfilled that outlook when it unexpectedly hikes base rates 50 bps and introduced a string of measures to support the rupiah including greater use of the yuan in transactions.

  • China left its 1Y and 5Y loan prime ranges unchanged as fully expected with analysts adding that while this week's miss on April activity data showed broad weakness, it probably wasn't enough to trigger PBOC action. The Reuters Tankan survey showed Japan manufacturer sentiment improved slightly. Few developments of note from the Persian Gulf today although several oil-carrying tankers transited the Strait of Hormuz successfully allowing crude futures to ease slightly. Instead, focus today on South Korea where talks between management and trade unions at Samsung Electronics (005930.KS) broke down; unions expect the strike to begin tomorrow although President Lee hinted at the use of emergency powers to halt action from proceeding.

  • Activist investor Elliott said it now holds 6% of Nippon Express (9147.JP) and says 'bold and ambitious' steps are needed at the company. Nikkon Holdings (9072.JP) is considering going private with several US private equity funds expected to participate in the bidding; stock sharply higher. More than 47K Samsung Electronics (005930.KS) workers are set to strike Thursday after wage talks between company management and its largest union broke down. Yangtze Memory Technologies (0HCR9G-E), China's top flash memory chipmaker, has begun so-called "tutoring" process for its long-awaited IPO with local brokers.

• Digest:

  • Samsung Electronics wage talks breakdown adding to week's pressure on the Kospi:

    • More than 47K Samsung Electronics (005930.KS) workers are set to begin striking Thursday after wage talks between company management and its largest union broke down. Union had agreed to mediation proposal however company rejected measures leading to impasse (Yonhap, CNBC). Union confirmed it would proceed with strike despite two sides reaching agreement on several points over months of negotiation; union sticking to demand of fixed performance bonuses equal to 15% of chip division's operating profit, which company rejected.

    • Strike expected to be limited following court order and, while President Lee said collective labor action should have 'certain limits' (Yonhap) however labor ministry said too early to speak of using emergency powers (Yonhap). Dispute also seen in broader picture as reflecting tensions in South Korea as workers push for greater share of AI profits (Bloomberg).

    • Samsung Electronics stock down around 3.2% in morning trade Wednesday to marginally underperform Kospi. Broader Kospi market under WTD pressure from concerns over high valuations globally in AI-related stocks just as inflation accelerates, bond yields spike and Asia currencies come under pressure from resurgent US dollar. KOSDAQ down around 4.0% Wednesday, 8.9% WTD; double-digit WTD declines at big Kospi exporters such as Hyundai Motor (005380.KS), LG Energy Solution (373220.KS), POSCO (005930.KS). Won steadily re-approaching record lows versus US dollar, South Korea 10Y sovereign bond yield at highest since Oct-23.

  • Indonesia central bank unexpectedly hikes rates 50 bps, announces measures to support rupiah:

    • Bank Indonesia raised its base interest rate 50 bps to 5.25% Wednesday against split expectations for no change and 25 bps hike. Deposit facility rate raised to 4.25%, lending facility to 6.0%, both also 50 bps hikes. Bank said move made to strengthen, stabilize rupiah from impact of global turmoil unleashed by middle east conflict, pre-emptive measure to maintain inflation this year and next to within 2.5-3.5% target range. Said move would also attract foreign portfolio investment inflows. Bank also lowered cash threshold for buying forex to support rupiah stability; will increase usage of yuan transactions, strengthen supervision of banks with high US dollar purchasing activity, expand central bank use of local currencies in transactions.

    • Bank would also maintain adequate liquidity via 'measured' transactions of government securities; changed several policies to increase liquidity flexibility, encourage lending and increase usage of digital payments. Said FY26 GDP growth would be in 4.9-5.7% range. Rupiah strengthened in immediate aftermath of announcement having touched record lower early morning.

    • Separately Wednesday, President Prabowo said he planned to tighten oversight of commodity exports leading some investors to worry over greater state control over key industry, according to Bloomberg report. Jakarta to form agency to oversee exports of coal, crude palm oil, minerals also to support rupiah.

  • Bessent endorses Ueda's leadership, JGB weakness drawing attention to purchase reduction plan:

    • US Treasury Secretary Bessent said in an X post that he spoke to BOJ Governor Ueda on the sidelines of the Paris G7 about Japan's resilient economy and market outlook. Only expressed confidence that Ueda will successfully guide monetary policy. Believes Japan's fundamentals are strong and reiterated FX volatility is undesirable.

    • In a later press conference, Ueda did not elaborate on the meeting as attention turned to bond market weakness, observing that long-term yields have been rising rapidly, citing inflation concerns stemming from the Middle East situation. Added that cost passthrough from upstream to about mid-stream has been rather fast, mentioning petrochemicals and plastics. Also acknowledged frequent opinions this is affecting the outlook for Japan's economy, prices, monetary and fiscal policy. Pledged to coordinate closely with the government in monitoring bond market developments.

    • With BOJ scheduled to conduct an interim review of its JGB purchase reduction plan at the June MPM, Ueda said deliberations would incorporate recent trends, market functioning and leverage the upcoming bond market participants' meeting.

    • Follows earlier Nikkei discussion that Prime Minister Takaichi's circles sounding caution towards the BOJ review. CEFP recommendations Monday called for "appropriate monetary policy" that takes into account trends in supply and demand for funds. Senior Cabinet Office official said the language implies this includes JGB purchases as well as rates. Added BOJ should keep in mind that bond issuance is set to increase going forward.

    • Council member and known reflationist Aida called for BOJ to maintain monthly purchases at JPY2.1T (the current target end point for Mar-27) beyond FY27 to facilitate stable long-term public-private investments and that purchases should be commensurate with nominal GDP growth. However, some in the BOJ are pushing back on that view, arguing it would constitute debt monetization and asserted pace of tapering will be a function of the improvement in market function.

  • Trump threatens to hit Iran if no deal reached, gaps between two sides remain:

    • Nothing particularly incremental in latest US-Iran developments. President Trump repeated threat he will strike Iran if no deal reached over coming days (Bloomberg, Reuters). Trump revealed he was an hour away from ordering strikes before postponing attacks. Trump repeated claim Iran is desperate for deal with VP Vance echoing Trump's optimism in claiming lot of progress has been made.

    • Axios sources noted Trump convened meeting with top national security officials Monday that included discussions about military options. While meeting was held after Trump suspended planned strikes against Iran, it was viewed as a sign he is seriously weighing resuming war. Israel's Channel 12 said officials expect and prepared to participate in US strike, believing Trump will be compelled to respond unless Iran dramatically improves its offer (Times of Israel)

    • Media reports continue to highlight gulf between two sides with latest Iranian terms little changed from those already rejected by Trump. These include demands on ending conflict on all fronts, unwinding sanctions, removing of US forces from region, receiving war compensation, and recognition of its right over Strait of Hormuz. Iran also showing no signs of acquiescing to US red lines on uranium enrichment and HEU stockpiles.

    • Diplomatic stalemate, threat of renewed hostilities and competing blockades have left Strait of Hormuz in limbo, driving some discussion about looming physical shortages from depletion of global crude inventories. NATO source told Bloomberg that alliance discussing possibility of escorting ships if waterway isn't opened by early July., which would be a shift in strategy after participating countries hinged their involvement on end to conflict.

  • China semiconductor stocks higher as YMTC kicks off IPO process:

    • China semiconductor stocks advancing Wednesday against weak broad market backdrop. E Fund CSI Semiconductor ETF (159558.CH) jumping nearly 4% with nearly CNY666M fund inflows over last five days (link). Yangtze Memory Technologies (0HCR9G-E), China's top flash memory chipmaker, has begun so-called "tutoring" process for its long-awaited IPO with local brokers Citic Securities (6030.HK) and CSC Financial (6066.HK), move as initial step toward eventual listing on Shanghai's STAR Market to capitalize on rising demand for chipmakers (Bloomberg, Reuters). Move came just days after CXMT updated its prospectus for potential listing as the two companies, seen as Beijing's best hopes for establishing stronghold in global memory chip market, seek capital to expand capacity amid China's push for tech self-sufficiency and global super-cycle for storage chips. Noted YMTC has been added to US Entity List in 2022 as its progress in Nand flash memory has alarmed Washington, meanwhile it has expanded use of domestic equipment suppliers including Naura Technology (002371.CH).

  • Notable Gainers:

    • +20.9% 4208.JP (Ube): provides FY30 management plan update; revenue target ¥550.00B; guides interim and year-end dividend ¥80/share, making total FY dividend ¥160/share

    • +4.3% 2891.TT (CTBC Financial Holding): reports Q1 EPS NT$1.18 vs FactSet NT$1.13

    • +1.1% 3738.HK (Vobile Group): reports preliminary Q1 total revenue +21% y/y

    • +0.7% 2423.HK (KE Holdings): reports Q1 adjusted EPADS CNY1.42 vs StreetAccount CNY0.95

    • +0.2% 005930.KS (Samsung Electronics): more than 47K workers set to begin striking Thursday after wage talks between management and company's largest union broke down

  • Notable Decliners:

    • -5.3% 6525.JP (Kokusai Electric): KKR HKE Investment to sell entire 10.6% stake in Kokusai Electric

    • -5.1% 9024.JP (Seibu Holdings): completes tender offer for e'grand at ¥4,858/share

    • -4.7% 9626.HK (Bilibili): reports Q1 results; revenue CNY7.47B vs FactSet CNY7.49B

    • -3.3% 2057.HK (ZTO Express): reports Q1 adjusted EPADS CNY2.95 vs FactSet CNY3.08

    • -1.4% 6762.JP (TDK): subsidiary to acquire Linergy Power, a lithium-ion rechargeable batteries manufacturer, for $241.1M (¥38.35B)

• Data:

  • Economic:

    • Japan May

      • Reuters Tankan manufacturers sentiment index +8 vs +7 in prior month

  • Markets:

    • Nikkei: (746.18) or (1.23%) to 59804.41

    • Hang Seng: (146.73) or (0.57%) to 25651.12

    • Shanghai Composite: (7.35) or (0.18%) to 4162.18

    • Shenzhen Composite: (8.00) or (0.28%) to 2869.17

    • ASX200: (108.10) or (1.26%) to 8496.60

    • KOSPI: (62.71) or (0.86%) to 7208.95

    • SENSEX: (150.95) or (0.20%) to 75049.91

  • Currencies:

    • $-¥: (0.03) or (0.02%) to 159.0610

    • $-KRW: (0.70) or (0.05%) to 1507.2700

    • A$-$: +0.00 or +0.02% to 0.7109

    • $-INR: +0.14 or +0.14% to 96.8179

    • $-CNY: (0.01) or (0.11%) to 6.8065