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StreetAccount Summary - Asian Market Recap: Nikkei +1.47%, Hang Seng +1.28%, Shanghai Composite +0.37% as of 04:10 ET

Jul 03 ,2026

• Synopsis:

  • Asia equities ended the week with a strong rally on Friday. Technology-leaning boards in South Korea, Taiwan and Japan led the gainers while there was also a healthy advance in Shenzhen. The Hang Seng also bounced back from this week's lows and Shanghai posted sold gains. Australia's ASX, India and Southeast Asia were also higher with Thailand's SET ending at a more than six-year high. For the week, the MSCI Asia Pac ex-Japan index was near unchanged as early-week losses were pared on Friday. Regionally, the Hang Seng, Taiex, and SET outperformed while the Kospi remained in the red; in Japan the Topix outperformed the Nikkei 225.

  • US futures higher although markets closed today for a holiday; Europe opened with gains. US dollar a little weaker, more gains for the AUD and NZD following positive moves yesterday, yen flat but traders on high alert for an intervention move. Treasury yields mostly lower, JGBs mixed. Crude oil inching higher, precious metals very strong on the weaker dollar and fading Fed rate hike hopes. Iron ore lower on higher-than-expected China inventory data.

  • Asia stocks ended the week with a broad rally as regional sentiment improved post a rally into the close on Wall Street overnight as fears of a Fed rate hike faded further after a surprisingly weak jobs report. Fed Fund Futures indicate the chances of a September hike now below 50% having been well above 66% before the data was published. Regional currencies also broadly supported Friday on the same newsflow, which sent the dollar lower. Tech stocks led with the Kopsi regaining almost 6% with the exchange operator again halting program trading in its futures market to tame volatility.

  • The yen dropped to its lowest in three weeks just as Japan's finance minister Katayama warned once again Tokyo was prepared to act to support the currency with traders on alert for such a move in thin holiday trading Friday. However, in contrast, a Reuters report hinted authorities may abandon such warnings in the future to squeeze speculators. Few other catalysts of note in Asia Friday. The remaining June PMI readings showed China's private services eased slightly but remained expansive, Japan's services reading returned to growth, while India's final services reading confirmed a modest slip from May.

  • China-based copper foil manufacturer Londian Wason New Energy (+LONDIANWASON) filed for an IPO on the NY Stock Exchange. Great Wall Motor (2333.HK) say it is targeting up a 3-5% market share in Europe within four years. Unitree Robotics (+UNITREE.CH) won approval for its $619M IPO in Shanghai. The Hanwha Group (Hanwha Aerospace, 012450.KS); Hanwha Ocean, 042660.KS; Hanwha Systems, 272210.KS) said it is to invest KRW 55T ($35.6B) in the aerospace and AI sectors by 2040 to develop launch vehicles, satellites and AI data centers. Samsung Electronics (005930.KS) in talks with Anthropic over custom AI chips, according to a report in The Information.

• Digest:

  • Asia's memory stocks stabilize following turbulent week:

    • Asia's memory stocks rebounding Friday with SK Hynix (000660.KS) and Samsung Electronics (005930.KS) and Kioxia (285A.JP) recouping steep Thursday losses. Nothing specific behind the recovery with dip buying an easy excuse. Pullback in front-end bond yields following soft US payrolls data mentioned also highlighted. South Korean media reports about Samsung planning to hike general purpose DRAM ASP by up 20% in Q3 renewing may be renewing focus on pricing tailwinds.

    • Volatile week for the sector underlined by concerns over memory cost pressures on tech hardware firms and associated risk to memory demand following reports Apple looking to China for alternative suppliers. Report Meta planning to sell excess compute also tied into concerns about overcapacity that were flagged by BIS earlier this week. Still sense semi/memory selloff more to do with an unwinding crowded (and leveraged) longs with strategists maintaining strong conviction in outlook for memory.

    • South Korea's memory firms unveiled latest projects under investment plans announced on Monday. SK Hynix to invest KRW100T ($64.4B) on chip plants, including facility to develop NAND flash memory. Samsung Electronics invest KRW56T on HBM packaging facilities. Huge investment commitments by both companies have invited concerns this week about financial consequences if memory cycle falters prematurely.

    • In other developments, The Information cited sources who said Anthropic in talks with Samsung to partner in design of custom AI chip, though talks at early stage and no details yet on chip specs. Kioxia has begun shipping samples of next-gen flash memory chips that will be used in SSDs at company's data centers. Chips will be manufactured in new facility in Iwate prefecture.

  • Yen strengthens on intervention risk, US payrolls miss, amid holiday-thinned liquidity:

    • No specific catalyst behind the notable yen strength Thursday evening in the lead-up to US payrolls, deduced as a reflection of positioning (short unwinds) amid a combination of intervention concerns and bearish data expectations consistent with a weaker dollar. FX policy chief Mimura refrained from commenting after USD/JPY briefly dropped back to the 160 range (Nikkei).

    • While the spurious nature of price action hinted at FX intervention, market watchers were unconvinced and pointed more towards general caution ahead of payrolls data to cap off a holiday-shortened week that will deplete market liquidity (Reuters), leaving the market prone to volatility. Only minor thoughts there might have been a rate check, and any actual intervention was likely small.

    • Reinforcing intervention risk, some mention of a Reuters report citing South Korea authorities saying they are in close communication with Japan and other key allies on FX issues, warning won has become significantly misaligned with economic fundamentals.

    • Attention then shifted squarely to the US payrolls miss with consensus already having looked for a significant softening in job growth. Nikkei noted September Fed rate hike expectations retreated closer to an even money bet from around 64%. Suggested yen intervention risks linger, though as part of broader concerns about potential volatility amid thin volumes over the US holiday.

  • Hong Kong-listed China big techs at record low valuations:

    • Declining Hong Kong stocks, with tech index leading losses, have attracted growing press scrutiny. Hang Seng Index has fallen nearly 9% YTD while Hang Seng Tech Index has slumped 18% over same period despite this week's rebound, among worst-performing tech gauges globally, in contrast with 47% and 27% gain in Shanghai STAR 50 and ChiNext Index even after sharp pullback recently. Bloomberg noted selloff has driven valuations of some of China's biggest internet companies to record lows with Tencent's (700.HK) PE at all-time low of 11X. Alibaba (9988.HK) shares fell 22.5% in June, putting it valuations at lowest in almost a year. China's big techs facing double whammy of doubts over meaningful ROI from AI capex and sluggish domestic consumption, prompting analysts to trim earnings forecasts for Hang Seng Tech companies by more than 20% in past year. SCMP citing analysts who said Hong Kong stocks only present structural opportunities until expectations for earnings improve visibly, adding macro headwinds including potential liquidity disruption from more hawkish Fed and possible BOJ rate hikes. Beijing's crackdown on non-compliant offshore trading by mainland investors also draining liquidity. In addition, Hong Kong stocks face another test in Q3 with HK$850B ($108.4B) of shares to hit market after expiration of IPO lock-up. Meanwhile some analysts argued valuations in Hong Kong becoming increasingly compelling and big techs may bottom out soon while many have also ramped up buybacks to revive investor confidence (SCMP).

  • Japan economy minister reassures Takaichi growth strategy won't lead to rampant debt growth:

    • In a Nikkei interview, economy minister Kiuchi promoted the JPY370T ($2.3T) in planned investments as part of the Takaichi administration's economic blueprint. Recall that press have been citing draft plans that stressed the utmost importance for BOJ to maintain supportive policy, which has reverberated in markets throughout this week, stoking doubts about BOJ's capacity to hike and in turn, exacerbating behind-the-curve risks. While the plan has yet to be officially announced, the Japanese language version indicated the plan may be approved in mid-July. One of the key issues has been the lack of clarity on how much of the JPY370T would be raised by the government. Kiuchi declined to offer specifics, though emphasized Takaichi's 'responsibly proactive fiscal policy' won't lead to "blatant fiscal expansion." The plan envisions government contribution acting as a catalyst for private sector participation. Added growth in government debt will be "firmly kept within the range of economic growth."

  • Crude oil outlook concerns not over:

    • Just as crude oil prices have recently fallen back to pre-war levels, Nikkei discussed concerns of a rebound in autumn. On top of persistent uncertainties surrounding the Strait of Hormuz, China activity was raised as the X-factor.

    • Article was convinced the absence of Chinese buying was the biggest reason for the recent decline in crude prices. Even after the US-Iran MOU and reopening of the strait, Kepler data showed Chinese crude purchases last week was still running at less than half of pre-war levels in February.

    • One explanation is that China is in no hurry to replenish inventory given Iran oil was previously bought directly at a steep discount, and such supplies have been diverted to the open market. Meanwhile, the strait reopening has created a short-term oversupply as importers have since secured alternative sources, particularly in Asia, and surplus has found its way to western markets to drive down the price.

    • This lull is expected to be temporary. With oil processing due to restart soon, buying will follow and expected to translate to higher prices into the fall. China was seen to have lowered refining rates giving rise to pent up activity given petroleum exports are an important source of revenue.

    • Story pointed to contango in Brent futures, affirming a premium in the back months. Cited HSBC estimates prices could go as high as $80. Expectations underpinned by ongoing strength in gasoline demand keeping prices high. LSEG spread between gasoline and oil has widened to the highest since Jun-22 attesting to downstream support. Next recalibration in supply-demand conditions seen to be July-end when the backup in traffic in the Persian Gulf is cleared and IEA reserves release is complete.

  • Notable Gainers:

    • +19.8% 2492.JP (Infomart): Oasis Management discloses 5.07% stake

    • +15.5% 4812.JP (Dentsu Soken): reportedly to be taken private by Dentsu Group

    • +6.2% 4005.JP (Sumitomo Chemical): Samsung Electro-Mechanics invests KRW319.1B to acquire 66.2% stake in newly established joint venture with Dongwoo Fine-Chem

    • +4.0% 068270.KS (Celltrion): reports preliminary Q2 operating profit KRW430.00B vs FactSet KRW402.26B

    • +1.3% 3549.JP (Kusuri No Aoki Holdings): reports FY results

  • Notable Decliners:

    • -11.8% 034230.KS (Paradise Co.): reports June casino revenue KRW63.17B vs year-ago KRW80.12B

    • -4.7% 9793.JP (Daiseki): reports Q1 results

• Data:

  • Economic:

    • China June

      • RatingDog Services PMI 54.1 vs consensus 53.0 and 54.4 in prior month

        • Composite PMI 53.6 vs 54.0 in prior month

    • Japan June

      • Final services PMI 52.2 vs flash 51.8 and 50.0 in prior month

        • Composite PMI 52.8 vs flash 52.5 and 51.1 in prior month

    • India June

      • Final Services PMI 57.4 vs flash 57.3 and 59.8 in prior month

        • Composite PMI 57.1 vs flash 57.4 and 59.3 in prior month

  • Markets:

    • Nikkei: 1,010.92 or +1.47% to 69744.07

    • Hang Seng: 295.00 or +1.28% to 23350.03

    • Shanghai Composite: 14.74 or +0.37% to 4043.64

    • Shenzhen Composite: 20.96 or +0.76% to 2792.58

    • ASX200: 119.90 or +1.37% to 8844.40

    • KOSPI: 440.25 or +5.76% to 8088.34

    • SENSEX: 397.95 or +0.51% to 77900.07

  • Currencies:

    • $-¥: (0.26) or (0.16%) to 160.8480

    • $-KRW: (9.82) or (0.64%) to 1530.2960

    • A$-$: +0.00 or +0.39% to 0.6945

    • $-INR: (0.20) or (0.21%) to 95.3023

    • $-CNY: (0.01) or (0.09%) to 6.7824