Jul 07 ,2026
Synopsis:
Asia equities ended mostly lower Tuesday. Another step down for technology stocks to take the Kospi, Taiex and Nikkei 225 sharply lower over the day. Greater China also saw losses while Australia's ASX lost a few points but was a relative outperformer. India now flat despite a promising open, Southeast Asia mostly better. S&P futures slightly higher but the Nasdaq is down sharply; Europe opened with a positive tilt. US dollar steady, Asia currencies under a little pressure. Treasury yields higher, JGBs mixed. Oil prices higher but have plateaued on early gains. Precious metals lower, base metals mixed. Cryptocurrencies lower.
Asia markets fell Tuesday despite a positive close on Wall Street overnight as Samsung Electronics outlook disappointed and refocused attention on valuations across the AI spectrum. Poor quarterly results at LG Energy Solution (~373220.KS~) also proved a major drag, while Kioxia (~285A.JP~) and Tokyo Electron (~8035.JP~) weighed on Japan benchmarks. The Kospi closed almost 5% lower having been 8% down at one point and having triggered more exchange circuit breakers while the Taiex closed at its trough.
Traders also cast a wary eye on Gulf developments after several ships were struck by missiles as oil futures inched higher. In other asset class moves, JGB 10Y yields reached their highest since May 1997 and the yen hovered near its 40-year trough but the won strengthened a little as market anticipates inflow from SK Hynix's US listing. Few economic catalysts to boost equities as Japan's real wage growth decelerated although remained above 3%.
Mitsubishi UFG Financial (8306.JP) said it had raised its RoE target to around 15% in its updated medium-term business plan. Sapporo Breweries (2501.JP) and Carlsberg are to form a large-scale strategic alliance across Southeast Asia and Hong Kong. Knowledge Atlas Technology (2513.HK) denied several media reports that it had halted its filing ahead of its A-Share listing and in fact had completed its IPO tutoring. Tencent (700.HK) said it had sold a more than 6% stake in Kuaishou Technology (1024.HK) an off-market block trade that will leave it owning below 10%. Hanwha Ocean (042660.KS) lost a major submarine contract for the Canadian government to a German rival following a years-long bidding process; shares substantially lower. LG Energy Solution (373220.KS) posted quarterly results including operating profit that fell well short of expectations; stock down sharply. Samsung Electronics (005930.KS) quarterly profit is likely to increase 19-fold to a fresh record high, surpassing expectations on robust demand for memory chips.
Notable Gainers:
+7.9% 2501.JP (Sapporo Holdings): Carlsberg, Sapporo Breweries to form major strategic JV across Southeast Asia and Hong Kong and partnership in UK
+5.2% 2513.HK (Knowledge Atlas Technology): refutes A-share filing withdrawal reports; says IPO tutoring completed
+2.3% 8306.JP (Mitsubishi UFJ Financial): CEO says company to raise ROE target to ~15% in new medium-term business plan
+1.8% 066570.KS (LG Electronics): reports preliminary Q2 results; operating profit KRW1.579T vs StreetAccount KRW1.047
+1.7% 000729.CH (Beijing Yanjing Brewery): guides H1 net income attributable CNY1.38-1.49B vs year-ago CNY1.10B
+0.6% 002475.CH (Luxshare Precision Industry): Hong Kong IPO reportedly to be priced at HK$63.28/share
Notable Decliners:
-22.7% 042660.KS (Hanwha Ocean): Canada selects ThyssenKrupp as preferred supplier for Canadian Patrol Submarine Project
-12% 1024.HK (Kuaishou Technology): holder Tencent disposes 272.9M shares in off-market block trade
-6.9% 005930.KS (Samsung Electronics): reports preliminary Q2 results; revenue misses StreetAccount estimates, operating profit beats
-6.3% 373220.KS (LG Energy Solution): reports preliminary Q2 results; operating profit KRW113.30B (incl. AMPC) vs FactSet KRW217.22B
-1.5% 000625.CH (Chongqing Changan Automobile): reports June vehicle production 190,612 units, (16.8%) y/y
Data:
Economic:
Japan May
Household spending (0.4%) y/y vs consensus (2.5%) and (0.5%) in prior month
Spending +3.7% m/m vs consensus +1.4% and +1.6% in prior month
Average nominal wages +3.2% y/y vs consensus +3.4% and revised +3.6% in prior month
Real wages +1.4% y/y vs revised +2.0% in prior month
Markets:
Nikkei: (1,480.73) or (2.12%) to 68256.96
Hang Seng: (119.43) or (0.51%) to 23496.89
Shanghai Composite: (51.00) or (1.26%) to 3990.24
Shenzhen Composite: (52.86) or (1.92%) to 2703.70
ASX200: (27.10) or (0.31%) to 8803.90
KOSPI: (395.02) or (4.91%) to 7656.31
SENSEX: 2.23 or +0.00% to 78287.30
Currencies:
$-¥: (0.19) or (0.12%) to 161.9000
$-KRW: (6.60) or (0.43%) to 1522.3200
A$-$: (0.00) or (0.17%) to 0.6940
$-INR: (0.15) or (0.15%) to 95.2573
$-CNY: (0.00) or (0.02%) to 6.7954
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