Jul 09 ,2026
Synopsis:
Asia equities ended mostly higher Thursday despite a weak open. Japan's two main boards posted solid gains as chip stocks rallied while South Korea's large-cap chip names slowly gained through the day to lead the Kospi higher. Mainland China higher, India and Southeast Asia higher. Taiwan closed lower and the Hang Seng also gave up some of yesterday's advances, Australia in the red again. US futures higher, Europe opened with gains. US dollar slipping from overnight highs, NZD strengthening further following RBNZ's rate hike and hawkish stance yesterday, yen also a little stronger. Treasuries and JGBs mixed. Crude blends now lower from their overnight peak and early gains, precious metals higher. Industrial metals higher.
Asia equities ex Hong Kong found a trough Thursday but still are heading for a negative week as tech stocks continue to flounder amid concerns over stretched valuations and large-scale investment plans. Hong Kong tech benchmarks giving up a little of yesterday's gains but several individual names such as Alibaba (9988.HK), Cambricon (688256.CH) and SMIC (981.HK) all notable gainers today as sentiment on the sector improved further on reports CXMT was set to begin bookbuilding next week for its IPO. A slight dip in crude oil prices late on despite more bellicose actions from both the US and Iran in the Gulf overnight, which also provided some relief for with several of the region's currencies that strengthened over the day.
In other developments, China June CPI fell by more than expected and PPI rose to its highest in four years although at least was in line with forecasts. Bank of Korea's Governor Shin flagged again to the country's lawmakers the bank was ready to hike rates at its meeting next week. Comes just as the IMF raised GDP growth forecasts for South Korea and several other Asia countries in the tech export chain including Thailand, which today saw nearly $2B of investment projects approved by authorities. Malaysia's central bank kept its interest rates steady as expected.
Bain Capital sold its entire stake in Kioxia (285A.JP) following a six-month long program to wind down its holding. Changxin Memory Technologies (CXMT) (0MXZFM-E) said it will begin bookbuilding for its Shanghai IPO on 15-July as it looks to raise CNY29.5B ($4.34B). Zhipu (Knowledge Atlas Technology, 2513.HK) is to sell $4B of shares to fund R&D and business expansion. SK Hynix's (000660.KS) US offering is reported to be more than seven times over-subscribed just ahead of pricing today. Dr Reddy's Laboratories (500124.IN) said it had noted some issues with an active pharmaceutical ingredient in some batches of its semaglutide product; stock down sharply. State Bank of India (500112.IN) has so far raised more than $1.5B from foreign currency deposits under the special facility launched last month for overseas citizens, according to an Bloomberg report.
Notable Gainers:
+11.3% 2513.HK (Knowledge Atlas Technology): confirms HK$31.41B placement at HK$1,588/share to fund R&D, computing resources, and business expansion
+8.4% 1347.HK (Hua Hong Grace Semiconductor): CSRC approves Huahong's acquisition of remaining 97.5% of Huali Microelectronics for CNY8.27B via placement
+5.3% 000660.KS (SK Hynix): US offering reportedly more than 7x oversubscribed
+2.9% 3391.JP (TSURUHA Holdings): reports Q1 operating income ¥24.23B vs FactSet ¥20.50B; reiterates headline guidance
Notable Decliners:
-11.4% 2670.JP (ABC-MART): reports Q1 results with decline in parent gross profit margin; maintains headline guidance
-6.9% 5711.JP (Mitsubishi Materials): ¥70.00B convertible bond issuance priced; conversion price is ¥5,275 for 2030s, ¥5,105 for 2032s
-5.6% 500124.IN (Dr. Reddy's Laboratories): notes issue with active pharmaceutical ingredient used in certain batches of semaglutide product
Data:
Economic:
China June
CPI +1.0% y/y vs consensus +1.1% and +1.2% in prior month
PPI +4.1% y/y vs consensus +4.1% and +3.9% in prior month
Markets:
Nikkei: 924.80 or +1.38% to 67743.85
Hang Seng: (169.28) or (0.70%) to 24030.18
Shanghai Composite: 65.71 or +1.65% to 4036.59
Shenzhen Composite: 58.75 or +2.22% to 2709.18
ASX200: (22.60) or (0.26%) to 8762.50
KOSPI: 45.12 or +0.62% to 7291.91
SENSEX: 451.00 or +0.59% to 76954.60
Currencies:
$-¥: (0.28) or (0.17%) to 162.3290
$-KRW: +6.57 or +0.44% to 1511.8700
A$-$: +0.00 or +0.07% to 0.6935
$-INR: (0.34) or (0.36%) to 95.3520
$-CNY: (0.01) or (0.11%) to 6.7959
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