Jul 10 ,2026
Synopsis:
Asia equities rallied Friday although many benchmarks finished away from their peaks. Strong gains for the Kospi and Nikkei 225 as the AI trade reignited following a strong Nasdaq performance overnight. Hang Seng also higher again but closed well off its high while there were notable gains in Singapore and Australia. India trading higher, Shenzhen sharply down alongside other mainland tech benchmarks, Taiwan closed on a typhoon warning. US futures mixed, Europe opened with losses. US dollar slightly weaker, yen stronger on Tokyo's request for pensions to buy more domestic assets, yuan notably stronger. Treasuries mixed, JGB yields lower across tenors on same pension news. Crude futures a little lower with Brent staying dropping below $76. Precious metals lower, base metals mixed. Cryptocurrencies seeing support.
Asia equities ended a volatile week on a positive note as confidence returned to technology sectors and crude prices consolidated their overnight declines. Brent still trading higher w/w but both sides in the Gulf appeared to lower the tensions overnight and halted their missile exchanges, allowing commodity prices to stabilize somewhat. Sentiment in the tech clusters also improved with several big names in the Kospi and Nikkei recovering although SK Hynix was lower ahead of its ADR trading debut later Friday. For the week, the Hang Seng and Singapore's STI outperformed while there were small gains on Shanghai's main boards; the Kospi, Taiex and Nikkei 225 all underperformed and India is also under water.
In developments Friday, Japan's finance minister Katayama urged local pension funds to increase investments in domestic instruments, boosting the yen for a time and pressing on JGB yields. Japan June producer prices accelerated at their fastest pace in more than three years. Taiwan's monthly exports rose more than 40% y/y on chip and other technology shipments; Taipei, Shanghai and Beijing currently battening down ahead of Typhoon Bevi's landfall this weekend.
SK Hynix (000660.KS ) has successfully raised around $26.5B in its ADR listing in the largest ever offering by an overseas company in the US. Nexchip Semiconductor (2249.HK, 688249.CH) began trading in Hong Kong after its $890M share sale but the stock ended lower. Dr Reddy's Laboratories (500124.IN ) admitted supply disruption to a key ingredient it manufacturers that is used in weight control drugs could last into October. MiniMax Group (100.HK) said it will place 35.6M shares at around a 10% discount to Thursday's price and issue HK$6.5B in convertible bonds. Tencent (700.HK) is leading a deal to unwind Meta's $2B Manus acquisition and is in discussion to become the company's largest shareholder, according to a FT report.
Digest:
Notable Gainers:
+9.4% 7211.JP (Mitsubishi Motors): signs MOU for production of humanoid robots
+3.8% 004170.KS (Shinsegae): reports June standalone revenue KRW174.12B, +14.9% y/y
+2.6% 991.HK (Datang International Power Generation): plans to launch up-to CNY8.00B A-share private placement
+1.5% 6323.JP (Rorze Corp): reports Q1 headline print ahead of FactSet estimates; results driven by robust orders for semiconductor-related equipment
Notable Decliners:
-29.9% 087010.KS (Peptron): CEO Choi Hoi-il reportedly states joint R&D with Eli Lily does not include Tirzepatide
-9.7% 100.HK (MiniMax Group): to place 35.6M shares at HK$268/share and issue HK$6.50B convertible bonds; inital conversion price HK$335
-8.1% 7649.JP (Sugi Holdings): reports Q1 results; to issue 5.1M shares to GIC at ¥3,195/share via third-party allotment
-2.4% 2809.JP (Kewpie): reports H1 net income ¥13.21B, (30%) y/y
-2.0% 700.HK (Tencent Holdings): reportedly heads up deal to unwind Meta's $2B purchase of Manus, in discussions to become biggest shareholder
-0.4% 3382.JP (Seven & I Holdings): reports Q1 earnings; raises FY operating profit guidance but cuts H2 view mainly on overseas fuel volume growth
-0.3% 000660.KS (SK Hynix): US IPO reportedly to price at $149/ADS
Data:
Economic:
Japan June
CGPI y/y +7.1% versus +6.6% in prior month
Markets:
Nikkei: 813.88 or +1.20% to 68557.73
Hang Seng: 144.94 or +0.60% to 24175.12
Shanghai Composite: (40.43) or (1.00%) to 3996.16
Shenzhen Composite: (33.68) or (1.24%) to 2675.49
ASX200: 43.50 or +0.50% to 8806.00
KOSPI: 184.03 or +2.52% to 7475.94
SENSEX: 687.25 or +0.90% to 77429.07
Currencies:
$-¥: (0.79) or (0.48%) to 161.5870
$-KRW: (1.96) or (0.13%) to 1503.7080
A$-$: +0.00 or +0.10% to 0.6948
$-INR: (0.08) or (0.08%) to 95.3205
$-CNY: (0.01) or (0.17%) to 6.7814
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