Jul 13 ,2026
Synopsis:
Asia equities ended mostly lower Monday as geopolitical tensions in the Gulf escalated. Sharp declines on the Kospi, Japan's two main boards were also notably lower. Australia a few points higher, the Hang Seng staying above water alongside Taiwan but mainland China benchmarks lost ground. US futures lower, Europe opened with losses but are off their lows. US dollar higher with DXY index hovering around 101, most Asia currencies weaker. Treasury yields higher, JGB yields higher at the short end. Precious metals under pressure, iron ore and copper leading metals lower. Crude oil spiking higher with Brent and WTI up more than 4%. Cryptocurrencies down.
Asia equites back under pressure Monday after oil prices spiked on the resumption of missile attacks by the US and Iran on each other's assets in the Middle East, while technology clusters in northern Asia benchmarks took another step down. Iran said it had closed the Strait of Hormuz after it and the US exchanged heavy missile and drone fire, with these attacks seemingly extending in range and intensity from other ceasefire breaks. Brent crude up 4.0% to just below $79/bl, sovereign bond yields higher and the dollar hovered near recent highs to put Asia currencies under pressure.
South Korea's Kospi at a two-month low after SK Hynix (000660.KS) shares fell more than 15%; no specific catalyst for the selloff although several analysts pointed to uncertainty over how SK Hynix's ADRs should be valued relative to its Kospi listing especially after its surge on Wall Street Friday. Few catalysts of note elsewhere; Japan's government said it would delay approval of its economic blueprint to address lawmakers concerns, while later, Reuters reported Tokyo had no immediate plans to change target asset allocations of state pension funds, pressing on JGB prices and causing the yen to weaken. China's government said it will restrict helium exports but at the same time told its refiners to keep fuel output high to protect consumers.
Nippon Paint (4612.JP ) has offered $8.6B for Akzo Nobel's decorative paint unit, sources told Bloomberg. SoftBank (9984.JP ) and PayPay are in talks to invest into Seven & i (3382.JP) via a new share issuance, according to Bloomberg. LG Electronics (066570.KS) could next year start mass production of an AI server rack prototype tailored to Nvidia's 'Vera Rubin' tray specifications. Nanya Tech (2408.TT) president said the current tight DRAM supply will likely continue for the next several quarters, and the company's capacity utilization rate is near its limit. TSMC (2330.TT) reported a record June revenue almost 68% higher y/y. Tata Consultancy Services (532540.IN ) plans to hire thousands of AI engineers and is considering acquisitions.
Digest:
Notable Gainers:
+16.8% 7453.JP (Ryohin Keikaku): reports 9M/Q3 results with solid gross margin and improved SG&A ratio
+10% 3008.TT (LARGAN Precision): reports Q2 revenue ahead of FactSet estimates; reportedly sees demand momentum improving q/q in Q3
+3.6% 1378.HK (China Hongqiao Group): guides H1 net income to increase by 39% y/y
+1.9% 8267.JP (AEON Co.): reports Q1 results; revenue and operating profit beat FactSet estimates
+1.8% 066570.KS (LG Electronics): reportedly plans to mass-produce AI chip-based server racks tailored for NVIDIA
+0.5% 9988.HK (Alibaba Group): OpenAI, Google reportedly selling advanced AI models to Singapore-based subsidiaries of Chinese tech giants blacklisted by Pentagon
Notable Decliners:
-19.4% 3046.JP (Jins Holdings): reports 9M results; net income attributable ¥6.24B vs year-ago ¥6.29B
-15.4% 000660.KS (SK Hynix): sees no follow-through after debuting in US on Friday with +13% rally
-14.3% 6506.JP (YASKAWA Electric): reports Q1 results with revenue and operating income below FactSet estimates; earnings impacted by ERP system migration
-6.8% 2238.HK (Guangzhou Automobile Group): guides H1 net income attributable (CNY4.06-4.57B) vs year-ago (CNY2.54B)
-2.9% 1787.HK (Shandong Gold Mining): chairman Han Yaodong resigns due to work adjustments
-2.1% 4612.JP (Nippon Paint Holdings): confirms it proposed to acquire AkzoNobel's decorative paints business for €7.5B (¥1.385T)
-0.4% 3382.JP (Seven & I Holdings): SoftBank Corp. and PayPay reportedly in talks to buy stake for several hundred billion yen in total
Data:
Economic:
No economic data today
Markets:
Nikkei: (1,315.00) or (1.92%) to 67242.73
Hang Seng: 38.60 or +0.16% to 24213.72
Shanghai Composite: (82.37) or (2.06%) to 3913.79
Shenzhen Composite: (107.40) or (4.01%) to 2568.09
ASX200: 2.50 or +0.03% to 8808.50
KOSPI: (669.01) or (8.95%) to 6806.93
SENSEX: 25.74 or +0.03% to 77595.13
Currencies:
$-¥: +0.38 or +0.24% to 162.0800
$-KRW: (4.17) or (0.28%) to 1495.4140
A$-$: (0.00) or (0.18%) to 0.6942
$-INR: +0.27 or +0.28% to 95.6804
$-CNY: +0.00 or +0.02% to 6.7786
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