Jul 20 ,2026
Synopsis:
Asia equities poised for a mixed open Tuesday. Japan resumes trading with futures higher. South Korea contracts recovered somewhat from yesterday's selloff. Hong Kong and Australia were lower. Japan ADRs were mixed while Golden Dragon China index rose 0.90%. US futures steadying after overnight losses. Sectors were broadly lower though tech was a bright spot. SOX index rose 0.60% after entering technical correction territory. US big tech were mixed. US Treasuries were weaker across the curve with yields up 3-5 bp. Dollar index was up 0.2%. Gold finished down 0.1%. Bitcoin futures were up 1.4%. WTI crude settled little changed despite noisy Mideast headlines.
Little change in narrative overnight with attention remaining on tech volatility and Middle East conflict. Upcoming first batch of big tech earnings seen as the next checkpoint. Kimi K3 competitive disruption theme continued to resonate in the meantime, increasing scrutiny of hyperscaler investments and financing (debt) implications. Moonshot AI temporarily paused new subs due to capacity strains, bolstering the case for increased financing via IPO. Despite recent tumbles in regional tech names such as Kioixia (285A.JP) press discussions continue to indicate sentiment remains bullish while confidence in underlying fundamentals continue to hold. Upcoming Disco (6146.JP) Q1 earnings Thursday looks to have beat guidance on operating earnings.
Attention defaulting to mixed Middle East developments in the absence of other meaningful catalysts. Houthis announced they were imposing a naval blockade on Saudi Arabia. Yet, mediators said to be continuing dialogue between US and Iran including a proposed 10-day ceasefire. US launched another round of strikes on Iranian targets Monday afternoon ET in retaliation for the deaths of three US soldiers. While general sentiment remains bullish on oil prices despite broader sanguine projections for a resolution, discussions continue to focus on how oil prices have run lower than earlier predictions as sharply lower China consumption has notably eased supply-demand strains.
In Asia, Takaichi Cabinet set to approve its economic blueprint today after draft reports have been the source of substantial volatility in the JGB market. No further notable amendments since final drafts were leaked. Administration remains under scrutiny for lacking credible funding sources against its JPY370T ($2.3T) investment plan through 2040. Elsewhere, New Zealand Q2 headline CPI topped consensus and RBNZ estimates, though central bank projects momentum to ease to 3.3% in Q3 back toward the 1-3% target band as Middle East pressures fade.
Pre-open Company News:
500547.IN -- StreetAccount Consensus Metrics Preview - Bharat Petroleum Q1 Earnings
540767.IN -- StreetAccount Consensus Metrics Preview - Nippon Life India Asset Management Q1 Earnings
532187.IN -- StreetAccount Consensus Metrics Preview - IndusInd Bank Q1 Earnings
522074.IN -- ELGI Equipments publishes business responsibility and sustainability report
2727.HK -- Shanghai Electric Group guides H1 net income attributable CNY920M-1.00B, +12-22% y/y
600918.CH -- Zhongtai Securities chairman Hong Wang proposes launch of CNY100-200M buyback programme
2314.HK -- Lee & Man Paper Manufacturing guides H1 net income HK$1.33-1.39B, +64-71% vs year-ago HK$811M
010120.KS -- StreetAccount Consensus Metrics Preview - LS Electric Q2 Earnings
YAL.AU -- Yancoal Australia reports Q2 attributable saleable coal production 10.8Mt, +15% y/y
600031.CH -- Sany Heavy Industry chairman proposes CNY400-800M on-market A-share buyback to run for 12 months after board approval
500488.IN -- Abbott India releases FY2025-26 annual report, including business responsibility and sustainability report beginning on page 96
532538.IN -- UltraTech Cement reports Q1 consolidated net profit attributable INR25.99B vs StreetAccount INR24.65B
532388.IN -- Indian Overseas Bank reports Q1 net interest income INR36.88B, +34.3% vs year-ago INR27.46B
On Deck:
China:
Economic:
08:00 CST: Foreign Direct Investment Y/Y; consensus
Hong Kong:
Earnings:
MMG Ltd (1208.HK)
South Korea:
Earnings:
LG Display (034220.KS)
New Zealand:
Economic:
10:45 NZST: CPI Q/Q; consensus +1.8%
India:
Earnings:
CRISIL (500092.IN), Trident (521064.IN), TVS Motor (532343.IN), Granules India (532482.IN), Bajaj Auto (532977.IN), Adani Energy Solutions (539254.IN), Sunteck Realty (512179.IN), Mastek (523704.IN), Adani Total Gas (542066.IN), MedPlus Health Services (543427.IN)
Singapore:
Earnings:
Hutchison Port Holdings Trust (NS8U.SP)
Thailand:
Earnings:
Krung Thai Bank Public Co. (KTB.TB)
Market Data:
Gold (Aug 26): ($7.20) or (0.18%) to $4008.70
WTI Crude (Aug 26): ($0.06) or (0.07%) to $83.17
$-¥: +0.10 or +0.06% to 162.4980
$-KRW: (13.34) or (0.90%) to 1474.3900
A$-$: +0.00 or +0.23% to 0.6999
$-INR: (0.04) or (0.04%) to 96.4896
$-CNY: (0.00) or (0.04%) to 6.7706
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