Sep 01 ,2026
Synopsis:
Asian markets set for negative start to Wednesday trade. Futures signaling heavy opening declines in Japan and South Korea. Australia also tracking for initial losses while Hong Kong futures flat. Australian bonds tracking overnight Treasury curve bear flattening. Dollar index firmed with yen back below 160-handle. Crude staged another rally after US conducted fresh strikes against Iran. Gold and silver fell further. Bitcoin unchanged near late August lows.
Yield backup the big market story with global bonds under broad-based pressure. Drivers of the selloff have been widely discussed, including concerns about fiscal deficits and debt, crowding out effects of the ramp in AI-driven corporate issuance, inflation risks, rising oil, and hawkish repricing of central bank rate paths. Spillover effects were felt in equity markets with growth pockets under pressure (SOX fell 2%), and gold down to one-month low.
Crude extended rally, now up 9% wtd to highest since late July. US conducted another round of military strikes against Iranian targets in response to IRGC attack on commercial shipping and American personnel in Middle East. Iran said it retaliated by firing more missiles against US bases in Jordan. Return of tit-for-tat cycle sparked by US concerns Iran reconstituting its ability to threaten ships in Strait of Hormuz.
RBNZ expected to raise official cash rate (OCR) by 25 bp to 2.75%. Statement expected to repeat further reduction in monetary stimulus likely depending on incoming data. Expectations of an economic recovery over H2, and above-target inflation supporting hawkish view with markets and economists aligned in forecasting a further rate increase by year-end.
Pre-open Company News:
512179.IN -- Sunteck Realty releases annual report 2025-26 including business responsibility & sustainability report beginning on page 71
7966.JP -- Selling price for LINTEC's secondary offering (for holder Nippon Paper) has been set at ¥5,335/share, subscription price has been set at ¥5,115/share
83.HK -- Sino Land reports FY net income attributable HK$4.79B vs FactSet HK$4.74B [5 est, HK$4.62-5.03B]
1686.HK -- SUNeVision Holdings reports FY net income attributable HK$1.15B vs FactSet HK$1.07B [5 est, HK$1.06-1.09B]
Government cuts sugar stock holding limit for dealers to 2,000 quintals from 4,000 quintals to curb hoarding and speculative trading, effective 15-Sep
168.HK -- Tsingtao Brewery CFO Hou Qiu Yan tenders resignation due to reaching retirement age, effective today
BEC.SP -- BRC Asia plans strategic review of possible diversification into AI-related businesses
GUNKUL.TB -- Gunkul Engineering Public acting CFO Naruechon Dhumrongpiyawut to step aside, effective 31-Aug
1093.HK -- CSPC Pharma initiates phase I trial of SYH2056 for treatment of depression
2096.HK -- Simcere Pharmaceutical Group licenses SIM0660 to Roche for $75M upfront, up to $1.46B in milestones
2333.HK -- Great Wall Motor reports August production 118,316 units, +4.5% y/y
19.HK -- Swire Pacific considers repurchase of HK$4.7B exchangeable bonds, Cathay Pacific share placement
500113.IN -- Steel Authority of India releases FY2025-26 annual report, including BRSR beginning on page 212
On Deck:
South Korea:
Economic:
08:00 KST: CPI NSA Y/Y; consensus
08:00 KST: CPI M/M; consensus
Australia:
Economic:
11:30 AEST: GDP Y/Y; consensus +1.9%
11:30 AEST: GDP SA Q/Q; consensus +0.2%
11:30 AEST: GDP SAAR Q/Q; consensus +2%
Market Data:
Gold (Dec 26): ($19.40) or (0.44%) to $4377.00
WTI Crude (Oct 26): +$0.57 or +0.63% to $90.79
$-¥: +0.42 or +0.26% to 160.1590
$-KRW: +5.56 or +0.41% to 1372.8700
A$-$: (0.00) or (0.29%) to 0.7146
$-INR: (0.19) or (0.20%) to 94.9565
$-CNY: (0.01) or (0.09%) to 6.7200
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