Sep 01 ,2026
Synopsis:
Asia markets ended mostly lower Tuesday in another directionless session. Declines for China's mainland benchmarks, Hong Kong and Singapore. Australia's ASX and South Korea's Kospi a few points either side of the flatline. Gains for Taiwan on MediaTek's surge. India lower. US futures mixed, Europe opened slightly higher. US dollar flat, won stronger again but little movement elsewhere. Treasury yields higher across tenors, JGB yields also higher with 10Y above 3%. Crude futures higher with Brent just below $92/bl. Precious metals flat. Base metals mixed. Cryptocurrencies catching a bid.
Asia equities in a holding pattern as focus steers back to the bond market Tuesday. Global bond yields spiking again over inflation concerns and as Fed Fund Futures now indicate a 66% chance of a rate hike in two weeks time versus less than 30% a week ago. Asia yields higher too with the 10Y JGB passing 3% for the first time since 1996 just as US Treasury Secretary Bessent reiterated his belief that Tokyo would do more to support the yen and hike interest rates. Crude prices higher again Tuesday on late reports of another ship attack in Hormuz, and despite several reports out of the US that indicated the Washington would be unable or unwilling to escalate the conflict.
In Asia developments, regional August PMIs were positive again although there were early signs of fatigue as expansion in South Korea and Taiwan appeared capped on supply-chain constraints, material shortages and employment; most of Southeast Asia, Japan and China expanded again. India's fiscal Q1 GDP beat expectations largely on a surge in investment. South Korea exports for August rose almost 70% to nearly $100B in August as chip demand continued while imports were less than expected.
Huawei (+HUAWEI ) posted a steep H1 profit decline, blamed rising memory costs and capex spend. LG Energy Solution (373220.KS) has signed a lithium supply agreement with Arkansas-based Smackover. Nvidia is to invest $3.5B in Taiwan's chipmaker MediaTek (2454.TT). Unionized workers at Hyundai Motor (005380.KS ) accepted a new pay deal, averting potential strike action. Hanwha Aerospace's (012450.KS) bid of Austal (ASB.AU) may be in doubt after the US government gave 'mixed messages' over the deal, saying it may have regulatory issues. Shein's (625.HK) private backers saw a 73% valuation decline on its listing in Hong Kong; shares closed lower in its first day of trading although off their trough.
Digest:
Notable Gainers:
+13.1% 2533.HK (Black Sesame International Holding): Earnings
+9.9% 2454.TT (MediaTek): Expands collaboration with Nvidia
+7% 9684.JP (Square Enix Holdings): Privatization rumour
+6.8% 6699.HK (Angelalign Technology): Earnings
Notable Decliners:
-9.2% 2889.HK (Pateo Connect Technology): Earnings
-5.3% 000880.KS (Hanwha): Uncertainty over bid for Austal USA
Data:
Economic
China
August RatingDog Manufacturing PMI 51.5 vs consensus 51.0 and 50.9 in prior month
Japan
Q2 MOF corporate survey capex +1.6% y/y vs consensus (0.3%) and 0.0% in prior quarter
Ex-software capex +3.6% y/y vs consensus +1.6% and (1.4%) in prior quarter
August final manufacturing PMI 54.9 vs flash 55.1and 54.5 in prior month
South Korea
August trade balance $34.8B vs consensus $30.7B and $30.3B in prior month
Exports +68.7% y/y vs consensus +62.6% and +63.0% in prior month
Imports +22.5% y/y vs consensus +24.7% and +26.5% in prior month
Australia
Q2 current account balance ($27.2B) vs consensus ($A30.0B) and (A$27.1B) in Q1
Net exports to contribute +0.1 ppt to Q2 GDP vs (0.8) ppt subtraction from Q1 GDP
July building approvals (3.6%) m/m vs consensus (5.0%) and +7.2% in June
Markets:
Nikkei: (0.15%) to 66,215
Hang Seng: (0.93%) to 25,330
Shanghai Composite: (0.16%) to 3,980
Shenzhen: (1.02%) to 13,872
ASX200: (0.10%) to 9,066
KOSPI: +0.2% to 6836
SENSEX: (0.3%) to 76,720
Editor's Note: This comment was revised to update the Sensex index price (01-Sep-2026, 04:42 ET)
Editor's Note: This comment was revised to (01-Sep-2026, 05:41 ET)
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