Sep 03 ,2026
Synopsis:
Asia equities ended mixed Thursday. Modest gains in mainland China, Australia and South Korea. India trading higher, Nikkei 225 lower, Hang Seng down again, Taiwan also closed lower. US eyeing a steady open, Europe markets paring early losses. US dollar lower, yen strengthened to its best since early May as investors watch for intervention signals. US and Japan sovereign bonds mixed. Precious and base metals higher on easing hostilities in the Gulf. Crude futures lower but Brent still hovering near $95/bl.
Asia equities mixed in a relatively volatile day's trading while investor focus remained on bond, forex and commodity markets. South Korea's Kospi oscillated between sharp gains and declines before finishing slightly higher; Nikkei 225 and Taiex also saw some steep swings. But the biggest moves were in the forex space where the yen strengthened another 1% against the dollar and almost the same versus the euro following a rate check in New York last night, and traders looking for evidence of intervention today. Moves come as markets now price in a 98% chance of a 25 bps hike later this month with a 50 bps or back-to-back 25bps hikes still on the table. JGBs were somewhat directionless but yields remained elevated post a smooth 30Y auction today. In the commodities markets, Brent crude dipped from overnight highs but remain at week-long highs.
In other developments today, China RatingDog services PMI improved in August as new business and domestic demand improved. Japan services PMI also expanded although inflationary pressures were evident. Bank Negara Malaysia kept its overnight policy rate unchanged at 2.75%, as widely expected.
Berkshire Hathaway CEO Abel said the firm plans to hold stakes in five Japan-based trading houses for decades as long-term investments; Mitsui (8031.JP), Itochu (8001.JP), Marubeni (8002.JP) among the stocks to gain today. ByteDance (+BYTE.HK) has secured a $29.6B loan as it considers boosting capex to more than $70B this year. Lynas Rare Earths (LYC.AU) admitted it was involved in takeover talks earlier this year but ultimately they came to nothing. The South Korea government is to restructure its state-run energy and transport firms that will see Korea National Oil and Korea Gas (036460.KS) merge, five Kepco (015760.KS) units merge, and Korea Coal liquidated.
Digest:
Notable Gainers:
+8.4% 9843.JP (Nitori Holdings): Consecutive second month same-store sales growth in August
+4.8% 1093.HK (CSPC Pharmaceutical Group): Stapokibart injection out-license agreement with Aeira
Notable Decliners:
-7.5% 069620.KS (Daewoong Pharmaceutical): Medy-Tox expands damages claim against Daewoong Pharmaceutical to KRW500B
-4.0% 6996.JP (Nichicon): To issue ¥22B five-year zero-coupon convertible bond
-3.4% 9983.JP (FAST RETAILING): August sales
Data:
Economic:
China August
RatingDog Services PMI 51.4 vs consensus 50.6 and 50.4 in prior month
Composite PMI 52.1 vs 50.8 in prior month
Japan August
Final services PMI 52.5 vs flash 52.3 and 51.2 in prior month
Composite PMI 53.5 vs flash 53.4 and 52.7 in prior month
Australia July
Trade balance A$1.92B vs consensus A$1.50B and revised A$2.34B in June
Exports (3.3%) y/y vs +9.6% in June
Imports (2.5%) y/y vs (0.2%) in June
India August
Final Services PMI 54.1 vs flash 54.5 and 53.3 in prior month
Composite PMI 54.3 vs flash 54.6 and 54.3 in prior month
Markets:
Nikkei: (111.16) or (0.17%) to 64214.48
Hang Seng: (97.90) or (0.39%) to 25213.31
Shanghai Composite: 0.70 or +0.02% to 3942.09
Shenzhen Composite: 1.35 or +0.05% to 2512.87
ASX200: 41.70 or +0.46% to 9020.10
KOSPI: 16.76 or +0.26% to 6579.48
SENSEX: 28.94 or +0.04% to 76599.29
Currencies:
$-¥: (1.83) or (1.15%) to 156.8870
$-KRW: (2.33) or (0.17%) to 1356.4900
A$-$: +0.00 or +0.15% to 0.7179
$-INR: (0.00) or (0.00%) to 94.4574
$-CNY: (0.00) or (0.03%) to 6.7174
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