Sep 11 ,2026
Synopsis:
Asian equities were sharply down Friday. Steep declines seen across Japan, South Korea, Taiwan and mainland Chinese benchmarks. Hong Kong also fell but fared slightly better. Singapore almost flat as relative outperformer. India trading lower. US futures edging higher. No letup to bond market selloff. 10Y Treasury yield near 5% ahead of US CPI print. Aussie and JGB 10Y also pushed to multi-year highs. Dollar steady against majors, weakest against kiwi and Korean won. Brent crude paring some earlier gains toward $105/bl. Gold and silver pulling lower. Bitcoin edging higher.
Bond market selloff dominates market narratives. Several factors blamed for bond selloff include continued rise in energy prices, as Brent at highest since May, and risk to inflation expectations. Hawkish monetary policy expectations, Treasury's underwhelming buyback announcement and ongoing concerns about pressures from fiscal deficits among other talking points. In addition, investors reluctant to take much risk ahead of key US inflation print later today that may determine whether Fed will hike rates later this month.
In regional developments, Japan wholesale inflation elevated near previous month's upwardly revised 7.7% amid higher fuel costs. Stronger yen exerted some downward pressure on import price inflation. Japan MOF BSI for large firms reflected strength among manufacturers and nonmanufacturers. Multiple local press reports point to BOJ rate hike next week. Volatile week for Chinese AI trade as pure-play AI names Z.AI (2513.HK) and MiniMax (100.HK) both down by more than 25% this week came as DeepSeek's V4.1 Flash claimed outperformance over Kimi K3 at lower cost. DeepSeek also claimed reduced need for HBM and SSD in its model.
In other corporate news, Tencent-backed chipmaker Enflame Technology (688801.CH) up almost 180% in Shanghai STAR debut amid strong investor appetite in an otherwise weak Chinese market. Tensions of US-China AI race in focus as Anthropic accused China's Moonshot AI (+MOONSHOT.HK) of covertly routing user queries to Claude models. China battery stocks under pressure after reports that regulators pausing new battery projects amid overcapacity concerns with CATL (3750.HK) down 2.5% in Hong Kong. India's NSE (+NSE.IN) seeking a valuation of up to $46.3B in IPO and would launch next week.
Digest:
Notable Gainers:
+23% 2285.HK (Chervon Holdings): board appoints Joseph Galli as CEO; Galli was previously CEO at Techtronic Industries
+5.6% 329180.KS (HD Hyundai Heavy Industries Co.): to invest KRW1.072T in new SMR and power-engine plants
+2.7% 2371.JP (Kakaku.com): EQT raises tender offer to ¥3,680/share from ¥3,571/share
+1.1% 1548.HK (Genscript Biotech): launches placement of 77.1M-shares at HK$30.50/share
+0.3% 6501.JP (Hitachi): reportedly among suitors for Swarco's intelligent transport systems business
Notable Decliners:
-8.7% 4194.JP (Visional): reports Q4 results; operating income guidance dissapoints
-7.3% 16.HK (Sun Hung Kai Properties): reports FY adjusted net income HK$22.85B vs FactSet HK$23.32B
-6.1% 7322.JP (San ju San Financial Group): basic agreement for business integration with Aichi Financial cancelled
-2.5% 300014.CH (EVE Energy): Chinese regulators reportedly pause new battery projects for year-end review due to concerns of overcapacity
-2.2% 8267.JP (AEON Co.): reports AEON Retail same-store sales +0% y/y
Data:
Economic:
Japan
August CGPI +7.6% y/y vs consensus +7.4% and revised +7.7% in prior month
Q3 MOF BSI large manufacturing index +7.6 vs (1.8) in prior quarter
Large non-manufacturing index +4.2 vs 0.0 in prior quarter
Markets:
Nikkei: (1,259.61) or (1.93%) to 64011.34
Hang Seng: (148.84) or (0.60%) to 24805.63
Shanghai Composite: (46.29) or (1.18%) to 3888.11
Shenzhen Composite: (36.19) or (1.45%) to 2465.85
ASX200: (78.20) or (0.89%) to 8741.20
KOSPI: (124.01) or (1.76%) to 6909.91
SENSEX: (393.10) or (0.52%) to 74509.49
Currencies:
$-¥: (0.15) or (0.09%) to 154.2870
$-KRW: (5.92) or (0.44%) to 1344.1000
A$-$: +0.00 or +0.11% to 0.7166
$-INR: +0.02 or +0.03% to 95.7161
$-CNY: +0.00 or +0.02% to 6.7081
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