Sep 16 ,2026
Synopsis:
Asian equities edged higher Wednesday. MSCI Asia Pacific ex Japan index gained 0.6%, snapping four-day losing streak, supported by South Korea and Taiwan. Greater China higher as mainland benchmarks outperformed Hong Kong. Japan also rose. India trading higher. US futures gaining. 10Y yield topped 5% again in Asian afternoon following some pullback earlier, while JGB curves flattened. Dollar index flat. Crude prices slightly lower in Asian trade as Brent futures down to near $108/bl however Middle East supply situation remains complex amid Houthi advance in Yemen, disruptions to Saudi oil facilities and exports, and lack of SoH transit activity. Gold and silver higher. Bitcoin down to four-week low after Senate voted against advancing comprehensive crypto legislation backed by Trump.
Asian markets advanced cautiously as investors in waiting mode ahead of Wednesday's Fed meeting. Widely expected to raise interest rates by 25 bp, first time since Jul-23, with rate expectations crystallized by August CPI. September odds now at 93%, according to CME FedWatch. With a hike mostly priced in by markets, another key focus will be on dot plot and whether revisions show median of more than one rate hike this year. Some economists forecast 2-3 rate hikes by year-end. Chair Warsh not expected to provide added details on reaction function or forward guidance, which some analysts expect will likely lead to a rise in volatility post Fed announcement. Asian session saw AI trade recover from early-week selloff with semis, memory and equipment names mostly gaining. Comes amid continued pushback against concerns slower pace of AI model development will meaningfully impact demand for compute. Industry also lukewarm to increased regulations as a solution to address AI safety concerns.
Japan export growth slowed in August but still beat expectations, underpinned by continued strong momentum in shipments of semiconductors, electronic components and autos. Imports also rose sharply amid surge in oil. Ahead of next week's Trump-Xi summit in Washington, US and China look to cut tariffs on some goods, including American energy and agricultural products. Treasury Secretary Bessent will meet Chinese Vice Premier He Lifeng this weekend to lay groundwork for the summit. PBOC Governor Pan argued long period of high credit growth in China has come to an end after weaker-than-expected credit data for August. Hong Kong unveils first five-year plan which will see the city nearly double spending on innovation in coming years, in alignment with China's push for tech self-reliance.
SK Hynix (000660.KS) in discussions with Intel (INTC) about deal to manufacture memory chips in US for first time, according to Reuters. Sharp (6753.JP) has begun accepting orders for AI servers in a new business developed in collaboration with parent Foxconn (2317.TT). CATL (3750.HK) suffered steepest two-day slump in nearly a year, down 10%, as investors turned sour on its Q3 outlook amid speculation of production cuts and increasing competition.
Digest:
Notable Gainers:
+4.1% 000660.KS (SK Hynix): reportedly weighs deal with Intel to produce memory chips in US
+3.9% 9961.HK (Trip.com Group): reports Q2 results; accommodation reservation CNY6.58B vs StreetAccount CNY6.79B
+2.9% 6501.JP (Hitachi): announces plans for new $528M transformer manufacturing facility
+2.6% 3099.JP (Isetan Mitsukoshi Holdings): reports finalized August domestic department store sales +4.0% y/y
+2.2% 4063.JP (Shin-Etsu Chemical): to declare commemorative dividend ¥20/share as part of interim dividend
+2% 2678.JP (ASKUL Corp): reports Q1 results; operating income ahead of FactSet estimates
Notable Decliners:
-11.5% 377300.KS (kakaopay): US Clarity Act fails procedural vote in Senate
-4.6% 4578.JP (Otsuka Holdings): competitor Vera announces topline results from final analysis of ORIGIN 3 trial of TRUTAKNA in adults with primary IgA nephropathy
-3.7% 293490.KS (Kakao Games): to acquire 30.6% stake in Me 2 On for KRW98.01B
Data:
Economic:
Japan
August trade balance (¥1,105.6B) vs consensus (¥1,058.4B) and revised (¥638.3B) in prior month
Exports +19.3% y/y vs consensus +18.4% and +23.2% in prior month
Imports +28.0% y/y vs consensus +26.3% and +27.8% in prior month
July core machinery orders (3.7%) m/m vs consensus (1.2%) and +9.7% in prior month
Markets:
Nikkei: 438.90 or +0.69% to 63923.00
Hang Seng: 46.54 or +0.19% to 24713.78
Shanghai Composite: 27.32 or +0.71% to 3891.60
Shenzhen Composite: 32.44 or +1.33% to 2476.48
ASX200: 24.00 or +0.28% to 8696.50
KOSPI: 90.71 or +1.37% to 6717.97
SENSEX: 382.25 or +0.52% to 74386.07
Currencies:
$-¥: (0.10) or (0.06%) to 154.9970
$-KRW: +2.16 or +0.16% to 1365.0300
A$-$: (0.00) or (0.04%) to 0.7127
$-INR: (0.00) or (0.00%) to 95.9431
$-CNY: (0.00) or (0.07%) to 6.7083
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