Sep 28 ,2026
Synopsis:
Asia markets largely fell Monday. AI-related tech stocks led the decliners to drag the Kospi lower on its first day back from a break. The Nikkei 225 also closed lower despite a promising open while Shenzhen was the region's underperformer. India and Southeast Asia is lower although Singapore is a bright spot. A small gain for Australia while the Hang Seng stayed positive. US futures lower, Europe opened with gains. US dollar a little stronger, yen stronger in late trade. Treasury and JGB yields higher across tenors. Crude blends higher with Brent just above $99/bl. Precious metals sharply lower on hawkish interest rate expectations. Base metals lower. Cryptocurrencies also down.
Asia semiconductor stocks underperformed Monday on several catalysts; first, reports OpenAI had temporarily suspended training and usage of its most powerful AI models to strengthen safety controls; second, suggestions Beijing would allow Nvidia to sell its new RTX 5500 chips to China's Alibaba (9988.HK) and ByteDance (+BYTE.HK ), impacting China-based semi names; and third, reports US lawmakers introduced legislation to stop its government from equipping sensitive systems with China-made components in AI data centers.
Among the notable stock decliners today, Samsung Electronics (005930.KS) and SK Hynix (000660.KS) lost around 5% each, Kioxia (285A.JP) underperformed in Japan, while CXMT (688825.CH) and Cambricon Tech (688256.CH) weighed on China's STAR benchmark with the CSI300 reaching a one-year low as its optical transceiver stocks fell sharply. Hong Kong markets kept from the red by property stocks following upbeat city price data, and oil & gas stocks, which benefited from higher crude prices.
In other regional developments today, sovereign bond yields continued their journey higher as crude prices remained elevated. Japan corporate services PPI hit a two-year high of 3.7% to pile more pressure on the BOJ over rates; meanwhile, BOJ minutes showed a dissenter on the side of a faster-than-expected pace of rate hikes. China's industrial profits rose 15.7% in the Jan-Aug period, slowing from the previous period's 17.6% as electronics' profits surged more than 100%. Singapore industrial output growth surged more than 15% y/y on AI-related manufacturing.
Nidec (6594.JP) admitted it was considering changes to its executive team and a large-scale impairment charge but no final decision had been made. NIO (9866.HK) and Geely Auto (175.HK) announced a strategic alliance over battery swapping and charging. Northern Star (NST.AU) rejected a cash-and shares offer takeover offer from South Africa's Gold Fields that valued the gold miner at around $27.1B. City Developments (C09.SP) revealed its 2027-29 strategic update that target S$5B in divestments, S$5B in investments and around 55% net gearing. SK Hynix's (000660.KS) Solidigm (+SOLIDIGM ) unit is considering a $150B IPO, according to sources cited by Reuters.
Digest:
Notable Gainers:
+30% 028300.KS (HLB Co.): FDA approves Elevar Therapeutics' Lyrfigtu for certain metastatic cholangiocarcinomas
+2.2% 9509.JP (Hokkaido Electric Power Co.): raises FY guidance; operating income ¥61.0B vs prior guidance ¥48.0B and FactSet ¥57.48B
+1.4% 9866.HK (NIO Inc): NIO and Geely announce strategic transactions regarding battery swapping and charging businesses
Notable Decliners:
-17.6% 6594.JP (Nidec): board reportedly decides to dismiss president Mitsuya Kishida over large impairment loss
-7.9% C09.SP (City Developments): provides FY27-29 strategy update; targets SG$6B divestments, SG$5B investments and 55% net gearing
-5.0% 000660.KS (SK Hynix): Solidigm reportedly weighing potential IPO at up to $150B valuation
-3.4% 4568.JP (Daiichi Sankyo): Merck and Daiichi Sankyo voluntarily withdraw BLA for Ifinatamab Deruxtecan in certain patients with previously treated ES-SCLC
-2.4% 2658.HK (Tianyu Semiconductor): reports H1 revenue CNY347.9M, +4% vs year-ago CNY333.4M
Data:
Economic:
Japan August
Services PPI +3.7% y/y vs consensus +3.6% and +3.6% in prior month
Singapore August
Manufacturing production y/y +15.4% versus +6.9% in prior month
Markets:
Nikkei: (486.59) or (0.73%) to 65877.62
Hang Seng: 132.42 or +0.54% to 24642.51
Shanghai Composite: (64.75) or (1.67%) to 3823.62
Shenzhen Composite: (75.93) or (3.07%) to 2400.14
ASX200: 14.70 or +0.17% to 8679.70
KOSPI: (191.18) or (2.70%) to 6889.74
SENSEX: (936.67) or (1.27%) to 72959.07
Currencies:
$-¥: (0.51) or (0.32%) to 156.7760
$-KRW: +3.96 or +0.29% to 1359.3100
A$-$: (0.00) or (0.06%) to 0.7019
$-INR: +0.14 or +0.15% to 95.9602
$-CNY: (0.00) or (0.01%) to 6.7124
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