Oct 06 ,2026
Synopsis:
Asia markets ended broadly higher Tuesday. Japan's Nikkei and Taiwan's Taiex gained again but the Kospi fell despite a surge in its software security names. The Topix, Hang Seng, India and much of Southeast Asia all higher. Mainland China closed for a holiday. US futures a few points higher, Europe opened with solid gains. US dollar flat, little movement of note in Asia forex. Treasurys mixed, JGB yields largely higher. Oil futures now lower with Brent below $100/bl on Red Sea news. Precious metals mixed, industrial metals finding support. Cryptocurrencies down.
Asia equities edged ahead for a second day Tuesday largely on read through from the positive session on Wall Street overnight, and as US futures remained positive in Asia trade today. A decline in crude oil futures also supported sentiment on reports the Yeminis had captured a key Red Sea port, while long-dated sovereign bond yields generally eased back from recent highs. Asia equity investors shrugging off the bond market jitters and concerns over regional inflation of late and looking ahead to Q3 earnings season. This begins in earnest next week however early signs indicate technology is again set to lead given monthly revenue beats from Hon Hai (2317.TT) and Nanya Tech (2408.TT) late Monday, and an upbeat operating profit forecast from Tokyo Electron (8035.JP) today.
In other developments Tuesday, Tokyo's 10Y JGB auction drew firmer than expected demand but yields remained near 30-year highs, despite attempts by PM Takaichi to ease concerns over fiscal expansion in an address to the Diet Monday. Australia consumer sentiment fell for a second consecutive month on higher interest rates and fuel prices. India September composite PMI was revised lower to 55.2 from 56.6 in August and a preliminary 55.8.
New World Development (17.HK) launched an exchange offer at 7.375% for around $991M of outstanding dollar loans in three bond tranches. Huawei (+HUAWEI) and Qualcomm reached a multi-year licensing agreement for Qualcomm to use Huawei's LogicFolding chipmaking technique. DeepSeek (DEEPSEEK) is near to completing a CNY80B ($12B) in the latest round of funding taking its total capital-raising program to above its target prior to its 2027 IPO. Moonshot AI (+MOONSHOT.HK) closed its final round of private fundraising, valuing the company at around $50B and could IPO in Hong Kong in Q1-27, according to a Bloomberg report. LG Electronics (066570.KS) secured a long-term deal to supply cooling solutions for several AI data centers in the US.
Digest:
Notable Gainers:
+7.6% 066570.KS (LG Electronics): secures long-term deal to supply cooling solutions for 5GW North American AI data center
+2.9% 1896.HK (Maoyan Entertainment): to buyback up-to-116.2M shares on market totalling HK$250M under general mandate
+2.4% 9793.JP (Daiseki): reports H1; operating income ¥8.35B, +12% vs year-ago ¥7.45B
+0.3% 8035.JP (Tokyo Electron): reportedly expects to post FY operating profit ¥1T; FactSet estimate is ¥1.019T
Notable Decliners:
-4.9% 3186.JP (Nextage): reports Q3 results; operating income misses FactSet estimates
-4.5% 7630.JP (Ichibanya): reports H1 operating income ¥2.09B, (17%) vs year-ago ¥2.53B
-4.5% 3498.JP (Kasumigaseki Capital): reports FY results; FY guidance for next FY below FactSet estimates
-4.1% 3097.JP (The Monogatari): reports unauthorized access to Yakiniku King app, information of 10.8M users have been leaked
-3.5% 17.HK (New World Development): launches exchange offers for three US dollar bonds due in 2027 and 2028
-3.3% 2303.TT (United Microelectronics): $1.8B of convertible bonds priced
Data:
Economic:
Australia October
Westpac-MI consumer sentiment 80.4 versus 84.4 in prior month
India September
Final services PMI 55.2 vs flash 55.8 and 54.1 in prior month
Composite PMI 55.9 vs flash 56.5 and 54.3 in prior month
Markets:
Nikkei: 737.12 or +1.05% to 70683.98
Hang Seng: 240.22 or +1.00% to 24280.56
Shanghai Composite: Closed
Shenzhen Composite: Closed
ASX200: 49.30 or +0.57% to 8735.70
KOSPI: (62.35) or (0.89%) to 6941.39
SENSEX: 512.57 or +0.71% to 72895.04
Currencies:
$-¥: +0.27 or +0.17% to 158.1840
$-KRW: (2.39) or (0.18%) to 1339.4000
A$-$: +0.00 or +0.04% to 0.6974
$-INR: +0.07 or +0.07% to 96.4040
$-CNY: (0.00) or (0.01%) to 6.7037
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