Oct 07 ,2026
Synopsis:
Asia equities fell almost everywhere Wednesday although most boards were off their troughs by the close. The Kospi lost the most as SK Hynix fell sharply while Singapore, Japan's two benchmarks and the Hang Seng also had noticeable declines. More modest losses in India post the RBI's hawkish pivot, Southeast Asia showed some stability. US futures slightly lower, Europe opened lower. US dollar rallying, yen, AUD, NZD all weaker. Treasury yields higher across tenors, JGBs mixed. Crude prices higher with Brent back above $100/bl. Precious metals all lower, base metals mixed. Cryptocurrencies lower.
Asia equities showed some instability for the first time this week although most boards are still higher WTD. Sovereign bond yields resumed their upward trajectories and crude oil futures also rose following reports of an attack on a tanker in the Strait of Hormuz and an escalation in fighting in Yemen. The MSCI Asia Pac ex Japan index was down around 0.9% today during Asia trading with some analysts suggesting US markets are set for a period of outperformance during the upcoming earnings season as US corporates prove more resilient in the high yield environment versus Asia stocks. Here, focus now firmly on Samsung Electronics (005930.KS) Q3 numbers due Thursday and particularly its outlook statement.
No significant newsflow again to change the overarching themes of high fuel prices, high bond yields, and nervousness over reginal tech valuations. Japan August wage growth slowed m/m while BOJ board member Sato backed further BOJ rate hikes. Japan PM Takaichi said Tokyo may review spending plans if bond yields move sharply higher. The RBI hiked its base repo rate 25 bps to 5.5% as expected and tightened its stance to a hawkish 'calibrated tightening', implying further rate rises were possible.
Sapporo (2501.JP) and Kirin (2503.JP) confirmed they had been the target of an on-site inspections by the Fair Trade Commission on suspected violations of the anti-monopoly act. LG Electronics (066570.KS) posted a sharply lower-than-expected Q3 operating profit of KRW781.8B despite revenue coming in marginally below estimates. Meritz Financial Group's (138040.KS) fire & marine insurance unit is considering selling a 51% stake in its Korindo Insurance unit for around KRW40-50B.
Digest:
Notable Gainers:
+4.6% 111770.KS (Youngone): launches KRW50.00B on-market buyback
+3.7% 6814.JP (Furuno Electric): guides H1 results; operating profit ¥12.80B vs prior guidance ¥10.00B
+3.5% 2726.JP (PAL GROUP Holdings): reports H1 results; operating income ¥14.25B vs year-ago ¥14.10B
+3.5% 2702.JP (McDonald's Holdings): reports September same-store sales +10.0% y/y
+0.7% 2303.TT (United Microelectronics): reports September revenue NT$25.35B, +27.2% y/y
+0.4% 138040.KS (MERITZ Financial Group): Meritz Fire & Marine Insurance reportedly looking to divest 51% stake in Meritz Korindo Insurance for KRW40-50B
Notable Decliners:
-10.5% 066570.KS (LG Electronics): reports preliminary Q3 operating profit KRW781.8B vs StreetAccount KRW1.042T
-6.3% 6146.JP (DISCO Corp.): reports preliminary Q2 non-consolidated results
-1.4% 2503.JP (Kirin): Japan's FTC reportedly raids four major brewers over suspected wholesale price-fixing
-1.3% 1377.JP (Sakata Seed): reports Q1 results; operating income misses FactSet estimates
Data:
Economic:
Japan
October Reuters Tankan manufacturers sentiment index +22 vs +21 in prior month
Nonmanufacturers index +23 vs +29 in prior month
Outlook indexes manufacturers +23, nonmanufacturers +21
August average nominal wages +3.8% y/y vs consensus +3.7% and revised +4.3% in prior month
Real wages +1.5% y/y vs consensus +1.5% and revised +2.0% in prior month
Markets:
Nikkei: (648.27) or (0.92%) to 70035.71
Hang Seng: (150.06) or (0.62%) to 24130.50
Shanghai Composite: Closed
Shenzhen Composite: Closed
ASX200: (8.00) or (0.09%) to 8727.70
KOSPI: (137.49) or (1.98%) to 6803.90
SENSEX: (521.64) or (0.71%) to 72546.17
Currencies:
$-¥: (0.13) or (0.08%) to 157.9770
$-KRW: (1.18) or (0.09%) to 1337.3000
A$-$: (0.00) or (0.26%) to 0.6965
$-INR: +0.39 or +0.41% to 96.7940
$-CNY: +0.00 or +0.00% to 6.7049
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