Oct 08 ,2026
Synopsis:
Asia equities fell across the region Thursday. Singapore saw steep losses for the second consecutive day. South Korea and Taiwan also with some steep declines, Shenzhen led losses in mainland China as trading resumed, Hong Kong stocks also fell. Australia, Japan and India all lower. US futures lower, Europe opened with losses. US dollar flat, AUD weaker but little movement elsewhere. Treasury yields higher across tenors, JGB yields lower. Crude oil higher again with Brent over $104/bl. Precious and industrial metals mixed. Cryptocurrencies down.
Asia equities declined Thursday and are now lower WTD. The MSCI Asia Pacific ex Japan index down around 2% today and is down 0.7% for the week as Samsung Electronics slid post results, Hong Kong's growth stocks underperformed and Singapore's banks slipped for a second consecutive day following several negative broker notes. Japan stocks fell sharply led by machinery makers and trading houses on reignited inflation and borrowing cost worries but Kioxia (285A.JP) was a bright spot on free float ratio news. Sentiment dented further by Brent crude prices, which rose almost $4% amid more tanker attacks in the Gulf, reports the White House had asked the Pentagon to plan for fresh attacks on Iran, and as a hurricane formed in the Gulf of Mexico.
A resumption of the sovereign bond selloff also weighed just as Fed Fund Futures indicate a 70% chance of the Fed hiking rates again in December. Regional yields either inching higher or hovering near multi-year highs. Little regional newsflow to counter the greater trend. Australia's inflation expectations rose to their highest since June and above the RBA's target by some distance. Japan and South Korea current account surpluses for August both rose as exports remained robust.
Japan Exchange Group (8697.JP) said Kioxia's (285A.JP) freefloat ratio would rise to 50% from 15% post a review. Samsung Electronics (005930.KS) posted a near nine-fold increase in Q3 operating profit y/y but it and revenue for the period fell short of expectations. A consortium led by Kepco (015760.KS) has won the rights to maintain its Westinghouse stake post IPO but the US government will maintain a golden share. SK Hynix's (000660.KS) flash memory unit Solidigm (+SOLIDIGM) has chosen three lead banks for its US-based IPO next year that could value the group at around $10B. LG Energy (373220.KS) Q3 earnings beat estimates on ESS demand and US incentives.
Digest:
Notable Gainers:
+2.6% 373220.KS (LG Energy Solution): reports preliminary Q3 operating profit (incl. AMPC) KRW756.0B vs StreetAccount KRW342.81B
+0.6% 2020.HK (ANTA Sports Products): completes acquisition of 29.1% in Puma as announced on 26-Jan
+0.0% 285A.JP (Kioxia Holdings): free-float weight to increase to 50% in TOPIX index
Notable Decliners:
-29.9% 087010.KS (Peptron): SmartDepot technology evaluation with Eli Lilly ends without follow-on commercialization deal
-7.0% 6488.TT (GlobalWafers): reports September revenue NT$5.13B, (13.1%) y/y
-2.4% 005930.KS (Samsung Electronics): reports preliminary Q3 operating income KRW107.40T vs StreetAccount KRW109.181T
-1.3% 002916.CH (Shennan Circuits): chairman Zhicheng Yang retires, effective immediately; general manager Zhiqin Yang appointed replacement
-1.2% 6594.JP (Nidec): Oasis Management urges company to begin preliminary review of options to take company private
Data:
Economic:
Japan August
Current account balance ¥4,062.0B vs consensus ¥3,172.3B and ¥2,988.9B in prior month
Markets:
Nikkei: (993.60) or (1.42%) to 69042.11
Hang Seng: (344.71) or (1.43%) to 23785.79
Shanghai Composite: (30.29) or (0.79%) to 3811.90
Shenzhen Composite: (39.12) or (1.63%) to 2365.35
ASX200: (66.80) or (0.77%) to 8660.90
KOSPI: (177.97) or (2.62%) to 6625.93
SENSEX: (976.27) or (1.34%) to 71662.43
Currencies:
$-¥: +0.09 or +0.06% to 158.1710
$-KRW: +0.07 or +0.01% to 1339.6200
A$-$: (0.00) or (0.13%) to 0.6954
$-INR: +0.00 or +0.00% to 96.7719
$-CNY: (0.00) or (0.04%) to 6.7021
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