Oct 16 ,2026
Synopsis:
Asia equities rallied Friday with most benchmarks ending higher. Japan's Topix and Nikkei both closed with gains, Shanghai was up although Shenzhen lost a few points while Hong Kong closed away from its peak; Australia's ASX gained and India's two main boards are up again. South Korea led the region, Taiwan also higher. Indonesia's benchmarks at years-long lows following MSCI's threat to demote nation to 'standalone market' status. US markets set for a positive open, Europe opened with gains. US dollar notably weaker, AUD recovering from yesterday's slide, quiet elsewhere. Crude oil lower but Brent still hovering near $105/bl. Precious metals rallying further, base metals also higher. Cryptocurrencies steady.
Asia equities found a base Friday from Thursday's selloff following positive comments about AI and the US economy from Fed Chair Warsh while some traders noted several technology stocks had flashed 'oversold' technical signals. Despite the rally, Asia stocks still substantially down on a weekly basis with the MSCI Asia Pac ex Japan index around 4.9% lower and Japan's Nikkei 225 significantly underperforming the Topix. Also weighing Friday was Indonesia's main JSX benchmark that fell almost 11% after MSCI said it was considering lowering its status to 'standalone market', bypassing 'frontier', on poor governance and transparency.
China's mainland markets were also weak Friday despite evidence of 'national team' intervention as Caixin reported passive redemptions by insurance funds and fixed income plus products. Bloomberg reported Taiwan is set to tighten export controls of AI chip exports to China, clamping down on smuggling operations, as part of a larger trade deal with the US. South Korea's unemployment rate sank to a two-year low while separate data showed import prices rose on the spike in oil prices while export price growth eased. Singapore September non-oil exports jumped by higher-than-expected 68.4% y/y led by another surge in electronics shipments. New Zealand inflation pressures strengthened on higher energy costs and food inflation.
SK Hynix (000660.KS) is to seek approval from Washington to export US-made chip making equipment to China to increase production there. Jio Platforms (0M8TM9-E) is looking for a valuation of around $108B in its IPO with trading set to start on 28-Oct. Two Singapore-listed palm oil companies, Bumitama Agri (P8Z.SP) and First Resources (EB5.SP), have been named in report on Indonesia plantation fires just as Singapore's PM vows to crackdown on companies responsible.
Digest:
Notable Gainers:
+17.3% 6532.JP (BayCurrent Inc): reports H1 results; issues growth roadmap FY35
+16.5% 3697.JP (SHIFT Inc): reports FY results; next FY adjusted operating income guidance ahead of FactSet estimates
+14.3% 2531.JP (Takara Holdings): Oasis Management discloses 5.1% stake
+7.6% 2162.HK (Keymed Biosciences): reports 9M Kangyueda revenue CNY660M, +227% y/y; NMPA approves adolescent atopic dermatitis indication
+5.2% 603019.CH (Dawning Information Industry): reports preliminary 9M restults; revenue CNY12.24B vs year-ago CNY8.82B
+2.5% 8725.JP (MS&AD Insurance): reportedly proceeding with talks to buy LPI Capital for ¥200B
+1.9% 8031.JP (Mitsui & Co.): partners with Penske to acquire Penske Automotive Group for $212.00/share in cash, taking company private
+1.3% 2881.TT (Fubon Financial Holding): reports September revenue NT$19.47B, (63.8%) y/y
Notable Decliners:
-10.5% 003490.KS (KOREAN AIR LINES Co.): reports standalone Q3 results
-2.7% 002371.CH (NAURA Technology Group): acquires hybrid bonding equipment company Beijing Nuohe Jianwei Equipment for CNY404.6M cash
-2.3% 9602.JP (Toho Co): reports H1 results
-0.8% 2330.TT (TSMC): 3Q/4Q beat, FY revenue growth raised, but magnitude of beat and 27/28 capex outlook weigh
-0.5% 293.HK (Cathay Pacific Airways): reportedly will look to order up to 50 additional widebody aircraft from Airbus and Boeing
Data:
Economic:
South Korea September
Unemployment rate 2.6% vs FactSet consensus 2.7% and 2.7% in prior month
Singapore September
Non-oil domestic export y/ty +68.4% versus +46.07% in prior month
Markets:
Nikkei: 898.34 or +1.39% to 65324.29
Hang Seng: 124.11 or +0.52% to 24186.83
Shanghai Composite: 8.81 or +0.24% to 3716.28
Shenzhen Composite: 0.02 or +0.00% to 2226.50
ASX200: 87.00 or +1.00% to 8806.70
KOSPI: 113.83 or +2.05% to 5668.05
SENSEX: 386.62 or +0.52% to 74702.23
Currencies:
$-¥: +0.06 or +0.04% to 158.0590
$-KRW: (10.67) or (0.80%) to 1331.4400
A$-$: +0.00 or +0.53% to 0.6958
$-INR: +0.16 or +0.17% to 94.9120
$-CNY: (0.00) or (0.07%) to 6.6869
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