Oct 20 ,2026
Synopsis:
Asia equities fell almost everywhere Tuesday. Steepest falls in South Korea where chipmakers were again under pressure; Taiwan and Japan's Nikkei also dragged lower by tech names. Mainland China ended mixed, the Hang Seng also lower; Australia and Singapore with small losses. Some relief for Indonesia following several days of heavy selling. India markets closed for a holiday. US and European futures mixed. US dollar weakening, Asia currencies strengthening. Treasury yields mixed, JGB yields lower. Crude futures building on yesterday's gains as Brent hovers near $110/bl. Precious metals mixed, industrial metals mostly lower. Cryptocurrencies lower.
Asia stocks back under pressure Tuesday as the region's tech stocks shrugged off overnight gains on the Nasdaq and SOX indexes. Instead, traders focused on several negative developments: first, CoreWeave stock fell again as its CDS spreads remained at distressed levels, then Softbank's CDS spread hit its highest in almost four years. Second, AI infrastructure and cloud group Elice fell more than 30% in its Kosdaq market debut, coming just weeks after Australia's Firmus abandoned its IPO and reports Singapore's AirTrunk would delay its listing. Ahead Tuesday, Netflix results while IBM, Tesla and Meta report Wednesday in the next test of investor confidence.
Also today, investor worries over tech joined by another leg higher in oil prices as Brent breached $110/bl for the first time since May. In other developments, China left its LPR rates on hold for the 17th consecutive month despite stronger-than-expected economic data yesterday but there were few other newspoints to change the overarching narrative.
SoftBank (9984.JP) is in talks with OpenAI over a potential $30B fundraising round; its CDS spread hit a four-year high on worries over OpenAI investment and talk of a major acquisition. South Korea's financial regulator has warned SKHynix (000660.KS) that its proposed Solidigm's (SOLIDIGM) listing may breach dual-listing rules. New World Development (17.HK) is seeking lenders permission to extend a HK$88B loan for two years so it may proceed with a rights issue. Elice (015850.KS) saw its stock drop 32% in the first day of trading in Seoul debut on souring investor appetite for the sector, although closed away from its lows. SEA (SE) is considering an IPO for its Monee financial services arm and launched a new cloud business. Australia is to sue TikTok (+TIKTOK) and other digital platforms over alleged non-compliance with a social media ban for under 16s.
Digest:
Notable Gainers:
+6.6% 1070.HK (TCL Electronics Holdings): guides 9M revenue HK$91.0-97.7B
+4.4% 002831.CH (Shenzhen YUTO Packaging Technology): reports Q3; launches CNY200-400M buyback
+3.8% 3635.JP (Koei Tecmo Holdings): raises H1 guidance
+2.8% 600176.CH (China Jushi): reports Q3 net income attributable CNY2.41B vs FactSet CNY2.23B
+2.5% 002230.CH (Iflytek): reports Q3 net income attributable CNY225.7M vs FactSet CNY81.0M
Notable Decliners:
-14.6% 229640.KS (LS Eco Energy): reports Q3 results; net income misses FactSet estimates
-7.2% 001040.KS (CJ Corp): Daou Kiwoom-CJ consortium reportedly selected as preferred bidder for JoongAng Ilbo
-6.0% 9984.JP (SoftBank Group): OpenAI reportedly in talks with investors regarding potential ~$30B fundraising at valuation of more than $1.4T with existing backers including Softbank Group involved in discussions
-4.2% K71U.SP (Keppel REIT): Keppel to sell 51% stake in Keppel South Central to Keppel REIT for SG$149M cash
-4.0% 6407.JP (CKD Corp): sets selling price of 3.6M-share secondary offer at ¥4,737/share
-3.1% 3800.HK (GCL Technology Holdings): signs MOU to acquire 81.9% stake in battery materials firm for ~CNY2.5B
-0.9% 17.HK (New World Development): reportedly seeks all lenders' consent for two-year extension of HK$88B loan in order to go ahead with rights issue plan
Data:
Economic:
No economic data today
Markets:
Nikkei: (841.28) or (1.30%) to 64075.42
Hang Seng: (319.09) or (1.32%) to 23867.74
Shanghai Composite: 4.45 or +0.12% to 3735.37
Shenzhen Composite: 7.58 or +0.34% to 2236.38
ASX200: (28.80) or (0.33%) to 8816.90
KOSPI: (215.27) or (3.73%) to 5552.74
SENSEX: Closed
Currencies:
$-¥: (0.37) or (0.23%) to 158.1440
$-KRW: (7.28) or (0.55%) to 1324.9700
A$-$: +0.00 or +0.20% to 0.6994
$-INR: (0.15) or (0.16%) to 94.7830
$-CNY: (0.01) or (0.15%) to 6.6782
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