Oct 26 ,2026
Synopsis:
Asia equities ended mixed Monday. Losses for Nikkei 225, China's Shenzhen, the Kospi and Singapore while the Topix, Hang Seng and Australia's ASX closed with modest gains. Shanghai was flat while India is trading a few points higher. Taiwan remained closed. US futures edging higher, Europe mixed in the first few minutes of trading. US dollar lower but off its trough, no movement of note in Asia forex. US Treasuries and JGBs also mixed. Crude futures lower with Brent under $110/bl. Precious metals rallying. Base metals near unchanged.
Asia stocks leaned higher Monday but in a rather directionless day with tech stocks in South Korea and Japan lower but broader economy stocks edging higher as crude oil prices came off their Friday highs. The Kospi was further weighed by a broker downgrade that cited slowing earnings momentum and heightened volatility just as news came that two SK Hynix leveraged funds would be delisted in the US amid the cooling AI rally. Investors remained cautious throughout the day ahead of the main catalysts of the week - interest rate decisions from the US, EU and Japan central banks, and quarterly earnings from Alphabet, Amazon and Microsoft as well as Samsung Electronics (005930.KS) and SK Hynix (000660.KS) full results. Also looming are the US mid-term elections next Tuesday with results likely to be known in Asia Wednesday morning.
Crude oil futures declined fairly sharply despite President Trump threatening a resumption of hostilities post the US election but remain at elevated levels. RBA board member Hunter said the central bank was 'not quite done' with combating inflation. RBI's governor Malhotra said the bank would consider rate changes to address financial stability risks if it needed to. Indonesia took fresh measures to address stock market manipulation to ward off a MSCI double-demotion.
Moonshot AI (+MOONSHOT.HK) has capped the hacking ability in its new Kimi K3.1 Pro model as AI cyberattack fears grow. Meituan (3690.HK) is looking to raise around $1B through an offshore bond offering. SK Hynix (000660.KS) plans to return around 80% of the proceeds from its Kioxia (285A.JP sale to shareholders via a special dividend. Ingenia Communities (INA.AU) has received a fresh takeover bid from AVID Property Group (0XG21S-E) to value the company at around A$2.2B ($1.6B). Infosys (500209.IN) cut its fiscal FY27 revenue growth forecast on AI-price driven pricing pressure and sluggish demand in several key markets.
Digest:
Notable Gainers:
+7.8% 2883.HK (China Oilfield Services): reports Q3 results; revenue CNY11.94B vs year-ago CNY11.53B
+2.9% 9531.JP (Tokyo Gas): reportedly abandons plans to develop floating offshore wind power project off coast of Fukushima
+2.6% 9107.JP (Kawasaki Kisen Kaisha): raises FY guidance
+1.6% 1898.HK (China Coal Energy): reports Q3 results; revenue CNY42.50B, +18% vs restated year-ago CNY36.15B
+0.9% 6954.JP (FANUC Corp.): reports Q2 results; raises FY guidance; to launch up-to-¥50B buyback
Notable Decliners:
-15.7% 9449.JP (GMO Internet Group): to pay ¥5,000 per customer, compensate unauthorized trading losses after cyberattack
-13.8% 138930.KS (BNK Financial Group): reports Q3 results; operating profit KRW239.49B vs StreetAccount KRW303.43B
-13.7% 443060.KS (HD Hyundai Marine Solution): reports Q3 results; operating profit KRW95.7B vs FactSet KRW106.88B
-9.8% 079550.KS (LIG Defense & Aerospace): South Korea's DAPA reportedly requests revoking LIG D&A's designation as defense contractor
-7.2% 6923.JP (Stanley Electric): reports H1 net income attributable ¥8.66B, (15%) vs year-ago ¥10.16B
-4.5% 921.HK (Hisense Home Appliances Group): reports Q3 results; revenue CNY20.25B vs FactSet CNY22.01B
-0.9% 3323.HK (China National Building Material): reports 9M results; operating profit CNY2.34B vs year-ago CNY8.15B
-0.2% 000660.KS (SK Hynix): reportedly looking at returning 80% of Kioxia stake sale gains via special dividend
Data:
Economic:
Singapore September
Manufacturing production y/y +3.4% versus +15.4% in prior month
Markets:
Nikkei: (503.51) or (0.80%) to 62189.65
Hang Seng: 118.44 or +0.51% to 23211.81
Shanghai Composite: 7.04 or +0.19% to 3697.52
Shenzhen Composite: (25.11) or (1.13%) to 2187.88
ASX200: 14.70 or +0.17% to 8809.90
KOSPI: (80.83) or (1.46%) to 5469.47
SENSEX: 196.11 or +0.27% to 73319.94
Currencies:
$-¥: +0.27 or +0.17% to 157.1270
$-KRW: (1.24) or (0.09%) to 1322.6600
A$-$: (0.00) or (0.14%) to 0.7026
$-INR: +0.25 or +0.26% to 95.2080
$-CNY: (0.00) or (0.07%) to 6.6695
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