Oct 27 ,2026
Synopsis:
Asia equities saw another mixed day Tuesday. There were strong gains for the Kospi and Nikkei 225 benchmarks while the Taiex was flat as it caught up having been closed for two days. Declines in Greater China led by Shenzhen and Hong Kong; India and Singapore lower. A small gain for Australia. US futures with S&P 500 higher but Nasdaq lower, Europe opened slightly lower. US dollar supported, yen higher, NZD higher ahead of central bank decision tomorrow. Treasury yields up at the short end, down at the long end with the 10Y below 5.0%; JGBs near unchanged; South Korea yields notably lower. Crude futures paring early losses but Brent still hovering near $110/bl. Precious metals lower. industrial metals mixed.
Asia equities still in a holding pattern Tuesday as traders wait for the week's main catalysts. Tech stocks rose following a positive end on Wall Street overnight where optimism was lifted by Anthropic's IPO filing while tailwinds increased in Asia trading time as oil prices declined initially. Tech stocks also boosted by Meta's share sale plan, Broadcom's $63B financing arrangements to buy chips, and SpaceX's $40B debt deal. However, with Alphabet, Microsoft and Amazon earnings still ahead this week - as well as several key central bank interest rate decisions - traders continued to stay on the sidelines in a relatively quiet day for Asia stocks.
In other developments today, South Korea's Q3 GDP was stronger than expected at 1.0% m/m or 3.4% y/y thanks to AI-driven export boom and stronger-than-expected investment; October consumer sentiment fell following the stock market correction and higher energy prices. The Bank of Korea and Taiwan's central bank both warned of the impact on GDP if the AI tech boom slows next year. China industrial profits grew 15.5% in Jan-Sep period, easing from Jan-Aug's 15.7% as subdued consumer demand dragged on several sectors.
HSBC (5.HK) launched a share buyback program worth $1B as it reported Q3 earnings that missed analysts' expectations. Moonshot AI (+MOONSHOT.HK) apologized for limiting customers' use of its latest Kimi model because of computing constraints. Beijing has granted Xpeng (9868.HK) and a mainland Volkswagen joint venture a autonomous driving permit (SCMP). The European Commission accepted Temu's (0QT6W6-E) plan to remedy the breach of the Digital Services Act. TSMC (2330.TT) is planning to increases CoWoS prices by around 20%, according to local press reports. AirTrunk (+AIRTRUNK) has secured a $3B 'green' loan for a western Sydney data center.
Digest:
Notable Gainers:
+6.8% 035900.KS (JYP Entertainment): EXROC, SVCV reportedly looking to acquire 20-50% stake in JYP Entertainment at premium of 30%
+5.9% 2331.HK (Li Ning): provides Q3 update; e-commerce virtual store business registered high-single-digit growth
+5.6% 247540.KS (Ecopro BM): reportedly in talks to supply trillion-won cathode order to Chinese battery maker
+5.3% 3899.HK (CIMC Enric Holdings): reports Q3 results; revenue +13% y/y
+4.4% 763.HK (ZTE): reports Q3 CAS results; revenue beats StreetAccount estimates
+3.4% 3635.JP (Koei Tecmo Holdings): reports H1 results; raises FY guidance
+1.6% 047040.KS (Daewoo Engineering & Construction): reports Q3 results with operating profit ahead of FactSet estimates
+0.6% 2330.TT (TSMC): reportedly plans to increase CoWoS prices by up to 20%
Notable Decliners:
-9.9% 551.HK (Yue Yuen Industrial (Holdings)): guides 9M net profit attributable (50-55%) vs year-ago $278.7M
-9.2% 237690.KS (ST Pharm): reports Q3 results; operating profit misses FactSet estimates
-5.2% 8060.JP (Canon Marketing Japan): reports Q3 results; confirmed FY guidance below FactSet estimates
-3.0% 4689.JP (LY Corp.): LY, Bain raise tender offer for Kakaku.com to ¥3,700/share from ¥3,597/share
Data:
Economic:
China
Jan-Sep 2026 industrial profits +15.5% y/y vs +15.7% in Jan-Aug
September industrial profits +14.4% y/y vs +4.2% in prior month
Japan September
Services PPI +3.7% y/y vs consensus +3.7% and revised +3.5% in prior month
South Korea Q3
GDP +1.0% q/q vs consensus +0.8% and +0.6% in prior quarter
GDP +3.4% y/y vs consensus +3.1% and +3.7% in prior quarter
Markets:
Nikkei: 1,078.72 or +1.73% to 63268.37
Hang Seng: (170.49) or (0.73%) to 23041.32
Shanghai Composite: (49.22) or (1.33%) to 3648.30
Shenzhen Composite: (55.86) or (2.55%) to 2132.02
ASX200: 40.20 or +0.46% to 8850.10
KOSPI: 168.87 or +3.09% to 5638.34
SENSEX: (209.58) or (0.28%) to 73397.17
Currencies:
$-¥: +0.35 or +0.22% to 157.8520
$-KRW: (1.14) or (0.09%) to 1324.7600
A$-$: +0.00 or +0.03% to 0.7020
$-INR: (0.02) or (0.02%) to 95.1617
$-CNY: (0.00) or (0.04%) to 6.6674
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