Trading today likely to be cautious and volumes light ahead of the US long weekend holiday. Oil mixed in early trading, Gold moving higher.

The Dutch central bank (DNB) has transferred approximately 86 tons of gold out of the US and Canada to the UK, seeking to shore up its contingency planning in view of “increasing geopolitical unrest.” That could be as Counties worry about the Trump administration weaponising such holdings

OPEC meeting this weekend so oil to remains volatile along with the elevated US/Iran tensions. With US markets closed on Monday expect light volumes today and for a number of risk positions to be closed ahead of the long weekend.

European gas levels in focus as current reserve levels are at lows, which could mean increased spending to acquire the need stocks and that again is likely to impact inflation.

Sam Altman noted in a recent discussion that top AI developers, including OpenAI, have “fumbled” at communicating the true benefits of the technology to the public, leaving the industry vulnerable to a backlash over energy grids and resources. But went on to stress how important it was to embrace the technology.

That comes as Global data center spending is set to reach US$31.6 trillion through 2050 to meet the world’s growing appetite for artificial intelligence (AI), an investment boom with no precedent in history, PricewaterhouseCoopers LLP (PwC) said in a report released on Wednesday. Dwarfing projects such as the railways, Internet and electrification, spending on data centers could even hit US$50 trillion over the next two-and-a-half decades if AI adoption accelerates beyond PwC’s “central scenario” forecast, the firm said. For comparison, US GDP is about US$30 trillion.

Housekeeping
Thursday afternoon I was on RTHK’s the Close with host Nitin Dialdas and Xiaolin Chen, Head of International at Kraneshares. We discussed the recent moves in the Yen and Rupee and what were the longer terms trends. Also who would benefit from the expected high inflation scenario which seems to be here for as long as the US/Iran conflict continues and then whether the Trump/Xi summit would take place and what they might talk about.
If you have a topic you would like discussed next week then please message me or contact them via WhatsApp +852 6899 8518 or via the link below, which can also be used to listen to the programme.
click the link https://www.rthk.hk/radio/radio3/programme/the_close

Last Monday morning I was on RTHK’s Money Talk with James Ross hosting and other guest Chi Lo, Senior Market Strategist APAC at BNP Paribas Asset Management. We discussed Kevin Warsh’s speech at Jackson Hole, US/Venezuela oil, Canada/US relations, the outlook for the Chinese Economy, Indian GDP and expectations for this week’s US jobs data.

If there is a topic you would like discussed next week; then Megha Chaddah hosting let her know or drop me a message, or if you just want to listen to the programme, click the link https://gbcode.rthk.hk/TuniS/www.rthk.hk/radio/radio3/programme/money_talk

Latest thoughts from Market Thinker - challenging the narrative. Operational Leverage, not financial leverage. Memory Stocks have reminded us of the potential returns from cyclical stocks...but there are other examples as well.

Notes If the high fixed costs also mean that competition is limited, at least in the short to medium term, the excess returns can make for a highly attractive investment and this simple maths has long been behind the cyclical waves of investment into commodity related stocks.

Well worth a read.

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Market opening indications and data due

New Zealand - No Data Scheduled
NZX 50 opened higher to test 13,940 in early trades and now seeing resistance at 13,950 currently up 100pts 0.72% at 13,946
Ex Dividend
Works Finance (NZ) (WKSHA): quarterly dividend with a distribution amount of NZ$0.02 per share

On Thursday the NZX opened higher but dipped to flat after weak Terms of Trade for Q2 and a number of heavyweight stocks going ex-dividend (Meridian Energy and Precinct Properties NZ). Then saw a small bounce into lunch before the market sold down, saw another bounce early afternoon but failed to regain the green and sold down to close -84.4pts -0.61% at 13,846
Leaders Real Estate, Consumer Discretionary, and Financials
Laggards Industrials/Transport, Consumer Staples, and Tech

Australia - No Data Scheduled
ASX futures indicate the market to open up 25pts 0.28% at 9,037 with support from Energy and Miners.

Ex Dividend includes
Ampol Ltd (ASX: ALD): Fully franked interim dividend of $1.85 per share, payable on 30 September 2026.
Viva Energy Group Ltd (ASX: VEA): Fully franked interim dividend of $0.077 per share, payable on 30 September 2026.
Aussie Broadband Ltd (ASX: ABB): Fully franked final dividend of 3.6 cents per share,
payable on 21 September 2026.
Eagers Automotive Ltd (ASX: APE)

On Thursday the ASX 200 opened higher but drifted lower in the first hour to trade around flat before rallying strongly into lunch and then trading sideways in the afternoon to close up 41.7pts 0.46% at 9,020.1
Leaders: Materials & Mining, Energy, Banks and Gold Stocks
Laggards: Consumer Discretionary, Info Tech. Communication Services, Real Estate.

Japan
Nikkei Futures indicate 430pts 0.67% at 64,660
Chicago Nikkei Futures 115pts 0.18% at 64,700
Yen 155.84 as traders worry about potential elevated or back to back rate hikes and potential invention. Yen trading at 156.15 in early trades

On Thursday the Nikkei opened higher but initially sold down into the red in the first hour but rebounded and traded just above flat into lunch. PM opened higher but drifted lower for an hour and then sold down to 63,800 before bouncing to close -111.2pts -0.17% at 64,214.48 Yen strengthened.
Leaders individual leaders emerging in Retail (Nitori 8.41%), Machinery (Sumitomo Heavy Industries, 5.09%), and Utilities (Kansai Electric Power 4.24%)
Laggards Paper & Pulp, Transport, and Communication sectors
Data due out 30 minutes pre market
Household Spending Jul MoM vs -6.4% Jun (F/cast is 3.6%)
Household Spending Jul YoY vs -3.3% Jun (F/cast is -1%)
Mid Morning
3-Month Bill Auction vs 1.0794 prior
Lunchtime
Prelim Coincident Index Jul vs 118.5 Jun (F/cast is 118.8)
Prelim Leading Economic Index Jul vs 116.5 Jun (F/cast is 116.8)

S Korea
Kospi Futures 200 indicate market opening up 19.05pts 1.85% at 1,049.05 but the weak Current Account data may limit the upside

The Kospi on Thursday opened higher (up 1.33%) and traded in 6,600 -6,685 for most of the day but sold down to 6,440 in the last hour and then bounced back to close 16.8pts 0.l26% at 6,579.5
Trade volume was moderate at 353.93 million shares worth 18.89 trillion won ($14 billion), with losers outnumbering winners 431 to 424.
Institutions net sold 215.2B won, foreigners net sold 423.4 B won and individuals net sold 954.9 B won worth of stocks.
The Korean won was quoted at 1,359.3 won against the US dollar as of 3:30 pm Thursday, compared with 1,368.7 won from the previous stock trading session.
Leaders Auto, Aerospace stocks, Shipbuilders
Laggards Tech, Finance, Secondary Batteries
Data out pre Market
Current Account Jul $42.08B vs $49.73B Jun (F/cast was $50B)

Taiwan
Taiex futures indicate market to open up 668 pts, 1.46% at 46,487

On Thursday the Taiex opened higher but sold down in the first hour saw a rally into lunch but drifted lower in the afternoon and sold down in the last 30 minutes to close down 307.06 pts, or 0.67%, at 45,857.66 on turnover of NT$946.27 billion (US$29.81 billion) vs NT$918.39 billion (US$28.95 billion) Wednesday
Leaders Selective Tech (TSMC 0.2% and MediaTek 1.5%), AI server/network and Optical Communications
Laggards Plastics, Memory, Electronics, Tech Services
Data Due After Market
Foreign Exchange Reserves Aug vs $594.27B Jul (F/cast is $594.4B)

China - No Data Scheduled
Golden Dragon Index closed down 49pts -0.81% at 6,002.24
FTSE A50 futures up 58pts 0.4% at 14,613
MSCI A50 Connect (USD) futures up 12.8pts 0.48% at 2,679

On Thursday the A shares opened higher as RatingDog PMI’s came in better than expected but trended lower through the morning and dipped into the red around lunchtime bounced back into the green but sold down into the close. Interesting to note that whilst the ChiNext and Star 50 pulled back the day’s top gainers, which included film and cinema, short drama, and gaming sectors
Trading volume 1.76 trillion yuan ($259.6 billion) vs1.81 trillion yuan Wednesday
Leaders Property, Banking, Rare Earths and Gold
Laggards Semiconductors, Memory chips, and Advanced Packaging

At the close
Shanghai Composite: 0.02% at 3,942.09
Shenzhen Component: 0.1% at 13,625.12
CSI 300 (Blue Chips): 0.1% at 4,552.58
ChiNext Index (Growth Board): 0.01% at 3,312.54
STAR 50 Index (Sci-Tech): -0.4% at 1,611.17
USD/CHN 0.00073pt 0.01% at 6.7176
Spot USD/CNY hiked 38 bps to close at 6.7181 Thursday (3rd). As of 4:44 pm, USD/CNY in the night session lifted 13 bps. USD/CNH lost 6 bps to 6.7170, 11 bps above USD/CNY.

Hong Kong
ADR’s closed up 61.2pts 0.24% at 25,729 with only Tencent in the red. Expect some short covering on the open and watch for positions being closed ahead of the long weekend in the US (US Markets will be closed on Monday).
Hang Seng Futures indicate up 279pts 1.11% at 25,421
Turnover Thursday HK$199.382B vs HK$216.69B Wednesday
Short Selling Thursday 23.2% vs 26.1% Wednesday

On Thursday the HSI opened higher up 171pts but drifted lower all day to close around the day lows.
HSI closed -97pts -0.39% at 25,213
Hang Seng Tech Index -48pts -1.08% at 4,468
Hang Seng China Enterprises Index -64pts -0.77% at 8,385

Leaders: Tech and Internet, Consumer Electronics, Mobile Phone Supply Chain names, Non-Ferros Metals and Real Estate.
Laggards: Tech, New Energy / Lithium Battery, Insurance, Precious Metals
Data Due After Market
Foreign Exchange Reserves Aug vs $447.8B Jul (F/cast is $447.9B)

Macau - No Data Scheduled

Singapore - Data Scheduled pre market
Retail Sales Jul MoM vs 1% Jun (F/cast is 1.4%)
Retail Sales Jul YoY vs 4% Jun (F/cast is 4.3%)

On Thursday SGX stocks opened higher after Manufacturing PMI was better than forecast and worked better in the morning to tet 5,783 (a new intraday high) but sold down after lunch and traded around flat before selling off at the end to closed

Malaysia - No Data Scheduled
On Thursday Malaysia kept it’s Interest Rate unchange from 2.75% as expected

Indonesia - No Data Scheduled

Philippines - Data Scheduled pre market
Inflation Rate Aug YoY vs 6.2% Jul (F/cast is 5.9%)
Inflation Rate Aug MoM vs 0.1% Jul (F/cast is 0.3%)
Core Inflation Rate Aug YoY vs 4.2% Jul (F/cast is 4%)
Industrial Production Jul YoY vs 13.5% Jun (F/cast is 14%)
Business Confidence Jul vs 0.0 Jun (F/cast is 2)
Could get
Foreign Exchange Reserves Aug vs $103.4B Jul

Thailand - No Data Scheduled

Vietnam - No Data Scheduled
On Thursday the trade data improved MoM along with FDI and Tourist arrivals. Industrial production slipped slightly MoM and inflation rose.

Cambodia - No Data Scheduled
Myanmar - No Data Scheduled

India - Data Scheduled after the open
Foreign Exchange Reserves 28 Aug vs $729.33B prior
Alipay+’s proposal to link with India’s instant payments system for cross-border transactions has been stalled due to national security concerns ‌in New Delhi and questions about the storage and use of customer data, three sources familiar with the discussions said. The proposal, made by Alipay+ in January, was the first by a China-linked entity in the financial services sector and came against the backdrop of easing tensions between the two neighbours, which had a deadly border clash ​in 2020.

Europe
Eurozone - Construction PMI and Retail Sales
Germany - Factory Orders, Construction PMI
France - Construction PMI
United Kingdom - New Car Sales, Construction PMI, DMP 1Year CPI Expectations, DMP 3-Month Output Price Expectations, BoE Gov Baily Speech

United States
Futures opened Dow -4pts -0.01% S&P -0.03%, NDX -0.05%
After Market
Lululemon -21.7% Q2 earnings beat but it lowered its forward guidance again
Fed Balance sheet 02/Sept $6.737T vs $6.731T prior
Data Scheduled: Non Farm Payrolls, Unemployment Rate, Average Hourly Earnings, Participation Rate, Average Weekly Hours, Government Payrolls, Manufacturing Payrolls, NonFarm Payrolls Private, U-6 Unemployment Rate, Baker Hughes Oil Rig Count.

HEADLINES & NEWS
NEW ZEALAND & AUSTRALIA
Commonwealth Bank and Westpac are using a legal loophole to penalise long-term customers who max out their credit cards – dubbed a “loyalty tax” by critics – despite the fees being banned for new accounts more than 14 years ago

KPMG high-flyer sues over her whistleblower scandal sacking. Sacked KPMG executive Eileen Hoggett is suing the firm after her financially damaging dismissal over confidential documents kept in her work locker.

Billionaire pub owner downsizes in Darlinghurst. Dubbed the man with the Midas touch, Sam Arnaout, a former panel beater, owns some of NSW’s highest-earning and most valuable hotels.

JAPAN
Japan’s top currency diplomat, vice finance minister for international affairs Atsushi Mimura said on Thursday ​that he remained on alert over ‌currency market developments, warning that he was not yet comfortable with recent moves in the yen. The ​yen extended gains after a sudden burst ​higher on Wednesday, though traders pointed ⁠to rising bets on Bank of Japan ​rate hikes rather than attribute the move to ​intervention by the Japanese authorities. He declined to comment on specific ​currency levels or market movements, but ​said he was “neither satisfied nor reassured” by recent developments. “We ‌remain ⁠on a state of heightened alert,” Mimura told reporters after he returned from the G20 finance leaders’ gathering in Asheville, North Carolina. When asked ​whether authorities ​had conducted ⁠a rate check, Mimura said: “I will not comment on that.”

The yen jumped by more than 2% against the U.S. dollar on Thursday as traders ramped ​up bets on a Bank of Japan interest rate hike, while analysts pointed to BOJ data showing no official intervention behind the currency’s strong gains ‌on Wednesday. The dollar, meanwhile, added to losses after Federal Reserve Governor Christopher Waller said that if upcoming data confirms that inflation pressures are cooling off, he is inclined to argue in favor of keeping interest rates steady at the U.S. central bank’s next policy meeting.

Japan’s services sector expanded at its fastest pace in five months in August, as stronger domestic demand ​lifted business activity and new work, a private survey ‌showed on Thursday.

Former Japanese Prime Minister Taro Aso is likely to stay on as vice president of the ruling Liberal Democratic Party in its leadership reshuffle expected later this month, government sources said Thursday. The government of PM Sanae Takaichi, who also heads the LDP, and the ruling coalition led by her party are also preparing to convene an extraordinary parliamentary session early next month, according to the sources. Takaichi apparently aims to ensure cooperation from Aso, regarded as a “kingmaker” within the LDP, since the 85-year-old’s support will be key for her reelection in the party’s presidential race next year, the sources said.

SOUTH KOREA
President Lee Jae Myung has met Hyundai Motor Group Executive Chair Euisun Chung in a closed-door meeting, sources said Thursday, with the two likely discussing investment matters. The meeting on Wednesday was presumed to have focused on Hyundai’s prior pledge to invest 9 trillion won (US$6.6 billion) to establish an industrial hub for artificial intelligence, robots and energy in the Saemangeum reclaimed area on South Korea’s southwestern coast by 2029. The meeting likely also included discussions on Hyundai’s contributions to the government’s high-profile “megaproject” investment initiative, aimed at nurturing a new semiconductor cluster and facilities for AI data centers.

Samsung Electronics Co. narrowed the gap with market leader SK hynix Inc. in the global high bandwidth memory (HBM) chip market in Q2, industry data showed Thursday. According to the data compiled by industry tracker Counterpoint Research, SK hynix maintained its No. 1 position with a 50% share of the market by revenue in the April-June period. However, its share fell 8 percentage points from 58% in the previous quarter. In contrast, Samsung Electronics significantly increased its market share from 21% in Q1to 33% in Q2. Micron Technology Inc., the No. 3 player, saw its market share decline slightly to 18% from 21% in the previous quarter.

Nearly 40 million user accounts of South Korean streaming platform Tving were compromised in a massive data breach stemming from a hacking incident reported in June, a joint investigation showed Thursday. The Ministry of Science and ICT announced the results of a three-month government-civilian investigation into the breach at Tving, an online video streaming platform operated by entertainment giant CJ ENM Co. A total of 39.54 million user accounts and 361 technical assets, including source code, were found to have been compromised in the breach reported on June 1, although the account figure includes multiple accounts held by the same users, the ministry said. Tving has since strengthened its security measures, and no signs of additional attacks have been detected so far, it noted.

A delegation from Indonesia’s drug regulator has visited Daewoong Pharmaceutical’s research center in western Seoul as the Korean drugmaker seeks to deepen cooperation with Indonesian authorities on drug development and regulatory affairs. According to Daewoong Pharmaceutical on Thursday, the delegation from Badan Pengawas Obat dan Makanan — Indonesia’s national food and drug agency known as BPOM — took a close look at the Magok Research Center last week. Daewoong said the representatives from the two sides discussed potential cooperation on product development and approvals in Indonesia, as well as regulatory communication for clinical development in the future.

TAIWAN
The Executive Yuan yesterday approved a record NT$607.63 billion (US$19.13 billion) supplementary budget, including NT$421.3 billion to stabilize the economy and NT$145.69 billion for weapons procurement. The budget was carefully planned to have no effect on fiscal planning or the national debt, officials told a news conference, calling on the legislature to support the bill. Measures to stabilize the economy amid conflict in the Strait of Hormuz accounted for the largest share of the budget, a Directorate-General of Budget, Accounting and Statistics (DGBAS) spokesperson told the news conference.

Taiwanese companies’ planned additional US$20 billion investment in the US would come mainly from semiconductor companies and their supply chains and artificial intelligence (AI) server-related businesses, the Ministry of Economic Affairs said yesterday. The new investment, on top of a US$35 billion pledge made by 20 firms that participated in the SelectUSA Investment Summit in May, reflects rising global demand for AI and semiconductors, as well as Taiwanese manufacturers’ growing interest in expanding in the US, Minister of Economic Affairs Kung Ming-hsin said. US Secretary of Commerce Howard Lutnick on Wednesday said in an interview with CNBC’s Squawk Box that Taiwan is expected next week to announce plans to invest an additional US$20 billion to US$30 billion in the US as part of a bilateral trade agreement focused on semiconductors, AI and energy. Robust semiconductor orders were also evident at the Semicon Taiwan trade show in Taipei this week, Kung said. Event organizer SEMI has raised its forecast for global semiconductor revenue to US$1 trillion this year and US$2 trillion by 2030, from an earlier estimate of US$1 trillion by 2030. Based on those figures, Taiwanese companies, which play key roles in advanced chipmaking and AI server manufacturing, must expand capacity at home and abroad, including the US, to meet rapidly growing demand, Kung said.

Scientech Corp, which specializes in supplying advanced packaging equipment and reclaimed wafers, yesterday said shipments would expand 50% annually this year, benefiting from thriving demand for artificial intelligence (AI) applications and rapid technological shifts. The company’s production lines are reaching full utilization through the end of this year and the growth momentum is expected to carry into next year based on the business prospects provided by customers, Scientech vice chairman M.T. Hsu said at the Semicon Taiwan trade show in Taipei. “Order book visibility for critical semiconductor equipment now extends through 2028,” he said. “We are increasingly concerned about our inability to fully satisfy customer orders.” Scientech’s optimism is built on capacity surges of 80 percent in advanced chip-on-wafer-on-substrate packaging from 2022 to next year, forecast by TSMC, Hsu said.

Auras Technology, which produces advanced thermal dissipation and cooling solutions for artificial intelligence (AI) servers and data centers, yesterday said its net profit surged 120% annually to NT$600 million (US$18.89 million) in July. Earnings per share (EPS) rose to NT$6.47 from NT$3.01 a year earlier, Auras said in a filing with the Taiwan Stock Exchange. The company’s net profit in the first half of this year jumped 220 percent to NT$2.13 billion from the previous year, with EPS of NT$23.01.

CHINA
The United States and China are ​set to make some ‌announcements on agriculture and non-tariff barriers during a ​visit by Chinese President ​Xi Jinping to Washington ⁠this month, U.S. ​Trade Representative Jamieson Greer said ​on Thursday. “We’re not looking for a giant comprehensive trade ​agreement with China. ​We’re looking to manage this relationship,” ‌he ⁠said in an interview on Fox News show “Special Report with Bret ​Baier.”

A group representing major automakers on Thursday urged Congress to ‌pass legislation barring Chinese vehicles from the U.S. market before the end of the year. The Alliance for Automotive Innovation, which represents General Motors (GM.N), Ford (F.N), Toyota (7203.T), Volkswagen (VOWG.DE), Hyundai (005380.KS), Honda (7267.T), Stellantis and other major automakers, called for quick action. “Right now, Chinese automakers are dumping subsidized vehicles ​with connected software and hardware around the world,” the group’s CEO John Bozzella wrote Congress in a ​letter seen by Reuters. “This hasn’t happened inside the U.S. yet, but given the scale ⁠and urgency of this threat, we urge you to enact a Chinese vehicle, software and hardware ban before adjourning ​this year and make this policy the law of the land.”

China’s Ministry of Industry and Information Technology, National Development and Reform Commission, National Financial Regulatory Administration and China Securities Regulatory Commission, along with 10 departments, jointly issued the “15th Five-Year Plan” for Promoting the Development of Small and Medium-sized Enterprises (SMEs). The plan mentioned that by 2030, the overall development quality and scale of China’s SMEs will improve simultaneously, with operating revenue and total assets maintaining stable growth, while labor remuneration and labor productivity steadily increase. The cumulative growth in per capita operating revenue of industrial SMEs above designated scale is targeted at around 15%.Innovation and development capabilities are expected to strengthen significantly, with annual average growth of more than 8% in internal R&D expenditure of industrial SMEs above designated scale. The number of specialized and sophisticated “Little Giant” enterprises is expected to reach 22,000, while national-level SME characteristic industrial clusters are targeted to reach 600.The level of digitalization and green transformation will accelerate, with the creation of a number of benchmark application scenarios for digital transformation. More than 95% of specialized and sophisticated SMEs are expected to reach Level 2 digitalization standards, while more than 80% are expected to reach Level 3 standards. Energy and resource utilization efficiency will also improve significantly.The service system will continue to improve, with the service efficiency of the nationwide SME service network significantly enhanced. A number of national SME public service demonstration platforms (bases) will be recognized, while the number of China-foreign SME cooperation zones is targeted to reach 50. The development environment will be further optimized, with a long-term mechanism for preventing and resolving payment arrears owed to SMEs basically established, and diversified financing channels for SMEs further expanded. At the same time, efforts to cultivate SME listings will be strengthened through the establishment of a high-quality SME listing cultivation database to promote regularized equity financing connections. Construction of specialized and sophisticated boards in regional equity trading markets will be deepened. The bond market’s “technology board” will be developed with high quality to support qualified SMEs in bond financing. Venture capital development will also be vigorously promoted through the establishment of Phase II of the National SME Development Fund to guide social capital toward early-stage investment, small enterprises, long-term investment and hard technology investment

The PBOC announced that, according to preliminary statistics, total assets of China’s financial institutions amounted to RMB562.2 trillion at the end of 2Q26, up 7.7% YoY. Among them, total assets of banking institutions reached RMB497.98 trillion, up 6.6% YoY; total assets of securities institutions amounted to RMB20.37 trillion, up 29.8% YoY; and total assets of insurance institutions totaled RMB43.86 trillion, up 11.8% YoY. Liabilities of financial institutions amounted to RMB514.48 trillion, up 7.9% YoY. Among them, liabilities of banking institutions reached RMB458.37 trillion, up 6.8% YoY; liabilities of securities institutions amounted to RMB16.32 trillion, up 36.6% YoY; and liabilities of insurance institutions totaled RMB39.79 trillion, up 12.2% YoY.

The China Passenger Car Association (CPCA) announced that preliminary statistics showed national passenger vehicle market retail sales reached 1.626 million units in August, down 19% YoY and up 11% MoM. Cumulative passenger vehicle retail sales since the beginning of the year totaled 11.799 million units, down 20% YoY. National passenger vehicle manufacturers’ wholesale volume was 2.369 million units, down 5% YoY and up 5% MoM. Cumulative wholesale volume since the beginning of the year reached 17.179 million units, down 5% YoY. National passenger vehicle NEV market retail sales reached 1.069 million units in August, down 4% YoY and up 12% MoM. Cumulative NEV retail sales since the beginning of the year totaled 6.737 million units, down 11% YoY. National passenger vehicle manufacturers’ NEV wholesale volume reached 1.506 million units in August, up 16% YoY and up 4% MoM. Cumulative NEV wholesale volume since the beginning of the year totaled 9.754 million units, up 9% YoY. During the period, the NEV retail penetration rate in the national passenger vehicle market was 65.7%, while the NEV wholesale penetration rate among passenger vehicle manufacturers was 63.6%. From the first to the fourth week of August, production of pure fuel light vehicles nationwide was 406,000 units, down 56% YoY and down 4% MoM. Production of hybrid and plug-in hybrid vehicles totaled 386,000 units, down 17% YoY and up 4% MoM during the same period.

HONG KONG
Earnings
SMARTONE TELE (00315.HK) announced annual results for the year ended June 2026. Net profit elevated 10% YoY to HKD525 million, with EPS of HKD0.477. A final DPS of HKD0.175 was declared, bringing full-year DPS to HKD0.32, unchanged from last year.

Buybacks
TENCENT (00700.HK) repurchased 229,000 shares of the company on the Stock Exchange of Hong Kong Thursday (3rd), at prices ranging from HKD433 to HKD445.4 per share, involving approximately HKD100 million. Since the repurchase mandate resolution was approved, the group has cumulatively repurchased 43.6987 million shares, accounting for 0.47926% of its issued shares.

HSI Short Selling Thursday 23.2% vs 26.1% Wednesday
Top shorts China Res Power (836) 61%, MTRC (66) 53%, J&T Express (1519) 48%, CLP (2) 48%, BYD Electronic (285) 48%, Haidilao (6862) 47%, Midea Group (300) 45%, CM Bank (3968) 45%, JD SW (9618) 45%, Wharf REIC (1997) 43%, Xioami (1810) 42%, Sands China (1928) 42%, HK & China Gas (3) 41%, Hengan (1044) 41%, Galaxy Ent (27) 41%, Beone Medicines (6160) 40%

AIA (1299) 39%, Ali Health (241) 39%, Longfor (960) 38%, CKI (1038) 38%, CKHutch (1) 37%, Nongfu Spring (9633) 36%, Li Auto (2015) 36%, Petrochina (857) 35%, Chow Tai Fook (1929) 35%, Henderson Land (12) 35%, Power Assets (6) 35%, Anta Sports (2020) 34%, Hansoh Pharma (3692) 34%, Sinopec (386) 32%, Haier Smarthome (6690) 32%, China Overseas (688) 31%, OOIL (316) 31%, Mengniu Dairy (2319) 30%, Trip com (9961) 30%, ZTO Express (2057) 30%, NTES (9999) 30%

China Hong Qiao (1378) 29%, Hang Lung Ppty (101) 29%, Ping An (2318) 29%, Shenzhou Int (2313) 28%, BoC Hong Kong (2388) 27%, CATL (3750) 27%, PopMart (9992) 27%, Sunny Optical (2382) 26%, Kuaishou (1024) 26%, China Res Land (1109) 26%, JD Health (6618) 26%, Geely Auto (175) 26%, Innovent Bio (1801) 26%, CK Asset (1113) 25%, JB Logistics (2618) 25%, SBP Group (1177) 25%, BYD (1211) 25%, HKEX (388) 25%

WATCH
CIMC ENRIC (03899.HK) announced that CIMC Weiante Technical Services (Xinjiang) Co., Ltd. (Xinjiang Integrated Service Base), established through the company’s investment, has officially commenced operations. The base is the first self-operated base nationwide under the company’s high-end energy equipment after-sales service brand “CIMC Weiante”.

CMS (00867.HK) announced that its subsidiary DermaX Medical has obtained approval from China’s National Medical Products Administration for the new drug application of ruxolitinib phosphate cream Anzupgo for the indication of mild-to-moderate atopic dermatitis, and has received the drug registration certificate. The product is intended for short-term topical and non-continuous chronic treatment of mild-to-moderate atopic dermatitis in non-immunocompromised adults and children aged two years and above when other topical therapies are inadequately controlled or not advisable. The application for this indication was included in the priority review list as a “new pediatric drug variety, dosage form and specification that conforms to children’s physiological characteristics”, effectively shortening the review cycle and accelerating approval for the indication.

FOSUN PHARMA (02196.HK) announced that Shanghai Fosun Pharmaceutical Industrial Development Co., Ltd., a subsidiary of the company, received approval from the National Medical Products Administration for the drug registration application of FCN-159 tablets, with the trade name Fumeining, for a new indication. The newly approved indication is for adult patients with neurofibromatosis type 1 who have symptomatic, inoperable plexiform neurofibromas.

COUNTRY GARDEN (02007.HK) announced that contracted sales amount for August was approximately RMB2.28 billion, down 23% YoY. Contracted GFA was approximately 280,000 square meters.

GEMDALE PPT (00535.HK) announced that contracted sales in August totaled approximately RMB425 million, down 30.1% YoY, while contracted gross floor area sold during the period was approximately 34,700 square meters. The average selling price during the period was approximately RMB12,200 per square meter. Cumulative contracted sales for the first eight months totaled approximately RMB4.408 billion, down 41.9% YoY, while cumulative gross floor area sold was approximately 354,600 square meters.

Thursday’s closings in EUROPE and US
DAX %0.63, CAC 0.07%, FTSE 0.7%
Markets opened lightly higher, FTSE traded around flat in the morning but allied into the early afternoon but then trended lower in the afternoon in choppy trading. The DAX traded around flat in the morning but rallied in the afternoon but sold down from the day highs in the last hour but then rallied into the close. The CAC traded in the red in a tight range 8,240/285 all day and closed at the upper end of the range.

The final August Eurozone Composite PMI held steady at 52.0, showing that the services industry continues to absorb energy cost pressures effectively.

Lingering fears over weaker consumer confidence in China and geopolitical anxieties severely dragged down high-end consumer sectors like LVMH -1.8%, Hermes -3.5%, Kering -3%

Volkswagen 3.6% on news of major restructuring/cost cutting including cutting 50,000 jobs and plant closures; which would see a slim down in the number of models.

Leaders relative: Media and Telcos, Industrials and Services
Laggards: Luxury, Consumer Staples, Aerospace & Defence

DOW 1.18%, NDX 1.4%, S&P 1.06%, Russel 2K 0.51%
US markets opened higher and after initial choppy trading worked better through the morning and then traded sideways in a tight range. NDX and S&P similar but did see a surge in the afternoon but then drifted lower into the close.

Initial jobless claims were little changed last week while the US trade deficit surged on rising imports of technology-related goods as the artificial intelligence buildout continues to gain steam.

Federal Reserve Governor Christopher Waller said he’d be “inclined to support” holding rates steady barring any surprises in upcoming inflation data. On Wednesday, the yield hit its highest level since November 2023. Bets among fed funds futures traders that the central bank would raise rates in a couple weeks fell to 50.4% after his statement, according to the CME FedWatch tool. That’s down from 63.2% from Wednesday.

ISM services index rose more than expected in August to 55.4 up MoM and better than f/casts. The employment index rose 0.4 pts to 47.8, though still in contraction. The prices gauge up 2.3 pts to 72.6, and its 12-month average was the highest since April 2023. New orders, inventories, backlogs and new export orders also posted solid gains.

Snowflake 16% off initial highs; after the company reported better-than-expected Q2 earnings and revenue as well as issued strong guidance. Conversely, shares of Broadcom -2.74% after its latest quarterly results, with the company offering a disappointing revenue forecast for the fiscal Q4

Campbell’s -7% after the soup and snack company reported a weaker than expected annual outlook. It also reset its quarterly dividend to 25 cents from 39 cents to reduce debt on the company’s balance sheet.

Nvidia 1.8% agrees to buy open-source AI platform Hugging Face at nearly $13 billion, making it the chipmaker’s second-biggest purchase to date.

Leaders: Consumer Discretionary, Tech Services & Software, Industrials, Financials
Laggards: Materials, Energy, Defence, Consumer Staples and Semiconductors/Hardware

Banks JPMorgan Chase 1.64%, Citigroup 2.83% Wells Fargo -0.09%, Amex -0.05%
Ecommerce Meta 3.01%, Apple 1%, Amazon 1.54%, Netflix -0.07%, Disney -0.76%, Zoom Comms 2.38%, Alphabet 1.59% and Microsoft 2.68%Tech NXP Semi -1.54%, Nvidia 1.8%, Micron 0.22%, AMD -0.2%, Skyworks -0.24%, Intel 1.8%
Industrial/Discretionary Boeing 0.79%, Caterpillar 0.99%, Simon Property 0.63%, Kohl’s 0.68%, Gap 1.18%, United Airlines 0.29%, Carnival -1.1%, Wynn Resorts 0.04%
Healthcare Eli Lilly -0.04%, UntiedHealth 0.32%, Johnson & Johnson 1.17% Merck 0.46%
Auto Ford 1.91%, GM 2.77%, Tesla 5.42%
Energy Chevron -0.22%, Exxon Mobil -1.18%, ConocoPhillips -0.98%
Consumer Staples Campbell Soup -6.96% General Mills -3.25%, JM Smucker -2.23%
Buffet’s Top Five Retirement Stocks Coca Cola 0.65%, Apple 1%, Johnson & Johnson 1.17%, Proctor & Gamble -0.49%, Berkshire 0.57%

DAILY US CLOSING DATA
USD weaker on Fed Governor Waller’s comments about keeping US rates on hold.
Traders are pricing in about a 60% chance of an interest rate hike ⁠at the Fed’s policy meeting later this month, according to the CME FedWatch Tool.
Bitcoin 5.52% at $81,428.22 VIX -5.79% at 14.32
US Bonds T10 down more than 2 bpts to 4.772%, T2 down more than 4 bpts at 4.342% and T30 down more than 1 bpts at 5.254%
OIL Brent -0.12% at $95.52, WTI 0.32% at $91.3 as US/Iran tensions escalate.
Spot Gold 1.2% Spot Silver 2.6%, Copper 1.17% Platinum 3.55%, Palladium 5.28%

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Investors now face the September effect; an anecdotal belief that it is a weak month, something that in recent year has not been true. But often investors look to September as one in which they lock in gains ahead of Q4 or reposition for Q4 and large mutual funds sometimes look to harvest tax losses.

Key this year I think with be whether the FOMC raises interest rates; which the market is currently expecting; although there are a number of key data points ahead of that.

There are also the escalation of US/Iran tensions with the US carrying out more strikes overnight. Trump still going on about Iran not having a nuclear weapon but this war does not seem to be about nuclear weapons but control on the Straits of Hormuz. He said he is not worried about the Mid-term elections but I doubt that. Add to that the strained US/Canada relations and it does not look good for markets.

Wednesday in the US saw a bounce back after three down days; whereas Europe remained in the red.

Earnings
Thursday
SMARTONE TELE (00315.HK)
M&G plc (LON: MNG) – Half Year results
Grafton Group plc (LON: GFTU) – Half Year results
Hilton Food Group plc (LON: HFG) – Half Year results
Alfa Financial Software Holdings (LON: ALFA) – Half Year results
Safestore Holdings plc (LON: SAFE) – Q3 Trading update

As we move into September; we will move from earnings to the payment of dividends and ex-dividend dates.

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Housekeeping

Last Thursday afternoon I was on RTHK’s the Close with host Nitin Dialdas and we discussed Nvidia’s results, China’s focus on robotics and HK housing.

If you have a topic you would like discussed this week then please message me or contact them via WhatsApp +852 6899 8518 or via the link below, which can also be used to listen to the programme.

click the link https://www.rthk.hk/radio/radio3/programme/the_close

Last Monday morning I was on RTHK’s Money Talk with James Ross hosting and other guest Chi Lo, Senior Market Strategist APAC at BNP Paribas Asset Management. We discussed Kevin Warsh’s speech at Jackson Hole, US/Venezuela oil, Canada/US relations, the outlook for the Chinese Economy, Indian GDP and expectations for this week’s US jobs data.

If there is a topic you would like discussed next week; then let them know or drop me a message, or if you just want to listen to the programme, click the link https://gbcode.rthk.hk/TuniS/www.rthk.hk/radio/radio3/programme/money_talk

Latest thoughts from Market Thinker - challenging the narrative. Operational Leverage, not financial leverage. Memory Stocks have reminded us of the potential returns from cyclical stocks...but there are other examples as well.

Notes If the high fixed costs also mean that competition is limited, at least in the short to medium term, the excess returns can make for a highly attractive investment and this simple maths has long been behind the cyclical waves of investment into commodity related stocks.

Well worth a read.

Market opening indications and data due

New Zealand
NZX 50 opened higher at 13,954 but sold down in early trades and release of weak Terms of Trade adding to the pressure on the market. Currently testing higher in choppy trading up 6pts 0.04% at 13,937

Ex Dividend
Meridian Energy Limited (MEL.)Dividend Amount: 16.1 cents per share. Payment Date: September 22, 2026.
Precinct Properties New Zealand (PCT) Dividend Amount: Split into two components: 0.190 cents and 1.498 cents per share. Payment Date: September 18, 2026.

On Wednesday the NZX opened slightly higher and traded around flat initially before dipping to test 13,700 support at lunchtime, which held and then the market worked better through the afternoon to close at the day high up 143.67pts 1.04% at 13,930. As expected the RBNZ raised interest rates by 25 bpts to 2.75%.
Leaders Financials, Consumer Staples, Communication Services and Utilities.
Laggards Info Tech, Materials, Energy, Real Estate.
Data out 45 minutes after the open
Export Prices Q2 3.5% QoQ vs -2.7% Q1
Import Prices Q2 13.8% QoQ vs -0.7% Q1
Terms of Trade Q2 -9% QoQ vs -2% Q1(f/cast was 1.1%)

Australia
ASX futures indicate the market to open up 38pts 0.4% at 8,979 with support from energy but miners weak. Good PMI data likely to improve sentiment.

Ex Dividend includes
BHP Dividend: $1.39 per share,Payment Date: 23 September 2026
Woodside Energy: Dividend: 79.5 cents (57 US cents) per share, fully franked Payment
Date: 25 September 2026
NIB Dividend: 21 cents per share
Qualities Dividend: 7.7 cents per share
Symbol Group Dividend: Payment scheduled for 2 October 2026
Also Coles Group, Ramsay Healthcare and Amcor PLC

On Wednesday the ASX 200 opened lower and traded 9,066/8,935 through the day, and closed -88pts -0.97% at 8,978.4. GDP growth data was mixed.
Leaders: Energy, Telco Services, Consumer Staples.
Laggards: Gold, Info Tech, Metals & Mining.
Data out pre market
PMI Final Composite Aug 52.7 vs 53.2 Jul (F/cast was 52.5)
PMI Final Services Aug 53.2 vs 53.6 Jul (F/cast was 52.9)
Due 60 minutes after the open
RBA Jones speech
Due 90 minutes after the open
Balance of Trade Jul vs A$1.929B Jun (F/cast is A$1.1B)
Exports Jul MoM vs 9.6% Jun
Imports Jul MoM vs -0.2% Jun
Afternoon
RBA Hunter and Brischetto speak

Japan
Nikkei Futures indicate up 130pts 0.2% at 64,480
Chicago Nikkei Futures -180pts -0.28% at 64,575
Yen 158.67 traders on alert for potential more intervention after comments about the BoJ either doing a 50 bpt hike or back to back rate hikes.

On Wednesday the Nikkei opened lower and trended lower test 64,234 after 90 minutes and then traded 64,670/64,215 and closed -1,890pts -2.85% at 64,325
The total trading value (turnover) across the primary segments of the Tokyo Stock Exchange reached approximately 8.14 trillion yen vs 9.3583 trillion yen on Tuesday.
Futures contracts for Japanese Government Bonds (JGBs) plummeted for a third consecutive session. The sell-off pushed the benchmark 10-year yield up 6 basis points to 3.015%, triggering its highest trading yields since September 1996.
Leaders Pharma
Laggards Mining & Materials, Tech/AI related names (Softbank -6.4%), Utilities and Industrial Exporters.
Data due out 10 minutes pre market
Foreign Stock Investment 29 Aug vs ¥-1978.4B prior
Foreign Bond Investment 29 Aug vs ¥-764.1B prior
Due out 30 minutes after the open
PMI Final Composite Aug vs 52.7 Jul (F/cast is 53.4)
PMI Final Services Aug vs 51.2 Jul (F/cast is 52.3)
Mid Morning
30-Year JGB Auction vs 3.937% prior

S Korea
Kospi Futures 200 indicate market opening up 14.45pts 1.4% at 1,043.6

The Kospi on Wednesday opened lower at 6,625 and initially worked better for the first 40 minutes to test 6,695 but failed to break above and reversed to trend lower testing the 6,558 support a couple of times. Did see a short bounce in the last hour (to 6,615) but even that got sold down to close -273pts -3.99% at 6,562.72
Trade volume was light at 321.2 million shares worth 18.6 trillion won ($13.6 billion), with losers far outnumbering winners 734 to 137.
Foreign investors sold a net 1.9 trillion won and institutional investors 2 trillion won of shares, while individuals bought a net 2.3 trillion won.
The Korean won was quoted at 1,368.7 won against the US dollar, up 1.7 won from the previous stock trading session.
Leaders Oil refiners & Energy Infrastructure, Banks/Financials,
Laggards Tech/AI, Auto’s
Data out pre Market
Foreign Exchange Reserves Aug $442.28B vs $427.95B revised Jul

Taiwan - No data scheduled
Taiex futures indicate market to open up 171pts 0.37% at 46,336 tech in focus and likely to see initial bargain hunting.

On Wednesday the Taiex had a choppy open but sold down in the first hour to test 46,200 several times through the day. It failed on increased selling into the close as the Taiex closed -784pts -1.67% at 46,164.72 on turnover of NT$918.39 billion (US$28.95 billion) vs NT$1.08 trillion (US$34.10 billion) Tuesday
Leaders Tech Services, Electronic Tech
Laggards Energy, Financials/Insurance, Electronic parts

China
Golden Dragon Index closed flat -3pts -0.05% at 6,051.33
FTSE A50 futures up 20pts 0.14% at 14,587
MSCI A50 Connect (USD) futures up 3.8pts 0.14% at 2,668.2
FT reports that President Xi making a surprise visit to Egypt.

On Wednesday the A shares opened lower and sold down for the first 30 minutes but then found support and worked better with choppy trading until the last hour when selling pressure increased.
Trading volume 1.81 trillion yuan vs 2.02 Trillion yuan ($299 B) Tuesday
Leaders Consumer Staples/Liquor, Energy/Oil, Banking/Financials
Laggards Tech, Auto’s
At the close
Shanghai Composite: -1.01% at 3,941.39
Shenzhen Component: -1.88% at 13,611.55
CSI 300 (Blue Chips): -1.38% at 4,547.96
ChiNext Index (Growth Board): -2.39% at 3,312.24
STAR 50 Index (Sci-Tech): -1.82% at 1,617.6

The PBOC did not conduct seven-day reverse repo operations today (2nd), resulting in a single-day net withdrawal of RMB598.5 billion.
USD/CHN -0.00146pt -0.02% at 6.7162
Spot USD/CNY faded 1 bp to close at 6.7219 Wednesday (2nd). As of 4:43 pm, USD/CNY in the night session dropped 110 bps. USD/CNH lost 27 bps to 6.7237, 18 bps below USD/CNY.
Data due 15 minutes after the open
RatingDog PMI Services Aug vs 50.4 Jul (F/cast is 50.8)
RatingDog PMI Composite Aug vs 50.8 Jul (F/cast is 51)

Hong Kong - No Data Scheduled
ADR’s closed -94.19pts -0.37% at 25,574 with only Tencent, CK Hutch and Baba in the red.
Hang Seng Futures indicate up 115pts 0.46% at 25,367
Turnover Wednesday HK$216.69B vs HK$B Tuesday
Short Selling Wednesday 26.1% vs 25.6% Tuesday

On Wednesday the HSI opened lower and trended lower for the first hour, with support at 25,000 tested a number of times. Then from mid morning the index trended higher and closed just off the day high.
HSI closed -0.07% at 25,311.21
Hang Seng Tech Index -0.74% at 4,517.16
Hang Seng China Enterprises Index -0.15% at 8,450.1
Leaders: Defense, Energy/Oil
Laggards: Gold/Mining, Auto/EV’s, Tech, New Energy and Real Estate.
Major index heavyweights like Tencent -1.3%, Cathay Pacific -5%, and artificial intelligence/tech firms like Z.AI Co -6% saw significant selling.

Macau - No Data Scheduled

Singapore - Data Scheduled pre market
Global PMI Aug vs 59.2 Jul (F/cast is 58.7)

On Wednesday SGX stocks opened around flat and trading around flat through the morning and then worked better after lunch to close at vs the recent 5,774 all time high.

Malaysia - Data Scheduled for the afternoon
Interest Rate Decision no change from 2.75% expected

Indonesia - No Data Scheduled
Philippines - No Data Scheduled
Thailand - No Data Scheduled

Vietnam
Manufacturing PMI Aug vs 52.9 Jul (F/cast is 53)
Balance of Trade Aug vs $-3.59B Jul
Foreign Direct Investment Aug vs $15.2B Jul (F/cast is $17.4B)
Industrial Production Aug YoY vs 14.5% Jul
Inflation Rate Aug YoY vs 4.45% Jul
Retail Sales Aug YoY vs 14.5% Jul
Tourist Arrivals Aug YoY vs 6.6% Jul

Cambodia - No Data Scheduled
Myanmar - No Data Scheduled

India - Data Scheduled after the open
PMI Final Composite Aug vs 54.3 Jul (F/cast is 54.6)
PMI Final Services Aug vs Jul (F/cast is )

Europe
Eurozone - PMI’s Final (Composite and Services), PPI
Germany - PMI’s Final (Composite and Services), New Car Registrations
France - PMI’s Final (Comp53.3 osite and Services), OAT Auction
United Kingdom - PMI’s Final (Composite and Services), Index-Linked Treasury Gilt 2049 Auction

United States
Futures opened Dow -0.02% S&P -0.05%, NDX -0.12%
After Market
Broadcom -11.6% despite reporting strong fiscal 2026 Q3 results and it issued optimistic guidance, projecting Q4 revenue of approximately $34.8 billion, but that disappointed vs Nvidia last week.

HP Enterprise -1.8 initially ticked higher then sold down before rebounding. Strong Q3 results, with revenue rising $12.2 billion, up 33.68% YoY and ahead of estimates but again guided higher but that disappointed vs Dell

Five Below 5.7% Good Q2 and raised its full-year sales and adjusted earnings outlook on strong customer demand and continued store expansion will sustain momentum through the holiday season.

Snowflake 21.6% raised its outlook that beat expectations and noted the rapid adoption of its AI coding tool

Data Scheduled: Balance of Trade, Exports & Imports, Initial Jobless Claims, Continuing Claims, 4 week Average Claims, Nonfarm Productivity, Unit Labour Costs, PMI’s Final (Composite and Services), ISM Services (PMI, Business Activity, Employment, New Orders, Prices), EIA Gas Report, 4-week & 8-week Bill Auction, 15-year & 30-year Mortgage Rate,Fed Balance Sheet. (Could get Total Vehicle Sales).

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HEADLINES & NEWS
NEW ZEALAND & AUSTRALIA
The political foes chasing down KPMG’s ‘wolves’ have not finished yet. Holding the KPMG ‘bastards’ to account has drawn together Canberra’s bitter political rivals like never before.

One Nation wants this coal plant kept open. Its owner warns that will spell trouble. Energy giant AGL says Pauline Hanson’s plan to keep Victoria’s largest coal-fired generator open beyond its 2035 closure will put power supplies at risk.

Telstra’s only timing experts were on a required break before network fell over. The pair had replaced a faulty power supply in Melbourne in the early hours of July 8 but were at home on mandatory rest by the time the outage hit, an external review has found.

Coles and Woolworths drop krill supplements. The tiny crustaceans provide food for whales and penguins in Antarctica but are under increasing pressure from commercial fishing to supply the market for Omega-3 nutritional supplements.

JAPAN
With benchmark Japanese bond yields breaking through a three-decade-old barrier, higher returns are starting to tease capital home, reversing what was once a dependable flow of funds into global bond markets. The 3% threshold is significant not just for ​funding costs in Tokyo, but for turning around an investment flow that has made Japan the biggest owner of U.S. Treasuries and one of the most reliable buyers of sovereign debt ‌worldwide. As the global bond rout deepened on Wednesday, traders said part of the move rested on bets Japanese investors would retreat from overseas holdings. While there’s no sign of Japan dumping its $2.4 trillion hoard in overseas debt just yet, global fund managers and a growing body of data is showing a steadier drawdown is underway. In Sydney, London and Singapore, bond dealers and asset managers have noticed the pullback of Japan’s demand. Official data shows Japanese investors have already sold a net 3 trillion yen ($18.7 billion) in overseas debt through August 22, ​the biggest year-to-date outflow since bonds tanked in 2022. Refiner Eneos Holdings (5020.T), cash-rich and facing declining demand at home, is in the midst of a push to expand its overseas footprint, testing ​its ability to broaden its revenue sources and manage assets abroad.

Eneos, which dominates Japan’s petrol station space with 11,000 outlets - half the market - is looking at ‌additional deals, betting that diversification in its core fuel business is more successful than its loss-making foray into renewable energy a few years ago. By expanding its refining, storage and marketing footprint outside Japan, ⁠the Chevron deal enables Eneos to boost trading volumes and capture more value from regional fuel flows. In moving beyond Japan, Eneos will face a more competitive and flexible Singapore trading environment, executives at two rivals in the energy hub said. They did not want to be named publicly because they are not authorised to speak to the media. The deal could help Eneos to diversify its crude purchases, one ​trader said, as the Singapore refinery uses a wider range of grades than those in Japan. The country’s overwhelming reliance on Middle Eastern oil has exposed it to disruption during the ​U.S.-Israeli war on Iran. Last month, ​Tanaka said Eneos still has about 300 billion yen earmarked for investment under its three-year plan through March 2028. But he said ​that could increase after last ⁠year’s initial public offering of JX Advanced Metals (5016.T) and Eneos’ subsequent sale of additional shares, which generated about 640 billion yen in proceeds.

South Korea and Japan ​held their first ‌meeting on implementing a supply chain ​partnership in Tokyo, ​discussing ways to strengthen ⁠bilateral cooperation, ​Seoul’s Industry Ministry ​said on Wednesday. The two sides agreed to deepen ​cooperation on ​stable emergency supplies of liquefied ‌natural ⁠gas (LNG), crude oil and petroleum products, and exchanged ​views on ​coordinating ⁠responses to carbon emissions ​and supply chain ​due ⁠diligence rules including the EU’s ⁠carbon ​tariff, the ​ministry said.

Honda Motor (7267.JP) is targeting cost cuts of more than USD9 billion over the next four years, having instructed parts suppliers to make substantial price reductions, Reuters, citing internal documents and sources, reported. The company will also seek to source more parts from Chinese suppliers. Honda is striving to reverse the downturn in its automotive business. Losses related to its electric vehicle business are expected to eventually exceed USD12 billion, making it one of the worst loss-making global automakers in this segment. The company is shifting its focus toward hybrid vehicles, with its latest target being to save JPY1.5 trillion (approximately USD9.4 billion) in costs by 2030. A Honda spokesperson declined to comment on specific cost-saving targets or details of discussions with suppliers, only emphasizing that the group is cooperating with global suppliers, including through the use of standardized parts, to enhance competitiveness and reduce costs.

Shares of beverage maker Ito En surged more than 8% Wednesday, following its fiscal first-quarter results, bucking a broader drop in the country’s stocks. On on Tuesday it reported operating profit of 10.2 billion yen ($63.7 million) for the three months from May through July, up 22% YoY. Revenue rose 3.3% to 135.18 billion yen over the same period.

SOUTH KOREA
The Seoul Bankruptcy Court on Wednesday approved Homeplus’s corporate rehabilitation plan, letting the hypermarket sidestep bankruptcy and setting it on course to exit court receivership. Secured creditors, unsecured creditors and shareholders voted in separate classes at the same-day meeting, with approval requiring more than 75 percent, 66.7 percent and 50 percent support, respectively. The court plans to formally close the rehabilitation proceedings once repayments under the plan are fully carried out. If Homeplus fails to make repayments as outlined, the court could issue a ruling revoking its authorization, at which point it could declare bankruptcy on its own authority. With court approval secured, Homeplus plans to sell 19 of its 37 stores slated for closure to repay secured trust debt, while pursuing further fundraising, restructuring, and potential mergers and acquisitions to complete its turnaround.

Hyundai Motor’s global sales fell below 300,000 vehicles in August for the first time in more than four years after its first full-scale strike in a decade disrupted production. The setback also sharply narrowed the sales gap between Hyundai and smaller affiliate Kia. Hyundai said Tuesday that global sales dropped 14.2% YoY to 288,574 vehicles. Domestic sales plunged 41.1% to an 11-year low of 34,333 units. It was Hyundai’s first monthly domestic tally below 40,000 since February 2020, when the COVID-19 pandemic began disrupting production and demand.

SK Group Chairman Chey Tae-won is considering building a chip plant in Japan, potentially with NAND flash maker Kioxia, as the Korean conglomerate seeks deeper cooperation with its Japanese rival. Joint production is “one option,” Chey said in an interview with the Asahi Shimbun published Tuesday during his visit to Tokyo. He also identified supply chain coordination and joint research and development as potential areas of cooperation.

A senior US Army acquisition official inspected Hanwha Aerospace’s artillery production facilities in South Korea shortly after the company secured a contract to deliver prototype howitzers for an Army modernization program. Hanwha said Wednesday that Brent G. Ingraham, assistant secretary of the US Army for acquisition, logistics and technology, visited its Changwon facilities in South Gyeongsang Province on Aug. 26 with a US delegation.

British wind-propulsion company Anemoi Marine Technologies seeks closer ties with South Korean shipbuilders and shipping companies as the industry faces growing pressure to reduce fuel consumption and emissions. Anemoi develops Rotor Sails, tall spinning cylinders installed on a vessel’s deck that use wind to generate forward thrust. The automated system works alongside the main engine, reducing the amount of fuel needed to propel the ship. The company is working with Korean shipowners and has been approached by several major Korean shipyards about jointly integrating the technology into vessels, Contopoulos said. He declined to identify the companies. Asked about potential partnerships with HD Hyundai Heavy Industries and Hanwha Ocean, he said Anemoi was open to collaboration but would need to consider demand and where to commit its resources.

TAIWAN
Taiwan is playing a key role in the global artificial intelligence revolution and is expected to remain at the center of the semiconductor industry’s growth, Premier Cho Jung-tai said Wednesday. Speaking at the opening of SEMICON Taiwan 2026, Cho said rapid AI development has created a global wave of technological innovation and cooperation, with Taiwan playing an important role alongside other countries. Taiwan’s semiconductor production value reached US$209.1 billion in 2025, up 22.7 percent from a year earlier, while TSMC and other major global companies continue to invest in advanced manufacturing, packaging and memory production in Taiwan, Cho said. Also attending the event, SEMI President and CEO Ajit Manocha said Taiwan is a major global AI hub and one of the industry’s most trusted partners, adding that global semiconductor revenue could reach US$2 trillion by 2030, driven by AI.

TSMC will establish a presence in the Baipu Industrial Park in Kaohsiung to accelerate the testing and validation of semiconductor materials and equipment, a company executive said Tuesday. TSMC Vice President of Advanced Packaging Technology and Service Jun He said the company is working with the Ministry of Economic Affairs and the Kaohsiung City government on the plan, which is expected to improve validation efficiency by 25-50%. TSMC will also conduct process research and development at the park with the aim of building a world-class training base for advanced packaging talent and connecting local suppliers with global supply chains, He said at a global 3D IC summit held ahead of SEMICON Taiwan, which opened Wednesday.

TSMC is accelerating capacity expansion fivefold this year, but it is still unable to keep up with the booming demand for artificial intelligence (AI), TSMC deputy cochief operating officer Cliff Hou said yesterday. This year alone, the company is building 25 chip manufacturing fabs and advanced packaging facilities worldwide, including 13 plants in Taiwan, which is unprecedented, Hou said at a CEO Summit fireside chat at Semicon Taiwan in Taipei. In the past, the company was able to build five or six factories a year, said Hou, who is also chairman of the Taiwan Semiconductor Industry Association. As exponential scaling of AI relies on advancing computational capacity and optimizing power efficiency, customers are showing much faster demand for advanced process technologies, packaging technologies and system performance than ever before, he said. “Compared with the pattern 30 years ago, we have never seen the demand increase that much, that frequency of changes,” Hou said. TSMC has twice raised its capital expenditure budget for this year within six months, expanding its overall outlays by about 90 percent from an estimate made at the end of last year, he said. TSMC is not the only company facing the pressure of supply constraints, Hou said. The whole AI supply chain is doubling down on capacity expansion to solve supply issues, he said.

WinWay Technology a supplier of integrated circuit testing interface and coaxial sockets, yesterday said that it is racing to expand socket capacity through next year to address supply constraints amid surging artificial intelligence (AI) demand. The company aims to add 50% more socket capacity by Q3 next year, and is seeking outside partners to farm out production, it said. “The demand is always there and even growing.” WinWay executive vice president for global business operations Jason Chen said at the company’s booth at the Semicon Taiwan trade show in Taipei. “The issue is whether we can fulfill that demand.”

US-based power management company Eaton Corp yesterday said that it plans to invest an additional NT$300 million (US$9.46 million) in Taiwan through 2030, after investing NT$200 million since last year, to expand local power infrastructure production and service capacity. The investments are expected to boost Eaton’s total capacity in Taiwan by at least 40 percent by 2030 from last year’s levels, Eaton country manager for Taiwan and the Philippines Tony Lin said at the Semicon Taiwan trade show in Taipei. Eaton’s core businesses span electrical power distribution and management, backup power and uninterruptible power supply (UPS) systems, and circuit protection.

CHINA
President Xi Jinping’s visit to Egypt this week is a run-of-the-mill opportunity for two countries to strengthen economic and diplomatic ties. But there is deep subtext to the meeting between Xi and President Abdel Fattah el-Sissi: China, the United States’ top global rival, is cultivating an extensive relationship with one of America’s key allies in the Middle East as it moves to expand its influence in the rapidly changing region. Xi aims to present China as a stabilizer in the region and contrast it with the United States, which for decades has been militarily entangled there — its six-month war with Iran being just the latest example.

Chinese AI chipmaker Shanghai Enflame Technology (688801.SS) backed ‌by Tencent, drew investor orders worth 6,109 times the shares available in the online portion of its Shanghai initial public offering, an exchange filing showed on Wednesday. Investors are betting Beijing’s push to develop ​domestic alternatives to U.S. chip suppliers such as Nvidia will create opportunities for ​Chinese AI chipmakers, after President Donald Trump tightened curbs on exports of ⁠advanced chips and chipmaking equipment to China. In response to the excess demand, Enflame moved ​3.4 million shares from the offline tranche to the online sale after receiving orders from ​more than 7 million online investor accounts, Wednesday’s filing showed. It said the final winning rate for online investors was 0.025%. The company will announce the results on Friday. Enflame is one ​of China’s leading AI chip startups, referred to in Chinese financial circles as the “four ​little GPU dragons”. The other three — Moore Threads Technology (688795.SS), MetaX Integrated Circuits (688802.SS) and Shanghai Biren Technology (6082.HK), opens new tab; have ‌already sold ⁠shares publicly over the last year. Founded eight years ago, Enflame has yet to make a profit, but it has powerful backing from social media and gaming company Tencent, which is one of its major shareholders and its largest customer. Enflame set its IPO price at 142.18 ​yuan per share and ​aims to raise ⁠about 6.1 billion yuan ($908 million) by selling 43 million shares on Shanghai’s tech-focused STAR Market. It has said it plans to use ​the IPO proceeds to develop and produce its fifth- and sixth-generation ​AI chips ⁠and related software and hardware. The company initially allocated 6.89 million shares, or 20% of the shares available after the strategic placement, to online investors, the filing showed. The shift raised the ⁠online ​allocation to 10.33 million shares, or 30% of the ​post-strategic-placement offering, while the offline tranche received the remaining 70%, the filing showed.

Xiao Xiaoping, president of the Shenzhen Beike Research Institute, said the number of homeowners raising property listing prices has skyrocketed recently, Chinese media reported. Data from the demand side started to grow. Compared with the previous weekend (August 22-23), new customer traffic during the August 29-30 weekend hiked by 6.5%, while inquiries rose by 3.2%.

China’s State Council announced personnel appointments and removals of state officials. Liu Guiping was appointed head of the State Administration for Market Regulation (SAMR), while Pan Xiaodong was appointed deputy head of the State Administration for Market Regulation. Meng Yang was removed from his position as deputy head of the State Administration for Market Regulation.

Tesla’s China-made electric vehicle sales slowed to a gain of 3.6% YoY in August, ​down sharply from the prior month, as divergent ‌trends persisted across the U.S. automaker’s major markets. Sales of Model 3 and Model Y vehicles from its Shanghai factory, including exports to Europe, ​Asia Pacific and Canada, rose to 86,166 units from the year ​earlier, marking the 10th straight month of growth. That’s a sharp ⁠slowdown from a 38% YoY rise in July though, data from ​the China Passenger Car Association showed on Wednesday. On a MoM ​basis, sales fell 7.9%. August registration data highlighted diverging fortunes for Tesla across Europe, with strong increases in France and Denmark contrasting with weaker sales in ​Norway, Spain, Sweden, Portugal and Italy. The U.S. automaker is grappling ​with intensifying competition in China, where home-grown rivals are introducing more affordable, ‌feature-rich ⁠EVs, while pushing deeper into overseas markets to offset weak demand domestically.
BYD (002594.SZ), Tesla’s largest Chinese rival, generated more revenue overseas than in China for the first time in the first half. Likewise, ​exports accounted for ​more than ⁠half of the vehicles produced at Tesla’s Chinese factory in the second quarter, also a ​first. Tesla’s share of China’s battery EV market ​shrank to ⁠6.6% in the second quarter from a peak of more than 15% in 2020.

HONG KONG
IPO
On Wednesday Shein -5.5% on its second day of trading following its lackluster Tuesday IPO debut. Hang Seng Indexes Company said SHEIN-W (00625.HK) meets the Fast Entry Rule of Hang Seng Composite Index, and will be added to Hang Seng Composite Index, Hang Seng Composite Industry Index - Consumer Discretionary, Hang Seng Composite LargeCap Index, and Hang Seng Composite LargeCap & MidCap Index after market close on 14 September 2026.
All changes will come into effect on 15 September 2026.

Buybacks - None Announced

HSI Short Selling Wednesday 26.1% vs 25.6% Tuesday
Top shorts MTRC (66) 62%, Haidilao (6862) 58%, China Res Power (836) 57%, Galaxy Ent (27) 56%, Hang Lung Ppty (101) 51%, Wharf REIC (1997) 51%, Nongfu Spring (9633) 50%, J&T Express (1519) 50%

Hengan (1044) 49%, BYD Electronic (285) 48%, Midea Group (300) 47%, Henderson Land (12) 45%, Li Auto (2015) 44%, Sands China (1928) 44%, HK & China Gas (3) 43%, CKI (1038) 43%, Anta Sports (2020) 43%, OOIL (316) 42%, Tingyi (322) 41%, Wuxi Apptec (2359) 41%, Beone Medicines (6160) 41%, JD Health (6618) 40%, JD SW (9618) 40%, Haier Smarthome (6690) 40%,

BYD (1211) 39%, ZTO Express (2057) 39%, Chow Tai Fook (1929) 39%, Sinopec (386) 38%, Longfor (960) 38%, SBP Group (1177) 37%, Xinyi Glass (868) 37%, CM Bank (3968) 36%, Ali Health (241) 36%, Xioami (1810) 36%, Bidu (9888) 36%, Hansoh Pharma (3692) 35%, Power Assets (6) 34%, Sunny Optical (2382) 34%, CLP (2) 34%, HSBC (5) 34%, Trip com (9961) 34%, China Overseas (688) 33%, NTES (9999) 33%, CATL (3750) 32%, SHKP (16) 31%, China Shenhua (1088) 30%, Geely Auto (175) 30%

PetroChina (857) 29%, CSPC (1093) 29%, AIA (1299) 29%, Xinyi Solar (968) 28%, China Res Land (1109) 28%, Ping An (2318) 27%, ICBC (1398) 27%, Wuxi Bio (2269) 26%, Kuaishou (1024) 26%, JB Logistics (2618) 26%, Lenovo (992) 25%, Chalco (2600) 25%, Link REIT (823) 25%, Baba (9988) 25%, China Life (2628) 25%.

WATCH
ByteDance adjusted its option price for current employees from USD229.5 per share to USD241.35 per share, representing an increase of about 5.1%. This marks ByteDance’s second option price adjustment this year. The previous adjustment was made in Apr this year, when the option price for current employees was raised from USD200.41 per share to USD229.5 per share.

The tender for Tuen Mun Area 16 Station Package Two Property Development of MTR CORPORATION (00066.HK) has been closed for submission today (2nd), with a total of four developers and/or consortiums submitting bids. MTR CORPORATION said it will carefully consider the tenders received and announce the tender results at a later stage. According to on-site information, the four bids were submitted by HENDERSON LAND (00012.HK), CK ASSET (01113.HK), KERRY PPT (00683.HK) and SHK PPT (00016.HK). Among them, HENDERSON LAND and SHK PPT submitted bids independently. The project is adjacent to the under-construction Area 16 Station on the Tuen Mun South Extension line. It has a total GFA of approximately 3.026 million square feet, of which the residential GFA cap is about 2.69 million square feet. The project is expected to provide around 5,510 units. MTR CORPORATION Property and International Business Director David Tang said that MTR will review the market situation and plans to launch two projects, each offering about 1,000 units, for tender in the next three to four quarters.

The new energy industry project of BYD COMPANY (01211.HK) located in the Yaojiagang Chemical Park is set to commence production soon, according to news from the Zhijiang Municipal People’s Government. The project involves a total investment of RMB372 million and covers an area of approximately 80 mu, mainly for the construction of production lines with annual capacity of 120,000 tonnes of electrolyte and new energy materials. Upon full completion and commencement of operations, the project is anticipated to generate annual output value of RMB1.5 billion.

Wednesday’s closings in EUROPE and US
DAX -0.5%, CAC -0.26%, FTSE -0.3%
Markets opened lower and trended lower as US/Iran tensions escalated pushing oil prices initially higher and Global bond prices remained under pressure.

Nokia -0.84% is set to rejoin the Stoxx 50 later this month, with Volkswagen -3.76% likely to lose its place in Europe’s blue chip index.

Leaders relative: Travel & Leisure, Banks and Healthcare
Laggads: Retail, Media, Utilities and Construction

DOW 0.56%, NDX 0.45%, S&P 0.46%, Russel 2K 1.13%
Markets opened higher, snapping the 3 day losing streak. Dow worked better in the first hour but then drifted lower into lunch before working slightly better in the afternoon. NDX rallied in the first hour and then trading sideways in choppy trading. S&P again rallied in the first hour but then trended slightly lower in choppy trading.

Private U.S. companies added jobs at a slightly slower-than-expected pace in August (38,000), with gains concentrated heavily in health care and a few other industries, ADP reported Wednesday. That was fewer than the upwardly revised 46,000 in July and below the Dow Jones consensus estimate for 47,000.

The Beige Book of economic activity, said the economy grew ‘modestly’ and business contacts reported that employment also “rose very slightly overall” while prices “increased moderately,” through one of 12 districts said there were “robust increases.” “The general outlook for the coming months was positive, but sentiment was mixed across sectors, with contacts reporting heightened uncertainty surrounding the effects of higher energy prices, policy, and international conflict,” the report stated

10 or 11 sectors in the green lead by Materials with only Real Estate in the red.

Dell 15.8% continued to rally after good earnings and outlook announced aftermarket on Tuesday. But stock selling down -5.2% in aftermarket as Broadcom and HP Enterprise numbers disappoint.

Nvidia 3.2% on M&A news, looking to buy AI startup Hugging Face

Chevron 0.35% looking to invest more more than $7 billion through 2031 into Venezuela; saying now it is safer than before. The plan aims to double crude production in Venezuela to nearly 600,000 barrels per day.

GE Vernova 2.6% signed a formal agreement with Venezuela to rebuild, modernize, and expand the country’s dilapidated electric power grid; it is estimated to need at least $25b of investment.

Uber 1.6% after announcing that it was cutting its work force by 10%

Leaders: Materials, Communication Services, Healthcare, Financials
Laggads: Utilities, Consumer Staples, Real Estate, Energy

Banks JPMorgan Chase 0.36%, Citigroup 1.36% Wells Fargo 2.56%, Amex 1.79%
Ecommerce Meta 2.47%, Apple -0.05%, Amazon 0.02%, Netflix 2.38%, Disney 1.66%, Zoom Comms 1.01%, Alphabet 0.53% and Microsoft -0.84%
Tech NXP Semi 2.74%, Nvidia 3.21%, Micron 2.43%, AMD -0.55%, Skyworks 6.32%, Intel 1.21%
Industrial/Discretionary Boeing 1.56%, Caterpillar 1.68%, Simon Property -0.79%, Kohl’s 7.8%, Gap 0.27%, United Airlines 3.56%, Carnival 2.2%, Wynn Resorts 1.02%
Healthcare Eli Lilly 0.01%, UntiedHealth 0.85%, Johnson & Johnson 1.48% Merck 1.19%
Auto Ford 2.17%, GM -0.89%, Tesla 0.26%
Energy Chevron 0.35%, Exxon Mobil -0.24%, ConocoPhillips 3.69%
Consumer Staples Campbell Soup 0.3% General Mills -1.24%, JM Smucker 0.02%
Buffet’s Top Five Retirement Stocks Coca Cola 0.27%, Apple -0.05%, Johnson & Johnson 1.48%, Proctor & Gamble 0.98%, Berkshire 0.58%

DAILY US CLOSING DATA
USD stronger traders are now pricing in a 68% chance of a September Fed hike, up from circa 40% a week earlier, according to CME Group’s FedWatch tool.
Bitcoin 0.04% at $77,298.40
VIX -6.98% at 15.2
US Bonds T10 down more than 1 bpts to 4.78%, T2 down more than 2 bpts at 4.369% and T30 down less than 1 bpts at 5.259%
OIL Brent 1% at $95.63, WTI 1% at $91.01 on the escalation of military action between the US and Iran.
Spot Gold 1.1% Silver 1.6%, Copper -0.02% Platinum 1.8%, Palladium 2.4%.

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US/Iran tensions elevated as US forces hit Iranian missile launch sites. Retaliation has already started. That is likely to keep oil prices high. Whilst Trump hopes that action in Venezuela to take control of their oil fields and renovate their refining facilities; although that could take up to 5 years. Plus the action has already been denounced by many.

At the same time tensions between the US and Canada remain tense which will be bad for both countries. At the same time Iceland voted ‘No’ to resuming membership negotiations with the EU, final referendum results showed yesterday, dealing a blow to Brussels which had been keen to welcome an affluent member. In a vote held on Saturday, 52.8 percent of Icelanders rejected the resumption of EU entry talks suspended 13 years ago, while 47.2 percent voted ‘Yes,’ according to the official tally published by RUV, the public broadcaster.

Other key data this week includes; Intererst Rate Decisions from New Zealand and Malaysia. Lots of PMI data, Retail Sales, Industrial Production (Japan & S Korea), Inflation data (Australia, S Korea, Philippines, Vietnam, Eurozone, Germany). Then the main event the US Jobs data but ahead of that ISM data and more.

Today we get India’s Q1 GDP data expected to show robust growth of around 7.2% YoY vs7.8% Q4 2025. The world’s sixth-largest economy is proving resilient, partly because the government has capped prices charged by state-owned refineries and subsidised fertiliser.

There will be a focus on Apple as the new CEO John Ternus takes up the reins on September 1, with Apple to set to announce its new products on 9 September.

Earnings
Monday
Waypoint REIT (WPR), Boss Energy (BOE), EVT Limited (EVT), Michael Hill (MHJ), Monash IVF
Z.AI (02513.HK), BLACK SESAME (02533.HK), HORIZONROBOT-W (09660.HK), ZHONGSHENG HLDG (00881.HK), MELCO INT’L DEV (00200.HK), CHINA TRAVEL HK (00308.HK), INGDAN (00400.HK), REMT (00601.HK), FULLSHARE (00607.HK), MICROPORT (00853.HK), BIOSYSEN (01355.HK), CHINA CINDA (01359.HK), VESON HLDG (01399.HK), ASCLETIS-B (01672.HK), CITIC FAMC (02799.HK), PATEO (02889.HK), AGILE GROUP (03383.HK), YONGDA AUTO (03669.HK), UNITED LAB (03933.HK), EVERG SERVICES (06666.HK), ANGELALIGN (06699.HK), SUNMI TECH-W (06810.HK), SUNSHINE PHARMA (06887.HK), JF SMARTINVEST (09636.HK), LEADS BIOLABS-B (09887.HK)

Tuesday
Bunzl plc (LON: BNZL) – Half Year results
Dell Technologies Inc. (DELL.US), Palo Alto Networks, Inc. (PANW.US) Medtronic plc. (MDT.US);
SINO LAND (00083.HK) , NIO-SW (09866.HK), SUNEVISION (01686.HK)
IPO debut: Shein-W (00625.HK), Mech-Mind Robotics (09615.HK)
Wednesday
Broadcom Inc. (AVGO.US), Hewlett Packard Enterprise Company (HPE.US), Snowflake Inc. (SNOW.US)
Thursday
SMARTONE TELE (00315.HK)
M&G plc (LON: MNG) – Half Year results
Grafton Group plc (LON: GFTU) – Half Year results
Hilton Food Group plc (LON: HFG) – Half Year results
Alfa Financial Software Holdings (LON: ALFA) – Half Year results
Safestore Holdings plc (LON: SAFE) – Q3 Trading update

As we move into September; we will move from earnings to the payment of dividends and ex-dividend dates.

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Housekeeping
On Monday morning I will be on RTHK’s Money Talk with James Ross hosting and other guest Chi Lo, Senior Market Strategist APAC at BNP Paribas Asset Management

If there is a topic you would like discussed; then let them know or drop me a message, or if you just want to listen to the programme, click the link https://gbcode.rthk.hk/TuniS/www.rthk.hk/radio/radio3/programme/money_talk

Thursday afternoon I was on RTHK’s the Close with host Nitin Dialdas and we discussed Nvidia’s results, China’s focus on robotics and HK housing.
If you have a topic you would like discussed next week then please message me or contact them via WhatsApp +852 6899 8518 or via the link below, which can also be used to listen to the programme.
click the link https://www.rthk.hk/radio/radio3/programme/the_close

Latest thoughts from Market Thinker - challenging the narrative. Operational Leverage, not financial leverage. Memory Stocks have reminded us of the potential returns from cyclical stocks...but there are other examples as well.

Notes If the high fixed costs also mean that competition is limited, at least in the short to medium term, the excess returns can make for a highly attractive investment and this simple maths has long been behind the cyclical waves of investment into commodity related stocks.

Well worth a read.

Market opening indications and data due
New Zealand
NZX 50 opened higher and tested to 13,800 initially and then tested higher but seeing resistance at 13,820. Currently easing back and looking for support up 27pts 0.2% at 13,796
Earnings
New Zealand Rural Land Company (NZL): Will host its postponed HY26 interim financial results investor webinar at 2:30 PM NZST.
Me Today Limited (MEE): Scheduled to file its audited FY26 full-year earnings results after projecting a revenue increase of over 36%.

Corporate Action
Heartland Group Holdings (HGH): Formally submitting its high-profile merger implementation application to the Reserve Bank of New Zealand (RBNZ) following a successful TSB acquisition vote

On Friday the NZX opened higher and tested 14,000 but failed to beak out and then trended lower for the rest of the day and ticked lower into the close, to finish -112pts -0.81% at 13,768.18 after mixed earnings and rising government bond yields.

Leaders
Summerset Group Holdings (SUM) 7% after an exceptionally strong annual earnings report highlighted by major net profit jumps and optimized cash flows.
Sky Network Television (SKT): 7.4% after a stellar financial disclosure that showed its net profits more than doubled.
Channel Infrastructure (CHI): 3.4% ahead of its anticipated earnings release. Investore Property (IPL): 2.%
Laggards
Spark New Zealand (SPK): -2.3% impacted by broader operational tailwinds affecting the country’s major telecom giants.
Infratil (IFT): -1.3% after a major corporate structural announcement: its subsidiary, One New Zealand, plans to spin off its mobile access network into an independent entity co-owned alongside competitor 2degrees.
Precinct Properties NZ (PCT): -1% Led a broad real estate rout after reporting in-line structural earnings but tracking flat, unchanged forward-looking dividend outlooks.
Fisher & Paykel Healthcare (FPH) -0.16% and transport giant Freightways Group (FRW) -0.72%

Data due out lunchtime (Local) Monday
Business Confidence Aug vs 56.1 Jul (F/cast is 55.7)

Australia
ASX futures indicate the market to open -36pts. -0.4% at 9,009 with miners mixed and tech under pressure. But likely to see support from energy and financials.
Earnings include
West African Resources Ltd (ASX: WAF): Reporting earnings/H1 results.
Monash IVF Group Limited (ASX: MVF): Rescheduled FY2026 financial results release following audit delays.
Ex Dividend
Ansell Ltd (ASX: ANN), Iluka Resources Ltd (ASX: ILU), Pinnacle Investment Management Group Ltd (ASX: PNI),
Aurizon Holdings Ltd (ASX: AZJ) will be paying a 10.5 cents per share dividend to shareholders next month on 23 September.

On Friday the ASX 200 opened higher and trended higher in choppy trading to close up 47.3pt 0.52% at 9,085.5 rebounding from Thursday’s sell-off; the worst in three months. Banks stabilised, Tech rebounded and there was support from solid corporate earnings. Upside capped by ex- dividend pressure (including Beach Energy and Orora).

Leaders: Info Tech, Consumer Staples and Healthcare
McMillan Shakespeare (MMS): 6.93% after posting a record profit driven by strong margin expansion and a hefty dividend yield upgrade.
Laggards: Financials, Real Estate, Consumer Discretionary, Industrials, and Communication Services
Data out 60 minutes after the open Monday
Inflation Gauge Aug MoM vs 1% Jul (F/cast is 0.4%)
Business Inventories Q2 QoQ vs 0.5% Q1 (F/cast is 2.2%)
Company Gross Profits Q2 QoQ vs -1.3% Q1 (F/cast is 1.5%)
Housing Credit Jul MoM vs 0.6% Jun (F/cast is 0.5%)
Private Sector Credit Jul MoM vs 0.8% Jun (F/cast is 0.7%)
Private Sector Credit Jul YoY vs 8.5% Jun (F/cast is 8.5%)

Japan
Nikkei Futures indicate -620pts -0.93% at 65,830
Yen 160.08. trading 160.14 in early trades.

On Friday the Nikkei opened higher and worked better in the morning and then eased back in the afternoon. Core Tokyo CPI came in lower than expected although Ex Food & Energy was in line. Unemployment dipped t0 2.4%
Leaders Information Technology, Software, and Semiconductor-related shares led the advance. Automakers also posted solid gains.
Laggards Electric Equipment & Components, Industrial Machinery, Automotive Support / Materials.
Data out pre market Monday
Industrial Production prelim Jul MoM vs 1.9% Jun (F/cast is -0.5%)
Industrial Production Jul YoY vs 4.9% Jun (F/cast is 3%)
Retail Sales Jul MoM vs -4.1% Jun
Retail Sales Jul YoY vs 0.5% Jun
Lunchtime
Consumer Confidence Aug vs 34.9 Jul (F/cast is 35)
Housing Starts Jul YoY vs 18.6% Jun (F/cast is 22%)
Construction Orders Jul YoY vs 2.3% Jun (F/cast is 5%)

S Korea - No Data Scheduled
Kospi Futures indicate market opening -3.8pts -0.36% at 1,064 but expect more downside after mixed data out pre market.

The Kospi on Friday opened lower, ticked higher initially but then trended lower to close -1.72% at 6,793.21 snapping a three day rally. The market saw rotation out of Tech, with caution ahead of Fed Chair Warsh’s keynote Jackson Hole speech today in the US.
Trade volume was light at 287.6 million shares worth 19.9 trillion won ($14.5 billion). Winners outnumbered losers 638 to 237.
Foreign and institutional investors were net sellersg of a combined 2 trillion won. Retail investors snapped up a net 424.36 billion won.
The Korean won was quoted at 1,372.5 won against the US dollar, up 8.4 won from the previous stock trading session.
Leaders Insurance, Construction, Utilities and Small-Cap Industrials.
Kumho Electric: 20.56% surge to lead the electrical and small-cap manufacturing components. Kumho Industrial: 10.89% Hanwha Life Insurance: 8.21%
Laggards Information Technology (Semiconductors) and Electronic Materials
Samsung Electronics -3.2% and SK Hynix -2%

Data out pre market Monday
Industrial Production Jul 0.2% MoM vs 6.4% Jun (F/cast is -1%)
Industrial Production Jul 3.6% YoY vs 5.8% Jun (F/cast is 5%)
Retail Sales Jul -2.4% MoM vs 2.7% Jun (F/cast is -2%)
Later
2-Year KTB Auction vs 3.68% prior

Taiwan - No Data Scheduled
Taiex futures indicate market to open -457pts -0.99% at 45,900

On Friday the Taiex opened higher dipped initially then worked better before drifting lower to close up 356.23 pts, or 0.77%, at 46,331.45 on turnover of NT$1.02 tn (US$32.29 bn) vs NT$924.68 bin (US$29.05 bn) Thursday
Leaders Glass, Optoelectronics, Electronic Technology, and Financials
Laggards Automation & Industrial Machinery, Non-Ferrous Process Materials, Building Materials, Food & Beverage, and Retail
Data could get
Consumer Confidence Aug vs 64.58 Jul (F/cast is 65)

China
Golden Dragon Index closed up 26.9pts 0.44% at 6,210.91
FTSE A50 futures -46pts, -0.31% at 14,663
MSCI A50 Connect (USD) futures -8.4pts -0.31% at 2,707.2

On Friday the A shares opened slightly lower but traded most of the day around flat. Friday marked a massive corporate reporting deadline for China’s massive SOE banking sector and major consumer giants: meant investors remained cautious about the outlook for the economy. Tech/AI remained under pressure. Production and logistical networks faced notable headwinds from recent severe weather and multiple typhoons, which depressed regional factory sentiment and disrupted localized supply chains.
Trading volumes increased to 2.1T yuan ($312.7B) vs 2.13T yuan ($314B) Thursday
Leaders Agriculture and forestry (planting, forestry, fertilizers, and agrochemical products).
Laggards Medical services and biological products
At the close
Shanghai Composite: -4pts -0.11% at 3,952
Shenzhen Component: -95pts -0.68% at 13,953
CSI 300 (Blue Chips): -0.46% at 4,609.18
ChiNext Index (Growth Board): -48pts -1.41% at 3,42
STAR 50 Index (Sci-Tech):
The PBOC conducted RMB20 billion of 7-day reverse repos Friday (28th) at an operating rate of 1.4%, and also carried out RMB333 billion of overnight reverse repos. Meanwhile, RMB598.5 billion of reverse repos matured, resulting in a net liquidity withdrawal of RMB245.5 billion in a single day.
USD/CHN 0.01198bpt 0.18% at 6.7313
RMB spot against USD closed down 5 bps Friday (28th) at 6.7204 against USD. As of 4:58 pm, RMB night trading fell 3 bps; offshore RMB dropped 15 bps to 6.7200 against USD, representing a 4 bps discount to the onshore rate.
Data due on the open Monday
PMI’s
Manufacturing Aug vs 49.2 Jul (F/cast is 49.9)
Non-Manufacturing Aug vs 49.0 Jul (F/cast is 50.4)
General Aug vs 49.3 Jul (F/cast is 50.2)

Hong Kong
ADR’s closed -63.83pts -0.25% at 25,604; in the green were HSBC, CLP, SHKP, AIA, Baba, Xiaomi and Meituan. In the red were CCB, ICBC, HK EX, Bank of China and Bank of China HK, Tencent and CK Hutch.

Hang Seng Futures indicate 74pts 0.29% at 25,471.5
Turnover Friday HK$231.209B vs HK$233.51B Thursday
Short Selling Friday 21.9% vs 21.6% Thursday

On Friday it was stock futures settlement day, the HSI opened lower but worked better through the morning but then drifted lower in the afternoon. Caution ahead of Fed Chair Warsh’s speech. Moderate gains in market heavyweights like Tencent, alongside advances in materials, gold, software, and oil counters helped keep the benchmark index just above the flatline
HSI closed up 19pts 0.1% at 25,584
Hang Seng Tech Index -15pts -0.33% at 4,605
Hang Seng China Enterprises Index at 8,490
Leaders; Software & Software‑as‑a‑Service (SaaS) (Kingdee Int (0268.HK) +6.23%, and Meitu (1357.HK) +7.05%). Precious Metals & Gold. Energy & Petrochemicals and Banking
Laggards: Technology/Hardware and Property
Data due after market
Retail Sales Jul YoY vs 2.3% Jun (F/cast is 3%)

Macau - No Data Scheduled

Singapore - Data Scheduled after the open Monday
Bank Lending Jul vs S$931.4B Jun (F/cast is S$950B)
Export Prices Jul YoY vs 12.7% Jun (F/cast is 12%)
Import Prices Jul YoY vs 13.6% Jun (F/cast is 13.4%)
PPI Jul YoY vs 30.3% Jun (F/cast is 28.5%)
On Friday SGX stocks closed -37.5 pts -0.65% at 5,684.13; having traded in a tight range.

Malaysia - No Data Scheduled
Indonesia - No Data Scheduled

Philippines - No Data Scheduled
On Friday Balance of Trade was worse than expected as imports remained high as exports receded. PPI at 3% was inline

Thailand - Data Scheduled after lunch Monday
Current Account Jul vs $-3.5B Jun (F/cast is $-3B)
Private Consumption Jul MoM vs 1.1% Jun (F/cast is 0.2%)
Private Investment Jul vs 0.5% MoM Jun (F/cast is 0.1%)
Retail Sales Jul YoY vs -14.5% Jun (F/cast is -12%)

Vietnam - No Data Scheduled
Cambodia - No Data Scheduled
Myanmar - No Data Scheduled

India - Data Scheduled Monday after market
GDP Growth Rate Q2 YoY vs 7.8% Q1 (F/cast is 7.2%)
Government Budget Value Jul vs INR -3078B Jun (F/cast is INR -7000B)

Out Friday after market
Industrial Production Jul 6.7% YoY vs 7.3% Jun (F/cast 5.7%)
Manufacturing Production Jul 7.3% YoY vs 7.8% Jun (F/cast 5.5%)
Bank Loan Growth 15 Aug 18.3% vs 19.3% prior
Deposit Growth 15 Aug 14.7% vs 15.4% prior
Foreign Exchange Reserves 21 Aug $729.33B vs $716.91B prior

Europe
Eurozone - No Data Scheduled
Germany - Regional CPI Data, Inflation Rate & Harmonised Inflation Rate
France - 12-Month, 3-Month and 6-Month BFT Auctions
United Kingdom - No Data Scheduled

United States
Futures opened Dow -74pts -0.14% S&P -0.18%, NDX -0.16%
Data Scheduled: Dallas Fed Manufacturing Index, 3-Month and 6-Month Bill Auction

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HEADLINES & NEWS
NEW ZEALAND & AUSTRALIA
A leaked recording of Star Entertainment Group’s most senior executives has captured its Sydney casino boss and the firm’s chief executive complaining of the risk and compliance measures forced onto the scandal-ridden firm by regulators.

Australia’s financial watchdog says insurance companies are increasingly settling claims on home damage with cash payouts that are sometimes so low they won’t fund the repairs disaster-stricken customers need.

Australia demands ‘high bar’ for data centres seeking fossil fuel power Energy Minister Chris Bowen has set high expectations for states to bypass green power rules for data centres, hoping to keep fossil fuels out of the sector.

JAPAN
US Treasury Secretary Scott Bessent said disorderly moves in the yen could trigger “forced unwinds” of positions that risk destabilizing global markets and ultimately raising ​borrowing costs for U.S. households and businesses. Bessent made the comments in ‌a letter dated August 27 and posted on his X account a day later in response to Democratic Senator Elizabeth Warren’s demand for an explanation of Washington’s joint currency intervention ​with Tokyo last month. The post came as the yen resumed weakening against ​the dollar despite expectations the Bank of Japan could raise interest ⁠rates in the near term. Japan and the United States carried out a ​rare joint yen-buying intervention on July 31, signaling their determination to prevent a selloff in ​the yen and Japanese government bonds from spilling over into global markets. While the yen has recovered from a 40-year low near 164 per dollar hit last month, it has weakened ​back towards 160 after surging to 155.20 shortly after the intervention.
The currency briefly ​slipped below the 160-per-dollar level on Friday, a threshold widely seen as increasing the likelihood ‌of ⁠intervention, after comments from Federal Reserve Chair Kevin Warsh revived expectations of a near-term US rate hike. In the letter, Bessent said the Treasury conducted the intervention by exchanging foreign-currency assets held in its Exchange Stabilization Fund (ESF) for yen.

Japanese authorities spent a ​record 15.4 trillion yen ($96.5 billion) intervening in foreign exchange markets over the past month to support the ‌local currency, Finance Ministry data showed on Friday. The size of the intervention shows the level of Tokyo’s resolve to pull the yen away from four-decade lows, with currency weakness threatening profits at Japan’s heavyweight exporters and pushing up import costs, including ​for energy. Japan imports almost all its energy, with 95% of that coming from the Middle East, ​exposing it to supply disruption caused by the Iran war. But the relatively slow pace of Bank ⁠of Japan policy tightening has kept Japan’s interest rates low compared with markets such as the U.S., ​encouraging investors to continue funding global trades with cheap yen. The BOJ held rates steady at its last meeting in July, ​although policymakers have signalled a willingness to step up the pace of tightening, and markets assign 65% odds to a hike at the next meeting in September. Friday’s Finance Ministry data gives a total for the period ​spanning July 30 to August 26. A detailed daily breakdown will not be available until quarterly figures are ​released, probably in early November.

Japan’s finance minister and central bank governor will attend today’s U.S.-hosted meeting of finance ‌chiefs from the Group of 20 major economies, setting the stage for renewed debate over policies to reverse a stubbornly weak yen. Policymakers from G20 economies gathering in the city of Asheville, North Carolina are set to debate the global economic fallout from the Middle East war, ​U.S. calls for fresh sanctions against Iran and the thorny topic of global imbalances.

SOFTBANK GROUP (9984.JP) is seeking a two-year USD10 billion loan to help refinance borrowings related to its investment in OpenAI. The loan is reportedly priced at the Secured Overnight Financing Rate (SOFR) plus 275 bps. Mizuho Bank is acting as mandated lead arranger and bookrunner, with the commitment period expiring on August 31. Part of the loan proceeds will be used to repay the USD40 billion bridge loan that SoftBank obtained earlier this year for its investment in OpenAI.

TOYOTA MOTOR (7203.JP) said its global vehicle sales in July fell 4.8% YoY to 856,100 units, while production also declined 2.1%, dragged down by weaker sales in China, the US and the Middle East.During the period, sales in the China market plunged 24.3%, marking the sixth consecutive month of decline, mainly due to rising gasoline prices. Meanwhile, Toyota’s sales in the US and the Middle East also fell 0.8% and 44.5%, respectively, offsetting an 11% increase in Japan. Toyota’s production in China dropped sharply by 32.7% in July, while production in the US also decreased 4%. Production in Japan, however, rose 12.4%. In addition, Japan’s export volume increased 10.2% YoY to more than 196,000 units, marking the third consecutive month of growth and reaching the highest level since October.

Honda Motor (7267.T) and Nissan Motor (7201.T) are ​expected to agree as soon ‌as Monday on developing a shared operating system and onboard computer to go ​into new automobiles as early ​as 2029, the Nikkei newspaper reported ⁠on Saturday. Honda told Reuters that the ​Japanese automaker was discussing “potential areas of ​collaboration” with Nissan and Mitsubishi Motors (7211.T), opens new tab under their strategic partnership but that no deal ​had been decided.

SOUTH KOREA
President Lee Jae Myung reshuffled his Cabinet on Sunday, replacing six ministers as he moved to reset his administration for its second year. The shake-up also filled months long vacancies in key presidential AI posts, and a new presidential aide position dedicated to coordinating the Lee administration’s flagship megaprojects in semiconductors and AI. The Cabinet changes included new leadership at the defense and justice ministries. For defense minister, Lee nominated Kang Shin-chul, a retired four-star general who has served as South Korea’s ambassador to Saudi Arabia since January, presidential chief of staff Kang Hoon-sik said at a press briefing.

Deputy Prime Minister and Finance Minister Koo Yun-cheol nearly canceled his trip to the United States on Sunday after learning at the airport that he would be replaced in a Cabinet reshuffle. He ultimately boarded the flight as scheduled, concluding that he remained responsible for official duties until his successor took office. Koo departed from Incheon Airport on Sunday morning to attend the G20 Finance Ministers and Central Bank Governors Meeting in Asheville, North Carolina, scheduled for Monday and Tuesday. While waiting to board, Koo was informed that he was among the officials being replaced in the reshuffle and initially moved to cancel the trip. The presidential office announced around 11:30 a.m. that First Vice Finance Minister Lee Hyoung-il had been nominated as his successor. Koo nevertheless decided to proceed with the trip, as he remains responsible for official duties until his successor is formally appointed.

Bank of Korea Gov. Shin Hyun-song said the won had become more resilient to external shocks and that South Korea’s planned investment in the United States should have a manageable impact on the currency. “We have gained some control over the exchange rate and are well prepared for whatever shocks may come,” Shin told reporters Friday after attending the Jackson Hole Economic Policy Symposium in Wyoming for the first time as BOK governor. He cited the BOK’s recent preemptive rate increase and pointed to the fall in the won-dollar exchange rate despite a stronger dollar index as evidence of the currency’s resilience.

South Korea has launched its first government-backed container ship voyage through the Arctic in a decade, testing whether a route 35 percent shorter than the Suez Canal passage can become commercially viable despite high operating costs, limited cargo and geopolitical risks. The PanStar Acro departed Busan New Port on Aug. 22 carrying 737 twenty-foot-equivalent units of cargo. It will travel through the Northern Sea Route and call at Felixstowe in Britain, Rotterdam in the Netherlands and Gdansk in Poland before returning to Busan. The round trip is expected to take about 45 days.

SK Chemicals is positioning its polyester resin business to capture new opportunities in Europe’s can-coating market as tighter restrictions on bisphenol A take effect in the European Union. The new regulation, which came into full force in July, is expected to accelerate the replacement of BPA-based epoxy coatings that have traditionally been used to prevent corrosion and protect food and beverages from direct contact with metal. Polyester-based coatings have consequently emerged as a leading alternative because they have good adhesion and chemical and heat resistance.

Day traders abandoning S Korean leveraged ETFs as Seoul’s mandatory mock trading course adds to other measures that aim to deter investors from trading the products, which have been effective An onerous mock trading course is becoming an effective tool for South Korea to cool investor fervor over risky products that have turned the country’s US$4.3 trillion stock market extremely volatile. Leveraged exchange-traded funds (ETFs) targeting twice the daily returns of chipmakers Samsung Electronics Co and SK Hynix Inc have seen their trading value collapse to 4 percent of its June peak and are set for their first monthly outflow. Key to sapping demand has been a series of regulatory tightening moves, most recently a rule to complete five-day simulated trading. Investors must download a Windows-only program on PCs and spend at least one hour a day learning the ropes — and the risks — of leveraged trading with virtual cash.

North Korea’s defense minister has been dismissed as part of a reshuffle of the country’s military leadership, state media reported yesterday. The “structural reorganization plans” were decided during a meeting on Saturday led by North Korean leader Kim Jong-un, the Korean Central News Agency (KCNA) said.

No Kwang-chol was not only dismissed as defense minister, but also demoted in the ruling party leadership to “first vice-director of the Munitions Industry Department,” KCNA said.

TAIWAN
The US backed Taiwan’s continued participation in the Pacific Islands Forum (PIF) as Taiwan and associated countries sent senior delegations to the summit this week. The 55th PIF Leaders Meeting is being held from today to Friday in Koror, Palau, with presidents and high-level officials from Pacific nations including the Marshall Islands, Tuvalu, New Zealand, Australia and Fiji expected to attend. Minister of Foreign Affairs Lin Chia-lung is leading a delegation to Palau, which maintains diplomatic relations with Taiwan, from Thursday last week to Thursday this week to attend events related to the leaders’ meeting and hold sideline talks.

The Mainland Affairs Council (MAC) urged Taiwanese to exercise caution when considering trips to China after a Taiwanese man was allegedly questioned for six hours in Shanghai over past work with Amnesty International. The council on Saturday said in a report that 426 Taiwanese have gone missing or been detained or had their freedom of movement restricted in China since Jan. 1, 2024. The figure is up by seven from the previous week. New Chinese entry and exit regulations are due to take effect on Sept. 15, the council said.

TSMC has increased its Q2 employee bonuses by more than 50% YoY as the world’s largest contract chipmaker posted record earnings in the three-month period. TSMC distributed its second-quarter bonuses to employees on Friday. Employee bonuses for the April-to-June period totaled NT$36 billion (US$1.14 billion), the chipmaker’s financial data showed.

Silicon photonics and copackaged optics (CPO), technologies seen as critical to meeting the surging bandwidth demands of artificial intelligence (AI) infrastructure, would be among the main themes at the Semicon Taiwan trade show, which opens on Wednesday, event organizer SEMI said yesterday. The forum runs until Friday at the Taipei Nangang Exhibition Center, with technical forums beginning today.The event is expected to set a record in terms of the number of participants, SEMI said, projecting more than 1,300 exhibitors from 65 countries across 4,300 booths and more than 100,000 attendees. Optical interconnects underpinning AI infrastructure would be one of the highlights, with contract chipmaker TSMC compact universal photonics engine (COUPE) platform and the industry’s progress toward mass CPO production expected to draw attention, it said. With AI chips, high-performance computing processors and high-bandwidth memory (HBM) demanding faster data transmission, conventional electrical interconnects are increasingly giving way to optical communications to boost AI data center efficiency, SEMI said. The industry is moving beyond chip-level speeds to upgrading rack-to-rack links, as copper interconnects near their limits in bandwidth, power consumption and transmission distance, it said. Silicon photonics, which uses optical rather than electrical signals, could cut power consumption and data transfer costs, making this a key year for large-scale deployment, SEMI said.

CPC Corp, Taiwan on Saturday announced that it would leave domestic gasoline and diesel prices unchanged this week, with Formosa Petrochemical Corp yesterday saying it would do the same. It is the fifth consecutive week that CPC and Formosa have kept domestic crude oil prices steady under the government’s price stabilization measures. Retail gasoline prices this week remain at NT$30.5, NT$32 and NT$34 per liter for 92, 95 and 98-octane unleaded gasoline respectively at CPC and Formosa stations. Prices of premium diesel would stay at NT$29.3 per liter at CPC stations and NT$29.1 per liter at Formosa pumps, they said.International crude oil prices last week ended lower despite apparent stalling in diplomatic efforts to end the war between the US and Iran, and a deal to reopen the Strait of Hormuz remaining uncertain.CPC said its floating price mechanism, based on a weighted average of 70% Dubai and 30% Brent crude, showed that the average international crude oil price fell to US$91.56 last week from US$93.01 per barrel in the week before.

Taiwan’s population is projected to shrink by almost half over the next five decades, intensifying labor shortages and placing a growing drag on economic growth as the technology-intensive economy confronts a rapidly aging workforce. The population is expected to fall to 12.15 million by 2075, a 48 percent decline from this year, National Development Council projections released yesterday showed. The decline would fundamentally alter Taiwan’s workforce. From 2037, more than half of the working-age population is projected to be aged between 45 and 64, signaling the end of an era when the economy could rely on a relatively large labor force.

CHINA
China on Friday removed two senior military officers ‌from its supreme military command body, the state Central Military Commission, state-run Xinhua reported, following investigations over suspected serious violations of discipline and law. The removal of Zhang Youxia and Liu Zhenli leaves just two active ​members on the formerly seven-member commission, including President Xi Jinping himself. Zhang was second-in-command ​under Xi as vice-chairman of the Central Military Commission (CMC) and a member ⁠of China’s elite Politburo. Liu was a CMC member and chief of staff of ​the CMC’s Joint Staff Department.

China’s National Development and Reform Commission announced that since the domestic refined oil price adjustment on August 14, international crude oil prices have fluctuated. The average price over the first 10 working days for this round of pricing adjustment was higher than the average price over the 10 working days prior to the previous adjustment. Based on changes in international oil prices, domestic gasoline and diesel prices (standard products) will be raised by RMB375 and RMB360 per tonne respectively from 24:00 on August 28.

China’s Ministry of Finance announced that Vice Minister of Finance Liao Min held a video call in Beijing on August 24 with US Treasury Deputy Secretary for International Affairs Erin Browne to exchange views on the global economic situation, as well as China-US cooperation under the financial tracks of the G20 and APEC.

The 24th session of the Standing Committee of the 14th National People’s Congress Friday (28 Aug) voted to pass the Medical Security Law, which will take effect from Jan 1 next year. The law consists of 7 chapters and 56 articles, covering general provisions, the medical security system, medical security funds, medical security services, supervision and administration, legal liabilities, and supplementary provisions. The formulation of the Medical Security Law aims to safeguard citizens’ legitimate rights and interests in medical security, regulate medical security relations, optimize medical security services, improve the multi-level universal medical security system, promote the high-quality development of medical security work, implement the health-first development strategy, and advance the Healthy China initiative.

In China’s hilly Guizhou Province, a cluster of European-style buildings complete with clock tower and multi-arched bridge emits a low, permanent hum — a clue to its unexpected identity as tech giant Huawei’s largest data center. The town-like complex is unique in design, but not in its placement. Dozens of data centers have been constructed in the southwestern province in the past few years. They are part of a government strategy that has seen much of the digital infrastructure for breakneck artificial intelligence (AI) development across China’s eastern seaboard established in the country’s less populated, rural west.

CXMT Corp’s first-half revenue leaped almost 10-fold while profit surged, reflecting a rush for artificial intelligence (AI) hardware that has made the memorychip maker China’s most valuable business. The Hefei-based company’s revenue expanded to 150.3 billion yuan (US$22.4 billion) in the first six months, more than double the sales it raked in across all of last year. It posted a profit of 77.6 billion yuan, compared with a loss a year earlier.

Before flood catastrophe, Nepal asked China for early warnings as risks mounted. Three months before a wall of water, mud and rock killed hundreds when it hurtled down a Himalayan valley bordering Nepal and China, experts and officials from both countries met in Kathmandu to discuss the risk of such disasters. At the May 27 meeting in Nepal’s capital, 10 officials from Nepal and about a dozen from China, including the Tibet region where the disaster struck, discussed strengthening cooperation to monitor and respond to floods, weather and glacier-related hazards, according to ​an agenda prepared by the Nepali side and seen by Reuters. The participants called for joint risk-reduction measures, including inventories of glacial lakes and hazard mapping. But two Nepali officials told Reuters they did not receive as much information as they wanted from China on glacier risks and ‌water levels after the meeting and they feared insufficient data sharing could hamper their ability to anticipate and prepare for major disasters. No officials or experts have blamed either side for the natural disaster, which will cost an estimated tenth of Nepal’s annual economic output to recover from. Nepali officials say the priority is to deepen cooperation with China.

U.S. officials are correcting earlier ‌statements that several government agencies were hacked by Chinese hackers, now saying that the organizations were among the hackers’ targets. In a newly edited statement, the Department of Justice said on Friday that the U.S. Senate, the Federal Reserve, NASA and others were “among the targets of QTFY,” a Chinese state-sponsored ​hacking group that officials identified on Wednesday during an internet domain seizure operation. A previous version of the statement, opens new tab said the government ​agencies had been among the hackers’ victims. A note left at the bottom of the newly edited ⁠statement said that “Edits have been made to ensure this press release accurately reflects the government’s allegations in the affidavit in ​support of the domain seizures.” The DOJ said on Friday it made a correction to the press release because the August 26 release “described ​all agencies as victims whereas the government’s affidavit made clear that all were targeted but only some were compromised.”

HONG KONG
HK Results see https://www.aastocks.com/en/stocks/news/aafn/latest-news

Index
HKEX (00388.HK) announced the results of the September quarterly review of the HKEX Tech 100 Index. The quarterly adjustment adopted the optimized compilation methodology announced earlier this month.

The Index will add WERIDE-W (00800.HK), PONY-W (02026.HK), VGT (02476.HK), HAIZHI TECH GP (02706.HK), MININGLAMP-W (02718.HK), XUNCE (03317.HK), INSILICO (03696.HK), ONEROBOTICS (06600.HK), 51WORLD (06651.HK) and MONTAGE TECH (06809.HK) as constituent stocks.

Stocks to be removed include ALI HEALTH (00241.HK), CHINA LIT (00772.HK), TONG CHENG TRAVEL (00780.HK), QUNABOX GROUP (00917.HK), GANFENG LITHIUM (01772.HK), EAST BUY (01797.HK), PA GOODDOCTOR (01833.HK), GIANT BIOGENE (02367.HK), XD INC (02400.HK), YIXIN (02858.HK), ZA ONLINE (06060.HK), JD HEALTH (06618.HK), BILIBILI-W (09626.HK) and NETEASE MUSIC (09899.HK).

All changes will be implemented after market close on September 11 and take effect from September 14.

Buybacks
TENCENT (00700.HK) repurchased 659,000 shares of the company on the Stock Exchange of Hong Kong Friday (28th), at prices ranging from HKD443.8 to HKD461.6 per share, involving approximately HKD300 million. Since the ordinary resolution was passed on 13 May 2026, TENCENT has cumulatively repurchased 42.7917 million shares, representing 0.46931% of its share capital.

HSI Short Selling Friday 21.8% vs 21.6% Thursday
Top shorts SHKP (16) 58%, Hengan (1044) 57%, Galaxy Ent (27) 46%, Li Auto (2015) 45%, Haidilao (6862) 44%, CM Bank (3968) 43%, Chow Tai Fook (1929) 43%, China Res Power (836) 42%, Nongfu Spring (9633) 41%, Sunny Optical (2382) 40%

Sands China (1928) 39%, Ali Health (241) 37%, Li Ning (2331) 37%, Lenovo (992) 37%, CATL (3750) 36%, CK Hutch (1) 35%, China Shenhua (1088) 34%, Beone Medicines (6160) 33%, BYD (1211) 32%, Anta Sports (2020) 31%, JD SW (9618) 31%, J&T Express (1519) 31%, Haier Smarthome (6690) 31%, HK & China Gas (3) 31%, CLP (2) 31%, PetroChina (857) 31%, MTRC (66) 30%, Sinopharm (1099) 30%, Wharf REIC (1997) 30%, China Overseas (688) 30%

Trip Com (9961) 29%, Wuxi Apptec (2359) 29%, JD Health (6618) 28%, China Hong Qiao (1378) 28%, HSBC (5) 28%, BYD Electronic (285) 28%, Bidu (9888) 27%, Link REIT (823) 27%, OOIL (316) 27%, Xinyi Solar (968) 27%, NTES (9999) 27%, BoC HK (2388) 27%, Tingyi (322) 26%, ZTO Express (2057) 26%, Meituan (3690) 26%, Midea Group (300) 26%, Citic (267) 25%, China Res. Beer (291) 25%, CKI (1038) 25%, Hung Lung Ppty (101) 25%

WATCH
Crowds flock to independent Hong Kong bookstore before shutters close. People queued on Sunday to chat, browse and bid farewell to an independent Hong Kong bookstore before it shut, following a July police raid over alleged seditious ​books and what the store owners said was a “poor business performance”. Snaking lines formed outside ‌the bookstore, Have a Nice Stay, stretching down the staircase in Hong Kong’s Kowloon district. Only 20 people at a time were allowed to enter the roughly 600 square-foot space. The city’s once-flourishing independent bookstore industry has rapidly dwindled since ​Beijing imposed sweeping national security legislation on the city in 2020. Many offered a broader range ​of political and social titles than mainstream retailers and became important spaces for ⁠civil society through book talks and workshops. “We no longer have the ability, or perhaps the courage, to ​continue fulfilling the mission of using books to share knowledge drawn from a diversity of perspectives,” it ​said in an online statement last month. Have a Nice Stay was formed in 2022 by a group of former Stand News journalists and veteran media professionals who lost their jobs following the wave of closures of independent local news ​outlets after the imposition of the security law.

BYD COMPANY (01211.HK) announced that its 10,000th flash charging station has officially commenced operation, making it the domestic operator with the largest number of self-built charging stations, the fastest to complete 10,000 charging stations, and the widest charging station coverage across China. Wang Junbao, General Manager of BYD’s flash charging business, said the 10,000 flash charging stations cover 332 cities, including 4,228 “Dream Stations”, fulfilling station construction wishes for 74,281 users. As of now, the total number of users of BYD’s flash charging stations nationwide has exceeded 1.83 million, with users from other brands accounting for nearly one-third. BYD continues to accelerate the construction of its flash charging network and plans to complete its target of building 20,000 flash charging stations in China by the end of this year. Meanwhile, BYD will build 6,000 flash charging stations overseas, with deployments already launched in Europe and the Americas.

Friday’s closings in EUROPE and US
DAX 0.77%, CAC 0.98%, FTSE 0.29%
FTSE, DAX and CAC all opened higher and traded sideways in a tight range for most of the day. The DAX rallied into the close.

French banks rebounded. French inflation came in slightly higher MoM and than forecast. Euro Zone Consumer Confidence Final -15.5 vs -15.9 prior in line with f/casts, sentiment data was mixed. German unemployment was unchanged MoM but missed forecasts.
Leaders: Auto’s, Chemicals, Consumer Products & Services / Luxury Goods
Laggads: Health Care, .Real Estate, Retail

DOW -0.02%, NDX %-0.52, S&P -0.25%, Russel 2K -1.39%
Markets opened slightly higher, on saw a mid monring rally but then sold down into lunch. The Dow then traded around flat for the rest of the day. Then NDX & S&P spent the rest of the day in negative territory.

Non Farm Payrolls annual revision prelim -79k vs -911k prior, Michigan Sentiment data final was slightly better than than forecast.

Fed Chairman Warsh’s commended on the economy “While this summer’s PCE and CPI readings were better than expected, they do not tell me that underlying trends have meaningfully improved.” He also said, “We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed. Otherwise, we have work to do. That’s our job ... our mandate ... and our charge to keep.” Bets among fed funds futures traders that the Fed will raise interest rates in September increased to 57.5% on Friday vs 35.4% Thursday.

Gap 13% after a mixed quarterly report as the retail announced a new chief executive for the struggling Old Navy brand. Marvell Technology -10% after issuing current-quarter guidance for non-GAAP gross margin that disappointed.

Workday 5.8% after Workday posted second-quarter results that topped estimates.

Salesforce 1.6% continuing its post-earnings rally.

Shares of Tyson Foods 0.09% and the meat processor JBS -0.22% off initial lows after President Donald Trump said he is “authorizing legal documents to be drawn” to allow farmers and ranchers to “PROCESS THEIR OWN FOOD.” Trump, in a Truth Social post, attacked Big Ag as a “nasty Monopoly” that he wants to break.

Wheat and corn are at a more than three-year high and soybeans sell for almost a three-year high, darkening the outlook for livestock feed and food ingredient inflation.

PayPal -12.7%, after Bloomberg reported that fintech Stripe and buyout firm Advent International have abandoned their takeover attempt of the company.

Leaders: Communication Services and Consumer Cyclical (Discretionary), Consumer Defensive / Staples and Financials:
Laggads: Information Technology and Energy

US Stocks at the close Friday
Banks JPMorgan Chase 0.96%, Citigroup 0.17% Wells Fargo 2.02%, Amex -0.29%
Ecommerce Meta 1,21%, Apple 1.63%, Amazon 2.97%, Netflix 2.35%, Disney 1.2%, Zoom Comms -1.84%, Alphabet 1.53% and Microsoft 1.68%
Tech NXP Semi -1.01%, Nvidia -4.57%, Micron -0.27%, AMD -2.33%, Skyworks -2.33%, Intel -2.85%
Industrial/Discretionary Boeing -0.03%, Caterpillar -2.05%, Simon Property -0.15%, Kohl’s -3.58%, Gap 12.94%, United Airlines %-1.59, Carnival -0.76%, Wynn Resorts 1.76%
Healthcare Eli Lilly -0.13%, UntiedHealth -0.53%, Johnson & Johnson 0.85% Merck -0.8%
Auto Ford -0.5%, GM 0.1%, Tesla -1.71%
Energy Chevron 1.05%, Exxon Mobil 0.17%, ConocoPhillips -0.04%
Consumer Staples Campbell Soup 0.47% General Mills 2.74%, JM Smucker 0.38%
Buffet’s Top Five Retirement Stocks Coca Cola 0.67%, Apple 1.63%, Johnson & Johnson 0.85%, Proctor & Gamble 0.45%, Berkshire 0.26%

DAILY US CLOSING DATA
USD strenghtened after Fed Chair Warsh’s comments about the economy.
Bitcoin 0.45% at $78,585.26 (Monday morning Asia)
VIX -0.55% at 14.43
US Bonds T10 up 5.8 bpts to 4.726%, T2 up12.8 bpts at 4.36% and T30 up 2.2 bpts at 5.211%
OIL Brent -0.43% at $89.31, WTI -0.16% at $53.40. President Trump announced a sweeping, long-term agreement with Venezuela aimed at securing 65 billion barrels of crude reserves at cost. This structural development signaled a massive potential influx of future supply, putting further downward pressure on global benchmarks.
Spot Gold -2.75% Spot Silver -4.1%, Copper -0.18% Platinum -1.03%, Palladium 5.29%.

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1994: The Fed started immediately announcing policy decisions after scheduled meetings, laying the groundwork for modern communication.

Early 2000s: The FOMC introduced qualitative forward guidance, first discussing economic risks and later adding language about future policy inclinations.

August 2003: Chair Alan Greenspan pioneered explicit guidance by adding language regarding how long policy accommodation would remain.

December 2008: Following the Global Financial Crisis and rate cuts to near-zero, the Fed expanded forward guidance heavily, using phrases like “for an extended period” and later calendar dates to shape market expectations.

Interest rates are no longer at zero and so investors should not expect to have the FOMC ‘holding their hands’ to guide them through the economic data that they are presented with everyday.

The Fed chair used the speech to outline his philosophy on policymaking while carefully sidestepping any signals on what he thinks should be done to achieve the Fed’s dual mandate of low inflation and full employment. “I stand here today committed to a discipline, not to a decision,” Warsh said in prepared remarks for a group that includes his fellow policymakers on the Federal Open Market Committee as well as economists and media members.

Oil fell Friday as traders continued to assess developments in the Middle East, having gained overnight after Washington confirmed that the U.S. was not in talks with ‌Iran.

Data from market research firm Counterpoint Research showed that the global pure-play foundry market grew 29% YoY in 2Q26. Among them, TSMC ranked first for two consecutive quarters with a 73% market share, equivalent to more than ten times that of second-placed Samsung with 7% share. SMIC (00981.HK) ranked third with a 5% share. Counterpoint expects capacity utilization rates at pure-play foundries to remain at high levels in 2H26, with shipment volumes continuing to grow, driven by order migration caused by TSMC’s capacity adjustments and continued increases in average wafer selling price

A lot of data out this week; Intererst Rate Decisions from New Zealand and Malaysia. Lots of PMI data, Retail Sales, Industrial Production (Japan & S Korea), Inflation data (Australia, S Korea, Philippines, Vietnam, Eurozone, Germany)

Then the main event the US Jobs data on Friday

Data impacting Asia August 31 - 4 Sept

New Zealand
Monday Business Confidence
Tuesday 1 year, 3-month and 6-month Bill Auctions. Could get Dairy Trade Price Index
Wednesday Building Permits, RBNX Interest Rate Decision and Press Conference
Thursday Export & Import Prices, Terms of Trade
Friday Consumer Confidence

Australia
Monday Inflation Gauge, Company Gross Profits, Business Inventories, Housing Credit, Private Sector Credit
Tuesday Manufacturing PMI Final, Building Permits, Current Account, Net Contributions to GDP, Private House Approvals Prelim, Commodity Prices. Could get Dwelling Prices
Wednesday Industry Index, Construction Index, Manufacturing Index, GDP (Growth Rate, Capital Expenditure, Chain Price Index, Final Consumption)
Thursday PMI’s Final (Composite and Services), Balance of Trade, Exports & Imports.
Friday No Data Scheduled

Japan
Monday Industrial Production and Retail Sales, Consumer Confidence, Housing Starts, Construction Orders.
Tuesday Capital Spending, Manufacturing PMI Final, 10-Year JGB Auction
Wednesday Monetary Base, BoJ’s Takada Speech
Thursday Foreign Stock & Bond Investment data, PMI’s Final (Composite and Services), 30-Year JGB Auction
Friday Household Spending, 3-Month Bill Auction, Prelim Coincident and Leading Economic Indexes.

S Korea
Monday Industrial Production, Retail Sales, 2-Year KTB Auction
Tuesday Balance of Trade, Exports & Imports, 30-Year KTB Auction
Wednesday Inflation Rate
Thursday No Data Scheduled
Friday Foreign Exchange Reserves, Current Account

Taiwan
Monday No Data Scheduled
Tuesday Manufacturing PMI Final,
Wednesday No Data Scheduled
Thursday No Data Scheduled
Friday Foreign Exchange Reserves

China
Monday PMI’s (Manufacturing, Non-Manufacturing, General)
Tuesday RatingDog Manufacturing PMI
Wednesday No Data Scheduled
Thursday RatingDog PMI’s (Services and Composite)
Friday No Data Scheduled

Hong Kong
Monday Retail Sales
Tuesday No Data Scheduled
Wednesday No Data Scheduled
Thursday Global PMI
Friday Foreign Exchange Reserves

Macau - No Data Scheduled this week

Singapore
Monday Bank Lending
Tuesday MAS 12-week, 36-week and 4-week Bill Auction
Wednesday Manufacturing PMI
Thursday Global PMI
Friday Retail Sales

Malaysia
Monday No Data Scheduled
Tuesday Manufacturing PMI
Wednesday No Data Scheduled
Thursday Interest Rate Decision
Friday Industrial Production

Indonesia
Monday No Data Scheduled
Tuesday - Manufacturing PMI, Balance of Trade, Exports & Imports, Inflation Rate, Core Inflation Rate, Tourist Arrivals.
Wednesday No Data Scheduled
Thursday No Data Scheduled
Friday No Data Scheduled

Philippines
Monday No Data Scheduled
Tuesday Manufacturing PMI
Wednesday No Data Scheduled
Thursday No Data Scheduled
Friday Inflation Rate, Core Inflation Rate, Industrial Production. Could get Foreign Exchange Reserves

Thailand
Monday Current Account, Private Consumption & Investment, Retail Sales.
Tuesday Manufacturing PMI
Wednesday Business Confidence
Thursday No Data Schedule
Friday No Data Schedule

Vietnam
Monday No Data Scheduled
Tuesday No Data Scheduled
Wednesday No Data Scheduled
Thursday Manufacturing PMI, Balance of Trade, Foreign Direct Investment, Industrial Production, Inflation Rate, Retail Sales, Tourist Arrivals
Friday No Data Scheduled

Cambodia - No data scheduled this week
Myanmar - No data scheduled this week

India
Monday GDP Growth Rate, Government Budget Value
Tuesday Manufacturing PMI Final, Current Account
Wednesday M3 Money Supply
Thursday PMI’s Final (Composite and Services)
Friday Foreign Exchange Reserves

Euro Area
Monday No Data Scheduled
Tuesday Manufacturing PMI Final, Inflation Rate, Core Inflation Rate, Unemployment Rate, CPI Flash
Wednesday No Data Scheduled
Thursday PMI’s Final (Composite and Services), PPI
Friday Construction PMI and Retail Sales

Germany
Monday Regional CPI Data, Inflation Rate & Harmonised Inflation Rate
Tuesday Retail Sales, Manufacturing PMI Final, 5-Year Bobl Auction
Wednesday No Data Scheduled
Thursday PMI’s Final (Composite and Services), New Car Registrations
Friday Factory Orders, Construction PMI

France
Monday 12-Month, 3-Month and 6-Month BFT Auctions
Tuesday Manufacturing PMI Final,
Wednesday Budget Balance, New Car Registrations
Thursday PMI’s Final (Composite and Services), OAT Auction
Friday Construction PMI

United Kingdon
Monday No Data Scheduled
Tuesday BRC Shop Price Inflation, Nationwide Housing Prices, BoE Consumer Credit, Mortgage Approvals & Lending, M4 Money Supply, Net Lending to Individuals, Manufacturing PMI Final
Wednesday No Data Scheduled
Thursday PMI’s Final (Composite and Services), Index-Linked Treasury Gilt 2049 Auction
Friday New Car Sales, Construction PMI, DMP 1Year CPI Expectations, DMP 3-Month Output Price Expectations, BoE Gov Baily Speech

United States
Monday Dallas Fed Manufacturing Index, 3-Month and 6-Month Bill Auction
Tuesday Logistic Managers Index, Redbook, Manufacturing PMI Final, ISM Manufacturing (PMI, Employment, New Orders, Prices), JOLT’s Job Openings/Quits, Economic Optimism Index, Dallas Fed Services & Revenues Indexes, 52-Week and 6-Week Bill Auction, API Crude Oil Stock Change.

Wednesday MBA Mortgage Data (30-year Rate, Applications, Mortgage Index, Refinance Index, Purchase Index), ADP Employment Change, Factory Orders, Factory Orders Ex Transport, EIA Oil Report, 17-Week Bill Auction, Beige Book, Challenge Job Cuts

Thursday Balance of Trade, Exports & Imports, Initial Jobless Claims, Continuing Claims, 4 week Average Claims, Nonfarm Productivity, Unit Labour Costs, PMI’s Final (Composite and Services), ISM Services (PMI, Business Activity, Employment, New Orders, Prices), EIA Gas Report, 4-week & 8-week Bill Auction, 15-year & 30-year Mortgage Rate,Fed Balance Sheet. (Could get Total Vehicle Sales)

Friday Non Farm Payrolls, Unemployment Rate, Average Hourly Earnings, Participation Rate, Average Weekly Hours, Government Payrolls, Manufacturing Payrolls, NonFarm Payrolls Private, U-6 Unemployment Rate, Baker Hughes Oil Rig Count.

While expectations of a September U.S. rate hike have gone down to just 34%, there’s still a 74% chance of a hike by December, according to the CME FedWatch Tool.

Politico said President Donald Trump is considering an approach that would drastically expand the number of items subject to import duties, bringing goods made with semiconductors such as laptops, data center servers and games consoles into the framework. He also ordered Lake Ontario to be renamed ‘Lake America’ amid Canada trade war; signing an executive order in the Oval Office while sitting beside an enlarged map of the lake with the words “Lake America” stamped over it in red ink.

US Earnings winding down but today we get Marvel Tech. HK earnings still busy along with Australia and New Zealand

Friday MEITUAN-W (03690.HK), PETROCHINA (00857.HK), WH GROUP (00288.HK), ICBC (01398.HK), BANK OF CHINA (03988.HK), BOC HONG KONG (02388.HK), BYD COMPANY (01211.HK), BYD ELECTRONIC (00285.HK), CCB (00939.HK) , CHINA RES LAND (01109.HK), LONGFOR GROUP (00960.HK), CHINA RES GAS (01193.HK), CHINA RES MIXC (01209.HK), CHINA SHENHUA (01088.HK), CITIC (00267.HK), MIDEA GROUP (00300.HK), ENN ENERGY (02688.HK), ABC (01288.HK), CM BANK (03968.HK), BANKCOMM (03328.HK), PICC GROUP (01339.HK), PICC P&C (02328.HK), UBTECH ROBOTICS (09880.HK) , COSCO SHIP HOLD (01919.HK) , BIREN TECH (06082.HK), AIR CHINA (00753.HK), AUX ELECTRIC (02580.HK), BAIGE DIGITAL (02672.HK), BASICSEMI (09971.HK), BBMG (02009.HK), CALB (03931.HK), CEB BANK (06818.HK) , CGS (06881.HK), CHIFENG GOLD (06693.HK), CHINA EAST AIR (00670.HK) , CHINA LESSO (02128.HK), CHINA MER PORT (00144.HK), CHINA RAIL CONS (01186.HK), CHINA RE (01508.HK), CHINA RUYI (00136.HK), CHINA SOUTH AIR (01055.HK), CHINA XLX FERT (01866.HK), CICC (03908.HK), CIMC (02039.HK), COSCO SHIP ENGY (01138.HK), COSCO SHIP PORT (01199.HK), COUNTRY GARDEN (02007.HK), CQRC BANK (03618.HK), CREALIGHTS (01191.HK), DAH SING (00440.HK), DAHSING BANKING (02356.HK), DATANG POWER (00991.HK), DFZQ (03958.HK), DUALITYBIO-B (09606.HK), EB ENVIRONMENT (00257.HK), EDGE MEDICAL-B (02675.HK), GAC GROUP (02238.HK), GALAXIS TECH (02729.HK), GANFENGLITHIUM (01772.HK), GCL TECH (03800.HK), GEEKPLUS-W (02590.HK), GF SEC (01776.HK), GUANGDONG INV (00270.HK), HTSC (06886.HK), ILUVATAR COREX (09903.HK), INNOSCIENCE (02577.HK), LEGENDHOLDING (03396.HK), MINSHENG BANK (01988.HK), MNSO (09896.HK), MONTAGE TECH (06809.HK), PSBC (01658.HK), SANY INT’L (00631.HK), SD GOLD (01787.HK), SF HOLDING (06936.HK), SH ELECTRIC (02727.HK), SHENZHEN INT’L (00152.HK), SUNAC (01918.HK), TCL ELECTRONICS (01070.HK), TH MEDICAL-B (02697.HK) , TIGERMED (03347.HK), TIME INTERCON (01729.HK), VIGONVITA-B (02630.HK), YANKUANG ENERGY (01171.HK) YUEXIU PROPERTY (00123.HK), ZHEJIANGEXPRESS (00576.HK)

Oil trading higher in early Asian trading; in addition to the US/Iran standoff there is news about the US in talks with Venezuela about taking long leases on some of its oil fields. At the same time there are reports that Venezuela leaving OPEC.

Gold also trading higher.

As we look at the new month ahead it is worth reminding ourselves of what Warren Buffett’s favourite indicators are doing (these are not daily indicators but they show longer term trends).

Housekeeping
Thursday afternoon I was on RTHK’s the Close with host Nitin Dialdas and we discussed Nvidia’s results, China’s focus on robotics and HK housing.
If you have a topic you would like discussed next week then please message me or contact them via WhatsApp +852 6899 8518 or via the link below, which can also be used to listen to the programme.
click the link https://www.rthk.hk/radio/radio3/programme/the_close

On Monday morning I will be on RTHK’s Money Talk If there is a topic you would like discussed next week; then let them know or drop me a message, or if you just want to listen to the programme, click the link https://gbcode.rthk.hk/TuniS/www.rthk.hk/radio/radio3/programme/money_talk

Latest thoughts from Market Thinker - challenging the narrative. Operational Leverage, not financial leverage. Memory Stocks have reminded us of the potential returns from cyclical stocks...but there are other examples as well.

Notes If the high fixed costs also mean that competition is limited, at least in the short to medium term, the excess returns can make for a highly attractive investment and this simple maths has long been behind the cyclical waves of investment into commodity related stocks.

Well worth a read.

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Market opening indications and data due
New Zealand - No Data Scheduled
NZX 50 opened higher and tested 14,000 in early trades but failed to break out and now easing back; currently up 81.6pts 0.59% at 13,961.66
Earnings from Air New Zealand (AIR.NZ): Full-year (FY26) results and webcast call scheduled for 10:30 am NZST.
Sky Network Television (SKT.NZ): Full-year (FY26) results and webcast call scheduled for 11:30 am NZST.
Channel Infrastructure NZ (CHI.NZ): Half-year (H1 2026) results and call scheduled for 10:30 am NZST.

On Thursday the NZX opened higher but after testing 14,050 in the first 30 minutes the index reversed and trended lower all day to close -133pts -0.95% at 13,880; the day low. Off Wednesday’s 14,069.22 record high set on Wednesday.
Leaders Summerset Group 8% on a sharp net profit increase and Genesis Energy 1.8% after positive earnings data.
Laggards nearly the entire market traded lower; led lower by consumer staples.

Australia - No Data Scheduled
ASX futures indicate the market to open up 12 pts 0.1% at 9,000 with support from. Tech and Energy, Miners were mixed.
Earnings include
McMillan Shakespeare Ltd (ASX: MMS) – Full-year (FY26) results.
Articore Group Ltd (ASX: ATG) – Financial results.
Coventry Group (ASX: CYG) – Financial results.
Corporate Travel Management Ltd (ASX: CTD) – Expected to release its FY25 and 1H26 financial statements on or before this date.
Shine Justice Ltd (ASX: SHJ) – FY26 results

On Thursday the ASX 200 opened lower and trended lower all day to close at the day low; -90pts -0.98% at 9,038.2. Hotter than inflation data raised fears of further interest rate cuts. 10 of the major industry groups closed lower
Leaders: Only Healthcare - Ramsay Health Care Ltd (ASX: RHC) +13.72% after reporting a massive 22.9% jump in underlying Net Profit After Tax (NPAT) for FY26 and revealing advanced plans for a corporate demerger.
Qantas Airways Ltd (ASX: QAN) +4.77% after its latest earnings results, supported by the normalization of its dividend programs and resilient travel demand.
Neuren Pharmaceuticals Ltd (ASX: NEU) +4.32%, DroneShield Ltd (ASX: DRO) +3.46%, Perpetual Ltd (ASX: PPT) +3.32%.
Laggards: Consumer Discretionary -3%, Information Technology -2.4%, and Consumer Staples -1.8%

Japan
Nikkei Futures indicate -85pts -0.13% at 66,150
Chicago Nikkei Futures -120pts -0.18% at 66,115
Yen 159.36

On Thursday the Nikkei opened higher and tested 67,000 in early trades but then reversed to 65,782 before bouncing to flat at lunchtime. PM it tested 66,500 but then trended lower with support at 66,000 and closed -130pts -0.2% at 66,132
Leaders Banks
Laggards Paper & Pulp, Transport, Communication, Technology & Semiconductor (despite strong quarterly guidance from U.S. chipmaker Nvidia, major profit-taking hit local heavyweights. Nvidia supplier Advantest Corp -3%)
Data due 30 minutes before the open
Unemployment Rate Jul vs 2.5% Jun (F/cast is 2.5%)
Jobs/Applications Ratio Jul vs 1.18 Jun (F/cast is 1.18)
Tokyo Core CPI Aug YoY vs 1.9% Jul (F/cast is 2%)
Tokyo CPI Ex Food & Energy Aug YoY vs 2% Jul (F/cast is 2%)
Tokyo CPI Aug YoY vs 2% Jul (F/cast is 2%)
Mid Morning
2-Year JGB Auction vs 1.483% prior
3-Month Bill Auction vs 1.0816% prior
Lunchtime
Consumer Confidence Aug vs 34.9 Jul (F/cast is 35)
Housing Starts Jul YoY vs 18.6% Jun (F/cast is 22%)
Construction Orders Jul YoY vs 2.3% Jun (F/cast is 5%)

S Korea - No Data Scheduled
Kospi Futures (KMU6) indicate opening -8pts -0.73% at 1,081.85

The Kospi opened up over 2% higher and sold down (as the BoK raised the interest rate) in the first hour but then bounced back into lunch. Only to drift lower in the afternoon and closed up 104.16 pts, or 1.53%, at 6,912.37.
Trade volume was light at 265.5 million shares worth 22.5 trillion won ($16.3 billion). Losers outnumbered winners 537 to 316.
Retail investors were net sellers of 1.91 trillion won. Foreigners and institutional investors bought a combined net 318.2 billion won.
Investor sentiment remained solid as the US chip giant’s strong second-quarter earnings eased woes over the artificial intelligence (AI) boom and continued demand for semiconductors.
Gov. Shin Hyun-song described the rate hike as a “preemptive, proactive and advanced” response to bring inflation and other financial risks under control, but said the South Korean economy maintains solid growth driven by strong semiconductor exports.
Market heavyweights closed mixed.
The Korean won was quoted at 1,380.9 won against the US dollar as of 3:30 pm.Thursday, up 3.9 won from the previous stock trading session.
Leaders Semiconductor and technology
Laggards EV Tech/batteries and Investment/holding companies, Aero/Defence, Insurance

Taiwan - No Data Scheduled
Taiex futures indicate market to open up 324pts 0.7% at 46,388 with Tech in focus.

On Thursday the Taiex opened higher and after initial choppy trading the index trended higher to 45,890 mid morning and then trended lower to close up 142.6 pts, or 0.31%, at 45,975.22 on turnover of NT$924.68 billion (US$29.05 billion) vs NT$804.25 billion (US$25.25 billion) Wednesday
Leaders Plastics & Chemicals (Grand Pacific Petrochemical Corp (TW:1312) hit it daily limits 10%). Optoelectronics: (Capitalized on structural momentum, including data transmission upgrades and hardware demands. Zhong Yang Tech (TW:6668) surged 9.99%) Specialized Technology / Components: AMAX Holding Co Ltd (TW:6933) 10% a 52-week high).
Laggards Chemicals & Petrochemicals (Formosan Union Chemical Corp (TW:1709) -7.95%). Plastics, Green Energy & Engineering Services (Lung Ming Green Energy Tech Engineering (TW:3018) -6.98%). Select Electronics Manufacturing: (While the broader AI tech segment lifted the index, individual tech-adjacent suppliers suffered heavy individual losses, notably copper-clad laminate maker Elite Material (TW:2383),-6.7%)
Data could get
Consumer Confidence Aug vs 64.58 Jul (F/cast is 65)

China - National People’s Congress underway - No Data Scheduled
Golden Dragon Index closed -46pts -0.74% at 6,183.99
FTSE A50 futures closed -126pts -0.85% at 14,729
MSCI A50 Connect (USD) futures closed -5pts -0.18% at 2,715.6

On Thursday the A shares opened higher and worked better through the session.
Trading volumes increased to 2.13T yuan ($314B) vs 1.81T yuan ($266.8B) Wednesday closer to normal trading volumes.
Leaders Technology, artificial intelligence (AI) hardware, and communication sectors
Laggards Consumer-facing industries and Property-related sectors due to ongoing soft domestic retail demand, with major liquor makers like Kweichow Moutai weak
At the close
Shanghai Composite: up 1.13% at 3,956.57
Shenzhen Component: up 1.5% at 14,048.88
CSI 300 (Blue Chips): up 0.86% at 4,60.28
ChiNext Index (Growth Board): up1.71% at 3,473.35
STAR 50 Index (Sci-Tech): up 3.6% at 1,973.98
China’s industrial profits of enterprises above designated scale rose 17.6% YoY in the first seven months, while profits in the integrated circuit industry surged 18.5x; showing further signs of slowing. The RMB central parity against the USD was set at 6.7840, down 11 bps daily. The PBOC conducted RMB103 billion seven-day reverse repo operations today (27th), while no reverse repos matured, and also conducted RMB503.5 billion overnight reverse repo operations.
USD/CHN flat at 6.7189
RMB spot against the USD closed up 6 bps Thursday (27th) at 6.7199 against the USD. As of 4:57 pm, RMB night trading fell 69 bps; offshore RMB rose 13 bps to 6.7193 against the USD, representing a 6 bps discount to the onshore rate.

Hong Kong - No Data Scheduled
ADR’s closed -316pts -1.25% 25,352 with only CLP and SHKP ADR’s in the green
Hang Seng Futures indicate -203pts -0.79% at 25,395
Turnover Thursday HK$233.51B vs HK$254.8 B Wednesday
Short Selling Thursday 21.6% vs 22.6% Wednesday

On Thursday the HSI opened higher but sold down to 25,500 in the morning session with a small bounce into lunch. PM the index trading in a tight range (25,550/600) to close -0.34% at 25,565.74
Hang Seng Tech Index -0.1% at 4,620
Hang Seng China Enterprises Index -0.51% at 8,490.31
Leaders; Pharmaceuticals (Hansoh Pharma 16% following a strong quarterly earnings) and technology-hardware
Laggards: Property/Real Estate and Consumer Tech Platforms

Macau - Data due after the HSI closes
Unemployment Rate Jul vs 1.9% Jun (F/cast is 1.9%)
Could get
Balance of Trade Jul vs MOP -10.9B Jun (F/cast is MOP -11B)

Singapore - Data Scheduled after the open
Bank Lending Jul vs S$931.4B Jun (F/cast is S$950B)
Export Prices Jul YoY vs 12.7% Jun (F/cast is 12%)
Import Prices Jul YoY vs 13.6% Jun (F/cast is 13.4%)
PPI Jul YoY vs 30.3% Jun (F/cast is 28.5%)
On Thursday SGX stocks closed -37.5 pts -0.65% at 5,684.13; having traded in a tight range.

Malaysia - Data Scheduled Late morning
PPI Jul YoY vs 9.2% Jun (F/cast is 9.1%)
After lunch
M3 Money Supply Jul YoY vs 6.7% Jun

Indonesia - - No Data Scheduled

Philippines - Data Scheduled
Balance of Trade Jul vs $-4.939B Jun (F/cast is $-4.4B)
Exports Jul YoY vs 24.1 Jun
Imports Jul YoY vs 19.6 Jun
PPI Jul YoY vs 3% Jun (F/cast is 3%)
After Lunch
Business Confidence Jul vs 0 Jun (F/cast is 2)
On Thursday it raise interest rates by 25bpts from 4.75% to 5% as expected.
Could get
Budget Balance Jul vs PHP -264.3B Jun (F/cast was PHP -220B)

Thailand - No Data Scheduled
On Thursday the Trade Balance improved MoM and was better than forecast.
Could get
Consumer Confidence Aug vs 64.58 Jul (F/cast is 65)
Balance of Trade Jul vs $-6.53B Jun (F/cast is $-6.3B)
Exports Jul YoY vs 20.8% (Consensus is 19%)
Imports Jul YoY vs 50.3% (Consensus is 42.3%)

Vietnam - No Data Scheduled
Cambodia - No Data Scheduled
Myanmar - No Data Scheduled

India - Data Scheduled
Industrial Production Jul YoY vs 7.3% Jun (F/cast 5.7%)
Manufacturing Production Jul YoY vs 7.8% Jun (F/cast 5.5%)
Bank Loan Growth 15 Aug vs 19.3% prior
Deposit Growth 15 Aug vs 15.4% prior
Foreign Exchange Reserves 21 Aug vs $716.91B prior

Europe
Eurozone - Sentiment (Economic, Industrial & Services) Consumer Confidence & Inflation Expectations, Selling Price Expectations
Germany - Unemployed Persons, Unemployment Change & Rate
France - Inflation Rate, GDP Growth Rate, Harmonised Inflation Rate, Household Consumption
United Kingdom - Nationwide Housing Prices

United States
Futures opened Dow -27pts -0.05% S&P -0.13%, NDX -0.11%
After Market
GAP 15% despite weak sales key it has appointed an industry veteran to run ‘Old Navy’
Data Scheduled: Jackson Hole Symposium, Chicago PMI, Non Farm Payrolls Annual Revision Prelim, Michigan Final (Consumer Sentiment, 5-Year Inflation Expectations, Consumer Expectations, Baker Hughes Oil Rig Count.

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HEADLINES & NEWS
NEW ZEALAND & AUSTRALIA
Qantas chief Vanessa Hudson says flight delays due to chronic shortages of air traffic controllers at Sydney Airport are unacceptable for travellers. It comes as investigators probe two more close calls. She also opened up on the airline’s future plans as it unveiled its full-year results.

Why Kmart’s next furniture showroom won’t be in a big capital city The next K Home store will open before Christmas, revealed Wesfarmers chief Rob Scott – but the location may surprise some.

JAPAN
Kioxia (285A.T) and U.S.-based Sandisk (SNDK.O) said on Thursday they ​planned to invest more than $31 ‌billion in Japan through 2032 to drive semiconductor technology and expand production capacity, ​as the AI boom boosts ​demand for memory chips. The joint ⁠investment is contingent on “government support”, they ​said in a statement. As part ​of the six-year investment plan, a new memory chip production facility will be built at ​Kioxia’s Kitakami plant in northern ​Japan, with an investment of 1.8 trillion yen ($11.30 ‌billion), ⁠Kioxia CEO Hiroo Ota said. The growth of AI has fuelled a turnaround for Kioxia, which was once ​seen ​as a ⁠symbol of Japan’s chipmaking struggles. Kioxia is manufacturing 10th-generation ​BiCS Flash memory, developed with ​Sandisk, ⁠at its Kitakami plant. Ota and Sandisk CEO David Goeckeler met with Prime ⁠Minister ​Sanae Takaichi on ​Thursday.

Japan’s latest effort to prop up the yen revives memories of the Asian financial crisis, with the ‌operation bearing little resemblance to traditional coordinated interventions, former top currency diplomat Naoyuki Shinohara said on Thursday. In announcing this month that Washington had joined Tokyo’s efforts to arrest yen declines, U.S. Treasury Secretary Scott Bessent encouraged Japan to use dollar swap lines rather than sell U.S. Treasuries to ​finance future intervention. Back then, the United States, Japan ⁠and the International Monetary Fund (IMF) provided Thailand with dollar funding to bolster its foreign reserves. “Japan today is nowhere near Thailand’s ​situation. But the dynamic is uncomfortably similar,” said Shinohara, who served as the IMF’s deputy managing director after a stint as ​Japan’s vice finance minister for international affairs.

Chubu Electric Power (9502.T) said on Thursday documents for fiscal 2024 decommissioning work at its Hamaoka nuclear power ​plant were improperly altered prior to submission to ‌Japan’s nuclear decommissioning fund manager. The utility said it had identified 14 cases in which data in documents submitted to the Nuclear Reprocessing ​and Decommissioning facilitation Organization (NuRO), including details on dismantling equipment ​and quantities, did not match work carried out ⁠in fiscal 2024. Chubu Electric said it was investigating details ​including motive for the alterations, how many people were involved, ​and whether the altered information resulted in inflated reimbursement claims.

Bank of Japan Deputy Governor Ryozo Himino ​on Thursday stressed the need for timely interest rate hikes with a focus on the risk of an inflation overshoot, reinforcing ‌dominant market expectations for a near-term increase in borrowing costs. But he refrained from giving explicit signals on whether the BOJ would meet market expectations of a September rate hike, as well as on the pace of future increases.

SoftBank (9984.T) is in talks ​to buy a majority stake ‌in OpenAI-backed humanoid robot developer 1X Technologies in a deal that would value ​the startup at about $6 billion, ​The Information reported on Wednesday, citing ⁠people with knowledge of the deal.

SOUTH KOREA
SK hynix on Thursday formally launched its advanced chip packaging project in Indiana, a facility set to produce the first high bandwidth memory made in the US. The groundbreaking ceremony was held at Purdue University in West Lafayette, Indiana, more than two years after SK hynix announced the investment in April 2024. The plant is expected to complete its clean room in October 2028 and begin mass production in the third quarter of 2029. Once operational, the facility will take DRAM chips produced in Korea and stack and package them into HBM, the high-performance memory used alongside processors such as Nvidia’s AI accelerators. SK hynix CEO Kwak Noh-jung said the plant will have capacity to process several hundreds of thousands of DRAM wafers a year.

Samsung Electronics Co. introduced the Galaxy S26 FE, its latest smartphone aimed at consumers who want a device that’s priced well below high-end models but still offers at least a few premium features. The $700 device, announced Thursday, is $50 more expensive than its predecessor, marking another cost increase at a time when consumers have grown accustomed to routine price hikes amid an industry-wide memory chip shortage. The handset will be available from select carrier partners on Sept. 3, with direct sales from Samsung and other retailers beginning on Sept. 4. To reach this price point and avoid a steeper increase the Galaxy S26 FE trades away the Qualcomm Inc. silicon found in the standard S26 for a less capable processor from MediaTek Inc. Its camera system can’t deliver the same image quality as Samsung’s pricier devices, and the new phone also contains less memory (12 gigabytes) and fewer on-device artificial intelligence features.

South Korea’s Ministry of Science and ICT on Thursday released detailed scores from the second-phase evaluation of its Sovereign AI Foundation Model Project. The detailed results were released at the request of Motif Technologies, which was eliminated in the second phase, with the consent of the other shortlisted teams. SK Telecom ranked first with 70.6 points overall in the second-phase evaluation, followed by Upstage with 69.9 points, LG AI Research Institute with 69 points and Motif Technologies with 65.8 points.

Korea Investment Management and Korea Investment Value Asset Management are pursuing a spinoff merger. The two companies said in regulatory filings Thursday that their boards had separately approved a merger agreement. Under the agreement, Korea Investment Management will spin off its securities fund and money market fund businesses and merge them into Korea Investment Value Asset Management. The companies plan to hold an extraordinary general meeting on Sept. 11 to approve the spinoff merger. The merger is scheduled to take effect on Jan. 1, 2027.

South Korean investors’ deposits fell below 100 trillion won ($72.4 billion) again, while margin debt, a measure of leveraged investing, climbed back above 33 trillion won. Investor deposits stood at 98.92 trillion won as of Wednesday, down 3.62 trillion won from the previous session, according to the Korea Financial Investment Association. It was the first time deposits had fallen below 100 trillion won in two weeks, since Aug. 12, when they stood at 99.98 trillion won. The deposits had risen as high as 106.58 trillion won on Aug. 19 before declining again. Margin debt has risen for seven straight trading sessions since Aug. 18, after falling to 27.4 trillion won on Aug. 4. The decline in investor deposits alongside rising margin debt suggests retail investors are increasing their stock investments with borrowed money as their available cash shrinks.

The number of suspected illegal short selling cases reported to South Korea’s financial regulator has risen steadily in recent years, as a new system allows authorities to monitor institutional investors’ short selling activity in real time. The increase has been driven in part by the launch of its naked short selling detection system, known as NSDS, but market watchers say authorities should move faster to investigate cases, impose sanctions and recover illicit gains. The Financial Supervisory Service received reports of 77 suspected illegal short selling cases last year, up from just two in 2020, according to data the regulator submitted to Rep. Park Sung-hoon of the ruling People Power Party, a member of the National Assembly’s Political Affairs Committee.

TAIWAN
Taiwan’s economy remained on a solid footing last month, buoyed by the artificial intelligence (AI)-driven boom, although consumer confidence was shaken this month as stock market volatility and external uncertainty tempered sentiment, National Development Council (NDC) data released yesterday showed. The government’s business monitoring indicator remained “red” last month for an eighth consecutive month, the second-longest streak on record, with the composite score unchanged at 41, the council said. The council uses a five-color system to track the economy, with “red” (38 to 45 points) signaling overheating, yellow-red (32 to 37) indicating a warming economy, green (23 to 31) suggesting stable growth, yellow-blue (17 to 22) reflecting sluggishness and blue (9 to 16) pointing to contraction.

China deployed a record number of coast guard, scientific research and other ships near Taiwan’s waters last month, the Coast Guard Administration (CGA) said, as Beijing dials up pressure on Taipei. The coast guard warned of an increasingly severe situation, as analysts say the increased activity is part of China’s bid to map the region for submarine warfare. The number of Chinese ships detected around Taiwan proper soared to a record 244 last month — an average of nearly eight every day, official data showed.

The Legislative Yuan on Thursday passed a key budget bill that prioritizes the procurement of indigenous drones, setting a spending cap of NT$240 billion (US$7.56 billion) in principle while allowing additional funding subject to legislative approval. The opposition-led Act on Strengthening Defense Autonomy and Developing the Unmanned Vehicles Industry was passed with 60 votes for and 50 against in the 113-seat Legislature.

The government would consider raising its average annual electricity demand growth forecast through 2035 above the 2.5 percent it projected in June based on a high-demand scenario, Minister of Economic Affairs Kung Ming-hsin said yesterday. Kung did not specify a growth projection, saying that further details would be announced later, and that the government would ensure sufficient and stable power supply. The minister’s remarks came after Premier Cho Jung-tai on Wednesday said that the government would raise the growth forecast beyond the 2.5 percent annual rate, as demand for electricity from the artificial intelligence (AI) and semiconductor industries continues to grow.

CHINA
Market reports said IPO filings by pre-profit companies on the A-share market have been comprehensively tightened, with Hong Kong stocks also affected. However, according to a report by 21st Century Business Herald citing sources, there is currently no possibility that pre-profit companies will be categorically barred from listing. Both the A-share and Hong Kong stock markets will continue to welcome quality pre-profit companies, but reviews for such firms will become more stringent, requiring companies to demonstrate clearer commercialization paths and earnings improvement expectations. For companies whose losses have not shown signs of narrowing, face greater difficulties in short-term commercialization, and are not clear leaders in niche sectors, IPO reviews will be subject to stricter standards. It is understood that post-listing performance falling short of expectations has been a key reason behind the tightening listing requirements for pre-profit companies. Regulators are currently studying more detailed listing rules for pre-profit companies to better identify quality firms. Greater attention will be paid to factors including clarity of commercialization paths, revenue realizability, sustainability of cash flow, and feasibility of turning losses into profits in the coming years. If a company is expected to turn profitable and is the clear market leader in its niche segment, the pace of IPO reviews will have limited impact on it. In contrast, companies that do not rank prominently in niche sectors and have little prospect of achieving profitability in the short term may need to wait longer to successfully complete listings.

DeepSeek is seeking a new funding round of USD7.4 billion to support research and development as well as the expansion of its computing infrastructure, the Wall Street Journal, citing sources, reported. The company’s valuation is expected to elevate to USD74 billion, higher than the valuation of more than USD50 billion in the previous funding round in June. Existing shareholders are reportedly set to participate in the latest funding round, including Monolith Management, Shixiang and CATL (03750.HK). Funds backed by Chinese local government financing platforms are also planning to participate. The report said DeepSeek’s ARR has reached USD500 million. The company has hired banks and advisers to prepare for a listing in Shanghai next year.

As the implementation of AI applications accelerates, China’s daily token calls exceeded 500 trillion as of June this year, CCTV Finance reported. Currently, global large language models (LLMs) are in the most intense and fastest iteration stage of competition, while China’s LLMs have entered the top tier of global competition. Industry insiders said flagship AI models are now being updated almost on a monthly basis. The focus of competition has shifted from purely “model intelligence” to a comprehensive contest in agent deployment and ecosystem development. Major vendors continue to increase training investment, while model parameter sizes and context windows continue to expand. At the same time, AI is evolving from “chat capability” to “task execution” as AI agents begin large-scale deployment. A single task requires repeated retrieval, contextual reading, tool calling and multi-round feedback, driving an explosive increase in inference computing demand.

Chinese regulators on Thursday ordered automakers to file proactive recall plans for any defects uncovered in self-audits, as part of ​a year-long campaign to improve vehicle quality and safety ‌in the world’s largest auto market. Tesla and eight Chinese electric vehicle makers on August 21 announced fixes affecting a combined 4.3 million vehicles in China’s largest-ever automotive ​recall, prompted by safety concerns involving emergency door-release mechanisms.

Chinese state-owned oil and gas major CNOOC (600938.SS) sees potential for energy ​cooperation between China and the United States, its ‌CEO said on Thursday, adding that the company would consider investments alongside U.S. partners in the future.

HONG KONG
HK Results see https://www.aastocks.com/en/stocks/news/aafn/latest-news

Index
HKEX (00388.HK) is exploring the merger of GEM and the. Main Board through the establishment of a new listing rules chapter, according to sources cited by the South China Morning Post. The proposal to establish Chapter 18D will purportedly form the core part of the second phase of the listing regime review, with a public consultation to be conducted before the end of this year. Merging GEM with the Main Board is one option to restructure the underperforming GEM market, which suffers from extremely low trading turnover and a limited number of newly listed companies. The proposed Chapter 18D would allow newly established small companies and firms unable to meet profit requirements to go public, report said. About 300 companies currently listed on GEM may be exempted under the new chapter and transferred directly to the Main Board. The new chapter replacing GEM would broaden the range of listed companies on HKEX while also helping smaller firms obtain financing. An HKEX spokesperson said the exchange is looking at more new measures related to the listing regime. HKEX will continue to examine additional initiatives to enhance the attractiveness of the listing framework, ensure it remains fit for purpose, and share updates at an appropriate time.

Buybacks
TENCENT (00700.HK) repurchased 670,000 shares on the Stock Exchange at prices ranging from HKD446.8 to HKD451.6 per share, involving approximately HKD300m. 670,000 shares on the Stock Exchange at prices ranging from HKD446.8 to HKD451.6 per share, involving approximately HKD300

Insiders
Hallgain Management Limited, under the Cheung family, the controlling shareholder of KINGBOARD HLDG (00148.HK) increased its holdings in KINGBOARD HLDG by 200,000 shares yesterday (26th, Wednesday) at an average price of HKD49.887 per share, raising its stake from 31.56% to 31.58%, disclosure of interests data showed.
KINGBOARD HLDG increased its holdings in KB LAMINATES (01888.HK) by 575,500 shares on the same day at an average price of HKD39.7868 per share, lifting its stake from 61.72% to 61.74%.

HSI Short Selling Thurssday 21.6% vs 22.6% Wednesday
Top shorts MTRC (66) 53%, Li Auto (2015) 52%, Galaxy Ent (27) 43%, BYD Electronic (285) 43%, CLP (2) 43%, BYD (1211) 43%, CKI (1038) 42%, Nongfu Spring (9633) 41%, Xinyi Solar (968) 40%

Midea Group (300) 39%, Hengan (1044) 39%, Bud APAC (1876) 39%, Tingyi (322) 38%, Wuxi Apptec (2359) 38%, J&T Express (1519) 38%, Pop Mart (9992) 36%, Power Assets (6) 36%, Shenzhou (2313) 36%, Ali Health (241) 35%, NTES (9999) 35%, Beone Medicines (6160) 34%, Xiaomi (1810) 33%, Haier Smarthome (6690) 33%, Geely (175) 32%, Anta Sports (2020) 32%, Henderson Land (12) 32%, China Shenhua (1088) 32%, Sinopharm (1099) 32%, JD Health (6618) 32%, Haidilao (6862) 31%, Longfor (960) 30%, CATL (3750) 30%, SHKP (16) 30%

China Life (2628) 29%, CK Huth (1) 29%, Sinopec (386) 29%, JD SW (9618) 29%, Trip Com (9961) 28%, CM Bank (3968) 28%, HSBC (5) 26%, Hung Lung Ppty (101) 25%, Sands China (1928) 25%, Zijin Mining (2899) 25%

WATCH
SWIRE PROPERTIES (01972.HK) announced that the expansion project of Taikoo Li Qiantan is expected to be completed by the end of 2026. Upon completion of the approximately 150,000-square-meter expansion project, the total retail floor area of Taikoo Li Qiantan will more than double to approximately 259,000 square meters, bringing together more than 600 internationally renowned and local brands, creating a brand mix with both international appeal and local characteristics.

ROBOSENSE (02498.HK) announced that cumulative deliveries of its self-developed SPAD-SoC chips have exceeded 500,000 units, marking the transition from technology validation to large-scale mass production. The company’s self-developed SPAD-SoC chip is the world’s first chip to integrate a SPAD receiver array and data-processing SoC into a single solution with mass-production application. It is also among the first batch of lidar receiver-processing SoC chips in the industry to obtain AEC-Q102 certification, ensuring automotive-grade reliability and mass-production maturity for digitalized products from the underlying technology level.

XPENG-W (09868.HK) Chairman He Xiaopeng said he recently conducted test drives of XPENG’s second-generation VLA and the latest versions from global peers with colleagues in China, North America, Europe and Australia. He said XPENG’s second-generation VLA has already matched world-class products in conventional road scenarios such as highways, while delivering an even better experience in complex scenarios including narrow-road interactions, campuses and parking lots. He revealed that the company is accelerating the global deployment of the second-generation VLA. Recently, he and his team completed localized validation in Germany. With almost no additional localized training data, the actual user experience in Germany has already become highly similar to that in China. He believed this demonstrates a clear lead over peers in global multi-regional generalization capabilities. The company hopes to become the first to obtain regulatory approval in Europe in 2027 and begin delivering the second-generation VLA to more international overseas users.

LI AUTO-W (02015.HK) President Ma Donghui said during a conference call that the company mainly has two measures to cope with cyclical cost fluctuations. On one hand, it will continue to promote refined operations to reduce costs; on the other, it will rely on full-stack in-house technology R&D and a proprietary supply chain system to build long-term structural cost reduction capabilities. In the short term, LI AUTO-W will control cost pressure in stages through long-term order volume lock-ins and refined operations, Ma said. In the medium to long term, the company will rely on the scaled deployment of self-developed technologies to stabilize gross margin levels and thus support the company’s long-term, high-quality development. Chairman and CEO Li Xiang said that, as new vehicle models are launched successively this year, gross margin is gradually improving. However, the company must also face the impact of rising costs of chip and PCB semiconductor this year. The company will not pass rising costs on to consumers, but instead will improve integrated design and supply chain capabilities to strengthen in-house R&D and supply in the three-electric systems segment. From a long-term perspective, Li assumed the company’s healthy gross margin will be between 15% and 20%. He added that chip in-house development has long been established as a long-term self-development strategy for the company, and the company will continue investing to advance iterations of self-developed chips. As models represent the company’s AI competitiveness, he believed chips are barriers while models are competitiveness.

Regarding Mainland China’s tightening of outbound investment, PRU (02378.HK) CEO Anil Wadhwani said at the results briefing that there has not yet been any decline in demand from Mainland Chinese Visitors (MCVs) visiting Hong Kong. Given strong demand among MCVs for investment diversification, wealth succession and health protection, the CEO is confident that MCVs’ demand for Hong Kong insurance and the related growth momentum will sustain into 2H26. Wadhwani added that although MCVs’ interest in Hong Kong insurance has gradually shifted toward savings-type products since the COVID-19 pandemic, PRU has deliberately incorporated savings elements into protection-oriented insurance products within its policy plans, helping protection products continue to account for nearly one-third of premium income so far.

Xundian Runyong New Energy was recently established, Chinese media reported, citing information from the Qichacha app. Its business scope includes wind power technology services; solar power technology services; sales of power facility equipment; and manufacturing of power facility equipment. Equity penetration information showed that the company is indirectly wholly owned by CATL (03750.HK)

Thursdays closings in EUROPE and US
DAX 0.31%, CAC -1.68%, FTSE -0.69%
DAX opened higher and traded most of the day in a tight range just above flat but did dip into the red in the last hour but then rallied into the close. FTSE opened lowered initially sold down for the first couple of hours then worked better until late afternoon but then sold down into the close. CAC trended lower and closed around the day lows.

Caution as the Jackson Hole Symposium kicks off and Kansas City Federal Reserve President Jeffrey Schmid said Thursday that inflation is still too high. Geopolitical concerns which actually helped German Defence stocks. Mixed Corporate news and on the plus side Nvidia results had a mixed impact on Tech stocks.

German Consumer sentiment improved slightly in August but the index still stood in negative territory. Consumers are expecting economic conditions to improve, the data showed, with a significant increase in income expectations driving overall sentiment higher. Despite August being the fourth consecutive month of economic optimism rising, the survey showed German consumers’ willingness to buy “remains at rock bottom.”

European semiconductor stocks jumped in early trading on Thursday, after Nvidia’s revenue growth smashed expectations but; ASML -0.61%, ASMI 0.58, STMicroelectronics 2.99 and BE Semiconductor 1.51%.

Pernod Ricard,-4.6% which makes Absolut vodka, Jameson whiskey and Kahlua, reported a 3.9% YoY decline in full-year net sales; driven by weak demand in the US and China. It now expects organic net sales growth to fall at the lower end of its 3% to 6% guidance range between 2027 and 2029, citing softness in the American market. The company said performance had picked up in the second half of its fiscal year, but improvements were hampered by the U.S.-Iran war in its fourth quarter. The conflict in the Middle East is expected to weigh on sales in the first quarter of its new fiscal year, the firm added.

Leaders: Tech and Defence
Laggads: Personal, Household, Chemicals, Autos

DOW 0.2%, NDX 1.57%, S&P 0.72%, Russel 2K 0.28%
Dow opened lower and after initial choppy trading, worked higher to 53,700 level but then sold down in the afternoon to trade around the 53,550 level into the close. S&P opened higher and worked better into the early afternoon, then it eased back before working slightly better into the close. NDX opened higher and worked better for most of the day but again eased in the afternoon but worked better into the close.

Initial jobless claims edged lower last week, keeping in line with a low layoff trend.

Nvidia 8.7% after good results has also reportedly agreed to buy start-up Hugging Face, a store of open-source AI models, for $12.9 billion. Hugging Face was recently hacked by one of OpenAI’s models, with the ChatGPT developer publishing a technical report on Wednesday detailing how its artificial intelligence models managed to breach the company; Broadcom 4.5%, and SK Hynix 2% and Intel 4%.

Salesforce 22.6% after revenue came in ahead of Wall Street’s forecast for the second quarter; Adobe 5.7% and Autodesk 6.2%, Okta 28.6% and CrowdStrike 20.5% after surpassing analyst expectations and raising their outlooks; Palo Alto Networks 12.8%.

J.M. Smucker 0.7% after sell down 3% in the last hour from its high after Q1 revenue beat expectations thanks in part to strength in its Uncrustables brand.

HP -2.9% despite beating posting fiscal third-quarter revenue that beat the Street, and full-year earnings guidance that was also above expectations. Wall Street analysts expressed misgivings due to expanding memory chip costs, questions over demand as product prices rise and continued pressure on profit margins.

Dollar General 2.7% after raising its full-year earnings guidance.

Leaders: Info Tech 3.4%
Laggads: Consumer Staples -1.5% , Healthcare -1.1%, Financials, Energy, Utilities, Real Estate, Consumer Discretionary, Communication Services

Banks JPMorgan Chase -0.64%, Citigroup -0.66% Wells Fargo -0.31%, Amex -0.59%
Ecommerce Meta -0.87%, Apple 0.36%, Amazon -1.54%, Netflix -1.99%, Disney -2.56%, Zoom Comms 6.86%, Alphabet -0.41% and Microsoft 1.75%
Tech NXP Semi 1.21%, Nvidia 8.74%, Micron -0.32%, AMD -0.89%, Skyworks 1.11%, Intel 4.36%
Industrial/Discretionary Boeing -1.04%, Caterpillar -0.6%, Simon Property -1.02%, Kohl’s 1.17%, Gap -1.7%, United Airlines -2.12%, Carnival -2.5%, Wynn Resorts -3.66%
Healthcare Eli Lilly -1.12%, UntiedHealth -1.49%, Johnson & Johnson -1.57% Merck -2.33%
Auto Ford 0.36%, GM -0.17%, Tesla 2.6%
Energy Chevron -0.22%, Exxon Mobil -1.11%, ConocoPhillips -1.5%
Consumer Staples Campbell Soup 0.22% General Mills 0.9%, JM Smucker 0.72%
Buffet’s Top Five Retirement Stocks Coca Cola -1.13%, Apple 0.36%, Johnson & Johnson -1.57%, Proctor & Gamble -1.28%, Berkshire -0.24%

DAILY US CLOSING DATA
USD flat ahead of Jackson Hole speeches. Bitcoin 2.32% at $80,275.44
VIX -4.6% at 14.51
US Bonds T10 up 0.4 bpts to 4.672%, T2 flat at 4.232% and T30 up 0.2 bpts at 5.193%
OIL Brent 2.2% at $89.79, WTI 1.7%% at $83.66 as White House says no Iran talks underway.
Spot Gold 0.4% Spot Silver 0.88%, Copper -0.25% Spot Platinum 0.53%, Spot Palladium 1.32%.

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Today BoJ Deputy Gov. Ryozo Himino will deliver a speech at a meeting with local leaders in Saitama prefecture, north of Tokyo. Markets will be parsing his remarks for clues on the central bank’s policy outlook as expectations grow that upside inflation risks could prompt faster interest rate hikes. Any hint that a September move is on the table could send Japanese bond yields higher and strengthen the yen. Also today Philippine monetary policy in focus as the Bangko Sentral ng Pilipinas convenes for its fourth policy meeting of the year to set the course for interest rates. The central bank faces renewed pressure from global economic spillovers driven by the Iran war. Currently at 4.75%, the country’s chief monetary authority must decide how much support to offer the domestic economy.

Jackson Hole Symposium kicks off today but the focus will be Fed Chair Walsh’s key note speech on Friday

Traders now see a 38% chance of ‌a rate hike next month, compared with 36% before the data, and are pricing in a 62% chance that the Fed will leave rates unchanged, according to the CME FedWatch ⁠Tool.

Japan, Indonesia, Australia defense chiefs hold first-ever trilateral talks. The three agreed to promote defense cooperation, just weeks after Jakarta reached a deal with Beijing to boost military ties following joint naval drills east of Taiwan.

Iran’s Revolutionary Guard said Tehran and Oman reached a deal to share revenues generated from the Strait of Hormuz. The Guard did not mention a toll to transit the strait, though a deal on revenue sharing suggests some type of fee is planned by Tehran. But said the U.S. must accept the agreement for Hormuz to reopen.

US Earnings winding down but today we get Marvel Tech. HK earnings still busy along with Australia and NewZealand

Thursday Marvell Technology, Inc. (MRVL.US) ;

CHINA LIFE (02628.HK), HAIER SMARTHOME (06690.HK), OOIL (00316.HK) , CHALCO (02600.HK), BILIBILI-W (09626.HK), CPIC (02601.HK), A-LIVING (03319.HK), ABLE DIGITAL (02687.HK), AKESO (09926.HK), ALPHAMAB-B (09966.HK), ANHUIEXPRESSWAY (00995.HK), BEIJING ENT (00392.HK), BQD (03866.HK), C&D INTL GROUP (01908.HK), C&D PROPERTY (02156.HK), JW THERAP-B (02126.HK), PRU (02378.HK), CANSINOBIO (06185.HK), CAOCAO INC (02643.HK), CGN MINING (01164.HK), CHINA COMM CONS (01800.HK), CHINA EB LTD (00165.HK), CHINA LONGYUAN (00916.HK), CHINA RAILWAY (00390.HK), CHINA VANKE (02202.HK), CNBM (03323.HK), CONCH VENTURE (00586.HK), CRCCE (01786.HK), CSTONE PHARMA-B (02616.HK), FIRST PACIFIC (00142.HK), FOSUN INTL (00656.HK), HBM HOLDINGS-B (02142.HK) , HUADIAN POWER (01071.HK), HYGEIA HEALTH (06078.HK), JIANGSU EXPRESS (00177.HK), K. WAH INT’L (00173.HK), KWG GROUP (01813.HK), LAI SI ENT (02266.HK), MANYCORE TECH (00068.HK), MAO GEPING (01318.HK), MEDBOT-B (02252.HK), MIXUE GROUP (02097.HK), ONEROBOTICS (06600.HK), R&F PROPERTIES (02777.HK), RIBOLIFE-B (06938.HK), SH PHARMA (02607.HK), SHANGHAI IND H (00363.HK), SHANGRI-LA ASIA (00069.HK), SHENZHEN INVEST (00604.HK), SHOUGANG RES (00639.HK), SHUI ON LAND (00272.HK), SKYWORTH GROUP (00751.HK), TIANQI LITHIUM (09696.HK), VGT (02476.HK), WASION HOLDINGS (03393.HK), WEICHAI POWER (02338.HK), WYNN MACAU (01128.HK), XIABUXIABU (00520.HK), ZHIHUI MINING (02546.HK), ZOOMLION (01157.HK)

Last week marked the first time in eight weeks that Bank of America clients were net sellers of U.S. equities. The S&P 500 fell 1.4% in the past week, and outflows were spurred by single stocks, the bank said in a Tuesday note. Equity ETFs, however, saw inflows. Institutional clients led the charge. Hedge funds also sold after buying in the three weeks prior, while retail clients were sellers for the fourth week.

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Housekeeping
This afternoon I will be on RTHK’s the Close with host Nitin Dialdas and other guestwill be Sunil Kashyap of FinMet.
If you have a topic you would like discussed this week then please message me or contact them via WhatsApp +852 6899 8518 or via the link below, which can also be used to listen to the programme.
click the link https://www.rthk.hk/radio/radio3/programme/the_close

Last Monday morning I was on RTHK’s Money Talk with Megha Chaddah hosting and other guest is Mel Siew, Head of Asia Public Credit at Muzinich and Co. We discussed Canadian/US tariffs and the difficulty of dealing with the US, what new FOMC Chairman might say in his Jackson Hole address this week and Nvidia’s earnings and what’s happening in the oil markets.
If there is a topic you would like discussed next week; then let them know or drop me a message, or if you just want to listen to the programme, click the link https://gbcode.rthk.hk/TuniS/www.rthk.hk/radio/radio3/programme/money_talk

Latest thoughts from Market Thinker - challenging the narrative. Operational Leverage, not financial leverage. Memory Stocks have reminded us of the potential returns from cyclical stocks...but there are other examples as well.

Notes If the high fixed costs also mean that competition is limited, at least in the short to medium term, the excess returns can make for a highly attractive investment and this simple maths has long been behind the cyclical waves of investment into commodity related stocks.

Well worth a read.

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Market opening indications and data due
New Zealand - No Data Scheduled
NZX 50 opened higher at 14,030 and tested 14,050 in early trades but failed to beak out and currently testing lower to find support level, slipped into the red but now flat.

Earnings from Genesis Energy Ltd (GNE): Full-year (FY26) financial results prior to the market opening, followed by an investor webcast at 10:30 AM NZDT.
New Zealand Rural Land Co. (NZL): Interim (HY26) financial results ahead of an institutional investor webinar.

On Wednesday the NZX saw a choppy opening around flat but then worked slowly better though the morning and then traded sideways
Leaders Materials (Vulcan Steel +4.8% after earnings) and Manufacturing (Scott Manufacturing +5%), Consumer Staples (Scales Corp +5.43%, a2 Milk 0.28%) and Tech
Laggards Healthcare, Energy & Utilities, Consumer Services and selective Industials

Australia
ASX futures indicate the market to open -4pts at 9,068 but Tech could see a bounce after Nvidia’s earnings call. Energy names weak, Miners mixed but Financials could give support. Earnings in focus.
Earnings include
Wesfarmers Ltd (ASX: WES)
South32 Ltd (ASX: S32)
Magellan Financial Group (ASX: MFG)
Mineral Resources Ltd (ASX: MIN)
Perpetual Ltd (ASX: PPT)
Bapcor Ltd (ASX: BAP)
Karoon Energy Ltd (ASX: KAR)
Atlas Arteria (ASX: ALX)
Cromwell Property Group (ASX: CMW)
Qantas Airways Ltd (ASX: QAN)
Ramsay Health Care Ltd (ASX: RHC)
The Star Entertainment Group (ASX: SGR)
Smartgroup Corporation (ASX: SIQ)

On Wednesday the ASX 200 opened higher but initially dipped, bounced then trended lower for the rest of the day as inflation came in slightly higher than expected, putting another rate hike in play. ASX 200 finished -36.8 pts, or 0.4%, at 9127.80
Leaders: Consumer Staples and Materials/Mining
Lovisa Holdings 15.43%
Perseus Mining 8.40%
Sandfire Resources 6.85% t as copper prices remained strong.
Woolworths Group 4.35% following a well-received FY26 earnings report.
Nine Entertainment 3.59%

Laggards: Info Tech, Energy, Telcos and Financials
Worley -10.77%
Domino’s Pizza -9.06% after reporting-day pressure.
DroneShield -7.69% after half-yearly net loss announcement.
WiseTech Global -7.41% after softer CargoWise growth figures in its earnings release.
Flight Centre Travel Group -6.79%
Woodside Energy -4.11% as oil prices slid.

Data Scheduled 90 minutes after the open
RBA Bulletin
Building Capital Expenditure Q2 QoQ vs -3.8% Q1 (F/cast is -1.8%)
Household Spending Jul MoM vs 0.8% Jun (F/cast is 0.3%)
Household Spending Jul YoY vs 6% Jun (F/cast is 4.49%)
Plant Machinery CAPEX Q2 QoQ vs 18.1% Q1 (F/cast is -7.8%)
Private CAPEX Q2 QoQ vs 6.5% Q1 (F/cast is -1.4%)
RBA Payments Systems Board Meeting

Japan - No Data Scheduled
Nikkei Futures indicate 932.5 pts 1.46% at 67,105
Chicago Nikkei Futures 1,105pts 1.67% at 67,080
Yen 159.27

On Wednesday the Nikkei opened lower but rallied into lunch and then traded sideways in the afternoon to close up 406pts 0.62% at 66,262.16
Leaders Securities Houses, Insurance, Real Estate and Banking
Laggards Autos, selective Energy and elective Tech

Data due 10 minutes before the open
Foreign Stock Investment data 22 Aug vs ¥1135.1B prior
Foreign Bond Investment data 22 Aug vs ¥621.2B prior
Due 90 minutes after the open
BoJ’s Himino Speech
Mid morning
BoJ JGB Purchases

S Korea
Kospi Futures (KMU6) indicate opening 6.85pts 0.64% at 1,080.35 but the BoK rate decision is seen as being close and so we could see some caution ahead of the decision and reaction after. Tech in focus with positive spin from Nvidia earnings call.

The Kospi saw a choppy open on Wednesday; initially rallying but falling back and trading around flat. Then around 9am spiked higher to 6,870 then traded sideways into lunch but sold off in the afternoon before a bounce into the close. The KOSPI closed up 65.47 pts, or 0.97%, to 6,808.21.
Trade volume was moderate at 323.3 million shares worth 22.38 trillion won ($16.15 billion). Winners outnumbered losers 584 to 273.
Institutional investors net bought 760.37 billion won. Foreign and retail investors net sold a combined 2.36 trillion won.
The Korean won was quoted at 1,384.8 won against the US dollar as of 3:30 pm. Wednesday, down 1.3 won from the previous session.
Bond prices closed higher. The yield on three-year Treasurys -1.4 basis points to 3.816%, and the return on the benchmark five-year government bonds inched down 0.6 percentage point to 4.033%.
Leaders Tech, Nuclear
Laggards Autos, Defence

Data due 60 minutes after the open
Interest Rate Decision expected to raise 25bpts to 3% from current 2.75%

Taiwan
Taiex futures indicate market to open -10pts -0.02% at 45,993 but that was before the Nvidia conference call I would expect a rebound in Tech following Nvidia’s positive revenue guidance.

On Wednesday the Taiex opened lower but rallied for the first two hours to 45,700 and then worked slightly better for the rest of the day to close up over 600 pts, led by AI-related stocks amid optimism that U.S. AI chip giant Nvidia will provide positive results and upbeat guidance at its investor conference later Wednesday in the US. The Taiex, closed up 663.16 ts, or 1.47%, at 45,832.62 after moving between 44,925.84 and 45,878.39. Turnover totaled NT$804.25 billion (US$25.25 billion) vs NT$724.26 billion Tuesday.
Leaders TSMC +0.62% and strong buying in semiconductors and AI related stocks.
Laggards were Shipping and Financials

According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$36.60 billion worth of shares on the main board Wednesday.
Data could get
Consumer Confidence Aug vs 64.58 Jul (F/cast is 65)

China - National People’s Congress underway
Golden Dragon Index closed -38.23pts -0.61% at 6,230 but watch for the release of Industrial Profits data on the open which could push the markets lower but many are still hoping that Beijing will announce more stimulus plans to support the wider economy’s we could see upside later in the session. Watch Tech as Z.AI claims its latest Stealth release is running on Chinese Chips.
FTSE A50 futures closed -23pts -0.16% at 14,742
MSCI A50 Connect (USD) futures closed -5.8pts -0.21% at 2,702.2

On Wednesday the A shares opened lower but rallied in the first 90 minutes then eased back to trade sideways for the rest of the session. Buying on the hope of policy support from the ongoing National People’s Congress Standing Committee meeting.
Trading volumes remained light at 1.81 T yuan ($266.8B) vs 1.83 T yuan Tuesday
Leaders Real Estate, Computing Hardware, Tech, Semiconductor Chips
Laggards Energy (Coal/Mining, Oil/Gas), Banking & Traditional Financials

At the close
Shanghai Composite: up 0.59% at 3,912.5
Shenzhen Component: up 0.69% at 13,841.3
CSI 300 (Blue Chips): up 0.85% at 4,590.79
ChiNext Index (Growth Board): up 0.51% at 3,414.88
STAR 50 Index (Sci-Tech): up 1.71% at 1,632.02

The central parity rate of RMB against USD was set at 6.7829, up 23 bps MoM. The PBOC conducted RMB239.5 billion of seven-day reverse repos Wednesday (26th), with no reverse repos maturing, resulting in a single-day net injection of RMB239.5 billion.
USD/CHN -0.00093pt -0.01% at 6.7213
RMB spot against the USD closed up 24 bps Wednesday (26th) at 6.7205 per USD. As of 5:03 pm, RMB night trading fell 93 bps; offshore RMB fell 31 bps to 6.7194 per USD, representing an 11-bps premium over the onshore rate.

Data due on the open
Industrial Profit (YTD) Jul YoY vs 18.7% Jun (F/cast is 16%)

Hong Kong - No Data Scheduled
ADR’s closed -194.6pts -0.76% at 25,473 most in the red but in the green HSBC, CLP, SHKP, Bank of China HK and Baba.
Hang Seng Futures indicate -55pts -0.21% at 25,615
Turnover Wednesday HK$254.8 B vs HK$254.079B Tuesday
Short Selling Wednesday 22.65 vs 21.5% Tuesday

On Wednesday the HSI opened higher and initially ticked higher but then trended lower for the rest of the day. Markets followed the Tech recovery overnight in the US, investors encouraged by Jack Ma purchase offer HK$600m of Baba stock and general good corporate earnings. Additionally hopes of Beijing announcing fiscal support for the Chinese economy at the National People’s Congress and the easing oil prices.
HSI closed up 142 pts, 0.56% at 25,652.97
Hang Seng Tech Index up 0.82% at 4,626.15
Hang Seng China Enterprises Index up 1.05% at 8,533.84

Leaders; Chinese Brokers, Biotech and Healthcare, Tech/AI, Semiconductors and Non-Ferrous & Industrial Metals
Laggards: Energy (oil/gas), Medical Services/Equipment, Electrical Machinery/Industrials, Precious/Enegy Metals

Macau - No Data Scheduled

Singapore - Data Scheduled for lunchtime
10-Year Bond Auction vs 2.09% prior
6-Month T-Bill Auction vs 1.56% prior
On Wednesday SGX stocks closed -0.25% 5,721.59, after approaching the record high on Tuesday. The current intraday high is 5,774.21 set August 11 2026, closing high is 5,754.17 on the same day.

Malaysia - No Data Scheduled
Indonesia - - No Data Scheduled

Philippines - Data Scheduled at lunchtime
Interest Rate Decision expected to raise rates by 25bpts from 4.75% to 5%
Could get
Budget Balance Jul vs PHP -264.3B Jun (F/cast was PHP -220B)

Thailand - No Data Scheduled
On Wednesday the BoT left Interest Rates unchanged at the existing 1%.
Could get
Consumer Confidence Aug vs 64.58 Jul (F/cast is 65)
Balance of Trade Jul vs $-6.53B Jun (F/cast is $-6.3B)
Exports Jul YoY vs 20.8% (Consensus is 19%)
Imports Jul YoY vs 50.3% (Consensus is 42.3%)

Vietnam - No Data Scheduled
Cambodia - No Data Scheduled
Myanmar - No Data Scheduled
India - No Data Scheduled

Europe
Eurozone - Loans to Companies & Households, M3 Money Supply, ECB Monetary Policy Meeting Accounts
Germany - Consumer Confidence
France - PPI, Unemployment Benefit Claim, Jobseekers Total
United Kingdom - Car Production out Jul -11% YoY vs -1.2% Jun (F/cast was 1%)

United States
Futures opened Dow 243pts 0.45% S&P 0.57%, NDX 1.02%
After Market
Nvidia 4% earnings beat with $96.2B up 106% YoY and gave an upbeat out look for revenue to grow 70% in Fiscal 2028; which is new as it does not usually give revenue growth data and changed the tone of the call.

Salesforce 12% strong Q2 earnings beat plus a raised guidance; its adjusted earnings outlook to $16.67–$16.71 per share on $46.1 billion to $46.4 billion in revenue

Crowdforce 10% as earnings beat forecasts and gave a positive outlook; Q3 Revenue Forecast: up to $1.53 billion, topping analyst estimates. Full-Year FY2027 Revenue: Raised to a range of $5.99 billion to $6.01 billion.

Data Scheduled: Jackson Hole Symposium, Goods Trade Balance Advance, Initial Jobless Claims, Continuing Claims, 4 week Average Claims, Retail & Wholesale Inventories, EIA Gas Report, 4-week & 8-week Bill Auction, 15-year & 30-year Mortgage Rate, 7-Year Note Auction, Fed Balance Sheet.

HEADLINES & NEWS
NEW ZEALAND & AUSTRALIA
Macquarie dumps KPMG from the nation’s biggest audit contract. KPMG faces another round of job cuts after Macquarie dumped the firm from the most lucrative audit contract in Australia.

Woolworths doesn’t need Ooshies effect to beat Coles, says CEO. Chief executive Amanda Bardwell celebrated the success of its collectables campaign – but said it wasn’t the sole sales driver.

Shock job cuts at Austrac despite expanding role battling financial crime. Australia’s high-profile money laundering regulator Austrac is preparing for significant cuts to its workforce.

Nine signals TV not the main game any more after ‘transformative year’. The company slashed the value of its television business by more than half in a sign of where its new priorities lie.

‘Can never say we’re done’: WiseTech signals more AI job losses are coming. A week after the competition watchdog raided the company, chief executive Zubin Appoo is pointing to a leaner, AI-led WiseTech.

Desperate agents vent online as real estate downturn bites From deploying stunts about false robberies to sharing tactics to avoid buyers seeking discounts, real estate agents are talking themselves through the downturn.

JAPAN
Japanese media reported that Japan plans to support alternative oil pipeline projects in the Middle East to improve energy security following the Iran war. Japan has already tapped its petroleum reserves to help address supply issues, while increasing crude oil imports from countries including the US. Before the outbreak of the US-Iran conflict, Japan was highly dependent on imported oil transported through the Strait of Hormuz. Reports said Japan will assist countries including Saudi Arabia in promoting the expansion and construction of new crude oil transportation routes bypassing the Strait of Hormuz. It is understood that the Japanese government will hold meetings to discuss measures including a crude oil reserve plan dedicated to naphtha production. It is also expected to call for the “maximum utilization of nuclear energy” and support the development of next-generation perovskite solar cells.

Japan unveiled a comprehensive plan on Wednesday to strengthen the resilience of its energy supply, including support ​for pipeline projects that bypass the Strait of Hormuz, the gateway ‌to almost all of its imported crude before the Iran war. The plan was outlined at a meeting of the government’s Green Transformation (GX) Implementation Council and specific measures, including legislative ​steps, are expected to be finalised by the end of the ​year.

Bank of Japan board member Naoki Tamura will attend the U.S. Federal Reserve’s annual gathering in Jackson Hole, ​Wyoming, this week on behalf of Governor Kazuo Ueda, the central bank said ‌on Wednesday. Ueda will not attend the conclave this week due to scheduling conflicts, the BOJ said. There will be no media opportunity for Tamura during the meeting, it said. It is rare for ​a BOJ board member to participate in the Jackson Hole meeting, which is ​typically attended by the governor or one of the central bank’s ⁠two deputy governors.

Sanctioned ICC chief urges Japan to counter US campaign. “I can state categorically that there is absolutely no reason for me to be sanctioned,” the Japanese ICC chief said. Japan should try to counter U.S. efforts to pressure members ‌of the International Criminal Court to quit the body, the Japanese head of the court said on Wednesday, adding that Tokyo’s support was pivotal to ensuring the ICC’s survival. The Trump administration ratcheted up its campaign against ​the Hague-based court last week by sanctioning its president, Tomoko Akane, and a senior trial ​lawyer. Washington has said it will also step up efforts to persuade other countries ⁠to quit the institution, a call that at least five countries have already heeded. Japanese Prime ​Minister Sanae Takaichi initially described the latest move as “very unfortunate” but has faced criticism from the ​opposition, human rights groups and some lawmakers from her own party for not more forcibly defending the court. Speaking via a video link to reporters in Tokyo, Akane called on Japan, the court’s biggest financial backer, to help ​it in its hour of need

SOUTH KOREA
Hyundai Motor Co. unveiled its most extensive product expansion yet, targeting over 100 model launches globally by 2030 across North America, South Korea and Europe. Backed by strengthening profitability, the automaker aims to leverage this massive rollout to drive its transformation into a physical AI-driven tech company. At a CEO Investor Day event in Seoul on Wednesday, Hyundai Motor Co. President and CEO Jose Munoz revealed that among the new models, 58 will be launched in North America, with Genesis accounting for 22. Korea will see approximately 49 model launches, while Europe will receive around 41. Hyundai is also preparing diverse vehicle debuts in India and China, alongside plans to enter new market sectors by adding more than 18 new models and vehicle segments such as pickups, light commercial vehicles and large SUVs.

SK Innovation expects its merger with loss-making battery separator unit SK IE Technology to cut annual costs by about 60 billion won ($43.3 million) and return the business to earnings before interest, taxes, depreciation and amortization profitability within two years. The company plans to eliminate overlapping operations in marketing, production and other functions after absorbing SKIET, executives said during an online briefing Wednesday. The merger will also give SKIET access to SK Innovation’s stronger credit profile, improving its financing capacity and lowering interest expenses.

A government delegation attended the inauguration ceremony for a major international initiative launched by the International Atomic Energy Agency in Washington, D.C., the science ministry said Wednesday. The two-day event running until Thursday (US time), was held to mark the launch of the Atomic Technologies Licensed for Applications at Sea, or ATLAS, a global initiative to support the deployment of nuclear-powered vessels and floating reactors. South Korea has designated small modular reactors (SMRs) among the country’s seven future technology drivers, with the goal to develop SMR-powered vessels by 2035. The delegation consists of Koo Hyuk-chae, the first vice minister of science and ICT, as well as officials from the industry ministry and local companies.

TAIWAN
Powertech Technology yesterday said that its advanced fan-out panel-level packaging (FOPLP) production line has secured a 100% utilization rate through 2030 ahead of its scheduled volume production next year. Powertech made the remarks during the first public unveiling of its FOPLP production capabilities. The company expressed strong confidence in its long-term order pipeline, saying that robust market traction has mitigated any client acquisition concerns. “Our capacity has been fully booked by two major customers. Customers are not an issue through 2030,” Powertech chairman Tsai Du-kung told reporters at the company’s plant in the Hsinchu Science Park. The chairman said the investment was the largest strategic gamble of his career. Powertech plans to invest a total of NT$70 billion (US$2.2 billion) on ramping the FOPLP facility, which would have an installed capacity gradually increasing to 5,000 510x510mm panels per month in 2028 from 1,000 panels this year. Powertech said that it is on track to roll out its initial shipments of artificial intelligence (AI) server central processing units from its Hsinchu facility, called P11, next year, using its advanced FOPLP technology. The company is also building a FOPLP production line in Singapore through a joint venture with Broadcom Inc. Advanced Micron Devices Inc and Broadcom are the major customers for the panel-level packaging services.

Largan Precision has made its fourth land purchase this year, announcing on Tuesday that it has bought land and a building in Taichung for NT$3.08 billion (US$96.8 million) to expand production. While Largan did not disclose any further details on the purpose of the acquisition, analysts said it was likely aimed at supporting efforts to develop copackaged optics (CPO)-related products, such as fiber array units, a business the company recently added to its product portfolio. The new plot covers about 20,800m2, and the building has a floor area of 23,319m2, the company’s filing with the Taiwan Stock Exchange said.

Leadtek Research a distributor of graphics cards, artificial intelligence (AI) workstations and AI servers, expects limited impact from Nvidia Corp’s price hikes on certain products, a Leadtek source told the Taipei Times yesterday. Leadtek is a long-term partner of Nvidia and an authorized reseller of the US chipmaker’s products. Nvidia recently notified customers of another round of price increases, with high-end computing cards and RTX PRO-series graphics processing units (GPUs) rising 40 to 60 percent amid higher memory costs. Further increases remain possible by the end of this year, people familiar with the matter said last week.

CHINA
Chinese Foreign Ministry spokesperson announced that President Xi Jinping will attend the 2026 Shanghai Cooperation Organization Summit in Bishkek from August 30 to September 3, and will pay state visits to Kyrgyzstan and Egypt.

The State Council Information Office held a themed press conference under the “Setting Sail for the 15th Five-Year Plan” series. Relevant officials from the Ministry of Industry and Information Technology (MIIT) said that during the 15th Five-Year Plan period, efforts will be intensified and accelerated to address key issues including automobile product quality and autonomous driving safety. Authorities will also study and formulate the “15th Five-Year Plan for the Development of the Intelligent Connected New Energy Vehicle Industry” to promote high-quality industry development through multiple measures. During the 14th Five-Year Plan period, the scale of China’s new energy vehicle industry expanded from the million-vehicle level to the 10-million-vehicle level. Annual sales increased from 1.367 million vehicles to 16.49 million vehicles, while the share of new energy vehicles in new automobile sales rose from 5.4% to 47.9%. The industrial system has become increasingly comprehensive, with output of new energy vehicles, power batteries and key materials accounting for more than 70% of the global total. International influence continued to strengthen, with products exported to more than 100 countries and regions. During the 15th Five-Year Plan period, authorities will further improve the quality of product supply and actively and prudently advance pilot programs for intelligent connected vehicle market access and road operation, as well as “vehicle-road-cloud integration” trials. Supporting usage environments will also be optimized to effectively address consumer concerns, encouraging consumers to purchase and use such vehicles with confidence.

According to a Bloomberg report, mainland tax authorities have issued “back tax” notices to listed companies. Based on Bloomberg’s analysis of company filings, more than 100 listed companies had received notices in 1H26 requiring payment of back taxes and late fees totaling about RMB7.7 billion. The report cited Shanghai-listed BEIDAHUANG (600598.SH) as an example. Since its listing more than two decades ago, the company had never reported an interim loss for the first half, but that trend is set to be broken this year. The reason was that tax authorities issued a notice to the listed arm of China’s third-largest agricultural group, requiring the company to repay tax incentives that it should not have received. The tax bill amounted to 120% of the company’s 2025 net profit. Investors subsequently sold off BEIDAHUANG (600598.SH) shares, causing the company’s market capitalization to shrink by one-fifth within just three trading days in June. The report added that the current round of tax recovery actions covered previously misapplied corporate income tax exemptions, excessive declarations of value-added tax deductions, and the revocation of preferential tax qualifications originally granted to eligible enterprises. The report cited mainland tax officials as saying that small and medium-sized enterprises are not currently the primary targets, describing the current approach as pragmatic. The officials added that companies may still receive lenient treatment as long as they pay a reasonable proportion of unpaid taxes, even if the amount is below the legally required level. The report said that compared with the roughly RMB400 billion scale of industrial policy support estimated by Beijing-based consultancy Gavekal Dragonomics for last year, which was largely used to ease corporate financial burdens, the amount of back taxes sought this year is relatively small. However, the damage is real because the tax payments have consumed a significant portion of first-half profits for many companies. The report also said this may only be the beginning, as local governments are actively searching for new sources of fiscal revenue. Due to weak domestic demand, tax revenue has declined from its 2023 peak, while land-sale income, once a reliable cash source, has been shrinking at a double-digit percentage rate. The tax rectification campaign also signals the end of a decades-long growth model in which provinces and cities relied on heavy subsidies to achieve economic growth targets. In addition, some companies faced back-tax burdens far exceeding their profits for the same period. AISIDI (002416.SZ), for example, faced a tax repayment amount equivalent to more than six times its first-half profit. Other companies with relatively large back-tax amounts in this round included state-owned YUNNAN COPPER (000878.SZ) and 600667.SH, as well as privately owned AIER EYE (300015.SZ).

Microsoft Corporation founder Bill Gates said he hopes to propose a global cooperation initiative to mitigate risks posed by AI when meeting with Chinese President Xi Jinping later this year. He believes that if the US takes the lead, China may agree to restrict the release of potentially risky AI models. A spokesperson for Gates said efforts are underway to finalize details of the meeting with Xi, tentatively scheduled for November. Gates said he hopes to propose that countries monitor AI’s capability to create molecules and conduct biological attacks. He also mentioned that China is protecting children from addiction to AI companions, adding that few global leaders are willing to take responsibility for preventing a series of potential AI risks.

DeepSeek generated RMB475 million in revenue in 7M26, more than 10 times its total revenue for 2025, The Information, citing sources, reported. The report said DeepSeek recorded a loss of RMB715 million in 7M26, compared with a full-year loss of RMB935 million in 2025. Gross margin for 7M26 was 44.6%. DeepSeek was reportedly valued at more than USD50 billion after its previous funding round. The company is now preparing for a second funding round, targeting RMB50 billion in fundraising at a valuation of USD74.4 billion.

Trump signed an executive order on Wednesday declaring a ​national emergency and banning the use of some foreign equipment ‌in the U.S. electricity grid, the White House said. The order cites what the White House described as an “unusual and extraordinary foreign threat” posed by foreign-made bulk-power systems that may ​present national security vulnerabilities. Trump’s order, the latest example of Washington’s ​approach to tackling technology threats posed by China, follows a ⁠decision by the European Commission earlier this year to ban ​Chinese-made inverters from publicly funded energy projects.

China and India reaffirmed their commitment to maintain peace and tranquility in the border ​areas as they seek “fair, reasonable and mutually acceptable ‌settlement,” China’s foreign ministry said on Wednesday after high-level boundary talks in Beijing. The two sides agreed on an eight-point ​consensus, the ministry said, including new military ​hotlines and working groups on boundary delimitation, marking ⁠an expansion of communication channels between the two ​nuclear powers as they work towards settling their ​long-disputed Himalayan border. China’s Foreign Minister Wang Yi met India’s National Security Adviser Ajit Doval on Tuesday and had “comprehensive, in-depth, friendly ​and candid” discussions on border affairs and bilateral ties. They ​agreed to add two meeting points for commander-level talks and establish ‌two ⁠new military hotlines in the eastern and central sectors of the border. Two groups will be tasked with advancing discussions to make early progress on boundary ​delimitation and ​border management, the ⁠ministry said. Both sides also agreed to boost cooperation in border trade and ​pilgrimages and to foster an atmosphere of ​dialogue, ⁠peace, consultation and cooperation along the border. They pledged to hold a new round of expert-level talks on trans-border ⁠rivers ​in September and remain in ​contact on hydrological data sharing and renewal of the relevant memorandums ​of understanding.

HONG KONG
IPO
Existing shareholders of SHEIN-W (00625.HK) agreed to a six-month lock-up period for new shares allocated in its Hong Kong IPO, in line with cornerstone investors, foreign media media, citing informed sources. Existing investors are expected to subscribe to a considerable portion of the offering in this IPO. SHEIN-W plans to raise up to USD1.8 billion in its Hong Kong listing. Cornerstone investors subscribed for shares worth more than USD380 million equivalent. After deducting the public offering portion, this implies that approximately USD500-600 million worth of shares will be available to other institutional investors. According to the prospectus, SHEIN-W IPO introduced seven cornerstone investors, including Boyu Capital, General Atlantic, TENCENT (00700.HK)’s Huang River, Tiger Global and UBS Asset Management. Among them, Boyu, Tiger Global, General Atlantic and TENCENT are existing investors.

HK Results see https://www.aastocks.com/en/stocks/news/aafn/latest-news

Government
Chief Executive John Lee announced that Hong Kong’s first Five-Year Plan and a new Policy Address will be delivered on September 16.

Buybacks
TENCENT (00700.HK) repurchased 672,000 shares of the company Wednesday (26th) at a price ranging from HKD443.4 to HKD449.8 per share, involving approximately HKD300 million. Since the repurchase mandate resolution was approved, the group has cumulatively repurchased 41.4627 million shares, accounting for 0.45474% of its issued shares.

BABA-W (09988.HK) announced that it completed the placement of 710 million new shares Wednesday (26th) at HKD112.7 per share, representing 3.57% of the enlarged share capital. Gross proceeds amounted to HKD80 billion, while net proceeds totaled HKD79.7 billion. About 60% of the proceeds will be used to expand global computing power infrastructure to meet growing customer demand, while about 40% will be used to accelerate the construction of hyperscale AI data centers and upgrade traditional cloud infrastructure including storage, databases and high-performance networks to support a full upgrade to the Agentic Cloud architecture.

KUAISHOU-W (01024.HK) disclosed in a filing that on August 26, it repurchased 441,000 shares on the Stock Exchange at prices ranging from HKD33.62 to HKD34.08 per share, involving a total consideration of approximately HKD14.97 million. Since the ordinary resolution was passed on June 25, 2026, the company has cumulatively repurchased 28.9802 million shares, representing 0.6698% of its share capital

HSI Short Selling Wednesday 22.6% vs 21.5% Tuesday
Top shorts Galaxy Ent (27) 59%, Li Auto (2015) 49%, J&T Express (1519) 47%, CATL (3750) 46%, Hengan (1044) 44%, Sands China (1928) 44%, China Res Land (1109) 44%, Nongfu Spring (9633) 42%, NTES (9999) 42%, BYD (1211) 41%,

Sinopec (386) 39%, Xinyi Solar (968) 39%, Haier Smarthome (6690) 39%, JD SW (9618) 38%, BYD Electronic (285) 37%, Wuxi Apptec (2359) 37%, Tingyi (322) 36%, AIA (1299) 34%, CLP (2) 33%, Bud APAC (1876) 33%, SHKP (16) 32%, Shenzhou (2313) 31%, Haidilao (6862) 31%, MTRC (66) 30%, Midea Group (300) 30%

Ping An (2318) 29%, Henderson Land (12) 29%, Hansoh Pharma (3692) 29%, Trip Com (9961) 29%, China Shenhua (1088) 29%, Anta Sports (2020) 29%, Ali Health (241) 29%, Longfor (960) 29%, CM Bank (3968) 29%, Chow Tai Fook (1929) 29%, Link REIT (823) 28%, Xiaomi (1810) 28%, Beone Medicines (6160) 28%, New Oriental (9901) 28%, Bank of China (3988) 27%, China Res Mixc (1209) 27%, Wharf REIT (1997) 27%, ICBC (1398) 27%, Meituan (3690) 27%, CK Asset (1113) 26%, China Hongqiao (1378) 26%, HSBC (5) 26%, Petrochina (857) 25%, Geely (175) 25%

WATCH
EXTREME VISION (06636.HK) announced that it proposed to implement and apply for the full circulation of H shares, involving the conversion of 562,300 domestic unlisted shares, representing 0.5% of the company’s total share capital.

PATEO (02889.HK) announced that it has entered the global supply system of an international leading automobile group for the first time and secured model designation orders for two major brands under the client, including global models of its premium luxury brand and overseas models of its mid-to-high-end brand. The two brands’ vehicle models will target key overseas markets including Europe, the Middle East and South America. The company will provide the client with high-end intelligent cockpit domain controllers and AI in-vehicle interaction systems based on Qualcomm’s fourth-generation Snapdragon 8295 platform for the global market range.(

CANSINOBIO (06185.HK) announced that its subsidiary CanSino Shanghai recently entered into a strategic cooperation framework agreement with DeepVise Bio for the joint development of mRNA personalized therapeutic tumor vaccines. Under the agreement, both parties will leverage their respective strengths in mRNA vaccine technology and tumor neoantigen discovery and design to explore cooperation opportunities jointly. The mRNA platform is one of the company’s key technology platforms. The company is developing mRNA prophylactic vaccines and therapeutic biologics, as well as related delivery systems. In the therapeutic field, the company is advancing the research and development of mRNA vaccines for indications including glioblastoma, rhabdomyosarcoma and cervical cancer, as well as the development of related In Vivo CAR therapies, all of which are currently at an early stage.

CSPC PHARMA (01093.HK) announced that SYS 6090 (JMT108), a first-in-class PD-1/ IL-15 bispecific fusion protein developed by the group, has been granted Fast Track designation by the US Food and Drug Administration (FDA) for the treatment of patients with microsatellite stable (MSS) or mismatch repair proficient (pMMR) metastatic colorectal cancer (mCRC) whose disease has progressed following prior standard systemic therapy.

XINYI ENERGY (03868.HK) and XINYI SOLAR (00968.HK) jointly announced that the proposed listing of Xinyi Energy New Energy REIT has been recommended by the National Development and Reform Commission to the China Securities Regulatory Commission. Xinyi Energy New Energy REIT is proposed to be listed on a stock exchange in China. The relevant assets of Xinyi Energy New Energy REIT include selected solar power plant projects currently owned and operated by XINYI ENERGY.

PRU (02378.HK) announced that its subsidiary PCHL intends to sell up to a 2% stake in ICICI Prudential Asset Management (IPAMC) to help IPAMC gradually comply with India’s minimum public float requirement of 15%. The sale is expected to take place on Aug 27. Upon completion, PCHL will hold a 32.6% stake in IPAMC.

CHINA FOODS (00506.HK) announced that it received notification from senior management Wednesday (26th) that, based on strong confidence in the company’s business prospects and growth potential, as well as recognition of its long-term investment value, the executives plan to purchase company shares through open market transactions within the next two months. Under the share purchase plan, the senior management intends to purchase a total of 1 million shares of the company.

The Ecology and Environment Bureau of Yichun City, Jiangxi Province announced that it has revoked the proposed acceptance notice, which was originally published on August 17, for the environmental impact report of the Jianxiawo lithium mine project under CATL (03750.HK). CATL will coordinate with government departments on approval arrangements regarding its next-step plans, according to Securities Times, citing sources close to the company.

JD LOGISTICS (02618.HK) launched the “Super Brain” Large Model 3.0 at the 18th Beijing International Exhibition on Transport Technology and Equipment. It is the logistics industry’s first industrial-grade large model integrated application fully directed by AI from warehousing to delivery. Compared with version 2.0, it offers higher operational efficiency, stronger system resilience and lower operating costs. The solving time for optimal end-to-end route planning for hundreds of millions of parcels can be compressed from minutes to seconds, enabling parcels to be delivered to consumers faster and more accurately.

CATL (03750.HK)s battery swap brand Choco-Swap announced that Era Electric Service and Kunming Development New Energy, a unit under the Kunming State-owned Assets Supervision and Administration Commission (SASAC), signed a strategic cooperation agreement on battery swapping. The two parties plan to jointly build 100 Choco-Swap battery swap stations and conduct in-depth discussions on cooperation across the entire industry chain, while jointly exploring a new model of new energy infrastructure development combining “state-owned capital holding + Choco-Swap operations”.

Wednesday closings in EUROPE and US
DAX 0.08%, CAC 0.27%, FTSE -0.07%
FTSE traded around flat through the morning then worked slightly better in the afternoon before selling down into the close. The DAX dipped on the open but then worked better for most of the day but then sold down into the close. CAC opened higher and traded sideways in the morning. It worked higher after lunch but then eased lower from mid afternoon and ticked lower into the close.

Investors remain cautious as geopolitical issues overhang the markets like the US/Iran war along with hawkish monetary cues. Oil lower as Iran and Oman reach as deal over the Straits of Hormuz which is negative for the US. But new US sanctions on Iran’s trading partners are unclear. European banks remained solid performers, with the sector up 1.5%.

Ambu -12.4% off the initial lows after the Danish health-care company cut its full-year growth guidance to around 10%, from 10% to 12% previously.

Leaders: Banks, Luxury Goods, Basic Resources and F&B
Laggads: Tech (as SAP -5.4% on broker downgrade), Healthcare and Energy

DOW -0.21%, NDX -0.08%, S&P -0.02%, Russel 2K -0.14%
Dow and S&P opened flat and lifted lower through the morning and then worked slightly better in the afternoon. NDX after a choppy start traded down into lunch and then worked back to flat in the afternoon.

Mortgage interest rates moved even higher last week, causing demand for loans to weaken yet again.

PCE data shows that inflation remains an issue reducing the chance of a rate cut but consumer spending was slightly weaker too; suggesting that the economy could be slowing. Durable Goods were better, GDP Growth

Meta 1% off initial lows after it reached a settlement with state attorneys general over a lawsuit alleging that its social media apps harmed young users. But the settlement is with strings and could impact Meta’s competitors too

Dicks Sporting Goods +5.4% after being -31% post earnings. But Nike -2.2% hit a 12 year low.

Boston Scientific -3.4% said Wednesday it was hit with a cyberattack this week that is affecting its operations.

Kohl’s 1.47% off initial lows after it reported that Q2 comparable sales fell 0.9%. However, the company revised guidance higher for its full-year outlook, partially boosted by $150 million in tariff refunds received during in the second quarter. Kohl’s also said it was restarting share buybacks of up to $100 million in 2026.

Leaders Industrials, Financials, Materials, Real Estate
Laggards Consumer Discretionary, Health Care, Tech and Telco.

Banks JPMorgan Chase -0.05%, Citigroup 0.23% Wells Fargo 0.52%, Amex 0.06%
Ecommerce Meta 1.07%, Apple 1.15%, Amazon -0.3%, Netflix -0.94%, Disney -1.46%, Zoom Comms -7%, Alphabet -1.23% and Microsoft 0.95%
Tech NXP Semi -0.71%, Nvidia -1.59%, Micron 0.58%, AMD 0.37%, Skyworks 1.4%, Intel 0.87%
Industrial/Discretionary Boeing 0.48%, Caterpillar 1.31%, Simon Property -0.86%, Kohl’s 1.47%, Gap 4.96%, United Airlines -2.2%, Carnival -2.1%, Wynn Resorts -1.59%
Healthcare Eli Lilly -3.59%, UntiedHealth 1.11%, Johnson & Johnson -1.15% Merck -2.14%
Auto Ford -0.36%, GM 0.61%, Tesla -1.26%
Energy Chevron 0.16%, Exxon Mobil -1.53%, ConocoPhillips 0.13%
Consumer Staples Campbell Soup -1.02% General Mills 0.75%, JM Smucker 4.34%
Buffet’s Top Five Retirement Stocks Coca Cola -1.7%, Apple 1.15%, Johnson & Johnson -1.15%, Proctor & Gamble -0.28%, Berkshire 0.12%

DAILY US CLOSING DATA
USD firmer as Fed rate hikes expectations rise. Bitcoin -0.28% at $78,696.74
VIX -1.55% at 15.21
US Bonds T10 up 1 bpts to 4.649%, T2 0.05 bpts at 4.209% and T30 up -0.03 bpts at 5.171%; after PCE data inline with F/casts.
OIL Brent -0.84% at $87.84, WTI -2.54% at $80.27
Spot Gold -1.4% Spot Silver -0.94%, Copper -1.71% Platinum -1.2%, Palladium -0.41%.

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The trade dispute between US/Canada also getting significant coverage, I think Canada will be the first of many to stand up to Trump’s bullying. Additionally many will be looking at alternatives to the US dollar trading systems and the US weaponises that in order to try and get Iran to the negotiating table. I doubt it will be effective, Iran has had years of being sanctioned and no doubts has reserves and isn’t facing midterm elections. Furthermore China is warning the US about retaliation over the new raft of sanctions against Iran and its trading partners; suggesting that China has no intention of severing trading ties with Iran

Today in France Mouvement des entreprises de France (MEDEF is the largest employer federation and business lobby) and holds it annual meeting of business leaders and politicians; the last before the next French Presidential election; where President Macron will be stepping down after 10years in power

Then on Thursday in US the Federal Reserve Bank of Kanas City’s Jackson Hole Symposium; where new FOMC Chairman Warsh will give the key note speech on Friday. Whilst he may not like giving guidance it is likely he will set out his agenda and at the sale time ty to bolster the Fed’s credibility.

US Earnings winding down but today we get Nvidia and Crowdstrike and then on Thursday Marvel Tech. HK earnings will see a busy week

Wednesday NVIDIA Corporation (NVDA.US),Salesforce, Inc. (CRM.US), CrowdStrike Holdings, Inc. (CRWD.US),HP Inc. (HPQ.US);

CHINA OVERSEAS (00688.HK), CNOOC (00883.HK), MINIMAX-W (00100.HK), HANSOH PHARMA (03692.HK), HUA HONG GRACE (01347.HK), MENGNIU DAIRY (02319.HK), CHINA RES POWER (00836.HK), CG SERVICES (06098.HK), SUNNY OPTICAL (02382.HK), ANTA SPORTS (02020.HK), LI AUTO-W (02015.HK), SENSETIME-W (00020.HK), GREAT EAGLE H (00041.HK), CHOW SANG SANG (00116.HK), TSINGTAO BREW (00168.HK), BJ ENT WATER (00371.HK), SIHUAN PHARM (00460.HK), GRAND PHARMA (00512.HK), CHINACOMSERVICE (00552.HK), SANY INT’L (00631.HK), REPT BATTERO (00666.HK), BEIJING AIRPORT (00694.HK), CR BEVERAGE (02460.HK), CR BEVERAGE (02460.HK), CONCH CEMENT (00914.HK), CITIC BANK (00998.HK), SEAZEN (01030.HK), HARBIN ELECTRIC (01133.HK), HK TECH VENTURE (01137.HK), NCI (01336.HK), MEITU (01357.HK), GUMING (01364.HK), CONSUN PHARMA (01681.HK), CGN NEW ENERGY (01811.HK), SANHUA (02050.HK), AINNOVATION (02121.HK), AVICHINA (02357.HK), ZHIHU-W (02390.HK), ROBOSENSE (02498.HK), XUANZHUBIO-B (02575.HK), NEW VISION CO (02632.HK), DEEPZERO (02723.HK), HAITIAN FLAV (03288.HK) , LINGBAO GOLD (03330.HK), LONKING (03339.HK), LOGAN GROUP (03380.HK) , CREALITY (03388.HK), INSILICO (03696.HK), HUISHANG BANK (03698.HK) , SINOTRUK (03808.HK), BEONE MEDICINES (06160.HK), CHINA FEIHE (06186.HK), EXTREME VISION (06636.HK), SENASIC (06675.HK), WINOX (06838.HK), TENNOR THERAP-B (06872.HK), EACON (07687.HK), ALEBUND-B (09637.HK), SUPER HI (09658.HK), ZAI LAB (09688.HK)

A lovely story from the US Military Times New billboards have gone up around select military towns that connect the conflict in Iran with an economic impact on American families. VoteVets, a non-profit group and political action organization that largely supports Democrat veteran candidates, launched a 10-day billboard campaign Monday in 10 U.S. cities that features photos of President Donald Trump and Defense Secretary Pete Hegseth on a fiery background. “Trump & Hegseth’s Iran War means higher prices for you with no end in sight,” the signs declare.

Retired Army Maj. Gen. Paul Eaton, senior adviser to VoteVets, told Military Times the effort is intended to connect “affordability with accountability,” linking political leaders’ actions with higher costs at the gas pump and grocery stores. “[Service members] tend to be married young with children, and when you allow the cost of living — not just gasoline, but the whole business, grocery stores — … it’s a visible increase in prices that we are bearing,” Eaton said during an interview Friday.

Housekeeping
On Monday morning I was on RTHK’s Money Talk with Megha Chaddah hosting and other guest is Mel Siew, Head of Asia Public Credit at Muzinich and Co. We discussed Canadian/US tariffs and the difficulty of dealing with the US, what new FOMC Chairman might say in his Jackson Hole address this week and Nvidia’s earnings and what’s happening in the oil markets.
If there is a topic you would like discussed next week; then let them know or drop me a message, or if you just want to listen to the programme, click the link https://gbcode.rthk.hk/TuniS/www.rthk.hk/radio/radio3/programme/money_talk

Last Thursday afternoon I was on RTHK’s the Close with host Nitin Dialdas and guest Daniel Xystus, Chief Investment Officer, AOP Capital, looking at the US Public debt hitting US$40 T and its implications both for the US and others. The BoJ’s policy outlook and whether Robotics would be the next investment theme.

This Thursday Nitin is hosting and Sunil Kashyap of FinMet will be the other guest. If you have a topic you would like discussed this week then please message me or contact them via WhatsApp +852 6899 8518 or via the link below, which can also be used to listen to the programme.
click the link https://www.rthk.hk/radio/radio3/programme/the_close

Latest thoughts from Market Thinker - challenging the narrative. Crashenbrenner. A story of West Coast leverage versus East Coast leverage and who gets to create the money? Looks at the rise and fall of Leopold Ashenbrenner. Linked-in is full of articles about inexperience, hubris, poor risk management and ultimately nemesis in the form of grizzled Wall St trading titans like Ken Griffin and Izzy Englander.

Well worth a read.

Market opening indications and data due

New Zealand - No Data Scheduled
NZX 50 saw choppy trading on the open, dipping to test 13,970 and then bouncing to 14,000, dipped then tested 14,010, Currently up 5pts 0.03% at 13,997
Earnings from
Genesis Energy Limited (GNE.NZ): Releasing its Full-year H2 fiscal results.
Summerset Group Holdings Limited (SUM.NZ): half-year H1 earnings update.
Precinct Properties NZ Ltd (PCT.NZ): Property development and investment results.

On Tuesday the NZX opened flat worked better in the first couple of hours but saw resistance at 14,000 level. Sold down into lunch to 13,900 but then worked better in the afternoon but still hit resistance at 14,000 and closed up 110pts 0.6% at 13,993. Turnover was light NZD $77.37 million vs NZD $104.81 million Monday. Average is between $115 million and $155 million

Leaders The a2 Milk Company (ATM): 4% led the benchmark. SkyCity Ent Group (SKC):+4%, extending its strong weekly performance. Gentrack Group (GTK): Rose +4% amidst an active reporting season. Heartland Group Holdings (HGH): +3%.
Laggards Vulcan Steel (VSL): -4%, Serko (SKO): -3%, Chorus (CNU): -2%, continuing a downward trend over the month.Ryman Healthcare (RYM): -1%

Australia
ASX futures indicate the market to open up 31 pts 0.35% at 9,145; driven by Financials and Tech to outweigh weakness in Energy and Miners. Inflation data and earnings could be the swing factor.
Earnings include Woolworths Group Ltd (WOW): The retail and supermarket heavyweight.
WiseTech Global Ltd (WTC): Technology sector market favorite.
Domino’s Pizza Enterprises Ltd (DMP): Fast food multinational.
DroneShield (DRO): counter-drone technology firm releasing its half-year results.
Sandfire Resources Ltd (SFR): Copper and base metals miner.
Tabcorp Holdings Ltd (TAH): Wagering and entertainment company.
Steadfast Group Ltd (SDF): Insurance general network.
Netwealth Group Ltd (NWL) & Polynovo Ltd (PNV

On Tuesday the ASX 200 opened higher and worked better in the first 90 minutes to 9,180 but then eased back and traded sideways to close up 61.5pts 0.68% at 9,164.6. Turnover was AUD $8.41 billion vs AUD $7.13 billion Monday as PM’s reshuffled portfolios after Monday’s heavyweight earnings. 10 of 11 industry sectors in the green only energy in the red. bHP hit a new record.
RBA minutes showed the board was split, with several wanting a rate hike to tackle stubborn upside inflation risks. Miners were mixed

Leaders: Healthcare and financial/banking.
Laggards: Engineering services, technology, and lithium miners
Monadelphous Group (MND): -11.03% Liontown Resources (LTR): -6.26%. Elevra Lithium (ELV): -4.78%, IperionX (IPX): -4.25%. .Alcoa Corporation (AAI): -3.96%, Pilbara Minerals (PLS): -3.84%.
Megaport (MP1): -3.44% as technology and software pockets faced intraday profit-taking

Data Scheduled 60 minutes after the open
Leading Index Jul MoM vs 0% Jun (F/cast is 0.1%)
Due 90 minutes after the open
Construction Work Done Q2 QoQ vs 3.4% Q1 (F/cast is 1%)
Inflation Rate Jul MoM vs -0.1% Jun (F/cast 0.7%)
Inflation Rate Jul YoY vs 3.8% Jun (F/cast 3.2%)
RBA Trimmed Mean CPI Jul MoM vs 0.3% Jun (F/cast 0.3%)
RBA Trimmed Mean CPI Jul YoY vs 3.6% Jun (F/cast 3.5%)
CPI Jul vs 102.03 Jun (F/cast is 102.7)
RBA Weighted Median CPI Jul MoM vs 0.3% Jun (F/cast 0.3%)
RBA Weighted Median CPI Jul YoY vs 3.7% Jun (F/cast 3.6%)

Japan - No Data Scheduled
Nikkei Futures indicate 30pts 0.05% at 65,970
Chicago Nikkei Futures -55pts -0.08% at 66,005
Yen 159.22

On Tuesday the Nikkei opened lower dipped but then worked better to flat at lunchtime. In the afternoon it traded in a tight range in the green and closed up 328pts 0.5% at 65,856.43; slightly off the day high.

Leaders Real Estate, Banking, and Textile
Laggards Automakers (currency and global supply concerns), Utilities (TEPCO -3.4%), Broad Technology and Rubber Products (Yokohama Rubber -3.4%)

S Korea
Kospi Futures (KMU6) indicate opening 12.8pts 1.2% at 1,076.4

The Kospi on Tuesday opened 2.4% lower but worked better to close up 45.78 pts, or 0.68%, at 6,742.74. Reversing Monday’s 3% decline.
Individuals bought a net 1 trillion won (US$723m) and institutions bought a net 1.17 trillion won, while foreign investors sold a net 3.82 trillion won.
Trading volume was light 159m shares vs 265m Monday.
The Korean won was quoted at 1,386.1 won against the U.S. dollar as of 3:30 pm. Tuesday, down 3.7 won from the close of the previous stock trading session.
Bond prices closed higher. The yield on three-year Treasurys -0.6 bpts at 3.83%, and the return on the benchmark five-year government bonds -2.9 bpts to 4.039%.
Leaders Finance, Energy, Cosmetics while Tech and Auto saw a late recovery.
Laggards Battery Makers, Biophama and Refiners

Data due out pre open
Business Confidence Aug 81 vs 82 Jul (F/cast was 83)

Taiwan - No Data Scheduled
Taiex futures indicate market to open up 405pts 0.9% at 45,437

On Tuesday the Taiex opened lower but closed up 407.14 pts, or 0.91%, at 45,169.46 on turnover of NT$696.05 billion (US$21.88 billion) vs NT$629.43 billion (US$19.79 billion) Monday

Data out after market Tuesday
Industrial Production Jul 25.61% YoY vs 22.95% Jun (F/cast is 17.9%)
Retail Sales Jul 7.7% YoY vs 8% Jun (F/cast is 7%)

China - No Data Scheduled - National People’s Congress underway
Golden Dragon Index closed up 69pts 1.11% at 6,268.28
FTSE A50 futures closed up 42pts 0.29% at 14,659
MSCI A50 Connect (USD) futures closed up 10.4pts 0.39% at 2,685.6

On Tuesday the A shares opened lower but worked better through the day but on lighter volumes than Monday.
Trading volumes Tuesday 1.8443 T vs 2.012 T yuan Monday
Leaders Shipping, Precious Metals, State-Backed Energy & Insurance (Sinopec and Ping An) and New Energy Assets (CATL and Zijin Mining).
Laggards Industrial and Non-Ferrous Metals, Tech-Hardware & Semiconductors and Commercial Aerospace

At the close
Shanghai Composite: up 0.19% at 3,889.44
Shenzhen Component: -0.35% at 13,745.87
CSI 300 (Blue Chips): -0.24% at 4,552
ChiNext Index (Growth Board): -1% at 3,397.52
STAR 50 Index (Sci-Tech): up 0.14% at 1,604.59
The central parity rate of RMB against USD was set at 6.7852, down 11 bps YoY. The PBOC Tuesday conducted RMB386 billion of seven-day reverse repo operations, while no reverse repos matured, resulting in a net liquidity injection of RMB386 billion for the day.
USD/CHN -0.00149pts -0.02% at 6.7152
Spot USD/CNY hiked 9 bps to close at 6.7229 Tuesday (25th). As of 4:49 pm, USD/CNY in the night session dropped 96 bps. USD/CNH faded 19 bps to 6.7225, 4 bps above USD/CNY.

Hong Kong - No Data Scheduled
ADR’s closed -66pts -0.26% while most in the green; but AIA -0.13%, Bank of China -0.12%, Tencent -7.42% and CK Hutch-0.31% closed in the red
Hang Seng Futures indicate up 98pts 0.38% at 25,648
Turnover Tuesday HK$254.079B vs HK$291.15B Monday.
Short Selling Tuesday 21.5% vs 22.4% Monday

On Tuesday the HSI opened up 116pts but sold down to test 25,400 with a broad based sell off and then traded sideways into lunch. In the afternoon it worked slightly better to flat and closed -6pts -0.02% at 25,511
Hang Seng Tech Index -5pts -0.12% at 4,588
Hang Seng China Enterprises Index -25pts -0.31% at 8,445

Leaders; relative; Biotech, media/entertainment, Financials (Large cap banks)
Laggards: Auto/EV’s, Tech hardware, E-Commerce,

Data out after market Tuesday
Balance of Trade Jul HK$-4.9B vs HK$-52B Jun (F/cast is. HK$-46.2B)
Exports Jul 50.7% YoY vs 53.4% Jun
Imports Jul 41% YoY vs 45.4% Jun
Exports to most major markets continued to increase visibly. Looking ahead, robust global demand for AI-related electronic products is expected to continue supporting Hong Kong’s merchandise trade performance. However, downside risks remain. Geopolitical tensions in the Middle East, trade protectionism among advanced economies, and risks associated with the rapid expansion of global investment in AI all warrant close monitoring.

Macau - No Data Scheduled

Singapore - Data Scheduled for lunchtime
Industrial Production Jul MoM vs -7.2% Jun (F/cast is 0.3%)
Industrial Production Jul YoY vs 7.2% Jun (F/cast is 6.9%)

On Tuesday SGX stocks close 0.8% at 5,725, approaching a record high.
Singapore plans to expand its tourism offerings on its southern waterfront by linking the popular resort island Sentosa with a neighboring island slated for redevelopment, creating an “integrated leisure destination,” as the small city-state seeks to attract more visitors.

Malaysia - No Data Scheduled - Market re-opens

Indonesia - - No Data Scheduled - Market re-opens
Government’s $28bn bet on Jakarta and Bali International Financial Centers. It has prepared generous incentives but investors stress need for legal certainty

Philippines - No Data Scheduled

Thailand - Data
Interest Rate Decision no change from current 1% expected
On Tuesday data showed the auto recovery gathering pace as July sales jumped 20% driven by EV demand which underpins gains as production and exports return to growth

Vietnam - No Data Scheduled
Cambodia - No Data Scheduled
Myanmar - No Data Scheduled

India - Data Scheduled
M3 Money Supply

Europe
Eurozone - No Data Scheduled
Germany - 15-Year Bund Auction
France - No Data Scheduled
United Kingdom - Distributive Trades

United States
Futures opened Dow -15pts -0.03% S&P flat, NDX 0.06%
After Market
API Crude Oil Stock Change 4.2M vs -3.28M prior (consensus was 1.9M)
Intuit -9.6% as it gave a weaker fiscal 2027 earnings outlook
Box -0.85% as it raised its full-year revenue outlook slightly, but lowered its full-year profit guidance a bit due to foreign currency exchange headwinds.
Zoom -4% reported steady enterprise growth, but offered a lukewarm revenue forecast for the upcoming quarter.
Data Scheduled: MBA Mortgage Data (30-year Rate, Applications, Mortgage Index, Refinance Index, Purchase Index), Core PCE (Price Index, Prices), Durable Goods Orders, Durable Goods Orders Ex Transp, Durable Goods Orders Ex Defense, Non Defence Goods Orders, GDP (Growth Rate, Price Index, Sales) Personal Income and Spending, Real Consumer Spending, Real Personal Spending, Corporate Profits, EIA Oil Report, 17-Week Bill Auction, Fed’s Barkin Speech, 2-Year FRN Auction, 5-Year Note Auction.

HEADLINES & NEWS
NEW ZEALAND & AUSTRALIA
Why Coles won’t copy Woolies’ Ooshies sugar hit. The results of Australia’s second-largest supermarket took a hit from its rival’s wildly popular collectables campaign. But Coles chief Leah Weckert says this was only temporary.

Fortescue stands down executive at centre of harassment probe. Mining giant Fortescue has moved to suspend a senior executive from working for the company while allegations of sexual harassment and bullying are being investigated by law firm MinterEllison.

Aussie capitals ‘will be driverless within a decade’, says robotaxi pioneer. The Melburnian who created the world’s first robotaxi predicts a “commercial battle royale” before the rubber hits the road.

JAPAN
Japan is preparing to set up a payment infrastructure to enable instantaneous settlement of ​transactions in stocks and Japanese government bonds ‌using blockchain technology, the Nikkei newspaper reported on Wednesday. The Financial Services Agency, the Ministry of Finance, the Bank ​of Japan and financial institutions will launch ​a study group this summer and are ⁠expected to formulate a development plan around ​the beginning of 2027 at the earliest, the ​report said. The plan is expected to cover the design of the blockchain to be used, the division of ​responsibilities among agencies and institutions, and a ​road map for future work, it added. Operations could begin within ‌a ⁠few years, with the system potentially up and running in the early 2030s, if the plans are formally approved, the report said. The instant ​payment system ​could also ⁠extend to international remittances, the report added. In Japan, cash settlement for stock ​trades occurs two days after execution, ​while ⁠JGB transactions are settled the day after. A real-time settlement system would bridge the gap between a ⁠trade ​and its cash settlement, allowing ​investors to reinvest proceeds from asset sales almost simultaneously.

Senior Honda (7267.T) executive Vice President Noriya Kaihara said the Japanese automaker might not build an eighth assembly plant in ​North America unless a key trade deal is extended. The Trump administration is ‌currently negotiating with Canada and Mexico over the fate of the free trade deal known as USMCA. It ​is close to full production capacity in North America and needs a ​new factory. However, “if there is no USMCA agreement in the future, we ⁠may have to change our direction,” Kaihara said, adding the company will need ​to make a decision within a year or two and would like the plant ​to be running by around 2030. He said currently Honda is not passing on the costs of tariffs to buyers in North America. The U.S. imposed 50% tariffs on $20 billion of Canadian products ​on Saturday, and Canada said it was retaliating effective September 8.

The finance ministry expects debt-servicing costs to rise 17% to a record ​36.64 trillion yen ($230 billion) in the next fiscal ‌year, adding to pressure on the country’s already tattered finances, Kyodo News reported on Tuesday. The increase reflects plans to set ​the assumed interest rate for calculating debt ​servicing costs at a 29-year high of ⁠3.8% in its budget request for next fiscal ​year. The total value of budget requests from government ministries ​and agencies for fiscal 2027 is expected to exceed 130 trillion yen for the first time, up sharply from about ​122 trillion yen in the current fiscal year, ​according to Kyodo. The surge is being driven largely by Prime ‌Minister ⁠Sanae Takaichi’s push for a more expansionary fiscal policy, including a public investment scheme that allows ministries to seek funding without a preset cap. The government ​also plans to ​incorporate into ⁠the initial budget spending that in recent years was often financed through supplementary ​budgets, a move that could further ​inflate ⁠headline expenditure. The government will finalise budget requests at the end of this month before the finance ministry reviews ⁠them ​and compiles a draft budget, ​which is expected to be approved by the cabinet at year-end.

PM Sanae Takaichi said Tuesday the government will maintain subsidies to cap gasoline prices to ease the impact of inflation on Japanese households amid the ongoing Middle East conflict. Takaichi said she has instructed officials to make necessary preparations, including securing funding, to continue the program, which keeps gasoline prices at around 170 yen per liter, given uncertainty over how crude oil prices will move. “We will protect the people and their livelihoods and prevent disruptions to economic activity,” Takaichi told reporters at her office in Tokyo.

Japan plans no additional releases of crude oil from its national reserves ​in September or October, Economy, Trade ‌and Industry Minister Ryosei Akazawa said on Tuesday. Crude oil procurement in September is expected to fall to ​about 80% of last year’s average ​monthly volume from 100% in August, as ⁠tankers that would normally transit the ​Bab el-Mandeb Strait are being rerouted via the ​longer Suez route, he said.

SOUTH KOREA
SK Innovation will absorb its battery separator subsidiary SK IE Technology, bringing the struggling business back under direct control five years after it went public. The companies said Tuesday that their boards approved the merger to strengthen SKIET’s financial stability, streamline operations and improve the separator business’s long-term competitiveness. SK Innovation will remain the surviving company and issue new shares to SKIET shareholders. Each SKIET common share will be exchanged for 0.117454 SK Innovation share. The exchange ratio was calculated from the companies’ recent market prices in accordance with Korea’s capital markets law.

Aston Martin has launched three high-performance S models in Korea in its largest-ever local product rollout, betting that the country could soon become its second- or third-largest market in the Asia-Pacific region. The British luxury carmaker unveiled the DB12 S Super Tourer, Vantage S sports coupe and DBX S SUV, as it seeks to accelerate its expansion in Korea. Neil Hughes, head of product management at Aston Martin, said the broad product update reflects Korea’s rapid emergence as an important market for luxury and high-performance vehicles.

The Bank of Korea is set to hold its next rate-setting meeting Thursday, with markets split over whether the central bank will deliver another rate hike or pause, a decision that could offer clues on the pace and extent of its current tightening cycle. The BOK raised its benchmark rate by 0.25 percentage point to 2.75 percent in July, marking its first rate hike in over three years since January 2023. Markets are now watching whether the central bank will deliver a back-to-back rate hike. Following the July policy meeting, BOK Gov. Shin Hyun-song said second-quarter gross domestic product growth and July consumer inflation would be key factors in determining the pace and extent of further monetary tightening.

New mortgage loans per borrower dropped at the sharpest pace in the second quarter amid the government’s regulations to cool the overheated housing market, central bank data said Tuesday. Fresh mortgage lending per borrower averaged 208.29 million won ($159,900) during the April-June period, down 21.1 million won from an all-time high of 229.39 million won set three months earlier, according to the data by the Bank of Korea (BOK). It marked the sharpest on-quarter decline since the BOK started compiling such data in 2013. New household lending per borrower, which includes mortgage loans, fell 1.28 million won to 34.14 million won over the cited period, marking the lowest since the first quarter of 2023. The BOK said local banks tightened lending controls in line with the government’s measures aimed at stabilizing the property market.

TAIWAN
Taiwan’s manufacturing confidence rose to a more than four-year high last month as the global artificial intelligence (AI) boom continued to drive orders for chips and related hardware, providing momentum for the export-reliant economy, the Taiwan Institute of Economic Research (TIER) said yesterday. The manufacturing climate index rose 2.48 points to 101.09 from the previous month, hitting the highest level in more than four years, the institute said in its monthly survey.“Demand for AI, high-performance computing and new smartphone models boosted semiconductor shipments,” TIER Economic Forecasting Center director Gordon Sun told a news conference in Taipei. Exports and overseas orders also improved from the previous month, prompting more manufacturers to expect business conditions to improve, while the share anticipating deterioration declined, Sun said.

The industrial production index rose 25.61% YoY to 145.24 last month, as demand for artificial intelligence (AI) and high-performance computing applications continued to boost output in the information technology and electronics sectors, the Ministry of Economic Affairs said yesterday. The manufacturing production index, which accounts for 93.72 percent of overall industrial output, rose 26.89% YoY to 147.65, the 29th straight month of growth, exceeding the ministry’s forecast growth range of 22 to 25.5%. The better-than-expected performance was driven mainly by electronic components, computers, electronics and optical products, which showed greater momentum than anticipated, Department of Statistics Deputy Director-General Chen Yu-fang told a news conference in Taipei.

Retail and food and beverage sales last month hit record levels for July as they rose annually for the sixth consecutive month amid moderate expansion of consumer spending, Ministry of Economic Affairs data released yesterday showed. Retail sales increased 7.7% YoY to NT$418.3 billion (US$13.13 billion), benefiting from a gradual recovery in the auto market, entertainment and shopping during the summer break, and diverse marketing activities by businesses, the ministry said in a report. The ministry had forecast that retail sales would grow 8.4 to 11.4% YoY.

Taiwan was hit by a 5.8 magnitude earthquake off its southeastern coast after the close Tuesday. No major damage reported.

CHINA
Reports said that ahead of a meeting between Chinese President Xi Jinping and US President Donald Trump, the US plans to impose an additional 7.5% tariff on China on grounds of overcapacity.

China and India agreed on Tuesday to continue dialogue and seek ​a “fair, reasonable and mutually acceptable settlement” of their border issue ‌after talks between senior diplomats in Beijing. The world’s two most populous nations, both nuclear powers, share a roughly 3,800-km (2,400-mile), largely undemarcated and disputed border in the Himalayas. Chinese ​Foreign Minister Wang Yi and India’s National Security Advisor Ajit Doval ​had “comprehensive, in-depth, friendly and candid” discussions on border affairs and ⁠bilateral ties, China’s foreign ministry said in a statement. Wang said China-India ​relations were no longer only of bilateral importance but carried global and ​strategic significance, saying the two neighbours should strengthen communication and reduce their differences. The Indian Embassy in China confirmed in a post on X that the two sides had reviewed ​bilateral ties and had discussed ways to further expand cooperation and maintain ​stability and peace in border areas.

According to Nikkei Asia’s tally of listed companies, after the US Supreme Court revoked the reciprocal tariffs imposed by the US government in February, as of Monday night (24th), at least 17 Chinese listed companies in Shanghai and Shenzhen had received refunds of tariffs and interest totaling nearly USD160 million. The tax refunds are expected to boost corporate performance this year. According to statistics, CFMOTO POWER (603129.SH) received a tax refund of USD38.61 million, equivalent to 15.6% of last year’s profit; HANSHOW TECHNOLOGY (301275.SZ) also received a tax refund of USD23.11 million, equivalent to 34.7% of last year’s profit. However, other smaller Chinese companies remain cautious about applying for tax refunds, as every detail of import records would be re-examined by US customs during the application process. Even if refunds are approved, the payments will be issued to US bank accounts, while many small Chinese companies do not have US bank accounts.

PwC released its “China M&A Market Mid-Year Review and Outlook 2026” report, noting that the number of M&A deals in China reached 7,316 in 1H26, supported by favorable capital markets and policies, up nearly 30% YoY and hitting a record high. Total deal value ascended 56% YoY to USD241.6 billion, marking the best semi-annual performance since 2023 and reflecting a radical market recovery.

China’s military has launched a public campaign to collect information on ​alleged procurement violations in the ‌Rocket Force as authorities step up scrutiny of military purchasing activities, according to a notice ​on its procurement portal. The armed ​forces have been one of the main ⁠targets of a broad corruption crackdown ordered ​by President Xi Jinping after coming ​to power in 2012. The purges reached the elite Rocket Force, responsible for the country’s nuclear ​weapons and conventional missiles, in 2023. The ​notice, published on Monday, solicits information on illicit ‌procurement ⁠practices spanning material services, engineering projects, supplementary food supplies, and medical equipment or consumables, including projects handled by bidding ​agencies. Alleged violations ​encompass multiple ⁠stages of the procurement process like requirements planning, bid evaluation, ​contract performance and online procurement, ​the ⁠notice said.

HONG KONG
IPO
Ingenic(03223.HK), which listed Tuesday 25 August, opened at $100. Peaking/ bottoming at $100.4/97.1, the stock closed at $100, on volume of 5.82 million shares and turnover of $581.75 million.HK Results see https://www.aastocks.com/en/stocks/news/aafn/latest-news

Buybacks
TENCENT (00700.HK) repurchased 682,000 shares of the company on the Stock Exchange of Hong Kong Tuesday (25th), at a price ranging from HKD438.2 to HKD443.6 per share, involving approximately HKD300 million. Since the ordinary resolution was passed on 13 May 2026, TENCENT has cumulatively repurchased 40.7907 million shares, representing 0.44736% of its share capital.

Insiders
BABA-W (09988.HK) Chairman Joseph Tsai again increased his holdings in the group through on-market purchases Tuesday (25th), involving 720,000 shares at an average price of approximately HKD113.4668 per share, with total consideration of over HKD81.696 million, as revealed by disclosures filed with the Hong Kong Stock Exchange. Together with the 720,000 shares purchased yesterday (24th), Tsai invested more than HKD162 million over the two days, raising his shareholding ratio to 1.44%. Group CEO Eddie Wu also purchased 350,000 shares on-market yesterday at an average price of HKD111.6359 per share, involving approximately HKD39.0726 million. Over the past two days, the two executives cumulatively increased holdings in group shares worth more than HKD200 million, highlighting their strong confidence in the AI strategy and long-term growth prospects. From FY2021 to 1QFY27, Alibaba cumulatively repurchased 508 million ADSs for USD46 billion, with an average price of USD91 per ADS, equivalent to HKD88.7 per ordinary share. Driven by the share repurchase program, Alibaba’s share capital as of the end of June 2026 declined 11.5% compared with March 2021. In addition, since FY2023, Alibaba has distributed cumulative dividends totaling USD13.6 billion to shareholders. Including dividends and share repurchase initiatives, Alibaba has cumulatively returned USD59.6 billion to shareholders.

HSI Short Selling Tuesday 21.5% vs 22.4% Monday
Top shorts Chow Tai Fook (1929) 64%,SHKP (16) 51%, Galaxy Ent (27) 51%, Hengan (1044) 50%, Midea Group (300) 50%, China Res Power (836) 41%,

WH Group (288) 39%, J&T Express (1519) 38%, Shenzhou (2313) 38%, China Shenhua (1088) 37%, Sunny Optical (2382) 37%, NTES (9999) 36%, Tingyi (322) 36%, CKI (1038) 33%, Wuxi Apptec (2359) 34%, CK Hutch (1) 33%, Sinopharm (1099) 33%, CLP (2) 31%, Beone Medicines (6160) 31%, Li Auto (2015) 31%, Baba (9988) 30%, OOIL (316) 30%, Longfor (960) 30%

Henderson Land (12) 29%, BYD Electronic (285) 29%, AIA (1299) 29%, Kuaishou (1024) 28%, HSBC (5) 28%, Sands China (1928) 28%, CATL (3750) 27%, Hansoh Pharma (3692) 27%, Power Assets (6) 26%, BYD (1211) 26%, China Res Land (1109) 26%, Haier Smarthome (6690) 26%, Sinopec (386) 26%, China Hongqiao (1378) 25%, Lenovo (992) 25%, Anta Sports (2020) 25%, Haidilao (6862) 25%, Trip Com (9961) 25%, Mengniu Dairy (2319) 25%, China Res Beer (291) 25%, New Oriental (9901) 25%, Link REIT (823) 25%

WATCH
The HSK New Development consortium, formed by six enterprises, won the Hung Shui Kiu area project for HKD1.03 billion, with a total investment amount of HKD16.8 billion. This is the Northern Metropolis tender and highlights mainland interest and seems to be a new development model. The six enterprises each hold similar stakes, among which CHINA OVERSEAS (00688.HK), CHI MER LAND (00978.HK), CHINA RES LAND (01109.HK) , JD-SW (09618.HK) and SINO LAND (00083.HK) each hold a 17% equity interest, while China Tourism Group holds the remaining 15% equity interest. Regarding capital contribution, each joint venture partner’s capital commitment to the joint venture company was determined after fair negotiations among the partners, with reference to land premiums, development costs of the sites and each partner’s respective equity interest in the joint venture company. Any profits or losses will also be allocated or shared among the joint venture partners in proportion to their respective equity interests in the joint venture company.

Ant Lingbo Technology (Beijing) Co., Ltd. was recently established, with registered capital of RMB5 million, Chinese reported, citing Tianyancha App. The company is wholly owned by Shanghai Ant Lingbo Technology Co., Ltd., a subsidiary of Ant Group. The company’s business scope includes industrial robot sales, industrial robot installation and maintenance, intelligent robot sales, R&D of intelligent robots, catering management, and food delivery services.

CLP said the Fuel Clause Charge (FCC) for September will be 45.1 cents per kilowatt-hour, up 0.1 cent MoM, mainly reflecting changes in actual fuel prices over the past three months. To help ease the financial burden on grassroots residents, CLP launched a three-month “Special Fuel Charge Rebate”. During August to October 2026, residential customers with electricity consumption of 900 kilowatt-hours or below per billing period will receive a fuel charge rebate of 8 cents per kilowatt-hour. About 50% of eligible residential customers are expected to benefit.

HKELECTRIC-SS (02638.HK) announced that the Fuel Clause Charge (FCC) for September will be 60.7 cents per unit of electricity, representing an increase of 3.4 cents from August. Owing to the “deferred effect” inherent in the monthly FCC adjustment mechanism, the current level primarily reflects fuel costs incurred between May and July this year. Together with the Basic Tariff, HK Electric’s Average Net Tariff for September will be 188.6 cents per unit of electricity, representing an increase of 1.8% compared with that of August. To help alleviate the impact of higher electricity costs on residential customers, HK Electric is providing an 8-cent-per-unit “Special Electricity Subsidy” to residential customers with monthly consumption of 450 units or below from August to October. For a household with monthly electricity consumption of 450 units, after taking into account the Basic Tariff and the “Special Electricity Subsidy”, the monthly electricity bill for such a household will increase by $15.3 compared with that in the previous month

Tuesday closings in EUROPE and US
DAX 0.61%, CAC -0.16%, FTSE 0.29%Markets opened higher, FTSE traded sideways for most of the morning but sold down after lunch but then rebounded into the close. DAX trended higher in the morning and then drifted in the afternoon. CAC initially dipped before rebounded to flat in the morning but then trended lower in the afternoon. Trading volumes remained subdued reflecting the summer lull.

German GDP Growth came in better MoM and than expected. Ifo data was slightly better than expected. French Consumer Confidence was unchanged MoM as expected.

Investors remain cautious over the implications of the new US sanctions on Iran’s trading partners, despite falling oil prices. European Auto’s weak after Volkswagen faces job cuts and plant closures. That in the face of increased EV imports from China.

Leaders: Technology, retail, travel & leisure and Utilities
Laggards: Auto’s, Energy, Aero/Defense

DOW 0.3%, NDX 0.66%, S&P 0.32%, Russel 2K 0.5%
Dow opened higher, dipped and then worked slowly better though the day. NDX opened higher, sold off and then traded sideways for most of the day but ticked up into the close. S&P eased back from its initial opening high and then traded sideways. Trading volumes were light as investors stand on the sidelines ahead of key economic data, Jackson Hole Symposium and Nvidia earning. Chips rallied breaking a 7 day losing streak; ahead of Nvidia’s earnings after the bell Wednesday. Oil prices eased.

ADP Employment rose and Building Permits were up MoM but less than expected. Case - Schiller Home Price Jun 2.1% vs 1.6% May beating forecasts. But the House Price Index fell MoM. Redbook 9.1% YoY vs 7.6% prior but Consumer Confidence down to the lowest level since the start of the year and missed forecast. Richmond Fed data was mixed.

Dicks Sporting Good -31% after disappointing earnings and outlook -VE for the sector Walmart -1%, Target -4% Nike -3.1%

SpaceX 2.2% after announcing plans to shell out as much as $100 billion to build a new launch facility.

Leaders Technology & Semiconductors, Communications, Financials and Real Estate
Laggards Consumer Discretionary, Energy, Consumer Staples and Utilites

Banks JPMorgan Chase 0.08%, Citigroup 1.16% Wells Fargo 0.08%, Amex -0.41%
Ecommerce Meta 1.97%, Apple -0.14%, Amazon -0.39%, Netflix 2.77%, Disney 0.58%, Zoom Comms -3.73%, Alphabet -0.36% and Microsoft 0.9%
Tech NXP Semi 1.04%, Nvidia 2.19%, Micron 2.48%, AMD 4.91%, Skyworks -1.73%, Intel 0.25%
Industrial/Discretionary Boeing 0.29%, Caterpillar 0.03%, Simon Property -0.79%, Kohl’s -3.39%, Gap -1.03%, United Airlines 3.38%, Carnival 1.67%, Wynn Resorts -0.67%
Healthcare Eli Lilly -1.06%, UntiedHealth -0.54%, Johnson & Johnson 0.53% Merck 3.84%
Auto Ford 0.14%, GM -1.35%, Tesla 0.37%
Energy Chevron -1.58%, Exxon Mobil -2.08%, ConocoPhillips -2.95%
Consumer Staples Campbell Soup -2.86% General Mills -2.79%, JM Smucker -0.33%
Buffet’s Top Five Retirement Stocks Coca Cola -0.38%, Apple %-0.14, Johnson & Johnson 0.53%, Proctor & Gamble -0.82%, Berkshire flat

DAILY US CLOSING DATA
USD little changed. Bitcoin -0.38% at $78,508.48 VIX -2.52% at 15.45
US Bonds T10 -8.1 bpts to 4.623%, T2 -6 bpts at 4.176% and T30 -7.2 bpts at 5.159%
OIL Brent -3.9% at $88.58, WTI -3.1% at $82.36
Spot Gold -0.1% Spot Silver 1.12%, Copper 1.67% Platinum -1.06%, Palladium -2.2%.

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China’s the National People’s Congress stats today; scope likely to cover Anti Corruption laws, Economic & Agricultural Laws, Social Welfare and Legal Updates rather than economic matters but recent high-level leadership meetings indicate a pivot toward accelerated infrastructure spending, fostering domestic consumer demand, and expanding international trade ties but that is not the focus of this meeting.

Tomorrow in France Mouvement des entreprises de France (MEDEF is the largest employer federation and business lobby) and holds it annual meeting of business leaders and politicians; the last before the next French Presidential election; where President Macron will be stepping down after 10years in power

Then on Thursday in US the Federal Reserve Bank of Kanas City’s Jackson Hole Symposium; where new FOMC Chairman Warsh will give the key note speech on Friday. Whilst he may not like giving guidance it is likely he will set out his agenda and at the sale time ty to bolster the Fed’s credibility.

In early trading NY Crude up 0.12% at $85.11, Gold 0.35% at $4,668.58; with expected weakness to continue in semiconductors and tech.

Bloomberg, citing sources, reported that Apple has conducted layoffs in the Intelligent Systems Experience division under its Siri, Vision Pro and software engineering units, affecting more than 200 employees. Among them, the Vision Pro unit cut around 100 positions, while the Siri and software teams eliminated 100 positions. Apple is reportedly substantially shutting down a team focused on Vision Pro gaming and scaling back the department responsible for producing immersive video content for the device. Apple said in a statement that the company is indeed reorganizing certain teams to advance its business and provide users with the best experience. While the adjustment will create new roles, some existing positions will also be affected.

US Earnings winding down but this week we get Nvidia, Crowdstrike and Marvel Tech. HK earnings will see a busy week

Tuesday Vipshop Holdings Limited (VIPS.US), Zoom Communications, Inc. (ZM.US);
WUXI BIO (02269.HK), LAOPU GOLD (06181.HK), SHENZHOU INTL (02313.HK), INNOVENT BIO (01801.HK), NONGFU SPRING (09633.HK), HAIDILAO (06862.HK), JIANGXI COPPER (00358.HK), CHINA JINMAO (00817.HK), SJM HOLDINGS (00880.HK), CHINA TAIPING (00966.HK), WEIGAO GROUP (01066.HK), DONGFANG ELEC (01072.HK), H&H INTL HLDG (01112.HK), CH MODERN D (01117.HK), XTEP INT’L (01368.HK), NISSIN FOODS (01475.HK), SUNAC SERVICES (01516.HK), CR MEDICAL (01515.HK), HUIXIN CREDIT (01577.HK), YIHAI INTL (01579.HK), YADEA (01585.HK), CGN POWER (01816.HK), FWD (01828.HK), CALC (01848.HK), WENGE AI (01956.HK), BOSS ZHIPIN-W (02076.HK), GOLDWIND (02208.HK), GWMOTOR (02333.HK), HAIZHI TECH GP (02706.HK), CHINA OILFIELD (02883.HK), CHINA STATE CON (03311.HK), FS.COM (03355.HK), QFIN-S (03660.HK), CIMC ENRIC (03899.HK), GREENTOWN CHINA (03900.HK), POLY PPT SER (06049.HK), ZA ONLINE (06060.HK), CMSC (06099.HK), FLAT GLASS (06865.HK), METIS TECHBIO-P (07666.HK), NEWBORNTOWN (09911.HK), YOURAN DAIRY (09858.HK), KUNLUN ENERGY (00135.HK), MINTH GROUP (00425.HK).

A lovely headline in the South China Morning Post ‘Hong Kong must abandon superiority complex over mainland China’ Quite a statement comes as HK Banks Set Key Deadlines for Dormant Accounts of Mainland CN Investors; Funding Source Declaration Required to Reactivate Investment Functions; basically China is still chasing money that obviously loyal Chinese citizen have managed to get off shore.

FTSE Russell’s rebalancing announced 21 August is expected to trigger over $15 billion and $10 billion in gross two‑way flows across APAC and EM markets, respectively, with net passive inflows $4.1 billion and $3.8 billion, according to Goldman. Goldman expects China, Korea, Taiwan and India to see the largest net inflows in Asia Pacific, while Japan may face the greatest selling pressure.

Within Asia-Pacific, tech hardware and chips and capital goods are estimated to see the most passive inflows. Banks and autos could experience the largest outflows, according to Goldman. The index and benchmark solutions provider confirmed the reclassification of Vietnam’s stock market to a secondary emerging market status from a frontier market. The official transition would take effect on Sep. 21.

On Monday European leaders yesterday joined Ukrainian President Volodymyr Zelenskiy in Kyiv for celebrations marking the 35th anniversary of Ukraine’s Independence Day as Russia pressed on with its four-year-old invasion of the country. With no significant changes on the front line for months and no apparent progress after more than a year of US-led peace efforts, both countries are locked in a spiral of escalating aerial attacks that are killing civilians and smashing infrastructure. British PM Burnham, on his first overseas trip since taking office last month, joined almost a dozen other European leaders, as well as other dignitaries, including European Council President Antonio Costa, in Kyiv.

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Housekeeping
On Monday morning I was on RTHK’s Money Talk with Megha Chaddah hosting and other guest is Mel Siew, Head of Asia Public Credit at Muzinich and Co. We discussed Canadian/US tariffs and the difficulty of dealing with the US, what new FOMC Chairman might say in his Jackson Hole address this week and Nvidia’s earnings and what’s happening in the oil markets.
If there is a topic you would like discussed next week; then let them know or drop me a message, or if you just want to listen to the programme, click the link https://gbcode.rthk.hk/TuniS/www.rthk.hk/radio/radio3/programme/money_talk

Last Thursday afternoon I was on RTHK’s the Close with host Nitin Dialdas and guest Daniel Xystus, Chief Investment Officer, AOP Capital, looking at the US Public debt hitting US$40 T and its implications both for the US and others. The BoJ’s policy outlook and whether Robotics would be the next investment theme.
If you have a topic you would like discussed this week then please message me or contact them via WhatsApp +852 6899 8518 or via the link below, which can also be used to listen to the programme.
click the link https://www.rthk.hk/radio/radio3/programme/the_close

Latest thoughts from Market Thinker - challenging the narrative. Crashenbrenner. A story of West Coast leverage versus East Coast leverage and who gets to create the money? Looks at the rise and fall of Leopold Ashenbrenner. Linked-in is full of articles about inexperience, hubris, poor risk management and ultimately nemesis in the form of grizzled Wall St trading titans like Ken Griffin and Izzy Englander.

Well worth a read.

Market opening indications and data due
New Zealand
NZX 50 opened higher initially to 13,910, consolidated and then to 13,930, saw resistance at 13,940 currently up 53pts 0.38% at 13,935

On Monday the NZX opened lower and rebound to flat in the first hour, then traded around flat for an hour before trending lower to trade around 13,940 level in the afternoon but then ticked lower to clsoe -91pts -0.65% at 13,882. Retail sales out in the morning were weaker than expected. Trading volumes were much lighter than Friday.
Leaders Consumer Discretionary (Sky City Ent 10%), Healthcare (Fisher & Paykel Healthcare 1.6%) and Real Estate (Stride Property Group 3.2%)
Laggards Communication Services, Consumer Staples and Financials

Data Due Mid morning
1 year Bill Auction vs 3.4% prior
3-month Bill Auction vs 2.8425% prior
6-month Bill Auction vs 3.0311% prior

Australia - No Data Scheduled
ASX futures indicate the market to open up 13 pts or 0.14% to 9055 with support from the miners and financials. Weakness in energy and tech.
Earnings include Woodside Energy Group Ltd (WDS): Oil and Gas
Coles Group (COL) Major supermarket
Scentre Group (SCG): Property and retail center group.
Viva Energy Group (VEA): Energy and convenience retailer.
Ingenia Communities Group (INA): Communities and property group.
AUB Group (AUB): Insurance-focused financial group.
Monadelphous Group (MND): Engineering and construction provider.
G8 Education (GEM): Early childhood education provider

On Monday the ASX 200 opened higher and worked better to 9,133 in the first couple of hours and then drifted lower but ticked higher at the end to close up 44pts 0.49% at 9,1031. Trading volume was lighter on Monday compared to Friday
Leaders: The Materials (Mining) sector, hitting its first record high since June BHO 3.4%. Healthcare sector (Ansell +17.45% following its earnings release.)
Laggards: Tech along with Financials (its tenth losing session out of the last twelve).

Data Scheduled 90 minutes after the open
RBA Meeting Minutes
Late Morning
RBA’s Jacobs Speech

Japan
Nikkei Futures indicate 47.5pts 0.07% at 65,392.5
Chicago Nikkei Futures up 65pts 0.1% at 65,445
Yen 159.08 closing in US and opening level.

On Monday the Nikkei opened higher and traded around flat for the first couple of hours but then sold down into lunch. It traded sideways for most of the afternoon but ticked lower at the end to close -488pts -0.74% at 65,528
Trading volume was lighter than Friday.
Leaders Domestic demand (Retail) and value sectors (Financials) showed relative resilience.
Laggards Tech and Chip related

Data due out lunchtime
Final Coincident Index Jun vs 117.9 May (F/cast is 118.2)
Final Leading Economic Index Jun vs 116.4 May (F/cast is 114)

S Korea
Kospi Futures (KMU6) indicate opening -18.65pts -1.77% at 1,033, pre market Consumer Confidence missed and was weaker MoM.

The Kospi on Monday opened lower and trended lower to 6,697 through the morning but then saw a small bounce but ticked lower at the end to close down 216 pts -3.12% at 6,697
Trade volume was light at 264.9 million shares worth 26.1 trillion won ($18.9 billion). Winners outnumbered losers 576 to 286.
Large-cap tech shares came under selling pressure from foreign and institutional investors, which offloaded a combined net 4.97 trillion won. Retail investors snapped up a net 3.32 trillion won worth of shares.
Samsung Electronics -8.7% disappointment with the lack of detail about its plan to return 90 trillion won (US$65.2b) to 110 trillion won to shareholders. It also said the company plans to give out cash dividends of around 30 trillion won in the third quarter, but noted their exact size and structure will be finalized at a board meeting in October.
Laggards Technology, Semiconductors, Automotive & Financials
Leaders Defense, Aerospace, Nuclear Power & Infrastructure relatively outperformed. Selective small-and-medium enterprise (SME) supply chain companies on the KOSDAQ stabilized later in the day.

Data due out after the open
Consumer Confidence Aug 104.5 vs 106.8 (F/cast was 107)
Later
20-Year KTB Auction vs 4.53% prior

Taiwan - Data Scheduled
Taiex futures indicate market to open -208pts -0.46% at 44,532

On Monday the Taiex opened flat and traded around flat for the first hour but then spiked lower, bounced but then trended lower and tick lower to close -462pts -1.02% at 44,762 on turnover of NT$629.43 billion (US$19.79 billion vs NT$719.28 billion (US$22.57 billion) Friday.

Data out after market Tuesday
Industrial Production Jul YoY vs 22.95% Jun (F/cast is 17.9%)
Retail Sales Jul YoY vs 8% Jun (F/cast is 7%)
Data out after market Monday
Unemployment Rate Jul 3.33% vs 3.33% Jun (F/cast is 3.34%)
M2 Money Supply Jul 7.42% YoY vs 8.13% Jun (F/cast is 8.5%)

China - No Data Scheduled - National People’s Congress starts
Golden Dragon Index closed down 104.65pts -1.66% at 6,199
FTSE A50 futures closed -29pts -0.2% at 14,623
MSCI A50 Connect (USD) futures closed -4.2pts -0.16% at 2,688.2

On Monday the A shares opened lower and sold down for most of the day but did bounce in the last 90 minutes to close off the day lows. But trading volumes increased in the morning as institutions aggressively sold; Growth, AI and Semiconductor. Many investors are still awaiting for Beijing to announce more stimulus. Trading volumes Monday 2.012 T vs 1.88T yuan Friday
At the close
Shanghai Composite: -23pts -0.59% at 3,882
Shenzhen Component: -300pts -2.13% at 13,794
CSI 300 (Blue Chips): -56pts -1.21% at 4,563
ChiNext Index (Growth Board): -114 pts -3.21% at 3,432
STAR 50 Index (Sci-Tech): -51% -3.1% at 1,602
USD/CHN -0.0002pt flat at 6.7213
Spot USD/CNY sank 33 bps to close at 6.7238 Monday (24th). As of 4:39 pm, USD/CNY in the night session dropped 109 bps. USD/CNH lost 39 bps to 6.7240, 2 bps below USD/CNY.

Hong Kong
ADR’s closed up 28pts 0.11% at 25,696 with most stocks in the green but Tencent Tencent -6.56%, CK Hutch -0.51% and BoC -0.25%
Hang Seng Futures indicate up 145pts 0.57% at 25,599
Turnover Monday HK$291.15B vs HK$257.3B Friday.
Short Selling Monday 22.4% vs 21.4% Friday

On Monday the HSI opened lower and sold down in the first hour and then traded sideways in a tight range. Trading volume increased with a surge in trading in Tech following Alibaba’s $10.2B discounted share placement.
Leaders; State-Owned Banks & Financials, Energy (Coal, & Utilities), Property, Infrastructure Developers and Telecoms
Laggards:E-Commerce, Tech , Semiconductors, AI Hardware, New Energy / EV’s and Healthcare/ Biotech.
Hang Seng Tech Index -172pts -3.61% at 25,517
Hang Seng China Enterprises Index -163 pts -1.89% at 8,471

Data due after market
Balance of Trade Jul vs HK$-52B Jun (F/cast is. HK$-46.2B
Exports Jul YoY vs 53.4% Jun
Imports Jul YoY vs 45.4% Jun

Macau - No Data Scheduled

Singapore - Data Scheduled for lunchtime
MAS 12-week Bill Auction vs 1.47% prior
MAS 4-week Bill Auction vs 1.42% prior

Malaysia - No Data Scheduled - Market closed for Maulidur Rasul (The Prophet Muhammad’s Birthday)

Indonesia - Market Closed for Maulidur Nabi (The Prophet Muhammad’s Birthday)

Philippines - No Data Scheduled

Thailand - Data could get
New Car sales Jul YoY vs 17.26% Jun

Vietnam - No Data Scheduled
On Monday the extraordinary session of Vietnam’s National Assembly came to an end. The body is expected to approve an agreement related to the country’s first nuclear power plant project in Ninh Thuan province, as well as special mechanisms to resolve obstacles facing some wind and solar power projects. Lawmakers are also scheduled to vote on proposals to establish Quang Ninh and Bac Ninh as centrally governed cities, along with special policies for projects supporting APEC 2027 on Phu Quoc island.

Cambodia - No Data Scheduled
Myanmar - No Data Scheduled
India - No Data Scheduled

Europe
Eurozone - No Data Scheduled
Germany - GDP Growth Rate, Ifo Business Climate, Current Conditions and Expectations, 2-Year Schatz Auction
France - Consumer Confidence
United Kingdom - Treasury Gilt 2033 Auction

United States
Futures opened Dow 35pts 0.07% S&P 0.06% NDX 0.06%
Data Scheduled: Fed’s Barkin Speeh, ADP Employment Change, Redbook, Case-Shiller Home Price, House Price Index Data, Consumer Confidence, New Home Sales, Richmond Fed (Manufacturing Index, Manufacturing Shipments, Services Revenues Index), 6-Week Bill Auction, Building Permits, 2-Year Note Auction, Money Supply, Fed’s Barkin Speech, API Crude Oil Stock Change.

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HEADLINES & NEWS
NEW ZEALAND & AUSTRALIA
KPMG slashes staff as ‘challenges created by our own failings’ start to bite. KPMG’s new boss is cutting 387 employees and partners in what is expected to be just the first wave of job losses following the whistleblower scandal.

Labor’s plan to reserve more domestic gas stirs hopes of a revival Manufacturers say diverting exports to local buyers could restart idled factories and bring back jobs, starting with a long-shuttered petrochemical plant.

‘Making trouble’: Murdoch family’s bitter feud exposed in court documents Newly released court documents reveal key details of Lachlan Murdoch and his siblings’ bitter succession clash.

JAPAN
The government is considering tax breaks on gains from ‌sales of non-core businesses, a move that could accelerate long-delayed corporate restructuring and spur industry consolidation, two people with knowledge of the matter said. The plan would remove a major obstacle to companies shedding non-core businesses and redeploying capital into growth areas, in what could ​become one of PM Takaichi’s most significant initiatives to advance corporate governance reform. Under the plan, ​roughly 30% corporate tax on gains from sales of non-core businesses would be deferred ⁠indefinitely, provided companies reinvest the proceeds within several years in acquisitions aligned with their core operations and commit to ​investing in those businesses, one of the sources said. The proposal is expected to be submitted as part of tax ​reform requests due at the end of this month, with details to be worked out before a final tax reform package for the next fiscal year is approved at year-end, said one of the sources, who declined to be identified as the matter is ​still private. The tax reform, if implemented, is likely to boost already sizzling M&A ​activity in Japan. Deal activity involving Japanese companies last year more than doubled from the previous year to a record $353 billion, according to LSEG. Divestitures ​of Japanese businesses accounted for $44.7 billion of that total.

SoftBank -3.8% Monday after it announced plans to issue 1 trillion yen ($6.29 billion) in corporate bonds. The seven-year unsecured bonds will be offered mainly to individual investors in Japan, with a preliminary annual interest rate of 4.30% to 4.90%. Final terms are expected to be determined on Sept. 4, and the offering period will be from Sept. 7 to Sept. 16.

SOUTH KOREA
Renewed engagement between US and North Korean leaders could push Washington toward a more pragmatic approach to North Korea’s nuclear arsenal, potentially exposing Seoul to a lasting nuclear threat, experts say. North Korea has largely shut out Seoul while leaving open the possibility of dealing directly with Washington, and has continued missile launches despite Trump’s overtures. It fired more than 10 short-range ballistic missiles toward the East Sea last week. Illustrating again Trump still hopes to get a Noble peace prize even if it means sacrificing the S Korean’s who have been his allied. I suspect that the Norwegian Nobel Committee, a group of five members chosen by the Storting will see through such vain attempts.

LG Household & Health Care is selling its Avon business in North America, operated independently as the Avon Company, as it shifts gears toward retail and digital channels for its Korean beauty and wellness brands, the company said Monday. In a regulatory filing, LG H&H USA signed a stock purchase agreement to sell its stake in the Avon Company to Regent affiliate Stratford Worldwide, the global investment firm that operates Avon International. The exact sale price will be finalized when the deal closes.

Foreign tourists are becoming an increasingly important source of growth for Korea’s convenience stores, with spending surging fastest in Seoul’s trendsetting Seongsu district. Foreign-card sales at CU stores in Seongsu jumped 115.1 percent on-year in the first half, according to data provided to The Korea Herald by BGF Retail, operator of Korea’s largest convenience store chain by outlet count.

TAIWAN
Taiwan’s top industrial trade group, the Chinese National Federation of Industries (CNFI), urged the government yesterday to diversify the nation’s energy mix, step up support for traditional industries and ease restrictions on migrant workers, as a widening labor shortage threatens to hinder growth beyond the technology sector. The calls came as Taipei-based CNFI released its annual position paper, pointing to growing strains beneath Taiwan’s booming economy. While demand for artificial intelligence (AI) products has propelled growth to its fastest pace in decades, traditional industries continue to grapple with labor shortages, rising costs and structural challenges, the group said.

Taiwan Power Co (Taipower) plans to supply electricity to artificial intelligence (AI) data centers through direct lines, as rising AI demand puts pressure on the grid, Taipower chairman Tseng Wen-sheng said on Sunday. The utility plans to allow AI data center operators to manage those dedicated power lines themselves, with their length, costs and timing determined by market mechanisms, Tseng said during an interview. “The most stable way to supply electricity is to locate as close to the power source as possible,” Tseng said. Taipower has discussed future power demand with the Taiwan Semiconductor Industry Association to get a clear picture of the industry’s electricity consumption, Tseng said, to ensure there would be sufficient power to meet the industry’s demand. Rather than routing electricity through the main north-south transmission grid, Taipower is developing dedicated lines to ease congestion and diversify risks, he said.

The New Taiwan dollar’s strongest monthly rise in over a year is running into a storm of headwinds, sowing doubts among analysts on the sustainability of its rebound. A drop in foreign equity inflows, a forward market implying underlying demand has softened and some technical resistance levels have led some analysts to rethink the prospect of future gains. That is impairing this month’s advance which had set the currency on course for its best month since May last year, following its worst month in 11 years last month. “Foreign equity inflow impulse has faded after the mid-Aug buying,” Oversea-Chinese Banking Corp foreign exchange strategist Christopher Wong said in Singapore. He said the forwards market has not widened materially, suggesting local exporters are not betting on a NT dollar rally.

CHINA
The People’s Bank of China (PBOC) announced that, in order to better match the short-term liquidity needs of the banking system, it will conduct overnight reverse repo operations from August 27 (this Thursday) to September 1 (next Tuesday). The operations will adopt a fixed interest rate and quantity-based bidding, with the daily operation size not more than RMB600 billion.

China’s National Energy Administration released national electric vehicle (EV) charging facility data for July. According to data from the National Charging Facilities Monitoring Service Platform, the total number of EV charging infrastructure units (guns) in China reached 23.683 million as of end-July, representing a YoY elevation of 41.9%.

The US is set ​to impose ‌a 7.5% tariff on Chinese ​goods ​over allegations of ⁠excess manufacturing ​capacity before ​a planned summit between Chinese President ​Xi ​Jinping and U.S. President ‌Donald ⁠Trump next month, Bloomberg News reported ​on ​Monday ⁠citing people ​familiar with ​the ⁠matter.

Foreign Minister Wang Yi said on Monday the ​situation in the Middle East and ‌Gulf region had again reached a critical juncture and urged parties involved to return to ​dialogue and negotiations as soon as ​possible. Wang made the remarks in a meeting ⁠with Foreign Minister of Kuwait Sheikh ​Jarrah Jaber Al-Ahmad Al-Sabah in Beijing, according ​to a Chinese foreign ministry statement. Wang said “the old script of recurring conflict should not be repeated” and ​the top priority is to de-escalate ​the situation. He said China was willing to strengthen ‌coordination ⁠with Kuwait and continue contributing to the restoration of peace and stability in the region. The meeting came as the U.S. threatened Iran ​with “the greatest ​financial ⁠offensive ever” targeting Iran’s trade partners. Iran dismissed the U.S. threat and ​vowed to shut down all ​oil ⁠exports from the Gulf “if the economic war continues” and issued a new warning to ⁠shipping ​not to pass through the ​Strait of Hormuz without its permission.

Xiaomi Corp launched a mobile processor for its marquee devices, putting pressure on Qualcomm Inc and MediaTek Inc which for years supplied the key component to the Chinese company. The Xring O3 system-on-a-chip advances Xiaomi’s in-house semiconductor design efforts with more power-efficient image processing and better artificial intelligence capabilities, the Beijing-based company said in a post on Chinese social media platform Weibo yesterday. Xiaomi’s new silicon is made using a 3-nanometer fabrication process, according to a WeChat post by founder Lei Jun. That’s closer to the node used for Apple Inc’s most recent A19 Pro chips and well ahead of its biggest home rival Huawei Technologies in-house designs. Xiaomi has contracted TSMC to manufacture the chips, Reuters reported.

HONG KONG
IPO
Ingenic(03223.HK), which will be listed today 25 August, opened up 0.1% on the Futu platform to $100.1 on gray market. Peaking/ bottoming at $109.3/97.5, it closed at $99.75, down 0.3% or $0.25 from the listing price, on volume of 362,200 shares and turnover of $36.38 million. Excluding handling fee, the book loss was $25 per board lot size of 100 shares. On the PhillipMart platform it opened up 0.1% to $100.1 on gray market. Peaking/ bottoming at $101.2/97.8, it closed at $99.5, down 0.5% or $0.50 from the listing price, on volume of 295,000 shares and turnover of $29.3 million. Excluding handling fee, the book loss was $50 per board lot size of 100 shares.

Online fast-fashion retailer ​Shein launched book building for a Hong ‌Kong initial public offering on today, aiming to raise up to HK$13.86 billion ($1.77 billion), valuing it at up to $26.81 ​billion, according to an offering prospectus. Shein ​is selling 280 million shares for a minimum ⁠of HK$47.60 per share and a maximum of ​HK$49.50 per share, the filings showed. The company ​will price the IPO on August 31 and debut on September 1.

HK Results see https://www.aastocks.com/en/stocks/news/aafn/latest-news

Warning / Alerts
R&F PROPERTIES (02777.HK) issued a profit warning, estimating a loss of between RMB5 billion and RMB5.5 billion for the six months ended June, compared with RMB4.082 billion recorded in the same period last year. The loss during the period was mainly due to the continued downturn in China’s real estate industry, which led to a decline in gross profit from property development.

TRIGIANT (01300.HK) issued a positive profit alert, expecting to record profit of approximately RMB208.4 million for the six months ended end-Jun 2026, compared with profit of approximately RMB25 million in the same period last year, representing an increase of approximately 735.3%. The group said unaudited revenue for the period amounted to approximately RMB1.7505 billion, up 41.7% YoY. Based on the latest management accounts, gross profit for the period was approximately RMB266.4 million, up 90.7% YoY. Other factors contributing to the increase in profit included reversal of impairment under the expected credit loss model, increase in other income, increase in other gains, decrease in administrative expenses and decrease in finance costs. The increase in tax expenses, selling and distribution costs and research and development costs partially offset the impact of the profit increase.

FULLSHARE (00607.HK) issued a profit warning, expecting a net loss of no more than RMB20 million for the six months ended June, compared with a net profit of RMB179 million in the corresponding period last year. The expected loss was mainly due to a one-off gain from the disposal of a subsidiary recognized in the corresponding period last year; net impairment losses of RMB205 million recognized on financial assets and financial guarantee contracts; and fair value change losses on the Group’s investment properties located in China.

Buybacks
TENCENT (00700.HK) announced that it repurchased 680,000 shares of the company Monday (24th) at prices ranging from HKD438.6 to HKD450.2 per share, involving approximately HKD300 million. Since the repurchase mandate resolution was approved, the group has cumulatively repurchased 40.1087 million shares, accounting for 0.43989% of issued shares.

KUAISHOU-W (01024.HK) disclosed in a filing that on August 24, it repurchased 2.113 million shares on the Stock Exchange at a price ranging from HKD33.02 to HKD33.26 per share, involving a total consideration of approximately HKD69.98 million. Since the ordinary resolution was passed on June 25, 2026, the company has cumulatively repurchased 27.6402 million shares, accounting for 0.6388% of its share capital.

XIAOMI-W (01810.HK) disclosed in a filing that it repurchased 1.8192 million shares on the Stock Exchange on August 24 at prices ranging from HKD27.82 to HKD28 per share, involving a total amount of approximately HKD50.78 million. Since the ordinary resolution was passed on June 2, 2026, the company has repurchased a cumulative 105 million shares, accounting for 0.41% of its share capital.

HSI Short Selling Monday 22.4% vs 21.4 Friday
Top shorts Galaxy Ent (27) 50%, Chow Tai Fook (1929) 46%, Henderson Land (12) 43%, Midea Group (300) 41%, Shenzhou (2313) 41%, New Oriental (9901) 41%, Tingyi (322) 41%, China Res Power (836) 40%, Haidilao (6862) 40%

Meituan (3690) 37%, Ali Health (241) 36%, SHKP (16) 35%, Baba (9988) 35%, Sunny Optical (2382) 35%, CKI (1038) 34%, WH Group (288) 34%, Hengan (1044) 31%, Nongfu Spring (9633) 31%, Li Ning (2331) 30%, JD Health (6618) 30%, Anta Sports (2020) 30%

China Shenhua (1088) 29%, Power Assets (6) 29%, Haier Smarthome (6690) 28%, CM Bank (3968) 27%, J&T Express (1519) 27%, OOIL (316) 27%, NTES (9999) 27%, Sands China (1928) 26%, BYD Electronic (285) 26%, CATL (3750) 26%, Bud APAC (1876) 26%, Xiaomi (1810) 25%, Ping An ((2318) 25%, Beone Medicines (6160) 25%, Wuxi Apptec (2359) 25%

WATCH
BABA-W (09988.HK) Chairman Joseph Tsai and CEO Eddie Wu increased their holdings in the group’s shares through on-market purchases Monday (24th), involving a combined investment of nearly HKD120 million, as revealed by HKEX disclosures of interests. The move reportedly highlights their steadfast confidence in the long-term development of Alibaba’s AI business. Among them, Tsai purchased 720,000 Hong Kong shares of the company at an average price of HKD112.0803 per share, involving approximately HKD80.6978 million. Wu purchased 350,000 Hong Kong shares at an average price of HKD111.6359 per share, involving a total amount of approximately HKD39.0726 million. Upon completion, Tsai’s and Wu’s shareholdings in the group increased to 1.43% and 0.29%, respectively.

HENGAN INT’L (01044.HK) announced that it completed the issuance of the first tranche of medium-term notes with a principal amount of RMB1 billion Monday (24th). The coupon rate was set at 1.9% per annum with a term of five years. The proceeds are intended to be used for repayment of corporate debts and bank loans of its subsidiaries. Following the completion, the remaining approved but unissued debt financing instruments amounted to RMB4.5 billion.

Some banks in Hong Kong have launched funding source declaration procedures for certain existing Mainland Chinese investor clients, setting deadlines such as August 20 (investment services may be suspended if not submitted) and September 12 (investment services may be terminated if not submitted), China Business News reported, quoting market sources recently. Some Hong Kong licensed institutions, including HSBC Hong Kong and Hong Kong branches of Chinese-funded banks, have recently adopted the above measures, but the main targets are long-term dormant accounts. A spokesperson for HSBC said the bank follows relevant regulatory requirements when managing investment client relationships, and therefore invites relevant Mainland Chinese investors to provide self-declarations and confirm that information provided in “Know Your Customer” (KYC) and customer due diligence procedures is up to date and valid. The move helps ensure uninterrupted services for clients. The latest declaration requirement applies only to the bank’s investment service clients. Analysts believed the above measures by banks in Hong Kong are still based on the notice issued by the Hong Kong Monetary Authority on May 22 (simultaneously with the Hong Kong Securities and Futures Commission circular), rather than any new policy or regulatory guidance. The notice clarified the monitoring measures banks should adopt when opening accounts and maintaining client relationships, and proposed three additional measures for opening and managing investment accounts of Mainland Chinese investors: first, closing investment accounts opened using suspicious or forged documents (including account-opening reviews); second, closing zero-balance dormant investment accounts (including dormant account reviews); and third, adopting additional measures when opening new investment accounts, including obtaining written declarations from the Mainland Chinese investor. This means that once an existing investment account opened by a Mainland Chinese investor at a Hong Kong licensed institution is identified as a dormant account, the account holder will face the same requirement as for newly opened accounts, namely the need to submit an additional written declaration before reactivating the investment function of the account, including confirmation of the legality and compliance of funding sources. Existing accounts of Mainland Chinese investors that are in normal active use are theoretically not affected for the time being.

BANK OF CHINA (03988.HK) announced that it has completed the issuance of write-down undated capital bonds. The issuance size for this tranche was RMB20 billion, with an initial five-year coupon rate of 1.86%. The proceeds raised will be used to replenish additional tier-one capital.

SUNAC (01918.HK) announced that it will acquire a 100% equity interest in Erjin Management from Rongzhe Gongchuang Holdings. The target company focuses on the development of light-asset businesses in real estate construction management and asset management, with current contracted project gross floor area totaling approximately 8.34 million square meters. The consideration is HKD142 million, which will be settled through the issuance of 260 million consideration shares, representing 1.29% of the enlarged share capital. The issue price is HKD0.547, representing a slight premium of 0.37% over the closing price on the previous trading day (24th).

POP MART (09992.HK) announced that on 24 Aug, it granted 137,510 award shares to 18 group employees under the post-IPO share award scheme. The closing price of the shares on the grant date was HKD155.

HONY MEDIA (00419.HK) announced that it has signed the “Property Robot Platform Co-construction Cooperation Agreement” with GREENTOWN SER (02869.HK). The two parties will jointly build and operate a property service robot operation management platform based on the group’s AIROBO operating system as the technological foundation, promoting the large-scale application of robots in community and property management scenarios over a three-year period.

GANFENGLITHIUM (01772.HK) announced that its wholly owned subsidiary GFL International and Lithium Argentina have signed a final agreement for the joint development and merger of three lithium salt lake projects in Argentina. Under the agreement, the parties agreed to integrate the merged projects into Millennial. Upon completion, GFL International and Lithium Argentina will hold 67% and 33% equity interests in Millennial, respectively. The integration work is expected to be completed by the end of 3Q26.

Monday closings in EUROPE and US
DAX -0.11%, CAC -0.37%, FTSE 0.35%
Markets effectively traded around flat for most of the morning. In the afternoon the FTSE worked higher into the close. Whilst the DAX and CAC trended lower.

Investors cautious ahead of US announcing new sanctions on Iran and the potential impact on the global economy. Also ahead of some key tech earnings and European data out later this week

Leaders: Travel and leisure 1.7%. Media and personal goods 1.4%.
Laggards: Energy stocks -1.6% (as oil prices fell), autos, defense, and tech all weak

DOW 0.26%, NDX -0.77%, S&P -0.28%, Russel 2K -0.76%
DOW opened slightly higher and traded in a tight range range just about flat. S&P opened slightly lower and traded in a tight range range just below flat. NDX opened lower but worked better after initial weakness but drifted lower into the close. Six out of 11 sectors closed in the green.
Leaders were Consumer Staples, Financials, Utilities and Telco services.
Laggards Info Tech and Energy,

Tech remains under pressure ahead of Nvidia’s and other tech name earnings this week. Nvidia closed lower for a fifth session Investors cautious as Trump starts a trade war with Canada and ahead of key data like PCE and other data due this week along with potential comments from the Jackson Hole Symposium at the end of the week.

Treasury yields moved lower after CNBC reported that the Treasury may use the General Account to fund a buyback operation. Gold hit its highest level since May.

President Trump announced that the US will increase tariffs on imports of “all Cars, Trucks, both large and small, Automotive Parts, and Steel” from Canada to 50%, effective Jan. 1, 2027. Negative for trucking stocks

Banks JPMorgan Chase 1.37%, Citigroup 0.05% Wells Fargo 1.05%, Amex 0.4%
Ecommerce Meta 1.66%, Apple 0.32%, Amazon 1.33%, Netflix 0.53%, Disney 2.63%, Zoom Comms -2.42%, Alphabet 0.83% and Microsoft 0.84%
Tech NXP Semi -1.38%, Nvidia -2.91%, Micron -5.83%, AMD -3.49%, Skyworks -0.42%, Intel -3.12%
Industrial/Discretionary Boeing -1.75%, Caterpillar -2.04%, Simon Property 1.12%, Kohl’s 3.98%, Gap 2.83%, United Airlines 0.35%, Carnival -0.08%, Wynn Resorts -0.87%
Healthcare Eli Lilly -0.67%, UntiedHealth 2.22%, Johnson & Johnson 1.04% Merck -1.24%
Auto Ford -3.33%, GM -1.08%, Tesla -3.83%
Energy Chevron -1.06%, Exxon Mobil -0.64%, ConocoPhillips 0.56%
Consumer Staples Campbell Soup 0.88% General Mills 2.38%, JM Smucker 1.25%
Buffet’s Top Five Retirement Stocks Coca Cola 0.98%, Apple 0.32%, Johnson & Johnson 1.04%, Proctor & Gamble 1.33%, Berkshire 1.71%

DAILY US CLOSING DATA
USD edged higher. Bitcoin 2.11% at $79,006.41 VIX up 4.76% at 15.85
US Bonds T10 down 3.8 bpts to 4.704%, T2 up 4 bpts at 4.238% and T30 down 4.9 bpts at 5.234% on news that the Treasury could use General Account to fund buybacks but Bessent says they have not stated buying yet.
OIL Brent -2.5% at $92.06, WTI -2.5% at $84.89 as the US announces tough sanctions to isolate Iran from the global economy.
Spot Gold 0.7% Spot Silver -0.04%, Copper 0.68% Platinum -0.31%, Palladium 0.96%.

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That as oil eased on Friday as press reported Iran’s President Masoud Pezeshkian said “it is better to end the war today” when Iran is “in a position of power and dignity,” according to state news. But later Iran stated that no oil would move though the Straits of Hormuz; so oil remains a key focus. Brent oil this morning -0.82% at $93.62. Gold spot 0.07% at $4,606.15

Canada and US failed to make a new tariff deal so the 50% tariffs will be introduced and Canada has said it will match the US tariffs dollar for dollar.

AI also in focus as come of Nvidia Corp’s biggest customers have been told that the prices of servers containing its artificial intelligence (AI) chips are going up more than 15% in many cases with memory costs soaring. The price hikes would go into effect on systems shipped early next year and impact systems including those with the flagship Vera Rubin and Grace Blackwell chips, people familiar with the process said on condition of anonymity. The increases would depend on the generation of Nvidia chips and the memory configurations, they said.

A number of big conferences taking place this week; in China the National People’s Congress, in France Mouvement des entreprises de France (MEDEF is the largest employer federation and business lobby) and holds it annual meeting of business leaders and politicians; the last before the next French Presidential election; where President Macron will be stepping down after 10years in power

The US the Federal Reserve Bank of Kanas City’s Jackson Hole Symposium; where new FOMC Chairman Warsh will give the key note speech. Whilst he may not like giving guidance it is likely he will set out his agenda and at the sale time ty to bolster the Fed’s credibility.

US Earnings winding down but this week we get Nvidia, Crowdstrike and Marvel Tech. HK earnings will see a busy week
Monday. PDD Holdings
XPENG-W (09868.HK), WUXI XDC (02268.HK), KB LAMINATES (01888.HK), KINGBOARD HLDG (00148.HK), LEAPMOTOR (09863.HK), KERRY PPT (00683.HK), TONGCHENGTRAVEL (00780.HK), BUSYMING (01768.HK), CH OVS G OCEANS (00081.HK), CHINA CRSC (03969.HK), CHINARES PHARMA (03320.HK), CIG (06166.HK), CSSC SHIPPING (03877.HK), DOBOT (02432.HK), HAITIAN INT’L (01882.HK), INNOCARE (09969.HK), JIAXIN INTL RES (03858.HK), KINETIC DEV (01277.HK), LDROBOT (01236.HK), LUXSHARE ICT (02475.HK), MOBVISTA (01860.HK), NAGACORP (03918.HK) , Q TECH (01478.HK), REMEGEN (09995.HK), SIGENERGY (06656.HK), TRAVELSKY TECH (00696.HK), TS LINES (02510.HK), TUYA-W (02391.HK), WESTCHINACEMENT (02233.HK), XUNLONG SCITECH (06715.HK).

Tuesday Vipshop Holdings Limited (VIPS.US), Zoom Communications, Inc. (ZM.US);
WUXI BIO (02269.HK), LAOPU GOLD (06181.HK), SHENZHOU INTL (02313.HK), INNOVENT BIO (01801.HK), NONGFU SPRING (09633.HK), HAIDILAO (06862.HK), JIANGXI COPPER (00358.HK), CHINA JINMAO (00817.HK), SJM HOLDINGS (00880.HK), CHINA TAIPING (00966.HK), WEIGAO GROUP (01066.HK), DONGFANG ELEC (01072.HK), H&H INTL HLDG (01112.HK), CH MODERN D (01117.HK), XTEP INT’L (01368.HK), NISSIN FOODS (01475.HK), SUNAC SERVICES (01516.HK), CR MEDICAL (01515.HK), HUIXIN CREDIT (01577.HK), YIHAI INTL (01579.HK), YADEA (01585.HK), CGN POWER (01816.HK), FWD (01828.HK), CALC (01848.HK), WENGE AI (01956.HK), BOSS ZHIPIN-W (02076.HK), GOLDWIND (02208.HK), GWMOTOR (02333.HK), HAIZHI TECH GP (02706.HK), CHINA OILFIELD (02883.HK), CHINA STATE CON (03311.HK), FS.COM (03355.HK), QFIN-S (03660.HK), CIMC ENRIC (03899.HK), GREENTOWN CHINA (03900.HK), POLY PPT SER (06049.HK), ZA ONLINE (06060.HK), CMSC (06099.HK), FLAT GLASS (06865.HK), METIS TECHBIO-P (07666.HK), NEWBORNTOWN (09911.HK), YOURAN DAIRY (09858.HK), KUNLUN ENERGY (00135.HK), MINTH GROUP (00425.HK).

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Housekeeping
This morning I will on RTHK’s Money Talk with Megha Chaddah hosting and the other guest is Mel Siew, Head of Asia Public Credit at Muzinich and Co.
If there is a topic you would like discussed; then let them know or drop me a message, or if you just want to listen to the programme, click the link https://gbcode.rthk.hk/TuniS/www.rthk.hk/radio/radio3/programme/money_talk

Thursday afternoon I was on RTHK’s the Close with host Nitin Dialdas and guest Daniel Xystus, Chief Investment Officer, AOP Capital, looking at the US Public debt hitting US$40 T and its implications both for the US and others. The BoJ’s policy outlook and whether Robotics would be the next investment theme.

If you have a topic you would like discussed this week then please message me or contact them via WhatsApp +852 6899 8518 or via the link below, which can also be used to listen to the programme.
click the link https://www.rthk.hk/radio/radio3/programme/the_close

Latest thoughts from Market Thinker - challenging the narrative. Crashenbrenner. A story of West Coast leverage versus East Coast leverage and who gets to create the money? Looks at the rise and fall of Leopold Ashenbrenner. Linked-in is full of articles about inexperience, hubris, poor risk management and ultimately nemesis in the form of grizzled Wall St trading titans like Ken Griffin and Izzy Englander.

Well worth a read.

Market opening indications and data due
New Zealand
NZX 50 opened lower testing down to 13,930 after futures expected them to open up 52.85pts 0.38% at 13,972.66. But they have rebounded and currently trading around flat -10pts at 13,962. Retail sales were weaker than expected.

On Friday the NZX opened lower as trade data disappointed and dipped in choppy trading to 13,850 level before working better to traded around flat and ticked higher at the end to close up 52.84pts 0.4% at 13,927.66; up 0.9% WoW. Trading volume increased.
Leaders Tech, consumer staples, real estate, and communication services; Spark New Zealand 1.3% and EBOS Group 0.8% saw strong momentum following solid annual reports. Fisher & Paykel Healthcare 1.3% gained after raising earnings guidance.
Laggards Tech, consumer staples, real estate, communication services and Dual-listed banks led the day’s gains, offsetting drops in energy, materials, and industrials.
Data out after the open
Retail Sales Q2 -0.5% QoQ vs 0.9%Q1 (F/cast was -0.3%)
Retail Sales Q2 3.3% YoY vs 4.5% Q1 (F/cast was 3.2%)

Australia - No Data Scheduled
ASX futures indicate the market to open up 41pts 0.46% at 9,028
Earnings include
Ampol Ltd (ASX: ALD) – Half Year results
Pilbara Minerals (ASX: PLS) – Full Year / Half Year results
Bendigo and Adelaide Bank Ltd (ASX: BEN) – Full Year results
Data#3 Ltd (ASX: DTL) – Full Year results & briefing
Stockland (ASX: SGP)
Ampol Ltd (ASX: ALD)
Reece Ltd (ASX: REH)
NIB Holdings Ltd (ASX: NHF)
Ventia Services Group Ltd (ASX: VNT)
Nuix Ltd (ASX: NXL)
hipages Group Holdings Ltd (ASX: HPG)
Lindsay Australia (ASX: LAU)
EVT Limited (ASX: EVT)

On Friday the ASX 200 opened higher on good Flash PMI data and during the first hour traded higher in choppy trading to 9,084 but then sold down to trade around flat to close -24pts -0.27% at 9,058.9; -0.6% WoW.
Leaders Consumer Staples & Mining: Supported by strong earnings disclosures and localized commodity boosts. Large-cap copper exposure continued to provide structural support for heavyweights like BHP Group.
Laggards Technology & Financials: Dragged heavily by a sell-off in yield-sensitive assets and a weak lead-in from Wall Street’s tech sector overnight.

Japan
On Sunday a strong Kanto quake triggers warnings of similar shaking over next week -VE for. sentiment. Tokyo and the wider Kanto region were jolted awake early Sunday by the magnitude 5.9 earthquake, which registered up to a lower 5 on Japan’s seven-point seismic scale.
Nikkei Futures indicate -80pts -0.12% at 66,010
Chicago Nikkei Futures up127.5pts 0.12% at 66,002.5
Singapore Futures
Yen 158.98 Friday close. Opening 158.97 in Asia on Monday

On Friday the Nikkei opened lower and drifted lower in the first hour as inflation data was higher than expected and approaching the BoJ’s 2% target. The market worked higher after the better than expected flash PMI data but failed to break into the green and traded in a tight range below flat for the rest of the day to close -200.43pts -0.3% at 66,016.36; -4.11% WoW as global bond worries resurfaced and Tech names remained uncertain pressure. Trading volumes on Friday were lighter DoD.
Leaders Marine Transportation: Outperformed; heavy buying in major shippers like Kawasaki Kisen Kaisha +7.28%, Mitsui O.S.K. Lines +4.61% and Nippon Yusen +4.50%. Chemicals & Materials: +VE led by a strong surge in Sumitomo Chemical +7.18%. .Energy / Resources: Attracted defensive inflows amid shifting oil prices, lifting companies like Inpex +2.2%
Laggards Technology & Semiconductors: following the Wall Street tech sell-off and climbing bond yields. SoftBank Group -2.45%. Steel & Heavy Machinery: weak; The Japan Steel Works -4.65% the index’s top decliner.
Data due out after the open
10-Year Climate Transition JGB Auction vs 2.195% prior

S Korea
Kospi Futures (KMU6) indicate opening down 25.15pts -2.29% at 1,074.55

The Kospi on Friday opened lower but worked better, pre market PPI was weaker than expected but the Kospi worked better to close up 60.37 pts, or 0.88%, to 6,912.95, off the intraday high as 6,954.12.
Trade volume was moderate at 404.5 million shares worth 28.7 trillion won ($20.7 billion). Losers far outnumbered winners 681 to 193.
Retail and foreign investors were net sellers, offloading a combined 1.34 trillion won. Institutional investors bought 248.2 billion won.
Plans by SK hynix and Samsung Electronics, in increase shareholder returns overshadowed external uncertainties. Other large caps were mixed. Financials +VE on bargain hunting.
Laggards were defense and shipbuilders along with Kakao -7.49% following the announcement to spinoff its chat-app based platform business.
The Korean won was quoted at 1,386.5 won against the US dollar as of 3:30 pm.Friday, up 6.1 won from the previous session.
Data due out after the open
5-Year KTB Auction vs 4.165% prior

Taiwan - No Data Scheduled
Taiex futures indicate market to open -64pts -0.14% at 45,074

On Friday the Taiex opened higher, ticked lower to test flat and then worked better to close up 290.55 pts, or 0.65%, at 45,224.29 on turnover of NT$719.28 billion (US$22.57 billion) vs NT$792.96 billion (US$24.93 billion) Thursday
Data out after market
Unemployment Rate Jul vs 3.33% Jun (F/cast is 3.34%)
M2 Money Supply Jul YoY vs 8.13% Jun (F/cast is 8.5%)

China - No Data Scheduled
Golden Dragon Index closed up 25pts 0.4% at 6,303.83
FTSE A50 futures closed -17pts -0.11% at 14,826
MSCI A50 Connect (USD) futures closed -2.2pts -0.08% at 2,727.6

On Friday the A shares opened around flat saw a small rally but then traded generally sideways. Investors still hoping for more fiscal support, ChiNext helped by a strong performance in growth-oriented sectors, specifically companies related to lithium mining, precious metals, and CPO (Co-Packaged Optics) technology.
Broader Tech remained under pressure.
Trading volumes were light 1.88T yuan vs 2.09T yuan Thursday
At the close
Shanghai Composite: up 3pts 0.07% at 3,905.2
Shenzhen Component: up 0.87% at 14,094.2
CSI 300 (Blue Chips): up 26pts 0.57% at 4,618.9
ChiNext Index (Growth Board): up 50pts 1.43% at 3,545.58
STAR 50 Index (Sci-Tech): up 0.05% at 1,956.85
USD/CHN -0.00735 pt -0.11% at 6.7174
Spot USD/CNY lifted 34 bps to close at 6.7205 Friday (21st). As of 4:54 pm, USD/CNY in the night session dropped 31 bps. USD/CNH gained 17 bps to 6.7190, 15 bps above USD/CNY.
Data out after market Friday
FDI (YTD) Jul -6.2% YoY vs -5% Jun (F/cast is -6%)

Hong Kong - No Data Scheduled
ADR’s closed -338.45 -1.34% at 25,330 most in the red, only HSBC, CLP, SHKP and HK EX in the green. But watch Alibaba seeking $10B by offering 710m shares at HK$112.7 per hare that was a 3.6% discount to its Friday ADR price which was -8.6%.
Hang Seng Futures indicate -129pts -0.5% at 25,895
Turnover Friday HK$257.3B vs HK$269B Thursday
Short Selling Friday 21.4% vs 19.8% Thursday

On Friday the HSI opened higher and trended slightly higher through the day to close 1.21% 310.97pts at 26,009.46; above the psychological 26,000 after a 5 day winning streak. Alibaba 1.4% after earnings helping the E-commerce/Tech sectors.
Leaders Financials, Gold, Real Estate and Industrials
Laggards Healthcare and Pharmaceuticals, Consumer Staples, Entertainment & Tech
Hang Seng Tech Index also rose 1.4% to finish at 4,766.16,
Hang Seng China Enterprises Index climbed 1.01% to 8,634.34.

Macau - No Data Scheduled
Out after HK Close Friday
Inflation Rate Jul -0.01% MoM vs -0.15% Jun (F/cast is 0.1%)
Inflation Rate Jul 1.12% YoY vs 1.24% Jun (F/cast is 1.3%)
GDP Growth Rate Final Q2 0.3% YoY vs 7.1% Q1 (F/cast is 0.3%)
Retail Sales Q2 6.2% YoY vs 23% Q1 (f/cast is 2.2%)

Singapore - Data Scheduled for lunchtime
Core Inflation Rate Jul YoY vs 1.6% Jun (F/cast is 1.7%)
Inflation Rate Jul MoM vs 0% Jun (F/cast is 0.2%)
Inflation Rate Jul YoY vs 1.9% Jun (F/cast is 2.1%)

Malaysia - No Data Scheduled

Indonesia - Data could get
M2 Money Supply Jul YoY vs 8.7% Jun
Reported Indonesia’s stock exchange will scrap its 50-rupiah trading price floor, a decade‑old rule long criticised for distorting the market and trapping low‑priced shares at an artificial minimum. The bourse said the change — now under consultation with market participants — is aimed at boosting liquidity and improving price discovery, aligning with broader reforms introduced after MSCI warned Indonesia risked a downgrade to frontier market status.

Philippines - No Data Scheduled

Thailand - Data could get
Balance of Trade Jul vs $-6.53B Jun (F/cast is $-6.3B)
Exports Jul YoY vs 20.8% (Consensus is 19%)
Imports Jul YoY vs 50.3% (Consensus is 42.3%)

Vietnam - No Data Scheduled
Vietnam’s National Assembly on Sunday approved amendments to the customs law that strengthen customs powers to intercept counterfeit and intellectual ​property-infringing goods, a move that could address some concerns raised ‌in a US trade investigation into the country’s protection and enforcement of intellectual property rights.

Cambodia - No Data Scheduled
Myanmar - No Data Scheduled

India - Data Out After market Friday
Bank Loan Growth 7 Aug YoY vs 19.3% prior
Deposit Growth 7 Aug YoY vs 15.4% prior
Foreign Exchange Reserves 14 Aug vs $707B prior
India’s coastguard and navy continued ​search-and-rescue operations off the eastern coast on Sunday after ‌a Panama-flagged bulk carrier carrying 24 crew members sank, with two Chinese nationals rescued, a senior official said. The two Chinese seafarers said the vessel, called the ​Ocean Winner, had developed a list on Friday and sank ​within eight minutes, forcing the crew to abandon ship, ⁠Shyam Jagannathan, director general of India’s Maritime Administration, told Reuters.

Europe
Eurozone - No Data Scheduled
Germany - 11 & 5-Month Bubill Auction
France - 12-Month, 3-Month and 6-Month BFT Auctions
United Kingdom - No Data Scheduled

United States
Futures opened Dow -41pts -0.08% S&P -0.04% NDX -0.06%
Data Scheduled: Chicago Fed National Activity Index

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HEADLINES & NEWS
NEW ZEALAND & AUSTRALIA
Australia’s push to reserve more gas for domestic customers is stirring hopes of an onshore industrial revival, as a major chemical firm weighs reactivating a production complex mothballed nearly a decade ago due to surging gas prices.

Dodgy loan applications are on the rise, reigniting a bank push for a shift away from old-school documents such as payslips and tax returns.

Delayed at Sydney Airport? Pilots say don’t just blame air traffic control The pilots say the bottleneck is slowing international flights from getting to gates during peak morning hours.

Alan Joyce’s Musk monopoly warning over in-flight Wi-Fi. While Amazon is building up Leo, its rival to Elon Musk’s Starlink, Joyce suggests Chinese satellite network providers might also eventually enter the industry.

JAPAN
PM Takaichi reportedly considering a Cabinet reshuffle in mid-to-late September. Such a move would be PM Sanae Takaichi’s first since taking office in October as she seeks to create an atmosphere conductive to winning another term as LDP president.

Major Japanese defense companies such as Mitsubishi Heavy Industries Ltd are stepping up their development of drones as the government seeks to make unmanned systems and artificial intelligence a central part of its new defense strategy. The push reflects a global race to develop drones, whose role in warfare has expanded dramatically since Russia invaded Ukraine. But their growing use has also raised concerns over civilian casualties and damage to critical infrastructure. In Japan, partnerships between defense contractors and civilian drone makers have come under scrutiny, putting public acceptance of the industry’s shift toward unmanned warfare in question. Mitsubishi Heavy said in May that it had developed a prototype interceptor drone capable of shooting down incoming attack drones.

Lawson, Inc. will trial its first mobile convenience store using a trailer in Ebina, Kanagawa Prefecture, on Thursday. The store, located to the south of the sports hall at Ebina Sports Park, will open for a limited time and will operate from 10 a.m. to 5 p.m. The product lineup available will be scaled down to about one-seventh of what is available at an average Lawson store, offering about 500 items including boxed lunches, onigiri rice balls and sweets. The shop will not include an ATM or photocopier.

The Economy, Trade and Industry Ministry has decided to include an additional ¥150 billion investment in Rapidus Corp; a company which aims to mass-produce next-generation semiconductors, in its budget request for fiscal 2027, The Yomiuri Shimbun has learned. The investment will be made through the Innovation Platform Agency, Japan. If realized, it will mark the government’s third investment in the company. The government has already invested a total of ¥250 billion in Rapidus through fiscal 2026, so this planned third investment will bring the total to ¥400 billion.

From the weekend
The Bank of Japan has set next ​year’s July policy meeting just in time for its two hawkish board members to vote before their five-year terms expire, a ‌scheduling quirk that could prove crucial for how high Japanese interest rates may ultimately rise. Under a calendar of next year’s scheduled policy-setting meetings released last month, the BOJ said its board will hold the rate review for July 2027 on the 21st and 22nd.

South Korea’s SK ​Hynix (000660.KS) is considering building a ‌memory chip plant in Japan’s Miyagi prefecture and could invest tens of trillions ​of won in the project, ​the Hankyoreh newspaper reported on ⁠Friday, citing industry sources. The newspaper said ​SK Hynix is pursuing the ​investment in northeastern Japan as it looks to expand production capacity amid growing global ​demand for memory chips.

SOUTH KOREA
Samsung Electronics and SK hynix have unveiled their largest-ever shareholder return programs, moving to share more of the windfall from the artificial intelligence chip boom with investors. But the two chipmakers are taking sharply different routes. Samsung is leaning on dividends, while SK hynix is pursuing a massive share buyback and cancellation program — a contrast shaped by their different ownership and financial structures.
For SK hynix, the buyback plan supports the group’s ownership structure. Parent SK Square must retain at least 20 percent of the chipmaker under Korean rules for holding companies. Canceling shares automatically raises SK Square’s ownership ratio without requiring it to buy more shares, reinforcing its position as the controlling shareholder.
Samsung’s preference for dividends came as little surprise, given the regulatory and ownership constraints surrounding the company. Under Korea’s Act on the Structural Improvement of the Financial Industry, financial companies cannot hold a combined stake of 10 percent or more in a nonfinancial affiliate. Samsung Life Insurance and Samsung Fire & Marine Insurance held 8.51 percent and 1.49 percent of Samsung Electronics, respectively, as of end-June, leaving them right at the 10 percent limit.

South Korea’s alcoholic beverage production plunged to below 3 million kiloliters for the first time in 27 years in 2025, data showed Sunday, signaling a structural decline in the industry, with more South Koreans turning to healthy lifestyles.

CJ Group’s three-day K-pop and Korean culture festival, KCON LA 2026, drew 142,000 fans, and for many of them, the food may have mattered just as much as the music, with over 10,000 people lining up to try US-made Korean dishes at the booth run by the group’s flagship Korean food brand, Bibigo. Few attendees likely knew, however, that the mandu, or Korean dumplings, on their plate traced back to a plant not far away. The factory in Beaumont, about 150 kilomters east of Los Angeles, supplies over 60 percent of Bibigo mandu sold in the US.

Innometry said Sunday it recently shipped non-destructive inspection equipment for a major battery manufacturer’s mass production line for 46-series cylindrical batteries, strengthening its position in the rapidly expanding next-generation electric vehicle supply chain. Following a supply contract secured in February, the shipment includes CT inspection units that evaluate electrode alignment and X-ray systems designed to detect foreign materials inside the battery cells.

After more than a decade, the Bank of Korea is back on a gold-buying spree, raising its exposure to the precious metal as it joins central banks around the world in diversifying their foreign reserves. According to the BOK, the central bank currently holds 104.4 metric tons of gold, valued at $4.79 billion, or 1.1 percent of its total foreign exchange reserves of $427.36 billion at end-June. The relatively small share highlights the BOK’s limited exposure to gold compared with other central banks. As of end-2025, the BOK ranked 39th among central banks worldwide in terms of gold holdings, according to the World Gold Council. But recent moves by the BOK suggest that the central bank is ready to increase its exposure to gold once again, signaling it is reassessing the role of gold in its foreign reserve portfolio. The BOK purchased 679,765 shares of the SPDR Gold Trust ETF in the second quarter, a US Securities and Exchange Commission filing showed. The holdings were valued at $250.41 million, or about 354.5 billion won, at the end of June. Unlike its previous purchases of physical gold, the latest investment gives the central bank exposure to gold through a financial asset rather than by directly holding the metal. The BOK also plans to up stake in physical gold, but under a different playbook.

From the weekend
The Bank of Korea is expected to raise its growth outlook for the South Korean economy this year to over 3%, economic experts here said Sunday, citing stronger-than-expected semiconductor exports and recovering domestic demand. According to a recent survey on six economic analysts conducted by Yonhap News Agency, respondents expect the BOK to revise its 2026 growth outlook from the current 2.6% to as high as 3.4%.

NVIDIA Corporation (NVDA.US) is discussing potential cooperation with South Korean AI chip design company Rebellions, which may include technological collaboration, investment, or even an acquisition, Bloomberg, citing sources, reported. NVIDIA CEO Jensen Huang reportedly met Rebellions co-founder and CEO Sunghyun Park in California this week and discussed potential partnership opportunities. Previously, Rebellions had raised approximately USD850 million from investors including SK Hynix, Samsung Venture Investment and Arm Holdings plc (ARM.US) -7.400 (-2.951%) After -0.041%. Its latest valuation was approximately USD2.3 billion.

The South Korean government will keep fuel price ceilings unchanged for another four weeks as renewed tensions in the Middle East push global oil prices higher, the Industry Ministry said Friday. The Ministry of Trade, Industry and Resources said the maximum prices for gasoline, diesel and kerosene supplied by local refiners to gas stations will remain unchanged from the previous four-week period at 1,784 won ($1.29), 1,773 won and 1,380 won per liter, respectively, beginning Saturday. The decision comes as global crude oil prices have begun rising again amid renewed uncertainty in the Middle East, although the government said domestic oil supplies remain stable.

Samsung Electronics said Friday it plans to return between 90 trillion won ($65.2 billion) and 110 trillion won to shareholders this year, marking the largest shareholder return ever undertaken by a Korean company. The tech giant said its board approved the plan earlier in the day, with the upper end of the range more than five times its previous record of 20.3 trillion won in 2020.

Samsung SDI said Friday it will sell a portion of its stake in affiliate Samsung Display for 4.45 trillion won ($3.22 billion), as the battery maker seeks to secure funds for investment in future growth businesses. In a regulatory filing, Samsung SDI said it will sell 13.09 million shares in Samsung Display for 340,000 won apiece, representing about 33 percent of its current holdings in the display maker, with Samsung Display buying the shares as treasury stock. Samsung SDI currently holds 39.86 million shares in Samsung Display, a display-making affiliate of Samsung Electronics. Following the transaction scheduled for Thursday, Samsung SDI’s ownership in Samsung Display will fall from 15.2 percent to 10.2 percent. The final number of shares and value could change during the repurchasing process, the company said.

A South Korean container ship sets sail on Saturday for Europe via the Arctic in the nation’s first commercial voyage on the ​route to test its viability, with the hope of turning ‌the southeastern port of Busan into a global maritime hub. The PanStar Acro will sail north, hugging eastern Russia’s Kamchatka peninsula, cross the Bering Sea, and take the Northern Sea ​Route, stopping in Felixstowe in Britain, Rotterdam in the Netherlands and ​Poland’s Gdansk before returning on a journey expected to take ⁠40 to 45 days.

TAIWAN
Peace can only be secured through strength ​and not even an inch of territory can be sacrificed, Taiwan President Lai Ching-te said ‌on Sunday, visiting a sensitive frontline island to mark a key battle with Chinese forces almost seven decades ago. Taiwan has controlled the Kinmen and Matsu islands, which lie just off the Chinese coast, since the Republic of China government fled to Taipei in ​1949 after losing a civil war with Mao Zedong’s communists. No peace treaty or armistice has ​ever been signed.

CPC Corp, Taiwan (CPC) on Saturday announced that it would keep retail gasoline and diesel prices unchanged this week, while Formosa Petrochemical Corp Sunday said it would maintain its fuel prices at the same levels despite a spike in international crude oil prices. The decisions mark the fourth consecutive week that CPC and Formosa have kept domestic fuel prices unchanged, although crude oil prices moved higher last week after Iran vowed a “devastating” response to US threats to impose tighter economic sanctions. CPC said its floating price mechanism, based on a weighted average of 70 percent Dubai and 30 percent Brent crude, showed that the average international crude oil price rose to US$93.01 last week from US$89.84 per barrel the previous week.

Industrial PC maker Neousys Technology expects strong growth in its edge artificial intelligence (AI) business from this year, driven by rising demand across manufacturing, transportation, semiconductors, defense and healthcare. Edge AI computers account for about 40 percent of its product mix, said Neousys, whose edge AI portfolio includes fanless industrial computers, graphics processing unit (GPU)-enabled AI systems and mission computers designed for harsh environments. The company expects edge AI-related revenue to grow 10 to 20 percent year-on-year this year, Neousys vice president Bryan Lan said.

From the weekend
A US Navy P-8A Poseidon aircraft transited the Taiwan Strait in international airspace on Friday, in a move the US 7th Fleet said “demonstrates the US’ commitment to a free and open Indo-Pacific.” The Chinese military tracked and monitored the patrol and reconnaissance aircraft throughout the transit, the state-backed Global Times newspaper reported, citing a military source, saying the “situation was under control.” US military ships or aircraft pass through or above the waterway that separates Taiwan from China every few months.

SEMI Taiwan launched a semiconductor materials alliance yesterday to fortify industry resilience, capitalizing on surging domestic demand fueled by advanced nodes and next-generation packaging. Taiwan has been the world’s largest semiconductor materials consumer for 16 years in a row, the industry association said. Taiwan purchased about US$21.7 billion of semiconductor materials last year, driven by artificial intelligence (AI)-related demand, SEMI data showed.

Uninterruptible power supply (UPS) maker CyberPower Systems Friday said that third-quarter revenue and profit are expected to surpass its second-quarter results and be the strongest quarter this year. Growth would be driven by seasonal demand, including for UPS systems and data center power management products, particularly in the US market, CyberPower chairman Michael Ho told an earnings conference in Taipei. Revenue rose 13.9 percent in the second quarter to NT$3.34 billion (US$104.87 million) from the first quarter, while net profit surged 69.2 percent to NT$672.8 million, CyberPower said.

Intraday odd-lot trading is scheduled to start in line with standard block trading from early December as part of the Taiwan Stock Exchange’s (TWSE) efforts to optimize the local intraday odd-lot trading mechanism, the exchange announced on Thursday. Execution of intraday odd-lot trading is to begin at 9am every trading session from Dec. 7, 10 minutes earlier than the current trading time, while brokerages would start to take orders from investors for odd-lot trading at 8:30am, 30 minutes earlier than the current schedule, also in line with standard block trading, the TWSE said. The change aims to improve convenience for investors and improve overall market efficiency, the TWSE said.

CHINA
China is preparing a new round of coordinated fiscal and financial support as economic growth slips further below its 4.5%–5% target. Vice Finance Minister Liao Min announced Friday that fresh measures will be rolled out in the second half of the year to spur borrowing by firms and households. The initiative builds on a programme launched earlier this year that offers discounted loans backed by fiscal subsidies and government guarantees to encourage private investment. Authorities say the goal is to use limited fiscal resources to unlock a “multiplicative effect” through the financial system. He didn’t elaborate on what specific new measures are currently under consideration. Industrial output, retail sales and investment all weakened more than expected in July and new yuan loans saw their sharpest contraction on record. The package has already supported more than ¥20 trillion (US$3tn) in new lending in the first seven months of 2026, but economists warn that interest rate subsidies alone may be too marginal to arrest the slowdown.

From the weekend
China’s State Administration for Market Regulation (SAMR) announced six merger review cases to rectify typical cases of “involution” competition. Among them was TENCENT (00700.HK)s acquisition of equity interest in Ximalaya. The market regulator received the anti-monopoly filing for TENCENT’s acquisition of equity interest in Ximalaya on 11 June 2025, and officially accepted the case in accordance with the law on 3 September 2025. The concentration could potentially have the effect of excluding or restricting competition in China’s online audio streaming platform market and online music streaming platform market. Following extensive research, objective review and sufficient assessment, the authority conditionally approved the transaction on 12 May 2026. The five restrictive conditions imposed directly address competition concerns and issues raised by various parties, firmly safeguarding fair competition order in China’s online audio streaming platform market and online music streaming platform market, protecting the legitimate rights and interests of business entities and consumers, effectively regulating and preventing anti-competitive behavior by platforms, and promoting mutually beneficial development among platform enterprises, platform operators and workers.

Bloomberg, citing sources, reported that after India withdrew its bid to host the 2028 United Nations Climate Change Conference, China is discussing the pros and cons of competing to host the event. However, discussions remain at a preliminary stage and any decision would require support from the central government. The conference attracted more than 42,000 participants in Brazil last year. According to the procedures of the United Nations Framework Convention on Climate Change (UNFCCC), the 2028 host country will be selected from the Asia-Pacific region.

HONG KONG
IPO
Online fast-fashion retailer ​Shein launched book building for a Hong ‌Kong initial public offering on today, aiming to raise up to HK$13.86 billion ($1.77 billion), valuing it at up to $26.81 ​billion, according to an offering prospectus. Shein ​is selling 280 million shares for a minimum ⁠of HK$47.60 per share and a maximum of ​HK$49.50 per share, the filings showed. The company ​will price the IPO on August 31 and debut on September 1.

Results see https://www.aastocks.com/en/stocks/news/aafn/latest-news

Government
Hong Kong Tiananmen vigil organizers convicted of inciting subversion
Defendants face up to 10 years in jail in case seen as symbol of squeeze on freedoms

Warning / Alerts
LVGEM CHINA (00095.HK) issued a profit warning, expecting to record a loss of approximately RMB600 million for the six months ended the end of Jun 2026, compared with a loss of approximately RMB2 billion in the same period last year. The board of directors believes the narrowing of losses during the period was mainly due to a decrease in fair value losses on investment properties, and lower impairment provisions for properties under development and properties held for sale.

MOBVOI (02438.HK) issued a profit warning, expecting to record a net loss of approximately RMB45 million to RMB58 million for the six months ended end-Jun 2026, compared with a loss of RMB7.2 million in the same period last year. The board believed that the widening loss during the period was mainly due to intensified industry competition and continuously rising customer acquisition costs. During the period, the group strategically scaled back part of its traditional businesses and reduced resource投入 into legacy AIGC software and smart hardware products, proactively reallocating resources away from businesses with diminishing marginal returns to create room for the next stage of growth. As a result, revenue from the relevant businesses recorded a structural decline. The group has fully focused its strategic resources on an AI software and hardware business ecosystem centered on AI Agent execution capabilities, while continuously increasing investment in and commercialization efforts for its self-developed AI-native organizational collaboration platform CodeBanana. At the same time, it continued the research and development, iteration, and brand building of the TicNote smart hardware product portfolio. Therefore, the decline in research and development expenses and selling expenses was smaller than the decline in revenue, leading to an increase in loss for 1H26.

ZALL SMARTCOM (02098.HK) issued a profit warning, expecting to swing to a net loss of approximately RMB1.2 billion for the interim period ended 30 June 2026, compared with a net profit of approximately RMB70 million in the corresponding period last year, mainly due to valuation losses on investment properties. The group expects to record net valuation losses on investment properties of approximately RMB1.1 billion during the period, compared with net valuation gains of approximately RMB306 million in the corresponding period last year. Due to a strategic reduction in the proportion of low-margin businesses and the concentration of resources on developing high value-added businesses, the supply chain management and trading business (including agricultural products, chemical plastics, steel and energy products) decreased substantially. The group currently expects revenue for 1H26 to decline by approximately 60%, although gross profit margin is expected to improve.

SC HOLDINGS (00413.HK) expects to record a significant net loss of approximately HKD400 million to HKD500 million for the six months ended 30 June 2026, compared with a net loss of approximately HKD90 million in the corresponding period of 2025. The increase was mainly attributable to net fair value losses on investment properties, reflecting weakness in the related property market; provisions made for inventory write-downs, credit losses on trade receivables, and write-offs of property, plant and equipment; as well as operating losses from the group’s OEM toy manufacturing business.

Index Review
Hang Seng Indexes Company announced Friday (21st) the results of its review of the Hang Seng Family of Indexes for the quarter ended 30 June 2026. The constituents of the HSCEI remain unchanged, with the number of constituents remaining at 50.

The HSTECH will see addition of ILUVATAR COREX (09903.HK) and removal of TONGCHENGTRAVEL (00780.HK), with the number of constituents remaining at 30. The changes will be implemented after market close on 4 September 2026 (Friday) and take effect on 7 September 2026 (Monday).

The Hang Seng Biotech Index will add DIAGENS-B (02526.HK) and remove HUTCHMED (00013.HK). The number of constituents will remain unchanged at 30. The changes will be implemented after market close on 11 September 2026 (Friday) and take effect on 14 September 2026 (Monday).

HUA HONG GRACE (01347.HK) and WEICHAI POWER (02338.HK) will be added to the HSI constituents, increasing the number of constituents from 93 to 95. The changes will be implemented after market close on 4 September 2026 (Friday) and take effect on 7 September 2026 (Monday).

Buybacks - None Announced

HSI Short Selling Friday 21.4 vs 19.8% Thursday
Top shorts Hengan (1044) 60%, Chow Tai Fook (1929) 59%, Henderson Land (12) 54%, Galaxy Ent (27) 53%, SHKP (16) 46%, Ali Health (241) 45%, Wuxi Apptec (2359) 44%, Shenzhou (2313) 41%,

Li Ning (2331) 38%, China Shenhua (1088) 36%, Xinyi Solar (968) 35%, Tingyi (322) 35%, Haidilao (6862) 35%, Haier Smarthome (6690) 33%, New Oriental (9901) 32%, Sinopec (386) 32%, Xinyi Glass (868) 31%, BYD (1211) 31%, Bud APAC (1876) 31%, Sands China (1928) 30%, CATL (3750) 30%, CM Bank (3968) 30%, Geely Auto (175) 30%

JD Health (6618) 29%, Sunny Optical (2382) 29%, Sinopharm (1099) 28%, Meituan (3690) 28%, WH Group (288) 28%, Midea Group (300) 27%, J&T Express (1519) 27%, CKI (1038) 27%, China Res Land (1109) 27%, Beone Medicines (6160) 27%, Pop Mart (9992) 26%, HSBC (5) 25%, Hang Lung Ppty (101) 25%, China Res Beer (291) 25%, CK Asset (1113)25%

WATCH
CGN POWER (01816.HK) announced that it completed the issuance of the third and fourth tranches of 2026 medium-term notes on August 20. The third tranche had a total issuance size of RMB1.8 billion with a term of three years and an issuance rate of 1.56%. The fourth tranche had a total issuance size of RMB1.8 billion with a term of three years and an issuance rate of 1.56%. The proceeds will be fully used by the company’s subsidiaries for loan repayment and liquidity replenishment.

The latest Silver Bond issue launched by the Hong Kong government opened for subscription today (21st). An HSBC spokesperson said the subscription response for the new Silver Bond issue on the first day was overwhelming, with subscription amount and number of applications nearly doubling from the same day last year, setting the bank’s highest first-day record among the 11 Silver Bond issuances since the product’s launch in 2016. HSBC said the trend of customers subscribing through digital channels continued to rise, particularly applications submitted via the HSBC Hong Kong mobile banking app. About 20% of applicants subscribed to Silver Bonds through HSBC for the first time, reflecting the attractiveness of the minimum 4.25% interest rate and the convenience brought by the bank’s digital channels.

LEADS BIOLABS-B (09887.HK)announced that the Center for Drug Evaluation of the National Medical Products Administration has officially accepted the new drug application for Vilosyn, a self-developed investigational drug for monotherapy treatment of advanced previously treated extrapulmonary neuroendocrine carcinoma. If successfully approved, Vilosyn will become the world’s first antibody drug directly targeting 4-1BB, as well as the first approved agonist antibody drug. It will also make 4-1BB the world’s fourth validated immunotherapy target after PD-1/PD-L1, CTLA-4 and LAG-3, marking an important milestone for China’s innovative drugs in the field of tumor immunotherap

Friday closings in EUROPE and US
DAX 0.59%, CAC 0.37%, FTSE 0.64%
Markets opened higher saw small initial bounce then eased back to flat before trending better for the rest of the day. The drivers were a rebound in private sector business activity across the eurozone, upbeat resilience in regional services/manufacturing surveys, and a strong surge in commodity and metal prices that particularly boosted London-listed miners, helping offset persistent anxiety over elevated oil costs and rising government bond yields.

FTSE outperformed as a powerful rally in gold, silver, and copper prices fueled heavy gains for London-listed mining giants, overriding a soft domestic retail sales report and an unexpected UK budget deficit.

UK Retail sales missed, but Flash PMI’s just short of forecasts. French Business Confidence beat expectations but its Flash PMI’s were mixed along with those from German.

DOW -0.35%, NDX -0.43%, S&P 0.43%, Russel 2K 0.85%
Dow opened higher and worked better all day to close around the highs; supported by Healthcare. NDX opened higher initially dipped but then rally into lunch and traded sideways in the afternoon. S&P opened higher and traded sideways in a tight range all day. Financials/Bitcoin +VE along with Materials.
Treasuries moved higher again. Tech mixed but down WoW, along with Utilities and Industrials.

Tesla higher after The Information reported it is preparing for an August launch of its Cybercab, a robotaxi without a steering wheel. Autonomous robotaxi rides are currently being offered to some areas in Miami, Orlando and Tampa, Florida, and Austin, Dallas and Houston, Texas. Also Nevada Transportation Authority commissioners approved its application to operate an autonomous vehicle network in Clark County, which is home to Las Vegas.

Flash PMI’s missed forecasts

Banks JPMorgan Chase 0.01%, Citigroup 1.53% Wells Fargo 0.17%, Amex 1.46%
Ecommerce Meta 0.75%, Apple -0.63%, Amazon -0.57%, Netflix -0.69%, Disney 0.43%, Zoom Comms 1.06%, Alphabet 1.05% and Microsoft 0.43%
Tech NXP Semi 1.16%, Nvidia -0.98%, Micron -0.77%, AMD 0.81%, Skyworks -1.18%, Intel -2.24%
Industrial/Discretionary Boeing -0.42%, Caterpillar 1.53%, Simon Property -0.73%, Kohl’s 1.56%, Gap 0.76%, United Airlines 1.32%, Carnival 1.42%, Wynn Resorts 0.68%
Healthcare Eli Lilly 0.88%, UntiedHealth 1.37%, Johnson & Johnson 1.07% Merck 2.39%
Auto Ford 3%, GM 2.07%, Tesla 5.14%
Energy Chevron -0.24%, Exxon Mobil -0.63%, ConocoPhillips 1.83%
Consumer Staples Campbell Soup 0.76% General Mills 0.91%, JM Smucker 1.03%
Buffet’s Top Five Retirement Stocks Coca Cola 0.66%, Apple -0.63%, Johnson & Johnson 1.07%, Proctor & Gamble 1.2%, Berkshire -0.21%

DAILY US CLOSING DATA
USD nears 3 month low Bitcoin 0.34% at $77,645.69 Monday morning Asia
VIX -5.5% at 15.13
US Bonds T10 up more than 3 bpts to 4.734% (vs 4.63% previous Friday), T2 up more than 4 bpts at 4.232% (vs 4.63% previous Friday) and T30 up 3 bpts at 5.273% (vs 5.21% previous Friday)
OIL Brent 0.65% at $94.39 (up 6.4% WoW), WTI 0.26% at $87.06 (up 6.4% WoW) as press reported Iran’s President Masoud Pezeshkian said “it is better to end the war today” when Iran is “in a position of power and dignity,” according to state news. US is due to announce new sanctions on Iran on Monday
Spot Gold 2.4% to a 3-month high (up 6.49% WoW) Spot Silver 1.29% (up 6.49% WoW), Copper 1.85% (down 0.3% WoW) Platinum 2.35% (up 7.48% WoW), Palladium 1.11% (up 3.1% WoW)

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Market opening indications and data due

New Zealand
NZX 50 futures indicate up 52.85pts 0.38% at 13,972.66

On Friday the NZX opened lower as trade data disappointed and dipped in choppy trading to 13,850 level before working better to traded around flat and ticked higher at the end to close up 52.84pts 0.4% at 13,927.66; up 0.9% WoW. Trading volume increased.
Leaders Tech, consumer staples, real estate, and communication services; Spark New Zealand 1.3% and EBOS Group 0.8% saw strong momentum following solid annual reports. Fisher & Paykel Healthcare 1.3% gained after raising earnings guidance.
Laggards Tech, consumer staples, real estate, communication services and Dual-listed banks led the day’s gains, offsetting drops in energy, materials, and industrials.
Data due out after the open
Retail Sales Q2 QoQ vs 0.9%Q1 (F/cast was -0.3%)
Retail Sales Q2 YoY vs 4.5% Q1 (F/cast was 3.2%)

Australia
ASX futures indicate the market to open up 41pts 0.46% at 9,028
Earnings include
Ampol Ltd (ASX: ALD) – Half Year results
Pilbara Minerals (ASX: PLS) – Full Year / Half Year results
Bendigo and Adelaide Bank Ltd (ASX: BEN) – Full Year results
Data#3 Ltd (ASX: DTL) – Full Year results & briefing
Stockland (ASX: SGP)
Ampol Ltd (ASX: ALD)
Reece Ltd (ASX: REH)
NIB Holdings Ltd (ASX: NHF)
Ventia Services Group Ltd (ASX: VNT)
Nuix Ltd (ASX: NXL)
hipages Group Holdings Ltd (ASX: HPG)
Lindsay Australia (ASX: LAU)
EVT Limited (ASX: EVT)

On Friday the ASX 200 opened higher on good Flash PMI data and during the first hour traded higher in choppy trading to 9,084 but then sold down to trade around flat to close -24pts -0.27% at 9,058.9; -0.6% WoW.
Leaders Consumer Staples & Mining: Supported by strong earnings disclosures and localized commodity boosts. Large-cap copper exposure continued to provide structural support for heavyweights like BHP Group.
Laggards Technology & Financials: Dragged heavily by a sell-off in yield-sensitive assets and a weak lead-in from Wall Street’s tech sector overnight.

Japan
Nikkei Futures indicate up 335pts 0.51% at 65,930
Chicago Nikkei Futures
Singapore Futures
Yen 158.98 Friday close

On Friday the Nikkei opened lower and drifted lower in the first hour as inflation data was higher than expected and approaching the BoJ’s 2% target. The market worked higher after the better than expected flash PMI data but failed to break into the green and traded in a tight range below flat for the rest of the day to close -200.43pts -0.3% at 66,016.36; -4.11% WoW as global bond worries resurfaced and Tech names remained uncertain pressure. Trading volumes on Friday were lighter DoD.
Leaders Marine Transportation: Outperformed; heavy buying in major shippers like Kawasaki Kisen Kaisha +7.28%, Mitsui O.S.K. Lines +4.61% and Nippon Yusen +4.50%. Chemicals & Materials: +VE led by a strong surge in Sumitomo Chemical +7.18%. .Energy / Resources: Attracted defensive inflows amid shifting oil prices, lifting companies like Inpex +2.2%
Laggards Technology & Semiconductors: following the Wall Street tech sell-off and climbing bond yields. SoftBank Group -2.45%. Steel & Heavy Machinery: weak; The Japan Steel Works -4.65% the index’s top decliner.
Data due out after the open
10-Year Climate Transition JGB Auction vs 2.195% prior

S Korea
Kospi Futures indicate opening up 85pts 1.61% at 5,358.76

The Kospi on Friday opened lower but worked better, pre market PPI was weaker than expected but the Kospi worked better to close up 60.37 pts, or 0.88%, to 6,912.95, off the intraday high as 6,954.12.
Trade volume was moderate at 404.5 million shares worth 28.7 trillion won ($20.7 billion). Losers far outnumbered winners 681 to 193.
Retail and foreign investors were net sellers, offloading a combined 1.34 trillion won. Institutional investors bought 248.2 billion won.
Plans by SK hynix and Samsung Electronics, in increase shareholder returns overshadowed external uncertainties. Other large caps were mixed. Financials +VE on bargain hunting.
Laggards were defense and shipbuilders along with Kakao -7.49% following the announcement to spinoff its chat-app based platform business.
The Korean won was quoted at 1,386.5 won against the US dollar as of 3:30 pm.Friday, up 6.1 won from the previous session.
Data due out after the open
5-Year KTB Auction vs 4.165% prior

Taiwan - No Data Scheduled
Taiex futures indicate market to open -64pts -0.14% at 45,074

On Friday the Taiex opened higher, ticked lower to test flat and then worked better to close up 290.55 pts, or 0.65%, at 45,224.29 on turnover of NT$719.28 billion (US$22.57 billion) vs NT$792.96 billion (US$24.93 billion) Thursday
Data out after market
Unemployment Rate Jul vs 3.33% Jun (F/cast is 3.34%)
M2 Money Supply Jul YoY vs 8.13% Jun (F/cast is 8.5%)

China - No Data Scheduled
Golden Dragon Index closed up 25pts 0.4% at 6,303.83
FTSE A50 futures closed -17pts -0.11% at 14,826
MSCI A50 Connect (USD) futures closed -2.2pts -0.08% at 2,727.6

On Friday the A shares opened around flat saw a small rally but then traded generally sideways. Investors still hoping for more fiscal support, ChiNext helped by a strong performance in growth-oriented sectors, specifically companies related to lithium mining, precious metals, and CPO (Co-Packaged Optics) technology.
Broader Tech remained under pressure.
Trading volumes were light 1.88T yuan vs 2.09T yuan Thursday
At the close
Shanghai Composite: up 3pts 0.07% at 3,905.2
Shenzhen Component: up 0.87% at 14,094.2
CSI 300 (Blue Chips): up 26pts 0.57% at 4,618.9
ChiNext Index (Growth Board): up 50pts 1.43% at 3,545.58
STAR 50 Index (Sci-Tech): up 0.05% at 1,956.85
USD/CHN -0.00735 pt -0.11% at 6.7174

Spot USD/CNY lifted 34 bps to close at 6.7205 Friday (21st). As of 4:54 pm, USD/CNY in the night session dropped 31 bps. USD/CNH gained 17 bps to 6.7190, 15 bps above USD/CNY.

Data out after market Friday
FDI (YTD) Jul -6.2% YoY vs -5% Jun (F/cast is -6%)

Hong Kong - No Data Scheduled
ADR’s closed -338.45 -1.34% at 25,330 most in the red, only HSBC, CLP, SHKP and HK EX in the green
Hang Seng Futures indicate -129pts -0.5% at 25,895
Turnover Friday HK$257.3B vs HK$269B Thursday
Short Selling Friday 21.4% vs 19.8% Thursday

On Friday the HSI opened higher and trended slightly higher through the day to close 1.21% 310.97pts at 26,009.46; above the psychological 26,000 after a 5 day winning streak. Alibaba 1.4% after earnings helping the E-commerce/Tech sectors.
Leaders Financials, Gold, Real Estate and Industrials
Laggards Healthcare and Pharmaceuticals, Consumer Staples, Entertainment & Tech
Hang Seng Tech Index also rose 1.4% to finish at 4,766.16,
Hang Seng China Enterprises Index climbed 1.01% to 8,634.34.

Macau - No Data Scheduled
Out after HK Close Friday
Inflation Rate Jul -0.01% MoM vs -0.15% Jun (F/cast is 0.1%)
Inflation Rate Jul 1.12% YoY vs 1.24% Jun (F/cast is 1.3%)
GDP Growth Rate Final Q2 0.3% YoY vs 7.1% Q1 (F/cast is 0.3%)
Retail Sales Q2 6.2% YoY vs 23% Q1 (f/cast is 2.2%)

Singapore - Data Scheduled for lunchtime
Core Inflation Rate Jul YoY vs 1.6% Jun (F/cast is 1.7%)
Inflation Rate Jul MoM vs 0% Jun (F/cast is 0.2%)
Inflation Rate Jul YoY vs 1.9% Jun (F/cast is 2.1%)

Malaysia - No Data Scheduled

Indonesia - Data could get
M2 Money Supply Jul YoY vs 8.7% Jun

Philippines - No Data Scheduled

Thailand - Data could get
Balance of Trade Jul vs $-6.53B Jun (F/cast is $-6.3B)
Exports Jul YoY vs 20.8% (Consensus is 19%)
Imports Jul YoY vs 50.3% (Consensus is 42.3%)

Vietnam - No Data Scheduled
Cambodia - No Data Scheduled
Myanmar - No Data Scheduled

India - Data Out After market Friday
Bank Loan Growth 7 Aug YoY vs 19.3% prior
Deposit Growth 7 Aug YoY vs 15.4% prior
Foreign Exchange Reserves 14 Aug vs $707B prior

Europe
Eurozone - No Data Scheduled
Germany - 11 & 5-Month Bubill Auction
France - 12-Month, 3-Month and 6-Month BFT Auctions
United Kingdom - No Data Scheduled

United States
Data Scheduled: Chicago Fed National Activity Ind

HEADLINES & NEWS
NEW ZEALAND & AUSTRALIA
Fourth Sydney Airport safety incident under investigation in as many weeks Investigators are examining an incident on Tuesday where two Qantas flights were given clearance to take clashing routes.
Hotel giant swoops on two popular Sydney pubs in $90m deal. The Clock in Surry Hills and The Bank in Newtown are now owned by hotel group Australian Venue Co.

JAPAN
PM Takaichi reportedly considering a Cabinet reshuffle in mid-to-late September. Such a move would be PM Sanae Takaichi’s first since taking office in October as she seeks to create an atmosphere conductive to winning another term as LDP president.


PM Takaichi takes flak for ‘weak’ responses to U.S. and Russia. Tokyo did not criticize or lodge a protest against the U.S. sanctions on the ICC president or take measures after the Russian leader’s trip to a Japanese-claimed island.

The Bank of Japan has set next ​year’s July policy meeting just in time for its two hawkish board members to vote before their five-year terms expire, a ‌scheduling quirk that could prove crucial for how high Japanese interest rates may ultimately rise. Under a calendar of next year’s scheduled policy-setting meetings released last month, the BOJ said its board will hold the rate review for July 2027 on the 21st and 22nd.

South Korea’s SK ​Hynix (000660.KS) is considering building a ‌memory chip plant in Japan’s Miyagi prefecture and could invest tens of trillions ​of won in the project, ​the Hankyoreh newspaper reported on ⁠Friday, citing industry sources. The newspaper said ​SK Hynix is pursuing the ​investment in northeastern Japan as it looks to expand production capacity amid growing global ​demand for memory chips.

SOUTH KOREA
The Bank of Korea is expected to raise its growth outlook for the South Korean economy this year to over 3%, economic experts here said Sunday, citing stronger-than-expected semiconductor exports and recovering domestic demand. According to a recent survey on six economic analysts conducted by Yonhap News Agency, respondents expect the BOK to revise its 2026 growth outlook from the current 2.6% to as high as 3.4%.

NVIDIA Corporation (NVDA.US) is discussing potential cooperation with South Korean AI chip design company Rebellions, which may include technological collaboration, investment, or even an acquisition, Bloomberg, citing sources, reported. NVIDIA CEO Jensen Huang reportedly met Rebellions co-founder and CEO Sunghyun Park in California this week and discussed potential partnership opportunities. Previously, Rebellions had raised approximately USD850 million from investors including SK Hynix, Samsung Venture Investment and Arm Holdings plc (ARM.US) -7.400 (-2.951%) After -0.041%. Its latest valuation was approximately USD2.3 billion.

The South Korean government will keep fuel price ceilings unchanged for another four weeks as renewed tensions in the Middle East push global oil prices higher, the Industry Ministry said Friday. The Ministry of Trade, Industry and Resources said the maximum prices for gasoline, diesel and kerosene supplied by local refiners to gas stations will remain unchanged from the previous four-week period at 1,784 won ($1.29), 1,773 won and 1,380 won per liter, respectively, beginning Saturday. The decision comes as global crude oil prices have begun rising again amid renewed uncertainty in the Middle East, although the government said domestic oil supplies remain stable.

Samsung Electronics said Friday it plans to return between 90 trillion won ($65.2 billion) and 110 trillion won to shareholders this year, marking the largest shareholder return ever undertaken by a Korean company. The tech giant said its board approved the plan earlier in the day, with the upper end of the range more than five times its previous record of 20.3 trillion won in 2020.

Samsung SDI said Friday it will sell a portion of its stake in affiliate Samsung Display for 4.45 trillion won ($3.22 billion), as the battery maker seeks to secure funds for investment in future growth businesses. In a regulatory filing, Samsung SDI said it will sell 13.09 million shares in Samsung Display for 340,000 won apiece, representing about 33 percent of its current holdings in the display maker, with Samsung Display buying the shares as treasury stock. Samsung SDI currently holds 39.86 million shares in Samsung Display, a display-making affiliate of Samsung Electronics. Following the transaction scheduled for Thursday, Samsung SDI’s ownership in Samsung Display will fall from 15.2 percent to 10.2 percent. The final number of shares and value could change during the repurchasing process, the company said.

A South Korean container ship sets sail on Saturday for Europe via the Arctic in the nation’s first commercial voyage on the ​route to test its viability, with the hope of turning ‌the southeastern port of Busan into a global maritime hub. The PanStar Acro will sail north, hugging eastern Russia’s Kamchatka peninsula, cross the Bering Sea, and take the Northern Sea ​Route, stopping in Felixstowe in Britain, Rotterdam in the Netherlands and ​Poland’s Gdansk before returning on a journey expected to take ⁠40 to 45 days.

TAIWAN
A US Navy P-8A Poseidon aircraft transited the Taiwan Strait in international airspace on Friday, in a move the US 7th Fleet said “demonstrates the US’ commitment to a free and open Indo-Pacific.” The Chinese military tracked and monitored the patrol and reconnaissance aircraft throughout the transit, the state-backed Global Times newspaper reported, citing a military source, saying the “situation was under control.” US military ships or aircraft pass through or above the waterway that separates Taiwan from China every few months.

SEMI Taiwan launched a semiconductor materials alliance yesterday to fortify industry resilience, capitalizing on surging domestic demand fueled by advanced nodes and next-generation packaging. Taiwan has been the world’s largest semiconductor materials consumer for 16 years in a row, the industry association said. Taiwan purchased about US$21.7 billion of semiconductor materials last year, driven by artificial intelligence (AI)-related demand, SEMI data showed.

Uninterruptible power supply (UPS) maker CyberPower Systems Friday said that third-quarter revenue and profit are expected to surpass its second-quarter results and be the strongest quarter this year. Growth would be driven by seasonal demand, including for UPS systems and data center power management products, particularly in the US market, CyberPower chairman Michael Ho told an earnings conference in Taipei. Revenue rose 13.9 percent in the second quarter to NT$3.34 billion (US$104.87 million) from the first quarter, while net profit surged 69.2 percent to NT$672.8 million, CyberPower said.

Intraday odd-lot trading is scheduled to start in line with standard block trading from early December as part of the Taiwan Stock Exchange’s (TWSE) efforts to optimize the local intraday odd-lot trading mechanism, the exchange announced on Thursday. Execution of intraday odd-lot trading is to begin at 9am every trading session from Dec. 7, 10 minutes earlier than the current trading time, while brokerages would start to take orders from investors for odd-lot trading at 8:30am, 30 minutes earlier than the current schedule, also in line with standard block trading, the TWSE said. The change aims to improve convenience for investors and improve overall market efficiency, the TWSE said.

CHINA
China’s State Administration for Market Regulation (SAMR) announced six merger review cases to rectify typical cases of “involution” competition. Among them was TENCENT (00700.HK)s acquisition of equity interest in Ximalaya. The market regulator received the anti-monopoly filing for TENCENT’s acquisition of equity interest in Ximalaya on 11 June 2025, and officially accepted the case in accordance with the law on 3 September 2025. The concentration could potentially have the effect of excluding or restricting competition in China’s online audio streaming platform market and online music streaming platform market. Following extensive research, objective review and sufficient assessment, the authority conditionally approved the transaction on 12 May 2026. The five restrictive conditions imposed directly address competition concerns and issues raised by various parties, firmly safeguarding fair competition order in China’s online audio streaming platform market and online music streaming platform market, protecting the legitimate rights and interests of business entities and consumers, effectively regulating and preventing anti-competitive behavior by platforms, and promoting mutually beneficial development among platform enterprises, platform operators and workers.

Bloomberg, citing sources, reported that after India withdrew its bid to host the 2028 United Nations Climate Change Conference, China is discussing the pros and cons of competing to host the event. However, discussions remain at a preliminary stage and any decision would require support from the central government. The conference attracted more than 42,000 participants in Brazil last year. According to the procedures of the United Nations Framework Convention on Climate Change (UNFCCC), the 2028 host country will be selected from the Asia-Pacific region.

HONG KONG
Results see https://www.aastocks.com/en/stocks/news/aafn/latest-news

Government
Hong Kong Tiananmen vigil organizers convicted of inciting subversion
Defendants face up to 10 years in jail in case seen as symbol of squeeze on freedoms

Warning / Alerts
LVGEM CHINA (00095.HK) issued a profit warning, expecting to record a loss of approximately RMB600 million for the six months ended the end of Jun 2026, compared with a loss of approximately RMB2 billion in the same period last year. The board of directors believes the narrowing of losses during the period was mainly due to a decrease in fair value losses on investment properties, and lower impairment provisions for properties under development and properties held for sale.

MOBVOI (02438.HK) issued a profit warning, expecting to record a net loss of approximately RMB45 million to RMB58 million for the six months ended end-Jun 2026, compared with a loss of RMB7.2 million in the same period last year. The board believed that the widening loss during the period was mainly due to intensified industry competition and continuously rising customer acquisition costs. During the period, the group strategically scaled back part of its traditional businesses and reduced resource投入 into legacy AIGC software and smart hardware products, proactively reallocating resources away from businesses with diminishing marginal returns to create room for the next stage of growth. As a result, revenue from the relevant businesses recorded a structural decline. The group has fully focused its strategic resources on an AI software and hardware business ecosystem centered on AI Agent execution capabilities, while continuously increasing investment in and commercialization efforts for its self-developed AI-native organizational collaboration platform CodeBanana. At the same time, it continued the research and development, iteration, and brand building of the TicNote smart hardware product portfolio. Therefore, the decline in research and development expenses and selling expenses was smaller than the decline in revenue, leading to an increase in loss for 1H26.

ZALL SMARTCOM (02098.HK) issued a profit warning, expecting to swing to a net loss of approximately RMB1.2 billion for the interim period ended 30 June 2026, compared with a net profit of approximately RMB70 million in the corresponding period last year, mainly due to valuation losses on investment properties. The group expects to record net valuation losses on investment properties of approximately RMB1.1 billion during the period, compared with net valuation gains of approximately RMB306 million in the corresponding period last year. Due to a strategic reduction in the proportion of low-margin businesses and the concentration of resources on developing high value-added businesses, the supply chain management and trading business (including agricultural products, chemical plastics, steel and energy products) decreased substantially. The group currently expects revenue for 1H26 to decline by approximately 60%, although gross profit margin is expected to improve.

SC HOLDINGS (00413.HK) expects to record a significant net loss of approximately HKD400 million to HKD500 million for the six months ended 30 June 2026, compared with a net loss of approximately HKD90 million in the corresponding period of 2025. The increase was mainly attributable to net fair value losses on investment properties, reflecting weakness in the related property market; provisions made for inventory write-downs, credit losses on trade receivables, and write-offs of property, plant and equipment; as well as operating losses from the group’s OEM toy manufacturing business.

Review

Hang Seng Indexes Company announced Friday (21st) the results of its review of the Hang Seng Family of Indexes for the quarter ended 30 June 2026. The constituents of the HSCEI remain unchanged, with the number of constituents remaining at 50.

The HSTECH will see addition of ILUVATAR COREX (09903.HK) and removal of TONGCHENGTRAVEL (00780.HK), with the number of constituents remaining at 30. The changes will be implemented after market close on 4 September 2026 (Friday) and take effect on 7 September 2026 (Monday).

The Hang Seng Biotech Index will add DIAGENS-B (02526.HK) and remove HUTCHMED (00013.HK). The number of constituents will remain unchanged at 30. The changes will be implemented after market close on 11 September 2026 (Friday) and take effect on 14 September 2026 (Monday).

HUA HONG GRACE (01347.HK) and WEICHAI POWER (02338.HK) will be added to the HSI constituents, increasing the number of constituents from 93 to 95. The changes will be implemented after market close on 4 September 2026 (Friday) and take effect on 7 September 2026 (Monday).

Buybacks - None Announced

HSI Short Selling Friday 21.4 vs 19.8% Thursday
Top shorts Hengan (1044) 60%, Chow Tai Fook (1929) 59%, Henderson Land (12) 54%, Galaxy Ent (27) 53%, SHKP (16) 46%, Ali Health (241) 45%, Wuxi Apptec (2359) 44%, Shenzhou (2313) 41%,

Li Ning (2331) 38%, China Shenhua (1088) 36%, Xinyi Solar (968) 35%, Tingyi (322) 35%, Haidilao (6862) 35%, Haier Smarthome (6690) 33%, New Oriental (9901) 32%, Sinopec (386) 32%, Xinyi Glass (868) 31%, BYD (1211) 31%, Bud APAC (1876) 31%, Sands China (1928) 30%, CATL (3750) 30%, CM Bank (3968) 30%, Geely Auto (175) 30%

JD Health (6618) 29%, Sunny Optical (2382) 29%, Sinopharm (1099) 28%, Meituan (3690) 28%, WH Group (288) 28%, Midea Group (300) 27%, J&T Express (1519) 27%, CKI (1038) 27%, China Res Land (1109) 27%, Beone Medicines (6160) 27%, Pop Mart (9992) 26%, HSBC (5) 25%, Hang Lung Ppty (101) 25%, China Res Beer (291) 25%, CK Asset (1113)25%

WATCH
CGN POWER (01816.HK) announced that it completed the issuance of the third and fourth tranches of 2026 medium-term notes on August 20. The third tranche had a total issuance size of RMB1.8 billion with a term of three years and an issuance rate of 1.56%. The fourth tranche had a total issuance size of RMB1.8 billion with a term of three years and an issuance rate of 1.56%. The proceeds will be fully used by the company’s subsidiaries for loan repayment and liquidity replenishment.

The latest Silver Bond issue launched by the Hong Kong government opened for subscription today (21st). An HSBC spokesperson said the subscription response for the new Silver Bond issue on the first day was overwhelming, with subscription amount and number of applications nearly doubling from the same day last year, setting the bank’s highest first-day record among the 11 Silver Bond issuances since the product’s launch in 2016. HSBC said the trend of customers subscribing through digital channels continued to rise, particularly applications submitted via the HSBC Hong Kong mobile banking app. About 20% of applicants subscribed to Silver Bonds through HSBC for the first time, reflecting the attractiveness of the minimum 4.25% interest rate and the convenience brought by the bank’s digital channels.

LEADS BIOLABS-B (09887.HK)announced that the Center for Drug Evaluation of the National Medical Products Administration has officially accepted the new drug application for Vilosyn, a self-developed investigational drug for monotherapy treatment of advanced previously treated extrapulmonary neuroendocrine carcinoma. If successfully approved, Vilosyn will become the world’s first antibody drug directly targeting 4-1BB, as well as the first approved agonist antibody drug. It will also make 4-1BB the world’s fourth validated immunotherapy target after PD-1/PD-L1, CTLA-4 and LAG-3, marking an important milestone for China’s innovative drugs in the field of tumor immunotherap

Friday closings in EUROPE and US
DAX 0.59%, CAC 0.37%, FTSE 0.64%
Markets opened higher saw small initial bounce then eased back to flat before trending better for the rest of the day. The drivers were a rebound in private sector business activity across the eurozone, upbeat resilience in regional services/manufacturing surveys, and a strong surge in commodity and metal prices that particularly boosted London-listed miners, helping offset persistent anxiety over elevated oil costs and rising government bond yields.

FTSE outperformed as a powerful rally in gold, silver, and copper prices fueled heavy gains for London-listed mining giants, overriding a soft domestic retail sales report and an unexpected UK budget deficit.

UK Retail sales missed, but Flash PMI’s just short of forecasts. French Business Confidence beat expectations but its Flash PMI’s were mixed along with those from German.

DOW -0.35%, NDX -0.43%, S&P 0.43%, Russel 2K 0.85%
Dow opened higher and worked better all day to close around the highs; supported by Healthcare. NDX opened higher initially dipped but then rally into lunch and traded sideways in the afternoon. S&P opened higher and traded sideways in a tight range all day. Financials/Bitcoin +VE along with Materials.
Treasuries moved higher again. Tech mixed but down WoW, along with Utilities and Industrials.

Tesla higher after The Information reported it is preparing for an August launch of its Cybercab, a robotaxi without a steering wheel. Autonomous robotaxi rides are currently being offered to some areas in Miami, Orlando and Tampa, Florida, and Austin, Dallas and Houston, Texas. Also Nevada Transportation Authority commissioners approved its application to operate an autonomous vehicle network in Clark County, which is home to Las Vegas.

Flash PMI’s missed forecasts

Banks JPMorgan Chase 0.01%, Citigroup 1.53% Wells Fargo 0.17%, Amex 1.46%
Ecommerce Meta 0.75%, Apple -0.63%, Amazon -0.57%, Netflix -0.69%, Disney 0.43%, Zoom Comms 1.06%, Alphabet 1.05% and Microsoft 0.43%
Tech NXP Semi 1.16%, Nvidia -0.98%, Micron -0.77%, AMD 0.81%, Skyworks -1.18%, Intel -2.24%
Industrial/Discretionary Boeing -0.42%, Caterpillar 1.53%, Simon Property -0.73%, Kohl’s 1.56%, Gap 0.76%, United Airlines 1.32%, Carnival 1.42%, Wynn Resorts 0.68%
Healthcare Eli Lilly 0.88%, UntiedHealth 1.37%, Johnson & Johnson 1.07% Merck 2.39%
Auto Ford 3%, GM 2.07%, Tesla 5.14%
Energy Chevron -0.24%, Exxon Mobil -0.63%, ConocoPhillips 1.83%
Consumer Staples Campbell Soup 0.76% General Mills 0.91%, JM Smucker 1.03%
Buffet’s Top Five Retirement Stocks Coca Cola 0.66%, Apple -0.63%, Johnson & Johnson 1.07%, Proctor & Gamble 1.2%, Berkshire -0.21%

DAILY US CLOSING DATA
USD nears 3 month low, Bitcoin -0.98% at $76,621.33 Sunday Morning. VIX -5.5% at 15.13
US Bonds T10 up more than 3 bpts to 4.734% (vs 4.63% previous Friday), T2 up more than 4 bpts at 4.232% (vs 4.63% previous Friday) and T30 up 3 bpts at 5.273% (vs 5.21% previous Friday)
OIL Brent 0.65% at $94.39 (up 6.4% WoW), WTI 0.26% at $87.06 (up 6.4% WoW) as press reported Iran’s President Masoud Pezeshkian said “it is better to end the war today” when Iran is “in a position of power and dignity,” according to state news. US is due to announce new sanctions on Iran on Monday
Spot Gold 2.4% to a 3-month high (up 6.49% WoW) Spot Silver 1.29% (up 6.49% WoW), Copper 1.85% (down 0.3% WoW) Platinum 2.35% (up 7.48% WoW), Palladium 1.11% (up 3.1% WoW).

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Monday. PDD Holdings, XPENG-W (09868.HK), WUXI XDC (02268.HK), KB LAMINATES (01888.HK), KINGBOARD HLDG (00148.HK), LEAPMOTOR (09863.HK), KERRY PPT (00683.HK), TONGCHENGTRAVEL (00780.HK), BUSYMING (01768.HK), CH OVS G OCEANS (00081.HK), CHINA CRSC (03969.HK), CHINARES PHARMA (03320.HK), CIG (06166.HK), CSSC SHIPPING (03877.HK), DOBOT (02432.HK), HAITIAN INT’L (01882.HK), INNOCARE (09969.HK), JIAXIN INTL RES (03858.HK), KINETIC DEV (01277.HK), LDROBOT (01236.HK), LUXSHARE ICT (02475.HK), MOBVISTA (01860.HK), NAGACORP (03918.HK) , Q TECH (01478.HK), REMEGEN (09995.HK), SIGENERGY (06656.HK), TRAVELSKY TECH (00696.HK), TS LINES (02510.HK), TUYA-W (02391.HK), WESTCHINACEMENT (02233.HK), XUNLONG SCITECH (06715.HK).

Tuesday Vipshop Holdings Limited (VIPS.US), Zoom Communications, Inc. (ZM.US);

WUXI BIO (02269.HK), LAOPU GOLD (06181.HK), SHENZHOU INTL (02313.HK), INNOVENT BIO (01801.HK), NONGFU SPRING (09633.HK), HAIDILAO (06862.HK), JIANGXI COPPER (00358.HK), CHINA JINMAO (00817.HK), SJM HOLDINGS (00880.HK), CHINA TAIPING (00966.HK), WEIGAO GROUP (01066.HK), DONGFANG ELEC (01072.HK), H&H INTL HLDG (01112.HK), CH MODERN D (01117.HK), XTEP INT’L (01368.HK), NISSIN FOODS (01475.HK), SUNAC SERVICES (01516.HK), CR MEDICAL (01515.HK), HUIXIN CREDIT (01577.HK), YIHAI INTL (01579.HK), YADEA (01585.HK), CGN POWER (01816.HK), FWD (01828.HK), CALC (01848.HK), WENGE AI (01956.HK), BOSS ZHIPIN-W (02076.HK), GOLDWIND (02208.HK), GWMOTOR (02333.HK), HAIZHI TECH GP (02706.HK), CHINA OILFIELD (02883.HK), CHINA STATE CON (03311.HK), FS.COM (03355.HK), QFIN-S (03660.HK), CIMC ENRIC (03899.HK), GREENTOWN CHINA (03900.HK), POLY PPT SER (06049.HK), ZA ONLINE (06060.HK), CMSC (06099.HK), FLAT GLASS (06865.HK), METIS TECHBIO-P (07666.HK), NEWBORNTOWN (09911.HK), YOURAN DAIRY (09858.HK), KUNLUN ENERGY (00135.HK), MINTH GROUP (00425.HK).

Wednesday NVIDIA Corporation (NVDA.US),Salesforce, Inc. (CRM.US), CrowdStrike Holdings, Inc. (CRWD.US),HP Inc. (HPQ.US);

CHINA OVERSEAS (00688.HK), CNOOC (00883.HK), MINIMAX-W (00100.HK), HANSOH PHARMA (03692.HK), HUA HONG GRACE (01347.HK), MENGNIU DAIRY (02319.HK), CHINA RES POWER (00836.HK), CG SERVICES (06098.HK), SUNNY OPTICAL (02382.HK), ANTA SPORTS (02020.HK), LI AUTO-W (02015.HK), SENSETIME-W (00020.HK), GREAT EAGLE H (00041.HK), CHOW SANG SANG (00116.HK), TSINGTAO BREW (00168.HK), BJ ENT WATER (00371.HK), SIHUAN PHARM (00460.HK), GRAND PHARMA (00512.HK), CHINACOMSERVICE (00552.HK), SANY INT’L (00631.HK), REPT BATTERO (00666.HK), BEIJING AIRPORT (00694.HK), CR BEVERAGE (02460.HK), CR BEVERAGE (02460.HK), CONCH CEMENT (00914.HK), CITIC BANK (00998.HK), SEAZEN (01030.HK), HARBIN ELECTRIC (01133.HK), HK TECH VENTURE (01137.HK), NCI (01336.HK), MEITU (01357.HK), GUMING (01364.HK), CONSUN PHARMA (01681.HK), CGN NEW ENERGY (01811.HK), SANHUA (02050.HK), AINNOVATION (02121.HK), AVICHINA (02357.HK), ZHIHU-W (02390.HK), ROBOSENSE (02498.HK), XUANZHUBIO-B (02575.HK), NEW VISION CO (02632.HK), DEEPZERO (02723.HK), HAITIAN FLAV (03288.HK) , LINGBAO GOLD (03330.HK), LONKING (03339.HK), LOGAN GROUP (03380.HK) , CREALITY (03388.HK), INSILICO (03696.HK), HUISHANG BANK (03698.HK) , SINOTRUK (03808.HK), BEONE MEDICINES (06160.HK), CHINA FEIHE (06186.HK), EXTREME VISION (06636.HK), SENASIC (06675.HK), WINOX (06838.HK), TENNOR THERAP-B (06872.HK), EACON (07687.HK), ALEBUND-B (09637.HK), SUPER HI (09658.HK), ZAI LAB (09688.HK)

Thursday Marvell Technology, Inc. (MRVL.US) ;

CHINA LIFE (02628.HK), HAIER SMARTHOME (06690.HK), OOIL (00316.HK) , CHALCO (02600.HK), BILIBILI-W (09626.HK), CPIC (02601.HK), A-LIVING (03319.HK), ABLE DIGITAL (02687.HK), AKESO (09926.HK), ALPHAMAB-B (09966.HK), ANHUIEXPRESSWAY (00995.HK), BEIJING ENT (00392.HK), BQD (03866.HK), C&D INTL GROUP (01908.HK), C&D PROPERTY (02156.HK), JW THERAP-B (02126.HK), PRU (02378.HK), CANSINOBIO (06185.HK), CAOCAO INC (02643.HK), CGN MINING (01164.HK), CHINA COMM CONS (01800.HK), CHINA EB LTD (00165.HK), CHINA LONGYUAN (00916.HK), CHINA RAILWAY (00390.HK), CHINA VANKE (02202.HK), CNBM (03323.HK), CONCH VENTURE (00586.HK), CRCCE (01786.HK), CSTONE PHARMA-B (02616.HK), FIRST PACIFIC (00142.HK), FOSUN INTL (00656.HK), HBM HOLDINGS-B (02142.HK) , HUADIAN POWER (01071.HK), HYGEIA HEALTH (06078.HK), JIANGSU EXPRESS (00177.HK), K. WAH INT’L (00173.HK), KWG GROUP (01813.HK), LAI SI ENT (02266.HK), MANYCORE TECH (00068.HK), MAO GEPING (01318.HK), MEDBOT-B (02252.HK), MIXUE GROUP (02097.HK), ONEROBOTICS (06600.HK), R&F PROPERTIES (02777.HK), RIBOLIFE-B (06938.HK), SH PHARMA (02607.HK), SHANGHAI IND H (00363.HK), SHANGRI-LA ASIA (00069.HK), SHENZHEN INVEST (00604.HK), SHOUGANG RES (00639.HK), SHUI ON LAND (00272.HK), SKYWORTH GROUP (00751.HK), TIANQI LITHIUM (09696.HK), VGT (02476.HK), WASION HOLDINGS (03393.HK), WEICHAI POWER (02338.HK), WYNN MACAU (01128.HK), XIABUXIABU (00520.HK), ZHIHUI MINING (02546.HK), ZOOMLION (01157.HK)

Friday MEITUAN-W (03690.HK), PETROCHINA (00857.HK), WH GROUP (00288.HK), ICBC (01398.HK), BANK OF CHINA (03988.HK), BOC HONG KONG (02388.HK), BYD COMPANY (01211.HK), BYD ELECTRONIC (00285.HK), CCB (00939.HK) , CHINA RES LAND (01109.HK), LONGFOR GROUP (00960.HK), CHINA RES GAS (01193.HK), CHINA RES MIXC (01209.HK), CHINA SHENHUA (01088.HK), CITIC (00267.HK), MIDEA GROUP (00300.HK), ENN ENERGY (02688.HK), ABC (01288.HK), CM BANK (03968.HK), BANKCOMM (03328.HK), PICC GROUP (01339.HK), PICC P&C (02328.HK), UBTECH ROBOTICS (09880.HK) , COSCO SHIP HOLD (01919.HK) , BIREN TECH (06082.HK), AIR CHINA (00753.HK), AUX ELECTRIC (02580.HK), BAIGE DIGITAL (02672.HK), BASICSEMI (09971.HK), BBMG (02009.HK), CALB (03931.HK), CEB BANK (06818.HK) , CGS (06881.HK), CHIFENG GOLD (06693.HK), CHINA EAST AIR (00670.HK) , CHINA LESSO (02128.HK), CHINA MER PORT (00144.HK), CHINA RAIL CONS (01186.HK), CHINA RE (01508.HK), CHINA RUYI (00136.HK), CHINA SOUTH AIR (01055.HK), CHINA XLX FERT (01866.HK), CICC (03908.HK), CIMC (02039.HK), COSCO SHIP ENGY (01138.HK), COSCO SHIP PORT (01199.HK), COUNTRY GARDEN (02007.HK), CQRC BANK (03618.HK), CREALIGHTS (01191.HK), DAH SING (00440.HK), DAHSING BANKING (02356.HK), DATANG POWER (00991.HK), DFZQ (03958.HK), DUALITYBIO-B (09606.HK), EB ENVIRONMENT (00257.HK), EDGE MEDICAL-B (02675.HK), GAC GROUP (02238.HK), GALAXIS TECH (02729.HK), GANFENGLITHIUM (01772.HK), GCL TECH (03800.HK), GEEKPLUS-W (02590.HK), GF SEC (01776.HK), GUANGDONG INV (00270.HK), HTSC (06886.HK), ILUVATAR COREX (09903.HK), INNOSCIENCE (02577.HK), LEGENDHOLDING (03396.HK), MINSHENG BANK (01988.HK), MNSO (09896.HK), MONTAGE TECH (06809.HK), PSBC (01658.HK), SANY INT’L (00631.HK), SD GOLD (01787.HK), SF HOLDING (06936.HK), SH ELECTRIC (02727.HK), SHENZHEN INT’L (00152.HK), SUNAC (01918.HK), TCL ELECTRONICS (01070.HK), TH MEDICAL-B (02697.HK) , TIGERMED (03347.HK), TIME INTERCON (01729.HK), VIGONVITA-B (02630.HK), YANKUANG ENERGY (01171.HK) YUEXIU PROPERTY (00123.HK), ZHEJIANGEXPRESS (00576.HK)

Interesting to note that Treasury Secretary Scott Bessent insisted on Thursday that he has multiple weapons at his disposal to quell liquidity problems in the government debt market and restore calm. Which suggests his intervention hasn’t worked as intended.

Watch oil this week as Trump is due to announce the “crushing” economic sanctions on Iran. That as oil eased on Friday as press reported Iran’s President Masoud Pezeshkian said “it is better to end the war today” when Iran is “in a position of power and dignity,” according to state news.

Canada and US failed to make a new tariff deal so the 50% tariffs will be introduced and Canada has said it will match the US tariffs dollar for dollar.

The Trump administration has informed Congress of its intention to pay $725 ​million to the United Nations, a congressional notification seen by Reuters showed, a move aid experts said was a welcome step towards paying billions in dues owed. The ‌administration has criticized the global body for not living up to its potential and slashed funding to many U.N. agencies. When asked about the planned payment, a U.S. official said any payments will be contingent on continued reforms of the organization and added that the U.S. has not transferred any funds as of Friday. The allocation of funds - mentioned in an August 4 State Department notification letter to Congress that has not been previously reported - comes ahead of ​an expected speech by U.S. President Donald Trump to the U.N. General Assembly in New York next month.

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Housekeeping
On Monday morning I will on RTHK’s Money Talk with Megha Chaddah hosting and the other guest is Mel Siew, Head of Asia Public Credit at Muzinich and Co.
If there is a topic you would like discussed; then let them know or drop me a message, or if you just want to listen to the programme, click the link https://gbcode.rthk.hk/TuniS/www.rthk.hk/radio/radio3/programme/money_talk

Thursday afternoon I was on RTHK's the Close with host Nitin Dialdas and guest Daniel Xystus, Chief Investment Officer, AOP Capital, looking at the US Public debt hitting US$40 T and its implications both for the US and others. The BoJ’s policy outlook and whether Robotics would be the next investment theme.

If you have a topic you would like discussed this week then please message me or contact them via WhatsApp +852 6899 8518 or via the link below, which can also be used to listen to the programme.
click the link https://www.rthk.hk/radio/radio3/programme/the_close

Latest thoughts from Market Thinker - challenging the narrative. Crashenbrenner. A story of West Coast leverage versus East Coast leverage and who gets to create the money? Looks at the rise and fall of Leopold Ashenbrenner. Linked-in is full of articles about inexperience, hubris, poor risk management and ultimately nemesis in the form of grizzled Wall St trading titans like Ken Griffin and Izzy Englander.

Well worth a read.

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Data impacting Asia August 24 - 29

New Zealand
Monday Retail Sales
Tuesday 1 year, 3-month and 6-month Bill Auctions.
Wednesday No Data Scheduled
Thursday No Data Scheduled
Friday No Data Scheduled

Australia
Monday No Data Scheduled
Tuesday RBA Meeting Minutes, RBA’s Jacobs Speech
Wednesday Leading Index, Construction Work Done, Inflation Rate, RBA Trimmed Mean CPI, CPI, RBA Weighted Median CPI
Thursday RBA Bulletin, Building Capital Expenditure, Household Spending, Plant Machinery CAPEX, Private CAPEX, RBA Payments Systems Board Meeting
Friday No Data Scheduled

Japan
Monday 10-Year Climate Transition JGB Auction
Tuesday Final Coincident Index & Leading Economic Index
Wednesday No Data Scheduled
Thursday Foreign Stock & Bond Investment data, BoJ’s Himino Speech, BoJ JGB Purchases
Friday Unemployment Rate, Jobs/Applications Ratio, Tokyo Core CPI, Tokyo CPI Ex Food & Energy, Tokyo CPI, 2-Year JGB Auction, 3-Month Bill Auction, Consumer Confidence, Housing Starts, Construction Orders.

S Korea
Monday 5-Year KTB Auction
Tuesday Consumer Confidence, 20-Year KTB Auction
Wednesday Business Confidence
Thursday Interest Rate Decision
Friday No Data Scheduled

Taiwan
Monday Unemployment Rate, M2 Money Supply
Tuesday Industrial Production, Retail Sales
Wednesday No Data Scheduled
Thursday Consumer Confidence
Friday No Data Scheduled

China
Monday No Data Scheduled
Tuesday National People’s Congress
Wednesday National People’s Congress
Thursday National People’s Congress, Industrial Profits (YTD)
Friday National People’s Congress

Hong Kong
Monday No Data Scheduled
Tuesday Balance of Trade, Exports & Imports
Wednesday No Data Scheduled
Thursday No Data Scheduled
Friday No Data Scheduled

Macau
Monday No Data Scheduled
Tuesday No Data Scheduled
Wednesday No Data Scheduled
Thursday No Data Scheduled
Friday Unemployment Rate, Balance of Trade

Singapore
Monday Core Inflation Rate, Inflation Rate
Tuesday MAS 12-week and 4-week Bill Auction
Wednesday Industrial Production
Thursday 10-Year Bond Auction, 6-Month T-Bill Auction
Friday Bank Lending, Export & Import Prices, PPI

Malaysia
Monday Coincident Index & Leading Economic Index
Tuesday No Data Scheduled - Market Closed
Wednesday No Data Scheduled
Thursday No Data Scheduled
Friday PPI, M3 Money Supply

Indonesia
Monday M2 Money Supply
Tuesday - Market Closed. Manufacturing PMI, Balance of Trade, Exports & Imports, Inflation Rate, Core Inflation Rate, Tourist Arrivals.
Wednesday No Data Scheduled
Thursday No Data Scheduled
Friday No Data Scheduled

Philippines
Monday No Data Scheduled
Tuesday No Data Schedule
Wednesday No Data Scheduled
Thursday Interest Rate Decision, Budget Balance
Friday Balance of Trade, Exports & Imports, PPI, Business Confidence

Thailand
Monday Balance of Trade, Exports & Imports,
Tuesday New Car Sales
Wednesday Interest Rate Decisions
Thursday No Data Schedule
Friday Industrial Production, Current Account, Private Consumption & Investment, Retail Sales.

Vietnam - No Data Scheduled this week
Cambodia - No data scheduled this week
Myanmar - No data scheduled this week

India
Monday No Data Schedule
Tuesday No Data Schedule
Wednesday M3 Money Supply
Thursday Industrial & Manufacturing Production, Foreign Exchange Reserves
Friday No Data Schedule

Euro Area
Monday No Data Schedule
Tuesday No Data Schedule
Wednesday No Data Schedule
Thursday Loans to Companies & Households, M3 Money Supply, ECB Monetary Policy Meeting Accounts
Friday Sentiment (Economic, Industrial & Services) Consumer Confidence & Inflation Expectations, Selling Price Expectations

Germany
Monday 11 & 5-Month Bubill Auction
Tuesday GDP Growth Rate, Ifo Business Climate, Current Conditions and Expectations, 2-Year Schatz Auction
Wednesday 15-Year Bund Auction
Thursday Consumer Confidence
Friday Unemployed Persons, Unemployment Change & Rate

France
Monday 12-Month, 3-Month and 6-Month BFT Auctions
Tuesday Consumer Confidence
Wednesday No Data Scheduled
Thursday PPI, Unemployment Benefit Claim, Jobseekers Total
Friday Inflation Rate, GDP Growth Rate, Harmonised Inflation Rate, Household Consumption

United Kingdon
Monday No Data Scheduled
Tuesday Treasury Gilt 2033 Auction
Wednesday Distributive Trades
Thursday Car Production
Friday Nationwide Housing Prices

United States
Monday Chicago Fed National Activity Index, 3-Month and 6-Month Bill Auction
Tuesday Fed’s Barkin Speeh, ADP Employment Change, Redbook, Case-Shiller Home Price, House Price Index Data, Consumer Confidence, New Home Sales, Richmond Fed (Manufacturing Index, Manufacturing Shipments, Services Revenues Index), 6-Week Bill Auction, Building Permits, 2-Year Note Auction, Money Supply, Fed’s Barkin Speech, API Crude Oil Stock Change.
Wednesday MBA Mortgage Data (30-year Rate, Applications, Mortgage Index, Refinance Index, Purchase Index), Core PCE (Price Index, Prices), Durable Goods Orders, Durable Goods Orders Ex Transp, Durable Goods Orders Ex Defense, Non Defence Goods Orders, GDP (Growth Rate, Price Index, Sales) Personal Income and Spending, Real Consumer Spending, Real Personal Spending, Corporate Profits, EIA Oil Report, 17-Week Bill Auction, Fed’s Barkin Speech, 2-Year FRN Auction, 5-Year Note Auction
Thursday Jackson Hole Symposium, Goods Trade Balance Advance, Initial Jobless Claims, Continuing Claims, 4 week Average Claims, Retail & Wholesale Inventories, EIA Gas Report, 4-week & 8-week Bill Auction, 15-year & 30-year Mortgage Rate, 7-Year Note Auction, Fed Balance Sheet
Friday Jackson Hole Symposium, Chicago PMI, Non Farm Payrolls Annual Revision Prelim, Michigan Final (Consumer Sentiment, 5-Year Inflation Expectations, Consumer Expectations
Saturday Jackson Hole Symposium, Baker Hughes Oil Rig Count.

This is not going anyway any time soon.

In Asia it is worth noting that Southeast Asian stock exchanges saw robust initial public offerings in the first half of 2026, with fundraising more than doubling from 2025 as market reforms in Malaysia and Vietnam yielded larger listings, including in deep-tech industries.

Housekeeping
Thursday afternoon I was on RTHK’s the Close with host Nitin Dialdas and the other guest will be Daniel Xystus, Chief Investment Officer, AOP Capital, looking at the US Public debt hitting US$40 T and its implications both for the US and others. The BoJ’s policy outlook and whether Robotics would be the next investment theme.

If you have a topic you would like discussed next week then please message me or contact them via WhatsApp +852 6899 8518 or via the link below, which can also be used to listen to the programme.
click the link https://www.rthk.hk/radio/radio3/programme/the_close

Next Monday morning I will on RTHK’s Money Talk with Megha Chaddah hosting and the other guest is Mel Siew, Head of Asia Public Credit at Muzinich and Co.
If there is a topic you would like discussed; then let them know or drop me a message, or if you just want to listen to the programme, click the link https://gbcode.rthk.hk/TuniS/www.rthk.hk/radio/radio3/programme/money_talk

Latest thoughts from Market Thinker - challenging the narrative. Crashenbrenner A story of West Coast leverage versus East Coast leverage and who gets to create the money?

Looks at the rise and fall of Leopold Ashenbrenner. Linked-in is full of articles about inexperience, hubris, poor risk management and ultimately nemesis in the form of grizzled Wall St trading titans like Ken Griffin and Izzy Englander.

Well worth a read.

Market opening indications and data due
New Zealand
NZX 50 opened lower and tested 13,885 bounced to flat but then dipped to 13,880 but now recovering into the green expect caution ahead of the weekend.

On Thursday the NZX opened higher but trended lower all day, and closed -9.9pts -0.07% at 13,919.82; Spark New Zealand 6.4% following strong earnings, while Skellerup Holdings 1.4%. While ANZ Group -3.3%, A2 Milk -2.1%, and Auckland International Airport -1.5%.
Data due out 45 minutes after the open
Balance of Trade Jul NZ$-1.95B vs NZ$0.02B Jun (F/cast is NZ$-0.6B)
Exports Jul NZ$7.39B vs NZ$8.09B Jun (F/cast is NZ$7.7B)
Imports Jul NZ$9.34B vs NZ$8.07B Jun (F/cast is NZ$8.3BB)
Due Late Morning
Credit Card Spending Jul YoY vs 3.1% Jun (F/cast is 2.8%)

Australia
ASX futures indicate the market to open -25pts -0.3% at 8,994 with weakness in Tech but support from Energy and Miners. Bond fears re-kindled. But good flash PMI data pre market could offset some of the weakness
Earnings includes Guzman y Gomez, Enero Group, LGI Ltd, Inghams Group and GQG Partners.

On Thursday the ASX 200 opened higher but eased back to trade around flat for the rest of the day and closed up 30 pts 0.3% at 9,084 Employment data missed forecasts hurting confidence.
Leaders were Miners, tech and Healthcare: with strong performances from major miners like BHP & Rio Tinto, Resources alongside a surge in healthcare heavyweights like CSL.
Laggards were the Banks, Education and some industrials (Dow and SKS Tech saw extreme profit-taking and price volatility, fading right after posting their strong FY26 results.
Data due pre market
Flash PMI’s
Manufacturing Aug 52.0 vs 52 Jul (F/cast is 50.9)
Services Aug 52.9 vs 53.6 Jul (F/cast is 52.5)
Composite Aug 52.5 vs 53.2 Jul (F/cast is 51.9)

Japan
Nikkei Futures -35pts -0.05% at 65,560
Chicago Nikkei Futures -290pts -0.44% at 65,670
Singapore Futures -720pts -1.09% at 65,590
Yen 159.01 Trading 158.88 as pre-market inflation print in line with expectations

On Thursday the Nikkei opened higher and worked better for the first couple of hours but then trended lower into lunch. It opened lower after lunch but trended better in the after but ticked lower at the end to close up 890 pts 1.36% at 66,216.79. Trade data was mixed with imports up on higher energy costs but investment activity positive. The market breadth was positive, with 182 advancing names vs 42 decliners and one unchanged. Helped by a sharp pullback in Japanese government bond yields prompting a rally in Autos, electric power & gas, and pharmaceuticals.
Leaders Sumitomo Metal Mining 10.76%, Sumitomo Pharma 8.48% and Kansai Electric Power 8.37% its largest single-day gain since August 2024
Laggards Aozora Bank, -3.11%, Ibiden -2.87% and Nippon Steel -2.2%
Data due 30 minutes before the open
Inflation Rate Jul 1.9% YoY vs 1.7% Jun (F/cast is 1.7%)
Inflation Rate Jul 0.4%MoM vs 0.3% Jun (F/cast is 0.1%)
Core Inflation Rate Jul 1.8% YoY vs 1.6% Jun (F/cast is 1.7%)
Inflation Rate Ex food & Energy Jul 1.9%YoY vs 1.7% Jun (F/cast is 1.7%)
Due 30 minutes after the open
Flash PMI’s
Manufacturing Aug vs 54.5 Jul (F/cast is 54.9)
Services Aug vs 51.2 Jul (F/cast is 51.5)
Composite Aug vs 52.7 Jul (F/cast is 52.8)
Mid morning
3-Month Bill Auction vs 1.0919% prior

S Korea
Kospi Futures indicate opening up 44.95pts 4.42% at 1,061.7

The Kospi on Thursday opened higher and worked better for the first couple of hours and then traded sideways in a range and closed slightly off the highs and closed nearly 6% as investors bet on stronger shareholder returns from chip giants Samsung Electronics and SK hynix, and eased US bond market concerns. The Korean won fell against the US dollar.
The KOSPI 381.41 pts, 5.89%, to end at 6,852.58, after rising as high as 6,904.55.
Program trading for the KOSPI-listed shares was suspended for five minutes at around 10 a.m., as the Korea Exchange (KRX) activated a buy-side sidecar, a measure triggered when the KOSPI 200 Futures Index rises 5% or more for at least one minute.
Trade volume was moderate at 301.74 million shares worth 28.07 trillion won (US$20.15 billion), with advancers outnumbering decliners 518 to 338.
Foreigners bought a net 1.71 trillion won, while institutions sold a net 487.37 billion won and individuals sold a net 2.28 trillion won.
Drivers were easing concerns over rising US Treasury yields and SK hynix’s shareholder return plan further boosted market sentiment.
The Korean won was quoted at 1,392.6 won per US dollar as of 3:30 pm, Thursday down 5.1 won from the previous stock trading session’s close.
Data out pre market
PPI Jul -0.4% MoM vs 0% Jun (F/cast was 0.3%)
PPI Jul 7.7% YoY vs 8.5% Jun revised from 8.6% (F/cast was 8.5%)

Taiwan - No Data Scheduled
Taiex futures indicate market to open down 99pts -0.22% at 44,804, despite good Export Orders out after market Thursday, expect more caution going into the weekend.

On Wednesday the Taiex opened higher but trended lower in the morning but worked better after lunch to close up 214.39 pts, or 0.48%, at 44,933.74 on turnover of NT$792.96 billion (US$24.93 billion) vs NT$847.86 billion (US$26.59 billion).
Data out after market Thursday
Export Orders Jul 61.9% YoY vs 59.4% Jun (F/cast is 45.1%)
Current Account Q2 $58.49B vs $62.53B Q1 (F/cast is $65B)

China - No Data Scheduled
Golden Dragon Index closed -73pts -1.15% at 6,278.48
FTSE A50 futures up 37pts 0.25% at 14,695
MSCI A50 Connect (USD) futures -24pts. -0.88% at 2,689.6

On Thursday the A shares opened higher initially ticked higher then reversed to trend lower as China left Prime rates unchanged but then ticked higher into the close. Unitree Robotics closed -19% having rallied 460% on its debut.
Total Turnover: Around 2.09 trillion yuan (approx. $308.22 billion USD) across the Shanghai and Shenzhen exchanges.
Leaders: Biopharmaceuticals, precious metals, and tourism.
Laggards: Fluorine chemicals, coal, and education
At the close
Shanghai Composite: up 0.24% at 3,903.72
Shenzhen Component: up 0.59% at 13,972.78
CSI 300 (Blue Chips): up 0.09% at 4,592.75
ChiNext Index (Growth Board): up 0.64% at 3,495.59
STAR 50 Index (Sci-Tech): up 0.2% at 1,957.92
USD/CHN -0.00134pt -0.02% at 6.7234
Data could get
FDI (YTD) Jul YoY vs -5% Jun (F/cast is -6%)

Hong Kong - No Data Scheduled
ADR’s closed -118.02pts -0.46% at 25,550 in the green only HSBC, CLP, SHKP, CCB, HK Ex and Baba
Hang Seng Futures indicate a flat open up 1pts at 25,696
Turnover Thursday HK$269B vs HK$255.541B Wednesday
Short Selling Thursday 19.8%vs 18% Wednesesday

On Thursday the HSI opened higher ticked higher then pulled back before working better into lunch but drifted lower in the afternoon; at the close it was up 231.42pts 0.8% at 25,698.49
HS Tech Index up 0.39% at 4,700.53
Leaders Property, Pharma and gold/mining shares. Alibaba +VE ahead of earning but Kuaishou -VE after earnings.
Laggards Financials (but still closed up 0.49%).
Note CK Hutch 0.22% Thursday after reports it is seeking $1.5B in damages over seized Panama Canal Ports.
Data out after market Thursday
Inflation Rate Jul 0.2% MoM vs 0.0% Jun (F/cast is 0.5%)
Inflation Rate Jul 1.7% YoY vs 2% Jun (F/cast is 1.8%)
Unemployment Rate Jul 3.7% vs 3.7% Jun (F/cast is 3.7%)
Note there are no statutory unemployment benefits in HK, this number is the result of a phone survey

Macau - Data Scheduled
Inflation Rate Jul MoM vs -0.15% Jun (F/cast is 0.1%)
Inflation Rate Jul YoY vs 1.24% Jun (F/cast is 1.3%)
GDP Growth Rate Final Q2 YoY vs 7.1% Q1 (F/cast is 0.3%)
Retail Sales Q2 YoY vs 23% Q1 (f/cast is 2.2%)
Tourist Arrivals Jul YoY vs -3.1% Jun (F/cast is -4%)

Singapore - No Data Scheduled

Malaysia - No Data Scheduled
On Thursday the trade data was slightly better than expected

Indonesia - Data Scheduled
Current Account Q2 vs $-4B Q1 (F/cast is $-1.8B)
M2 Money Supply Jul YoY vs 8.7% Jun

Philippines - No Data Scheduled
Nikkei reports that the Philippines is ‘racing towards a cashless future’ as digital payments hit 64.7% in 2025. Nation’s unified ‘QR Ph’ helps narrow the gap with Southeast Asia’s payment pioneers

Thailand - No Data Scheduled
Vietnam - No Data Scheduled
Cambodia - No Data Scheduled
Myanmar - No Data Scheduled

India - Data Scheduled after the open
Flash PMI’s
Composite Aug vs 54.3 Jul (F/cast is 55.5)
Manufacturing Aug vs 53.5 Jul (F/cast is 54.3)
Services Aug vs 53.3 Jul (F/cast is 54)
Due After market Friday
Bank Loan Growth 7 Aug YoY vs 19.3% prior
Deposit Growth 7 Aug YoY vs 15.4% prior
Foreign Exchange Reserves 14 Aug vs $707B prior
Data out after market Thursday
Infrastructure Output Jul 5.4% YoY vs 6% Jun revised (F/cast was2.2%)

Europe
Eurozone - Flash PMI (Composite, Manufacturing and Services), Consumer Confidence Flash, Negotiated Wage Growth
Germany - Flash PMI Manufacturing, Composite and Services)
France - Business Confidence, Business Climate Indicator, Flash PMI (Composite, Manufacturing and Services)
United Kingdom - Consumer Confidence Aug -14 vs -17 Jul (F/cast -18)
Still to come in European time: Retail Sales, Public Sector Net Borrowing Ex Banks, Retail Sale Ex Fuel, Flash PMI Manufacturing, Composite and Services)

United States
Futures opened Dow 26pts 0.06% S&P 0.08% NDX 0.07%
Data Scheduled: Flash PMI (Composite, Manufacturing and Services), Baker Hughes Oil Rig Count.

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HEADLINES & NEWS
NEW ZEALAND & AUSTRALIA
Fortescue defends not standing down key executive accused of sexual harassment. An independent legal firm is investigating the claims, but the company says there were 29 cases of sexual harassment or discrimination last year, and 11 workers were dismissed.

JAPAN
Japan’s imports hit a monthly record in July as elevated oil prices ​drove up energy costs and inflationary pressures, while exports also climbed to an all-time high on ‌a weaker yen and robust semiconductor-related demand. Total imports by value grew 27.8% from a year earlier to 12.1 trillion yen ($76.39 billion), data showed on Thursday, hitting a fresh record for the second straight month and exceeding market forecasts for a 26.5% increase. Japan’s crude oil ​import volumes have rebounded as alternative supplies, mainly from the United States, replace Middle Eastern shipments disrupted ​by the conflict in the Middle East. The persistence of wholesale inflation, together with resilient exports, ⁠is likely to support the case for the Bank of Japan to continue to normalise monetary policy, as the ​central bank is set to raise rates as soon as September.

US private equity firm L Catterton will acquire major Japanese financial advisory Financial Standard to meet rising demand for advising wealthy individuals as the industry reshuffles amid higher operating costs.

Russia’s Pacific Fleet said Thursday it has conducted a missile test off a group of Russian-held, Japanese-claimed islands amid an intensifying row over the disputed territory following President Vladimir Putin’s first-ever visit there last week. While it was unclear exactly when the test was carried out, the announcement comes after the Russian Foreign Ministry summoned Japanese Ambassador to Russia Akira Muto over Japan’s protest against Putin’s trip to the area. The naval fleet said a unit equipped with the Bastion surface-to-ship missile system conducted the test. The system is deployed to Etorofu.

India and Japan agreed to bolster security ties including maritime cooperation on Thursday after their defense ministers met in New Delhi. India’s Defense Minister Rajnath Singh and his Japanese counterpart Shinjiro Koizumi held talks and signed a memorandum on maritime security cooperation, according to a joint statement. Both countries are members of the so-called Quad security alliance along with the United States and Australia, a group seen as a counterweight to China’s expanding presence in the Indian Ocean and wider Asia-Pacific region.

SOUTH KOREA
South Korea’s presidential office condemned North ‌Korea’s launch of more than 10 short-range ballistic missiles on Thursday and ordered its military to maintain full readiness during ongoing joint exercises with the United States. The launch came after North Korea’s Kim Yo Jong, sister of Kim Jong Un, on Wednesday condemned the U.S.-South Korea military drills, despite Trump’s order to substantially reduce US participation in the exercises. The presidential office convened an emergency security meeting attended ​by officials from the defence ministry and military authorities after North Korea fired the missiles from ⁠the Pyongyang area toward the sea to the east of the Korean Peninsula, it said in a statement.

That came after US President Trump’s claimed that North Korean leader Kim Jong-un possesses “57 very powerful nuclear weapons” which is drawing attention not only for its unusually specific figure, but also for what it could signal ahead of a possible meeting between the two leaders later this year. Trump’s remarks treated North Korea’s nuclear arsenal as a reality, while stressing his personal relationship with Kim. It is unclear if the number is factual or just Trump making things up!

Primemas Inc. is stepping up its collaboration with Micron Technology as the semiconductor startup moves closer to mass production of its compute express link (CXL), pooled-memory technology for AI data centers. The company plans to begin mass production of JBOM, short for “just a bunch of memory,” with Micron in the second half of this year, executives said Thursday. The system combines multiple CXL memory cards into a larger shared pool. The two companies are also working together on Abaco, a large-scale shared-memory project for Pacific Northwest National Laboratory, a US Department of Energy research lab.

Fubon Hyundai Life, the Korean insurance arm of Taiwan’s Fubon Life, swung to a net profit of 158.6 billion won ($113.8 million) in the first half of this year, on the back of improved investment performance and signs of a strengthening profit base, the company said Thursday. The insurer said its earnings were mainly driven by stronger asset management performance, noting that its investment strategies were tailored to changing financial market conditions. The return on invested assets rose to 5.48 percent in the first half from 2.58 percent a year earlier, according to a regulatory filing. The insurer also saw improvement in its core insurance business, with contractual service margin, or CSM, standing at 178.8 billion won in the first half. CSM additions from new business reached 70.3 billion won, up about 37 percent from 51.2 billion won a year earlier, pointing to a stronger future profit base from its insurance operations.

Nexon said Thursday it will launch an investment program worth up to 250 billion won ($179 million) with the Korean government and Kona Venture Partners to discover promising intellectual properties in the gaming space and help emerging developers expand globally. At the center of the program is the 120 billion won Kona Global IP Investment Fund, which Nexon will establish with game-focused venture capital firm Kona Venture Partners through its new investment subsidiary, Nexon Partners. The fund will be combined with 60 billion won from the Ministry of Culture, Sports and Tourism’s intellectual property account under the government-backed Korea Fund of Funds. Nexon said the structure will roughly double the investment capacity generated by its direct contribution. Investments will focus on three areas aligned with Nexon’s growth strategy: new intellectual properties with global potential, next-generation live-service games driven by user acquisition marketing and developers using artificial intelligence to create new gaming experiences.

TAIWAN
The Cabinet yesterday approved the central government’s budget proposal for next year, which would allocate NT$1.1225 trillion (US$35.16 billion) for defense, or 3.01 percent of projected GDP. President William Lai has set a goal of keeping Taiwan’s defense budget above 3 percent of GDP while gradually increasing the share to 5 percent by 2030. The defense spending plan; an 18 percent increase from this year, includes NT$691.9 billion in the Ministry of National Defense budget, NT$218.2 billion in special budgets and NT$60.7 billion in nonprofit special funds, the Directorate-General of Budget, Accounting and Statistics (DGBAS) said.

The much-anticipated domestic travel subsidies, designed to encourage people to travel on weekdays, are to become available on Sept. 1. The expanded domestic tourism subsidy program, which has a NT$3.33 billion (US$104.31 million) budget, was scheduled to launch in April, but was delayed due to the stalled review of the central government general budget. The legislature approved the plan on Friday last week.

Export orders last month rose 61.9 percent year-on-year to a record US$97.94 billion, marking the 18th consecutive month of increases, the Ministry of Economic Affairs said yesterday. The expansion accelerated from the 59.4 percent annual increase in June and exceeded the ministry’s forecast of a 54.5 to 57.8 percent increase for last month. It also beat DBS Bank Ltd’s estimate of a 56.6 percent rise. Export orders — including those received by Taiwanese firms and produced domestically or abroad — are an indicator of product and component shipments to overseas markets ahead of customs clearance by one to three months.

China Steel Corp (CSC) yesterday reported a 55 % MoM slump in pretax profit for last month, as sliding steel demand in Asia drove lower gross profit. Pretax profit dipped to NT$655 million (US$20.52 million) from a 47-month high of NT$1.47 billion in June, snapping three consecutive months of growth, the company said in a statement. Operating profit plummeted 84 percent month-on-month to NT$241 million from NT$1.52 billion, it said. In the first seven months of the year, cumulative pretax profit improved to NT$2.99 billion, reversing a pretax loss of NT$2.41 billion in the corresponding period last year, while operating profit rose to NT$3.29 billion from a loss of NT$2.27 billion a year earlier, the company said. While steel prices in the US and Europe remain firm amid trade protection policies curbing steel imports, prices in Asia are declining due to overcapacity, the Kaohsiung-based company said. However, an easing drop in steel prices in Vietnam after Chinese steelmakers cut production to improve profitability, and lower inventories in the Taiwanese supply chain, show an early sign that the slump in Asia is near the bottom, the company said. Challenges remain as the ongoing Middle East conflict drives crude oil prices higher and adds more pressure to steelmakers’ manufacturing costs, it said.

CHINA
China and Indonesia’s foreign and defence ministers will meet on Friday, with security, politics and economic issues set ​to dominate talks, as Jakarta tries to balance ties with both Beijing and Washington amid trade battles and tensions in ‌the South China Sea. China’s Foreign Minister Wang Yi, visiting Jakarta for the first time in two years, will meet his Indonesian counterpart Sugiono and participate in a “2+2” meeting with the two countries’ defence ministers.

Brazil’s government announced on Thursday investments of about 2.3 billion reais ($444.2 million) to ‌bolster its artificial intelligence ecosystem, splitting projects between U.S. and Chinese companies in a move that underscores its effort to navigate relations with both powers. Just over half the total, 1.3 billion reais, will fund a supercomputing infrastructure project in Rio de ​Janeiro developed in partnership with China’s Huawei Technologies and iFlytek (002230.SZ). President Luiz Inacio Lula da Silva’s ​government said the infrastructure will be used primarily to develop large language models for ⁠general and sector-specific applications. Separately, about 1 billion reais will be allocated through a tender for a supercomputer ​that Brazil expects to rank among the world’s 10 most powerful AI processing machines. The machine will be installed ​in the northeastern state of Rio Grande do Norte, chosen for its energy potential. Lula attended an announcement ceremony in the state on Thursday.

Nvidia (NVDA.O) on Thursday denied a report by The Information that it plans to begin shipping a language processing unit (LPU) ​tailored for Chinese customers by year-end, saying it has no China-specific ‌version of the product on its roadmap. “The reporting in The Information on Nvidia’s LPU is incorrect. We have no LPU sales in the China market today, and no China-specific ​LPU product in our roadmap,” an Nvidia spokesperson said.

HONG KONG
HSI Short Selling Thursday 19.8% vs 18% Wednesday
Top shorts Chow Tai Fook (1929) 58%, Hengan (1044) 51%, Galaxy Ent (27) 47%, Xinyi Solar (968) 46%, Xinyi Glass (868) 45%, JD Health (6618) 45%, Midea Group (300) 44%, Ali Health (241) 44%,

WATCH
The founder of China Evergrande Group, the world’s most-indebted property developer, was sentenced to life in prison by a Chinese ‌court on Thursday, five years after the firm’s collapse shook the nation’s economy and financial markets. Hui Ka Yan, once Asia’s richest man, pleaded guilty in April to eight charges, including misuse of funds, fundraising fraud, illegally taking public deposits, illegally extending loans, fraudulently issuing securities and bribery. Begs the question if whether the Beijing will make ‘scape goats’ of other developers?

Shein aims to launch its Hong ‌Kong initial public offering on Monday, according to a source familiar with the matter, and is targeting a listing on September 1, two other sources said, ​slightly later than previously planned. While September 1 is the target ​date, the listing could happen a few days later, one ⁠of the sources said. Reuters reported last week that Shein had been ​aiming to list on August 28.

Excuse the brevity this morning but a few Bloomberg issues For more HK Market news https://www.aastocks.com/en/stocks/news/aafn/latest-news

Thursday closings in EUROPE and US
DAX -0.42%, CAC -0.57%, FTSE 0.04%
Markets opened lower. FTSE & DAX drifted lower in the morning sold down after lunch but then worked better into the close. CAC trended lower all day.

German PPI was up MoM and than expected, While Eurozone construction orders missed. UK Industrial Trends Orders was bette MoM and than F/cast.

Novonesis 9.7% after the Danish biotech firm raised its FY guidance and announced a €1 billion share buyback program.

DOW -1.32%, NDX -1%, S&P -0.87%, Russel 2K %
Markets opened lower and trended lower though the day, only the NDX saw a slight update in the last hour.

Initial claims were down WoW but higher than forecast. 15 & 30 Mortgage rates east slightly.

Pre Market The Philadelphia Fed’s manufacturing index jumped to 47.4, up 6 pts MoM and well ahead of the forecast for 25. This was the highest reading since April 2021. The employment index surged to 27.9, up 18 pts to its highest level since April 2022. At the same time, gauges for prices paid and received hit their lowest levels since February

DOW weighed down by Walmart -9% it’s worse day in 4 years after earnings as US comparable sales missed analyst expectations, as did its adjusted earnings forecast for both Q3 and full year.

Deere 6.94% it reported stronger-than-expected quarterly results and raised the low end of its full-year profit outlook.

Alibaba’s US-listed shares 1.26% after being -3% at lunch after it reported a 75% drop in profits for the June quarter due to its jump in spending on AI.

Treasuries advanced as US debt passed US$40 T despite the announcement by the Treasury Sec that the administration would double repurchases of T10, T20 and T30 debt in the next few months.

Bitcoin up nearly 11% in two-days rally to above $71,000, as the coin reached its highest levels since June 1; asTrump along with crypto executives and regulators at the White House made the case for passing the Clarity Act, which is currently struggling in Congress.

Oil rose as Trump threatened ‘most crushing economic operation’ on Iran without giving details. Treasury Sec described then as the US is going to impose the “toughest sanctions in history” against Iran but again without detail.

Banks JPMorgan Chase -1.6%, Citigroup -2.42% Wells Fargo -2.61%, Amex -2.57%
Ecommerce Meta -0.04%, Apple -1.75%, Amazon -2.16%, Netflix -0.1%, Disney 0.36%, Zoom Comms -1.09%, Alphabet -1.02% and Microsoft -0.47%
Tech NXP Semi -1.35%, Nvidia -0.33%, Micron 3.97%, AMD 0.65%, Skyworks -0.79%, Intel -0.72%
Industrial/Discretionary Boeing -3.2%, Caterpillar -0.09%, Simon Property -1.47%, Kohl’s -8.01%, Gap -2.24%, United Airlines -3.52%, Carnival -4.95%, Wynn Resorts -0.5%
Healthcare Eli Lilly -2.81%, UntiedHealth -0.97%, Johnson & Johnson -2.21% Merck -2.11%
Auto Ford -3.52%, GM 1.4%, Tesla -1.71%
Energy Chevron flat, Exxon Mobil 0.84%, ConocoPhillips 0.55%
Consumer Staples Campbell Soup -0.17% General Mills -0.95%, JM Smucker 0.17%
Buffet’s Top Five Retirement Stocks Coca Cola 0.17%, Apple -1.75%, Johnson & Johnson -2.21%, Proctor & Gamble -0.98%, Berkshire -0.55%

DAILY US CLOSING DATA
USD hit 3 month low. Bitcoin 6.38% at $72 VIX 7.52% at 16.01
US Bonds yields rebounded as US debt hit $40 T wiping out the decline on Wednesday’s intervention plan T10 up more than 5 bpts to 4.704%, T2 up less than 1 bpts at 4.185% and T30 up more than 5 bpts at 5.248%
OIL Brent 2.4% at $93.78, WTI 2.7% at $86.64 as Trump and Bessent threaten crushing economic sanctions on Iran.
Spot Gold -0.1% Spot Silver 1.9%, Copper -0.21% Platinum flat, Palladium -0.1%.

But the key drivers behind rising yields; including uncertainty around inflation, monetary policy, and the trajectory of government debt, remain in place. Until we get clarity on those the risks to long-term Treasury yields remain skewed to the upside. So this move will only provide short term relief.

Expectations that the ​Fed will hold rates steady at its September ‌15-16 meeting stand at 65%, according to CME Group’s FedWatch tool, after recent weak U.S. economic data dampened bets for a hike.

FOMC minutes revealed no surprises.

Trump backdown from the 50% tariffs on Canada on Tuesday night and on Wednesday the framework of a deal was announced.

After announcing a scaling back of military co-operation exercised with S Korea, Trump on Wednesday said he ​plans to meet with North Korean leader Kim Jong Un later this year, and said the Asian nation held ‌57 “very powerful” nuclear weapons.

Interesting the announcement came just after Kim’s powerful sister, Kim Yo Jong, said she was unaware of any recent communications between the two ​countries’ leaders. Makes you wonder who he is talking too?

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Housekeeping
This afternoon I will be on RTHK’s the Close with host Nitin Dialdas and the other guest will be Daniel Xystus, Chief Investment Officer, AOP Capital,
If you have a topic you would like discussed then please message me or contact them via WhatsApp +852 6899 8518 or via the link below, which can also be used to listen to the programme.
click the link https://www.rthk.hk/radio/radio3/programme/the_close

Last Monday morning I was on RTHK’s Money Talk with host Megha Chaddah and other guest Hao Zhou Chief Economist at GTJAI looking at the recent economic data and the outlook for stocks going forward.
If there is a topic you would like discussed next week; then let them know or drop me a message, or if you just want to listen to the programme, click the link https://gbcode.rthk.hk/TuniS/www.rthk.hk/radio/radio3/programme/money_talk

Latest thoughts from Market Thinker - challenging the narrative. Crashenbrenner A story of West Coast leverage versus East Coast leverage and who gets to create the money?
Looks at the rise and fall of Leopold Ashenbrenner. Linked-in is full of articles about inexperience, hubris, poor risk management and ultimately nemesis in the form of grizzled Wall St trading titans like Ken Griffin and Izzy Englander.

Well worth a read.

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Market opening indications and data due
New Zealand - No Data Scheduled
NZX 50 opened higher test 14,000 in early trades but failed to break out and eased back to the 13,980 level after 30 minutes.

On Wednesday the NZX opened higher and trended slightly higher through the day to close up 63pts 0.5% at 13,930; its highest level since August 6. Strong earnings results from major firms like Ebos Group and Fletcher Building pushed the benchmark higher. Gains in healthcare and communication services sectors led the market up.
But Turners Automotive Group -5.6% near a nine-month low due to cautious trading updates. PGG Wrightson -6.3%, Rua Bioscience -5.88%, Burger Fuel Group -4.48%, Pacific Edge -3.77%

Australia
ASX futures indicate the market to open up 28 pts 0.3% at 9,035 with support from energy names and financials but the miners were mixed.
Earnings includes Goodman Group (ASX: GMG), Medibank Private Ltd (ASX: MPL), Megaport Ltd (ASX: MP1), Super Retail Group Ltd (ASX: SUL), and Zip Co Ltd (ASX: ZIP).

On Wednesday the ASX 200 opened lower, initially ticked higher and then traded sideways in a tight range. But closed in the red. -16.2pts -0.18% at 9,053.8 after a flurry of corporate results, as a selloff in chipmakers and growing anxiety about the stalemate in the Iran war sent stocks lower on Wall Street overnight.
Laggards Info Tech, Financials, Consumer Discetionary and materials
Leaders Healthcare and Real Estate
Data out 60 minutes after the open
Consumer Inflation Expectations Aug vs 4.7% Jul (F/cast is 4.4%)
Data out 90 minutes after the open
Employment Change Jul vs 76.3K Jun (F/cast is 15K)
Full Time Employment Change Jul vs 29.3K Jun
Unemployment Rate Jul vs 4.4% Jun (F/cast is 4.5%)
Part Time Employment Change Jul vs 47K Jun
Participation Rate Jul vs 67% Jun (F/cast is 67%)

Japan
Nikkei Futures up 650pts 0.99% at 66,130
Chicago Nikkei Futures up 310pts 0.47% at 66,492
Yen 158.11

On Wednesday the Nikkei gapped lower on the open, bounced but then trended lower for the rest of the session to close -2,134.31 pts -3.16% at 65,326.42 with weakness in Tech and Chip sell off, along with auto’s and financials plus the continuing bond rout.
Data due 10 minutes before the open
Balance of Trade Jul vs ¥-406.9B Jun (F/cast is ¥-406.9B)
Exports Jul YoY vs 19.3% Jun (Consensus 19.9%)
Imports Jul YoY vs 25.4% Jun (Consensus 26.5%)
Foreign Stock Investment 15 Aug vs ¥-368.5B prior
Foreign Bond Investment 15 Aug vs ¥1629.4B prior
Mid-morning
20-Year JGB Auction vs 3.626% prior

S Korea - No Data Scheduled
Kospi Futures indicate opening up 24pts 2.37% at 1,040.35

The Kospi on Wednesday opened lower, dipped but then rebounded to before selling down to the day low of 6,400 level and then traded sideways to close -398.66 pts -5.8% at 6,471.17. Shortly after the opening bell, program trading in KOSPI-listed shares was suspended for five minutes as the bourse operator activated a sell-side sidecar. The measure is triggered when the KOSPI 200 futures index falls 5 percent or more for at least one minute.
Trade volume was moderate at 302.07 million shares worth 22.94 trillion won ($16.4 billion), with decliners far outnumbering advancers 700 to 171.
Foreigners sold a net 348.8 billion won and institutions sold a net 132.4 billion won, while individuals bought a net 463.6 billion won.
Chipmakers led the declines
The Korean won was quoted at 1,397.7 won per US dollar as of 3:30 p.m. Wednesday, up 14.1 won from the close of the previous stock trading session.

Taiwan
Taiex futures indicate market to open higher up 302pts 0.68% at 44,802

On Wednesday the Taiex opened lower but initially ticked higher to eased back and then trended higher again before selling down to close -589.33 pts, or 1.3%, at 44,719.35 after moving between 44,308.71 and 45,071.34. Turnover totaled NT$847.86 billion (US$26.59 billion) vs NT$958.44 billion (US$30.10 billion). Largely sparked by higher U.S. bond yields amid inflation worries as investors dumped interest rate-sensitive tech stocks. But the settlement of August futures contracts contributed as foreign institutional investors still held a large chunk of short contracts, they just trimmed tech holdings in the spot market. TSMC -1.26% contributed about 240 pts to the Taiex’s fall. The index still dipped below the 60-day moving average of 44,800 pts.
According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$41.64 billion of shares on the market Wednesday.
Data due out after market
Export Orders Jul YoY vs 59.4% Jun (F/cast is 45.1%)
Current Account Q2 vs $62.53B Q1 (F/cast is $65B)

China
Golden Dragon Index closed up 94.6pts 1.51% at 6,351.57
FTSE A50 futures up 58 pts 0.39% at 14,797
MSCI A50 Connect (USD) futures up 15.2 pts 0.56% at 2,725

On Wednesday the A shares opened lower and sold down heavily in the morning session and saw a broad-based capitulation. Total trading volume spiked significantly to 2.51 trillion yuan as panic selling intensified throughout the session
Over 5,000 individual stocks finished in the red, with more than 100 tickers hitting their daily 10% limit-down restriction.
But the Unitree Robotics IPO closed up 460% off the initial high of 542% with turnover of RMB23.16 billion and market capitalization of RMB341.772 billion.
The PBOC did not conduct seven-day reverse repo operations Wednesday (19th), but carried out RMB327.4 billion overnight reverse repo operations. With RMB469.7 billion reverse repos maturing, a net withdrawal of RMB142.3 billion was realized in a single day. China’s three major A-share indices opened down nearly 1% to 2.7% this morning before losses widened, ending the day down 2.4% to 6.3%.
At the close
Shanghai Composite: Down 2.4% to 3,894.4
Shenzhen Component: Down 5.01% to 13,890.2
CSI 300 (Blue Chips): Down 2.9% to close at 4,588.7
ChiNext Index (Growth Board): Tumbled 6.26%, marking one of its steepest single-day declines.
STAR 50 Index (Sci-Tech): Plunged 7.16% as chipmakers and advanced tech listings completely capitulated
USD/CHN-0.0002 bpts flat at 6.7308
Spot USD/CNY added 50 bps to close at 6.7377 Wednesday (19th). As of 4:49 pm, USD/CNY in the night session lifted 28 bps. USD/CNH hiked 64 bps to 6.7393, 16 bps below USD/CNY.
Data due on the open
Loan Prime Rates (1-Year and 5-Year) no change from current 3%/3.5% expected.

Hong Kong
ADR’s closed -27.7pts -0.11% at 25,640 with most ADR’s in the red but HSBC, BoC HK, Tencent and CK Hutch in the red
Hang Seng Futures indicate up 240 pts 0.94% at 25,699
Turnover Wednesday HK$255.541B vs HK$255.54B Tuesday
Short Selling Wednesday 18% vs 18.6% Tuesday

On Wednesday the HSI opened lower but worked better through the morning session then traded sideways in the afternoon to close up 23 pts 0.09% at 25,495.07 off the high of 25,537.19.
The Hang Seng Tech Index -1.21% to close at 4,682.05.
Leaders were power equipment infrastructure and financial exchanges
Laggrds were technology, semiconductors, and regional electronics were the main laggards.
Data due after market
Inflation Rate Jul MoM vs 0.0% Jun (F/cast is 0.5%)
Inflation Rate Jul YoY vs 2% Jun (F/cast is 1.8%)
Unemployment Rate Jul vs 3.7% Jun (F/cast is 3.7%)
Note there are no statutory unemployment benefits in HK, this number is the result of a phone survey

Macau - No Data Scheduled

Singapore - No Data Scheduled
Monetary Authority of Singapore, announced a set of measures to strengthen Singapore’s competitiveness as a leading asset management hub; these build on the industry’s positive growth momentum, and will help anchor high value asset management activities, deepen industry capabilities and attract top asset management talent, amidst growing international competition.

Malaysia - Data Scheduled
Balance of Trade Jul vs MYR 14.9B Jun (F/cast is MYR 22B)
Exports Jul YoY vs 45.4% Jun (Consensus 34.3%)
Imports Jul YoY vs 43.9% Jun (Consensus 32.4%)

Indonesia - No Data Scheduled
Philippines - No Data Scheduled
Thailand - No Data Scheduled
Vietnam - No Data Scheduled
Cambodia - No Data Scheduled
Myanmar - No Data Scheduled

India - Data Scheduled after market
Infrastructure Output Jul YoY vs 5% Jun (F/cast is 2.2%)

Europe
Eurozone - Construction Output, Labour Cost Index Flash, ECB Monetary Policy Meeting Accounts
Germany - PPI
France - OAT Auction, OAT€I Auction, OATi Auction
United Kingdom - Industrial Trends Orders

United States
Futures opened Dow 29pts 005% S&P 0.1% NDX 0.3%
After Market
It was announced that US public debt had hit the US$40T level for the first timeData Scheduled: Initial Jobless Claims, Continuing Claims, 4 week Average Claims, Philadelphia Fed Manufacturing Index, Philly Fed (Business Conditions, CAPEX index, Employment, New Ordes, Prices Paid), Leading Index, EIA Gas Report, 4-week & 8-week Bill Auction, 15-year & 30-year Mortgage Rate, 30-Year TIP’s Auction, Fed Balance Sheet.

HEADLINES & NEWS
NEW ZEALAND & AUSTRALIA
WiseTech raided by competition watchdog, smashing shares. It’s the third regulator or police force to investigate the embattled software company or its billionaire founder.

‘The office is primary’: Real estate boss defends end of hybrid work. The global company with 1200 Australian staff will move from expecting office attendance three days a week to five days a week as a default.

Sacked worker forced to pay for using ‘plain wrong’ AI in landmark case. For the first time, the Fair Work Commission has forced a worker to pay for wasting its time, fining a sacked Aldi store assistant more than $1200.

Matt Comyn offloads $8.4m of CBA shares amid separation from wife. When we saw the CBA boss had offloaded some of his shares last week, we didn’t think much of it. But that was before we knew he and his wife were working through a separation.

JAPAN
Japan is running low on options to fight a bond ​rout that could push debt financing costs above government estimates, leaving Prime Minister Sanae Takaichi’s ambitious spending agenda hostage to forces she can’t control. Analysts say the tools ‌available to calm markets - sporadic cuts to bond issuance or emergency central bank buying - amount to little more than temporary patches for a bond market being squeezed by stubborn inflation and an increasingly loose fiscal stance. Bonds likely to see some relief today but that might be short lived

Japan on Wednesday described Washington’s decision to impose sanctions on the International Criminal Court’s Japanese president and a senior trial lawyer as “very unfortunate.” The pushback came after Secretary of State Marco Rubio said he was imposing sanctions on Japanese judge and ICC President Tomoko Akane and ​Abdoulaye Seye, a Senegalese lawyer on the prosecution team that sought an arrest warrant for Israeli Prime ​Minister Benjamin Netanyahu. The U.S. State Department had said on July 13 that “no diplomatic option will be ⁠off-limits in the campaign to dismantle the threat posed by the ICC to Americans.” The measures freeze any U.S. ​assets held by those sanctioned and largely shut them out of the U.S. financial system, to which most international banks ​are closely connected. “Japan has consistently supported the ICC, which is a permanent international criminal court, in its efforts to prosecute and punish the most serious crimes of concern to the international community,” Japan’s foreign ministry said in a statement. The latest escalation in U.S. President ​Donald Trump’s campaign against the Hague-based court puts Washington directly at odds with Tokyo over an institution that was ​set up in 2002 to prosecute war crimes, genocide and crimes against humanity. Japan joined in 2007.

As increasingly intense heatwaves turn Japanese summers into survival tests, farmers; from flower and asparagus growers to egg producers, are rewriting the agrarian clock. Once-busy midday hours are now avoided as a mortal threat, replaced by after-dark work to protect crops, livestock and themselves. Japan is especially exposed: around 70% of its farmers are 65 or older, a population especially susceptible to heat stress, and high humidity amplifies the danger. But from rice farmers in Vietnam to winery workers in Spain, farmers across the globe are shifting work to cooler nighttime and early-morning hours as they try to beat more frequent and intense heatwaves.

SOUTH KOREA
SK Hynix announced a 40 trillion won ($28.6 billion) share buyback and cancel plan on Wednesday as part of the South Korean memory chip maker’s shareholder return program, underscoring the company’s confidence in its financial situation after reporting record earnings in the second quarter. The company also raised its shareholder return target for 2025-2027 to more than 50% of cumulative free cash flow, from a previous plan to return within 50%, and signalled further measures could follow later this year.

Samsung Electronics will invest around 240 billion won ($158 million) to build a heating, ventilation and air conditioning, or HVAC, production line at its operations site in Gwangju, South Korea. The investment will target the rapidly growing HVAC market, including the production of advanced cooling solutions for AI data centers. The facility will manufacture products from FläktGroup, which Samsung acquired last year.

SK Biopharmaceuticals said Wednesday it has reached a settlement with Indian generic drugmaker MSN Laboratories in a United States patent dispute over cenobamate, its epilepsy treatment sold as Xcopri in the US, laying the groundwork for continued patent protection for the drug in the world’s largest pharmaceutical market. Although the terms of the agreement were not disclosed, it marks the first resolution in SK Biopharmaceuticals’ strategy to defend Xcopri’s intellectual property rights against generic competition in the US. In June 2024, the Korean drugmaker filed patent infringement lawsuits against Indian drugmakers Aurobindo Pharma and Zydus Pharmaceuticals. It filed a separate lawsuit against MSN in November of the same year after the Indian company sought US Food and Drug Administration approval for a generic version of Xcopri. SK Biopharmaceuticals argued that MSN’s proposed generic drug infringed patents related to Xcopri, prompting the legal dispute in US federal court.

S Korea is seeking to establish a new financial hub outside the capital Seoul to alleviate the excessive population concentration in the capital region. One of the locations under consideration is North Jeolla Province, about 200 kilometers south of Seoul, which is also home to the National Pension Service managing more than USD1 trillion in assets. The Financial Services Commission of S Korea said in a statement that government officials and financial industry leaders discussed plans to develop a new financial hub during a meeting, including how to assess whether North Jeolla Province is a suitable candidate location. The statement said the S Korean government will encourage financial market innovation, build infrastructure in line with global standards, and activate the capital market to make the market more friendly to foreign investors. The commission will also actively support overseas expansion by local financial institutions and strengthen communication with global financial firms operating in S Korea.

South Korea will flag off on Saturday a container ship bound for Europe via the Arctic, testing whether a route opened by ​melting sea ice can be commercially viable, but risking friction with Western allies, as the voyage requires Russian cooperation. If successful, the trip would ‌be South Korea’s first such commercial voyage to Europe via the Arctic, placing it with China and Russia among the few countries whose shipping firms have tested or run cargo services along the route.

TAIWAN
President William Lai yesterday announced plans to increase the salaries of government workers next year and that more military personnel were eligible for bonuses reserved for combat troops starting last month. The government has created a third category of combat unit to make troops performing critical tasks eligible for an NT$4,000 monthly bonus, Lai told the army’s 234th Combined Arms Brigade during an inspection yesterday. The bonuses were first distributed last month, he said.

China has compromised Taiwanese overseas diaspora groups, Overseas Community Affairs Council (OCAC) Minister Hsu Chia-ching said yesterday, confirming comments by Democratic Progressive Party Legislator Michelle Lin. Hsu made the comments while presenting a report at a meeting of the Legislative Yuan’s Foreign Affairs and National Defense Committee on how the council and the Ministry of Foreign Affairs were working together to broaden the international horizons and multilingual capabilities of young people. Lin told the meeting that while she was traveling in England and France in May, she had learned that overseas Taiwanese diaspora groups had been compromised by Chinese infiltrators, who informed the Chinese government of group members’ identities.

The first two of 66 F-16V Block 70 jets that Taiwan has purchased from the US are expected to arrive in Taiwan soon, sources familiar with the matter said yesterday. The two jets, bearing serial numbers 6727 and 6728, would be refueled in-flight and make a maintenance stop during the flight across the Pacific Ocean to accommodate the physical needs of their pilots and the range limitations of the aircraft, the sources said. The Facebook page Jake.Woodward.Aero yesterday posted photographs of the single-seat jets with tail Nos. 6727 and 6728 at a Lockheed Martin facility in Fort Worth, Texas.

Reuters, citing sources, reported that amid strong demand for artificial intelligence chips, capacity in the chip foundry business long dominated by TSMC has become increasingly tight, prompting Samsung Electronics to raise prices for some new orders of advanced chip foundry services by as much as 15%. Sources said Chinese customers are among the groups facing the largest price increases, with demand from Chinese clients particularly strong. However, Samsung has been unable to fulfill all orders because it must serve US customers and reserve part of its capacity to support its own chip production. According to sources, Samsung raised prices in July for chips manufactured using the 4-nanometer process. Price increases for Chinese and US customers rose by 10% to 15% MoM, while Taiwanese customers faced increases of 5% to 10%. In addition, prices for 5-nanometer chips increased by between 10% and 15%, while prices for the older 8-nanometer technology rose by nearly 10%. According to data from research firm Counterpoint, Samsung accounted for 7% of global chip foundry revenue in 1Q26, while TSMC accounted for more than 70%. Artificial intelligence chip orders currently account for most of TSMC’s advanced process capacity. Samsung expects advanced processes to contribute more than half of its chip foundry revenue this year, while artificial intelligence and high-performance computing applications are expected to account for more than 30%, up from 15% to 20% at the end of last year

TSMC’s advanced CoWoS packaging capacity is facing a supply shortage, with orders fully booked, Taiwan’s Economic Daily News reported. Market sources said part of the backend advanced packaging orders has overflowed to Intel (INTC.US) -3.655 (-3.780%) ‘s plant in Malaysia, which is providing partial capacity support to serve shared major clients, breaking past ecosystem practices.

Industrial PC maker Nexcom Int remains cautiously optimistic about its business performance in the second half of this year, given its solid order backlog, company chairman Clement Lin said yesterday. “We have emerged from the downturn, and our business performance should continue to improve going forward,” he said. The company’s revenue in the first quarter fell 30.49 percent year-on-year to NT$1.15 billion (US$36.01 million) as several customers delayed orders.

Tech expo comes to Taipei, The exhibition features about 1,200 vendors from 16 countries and regions across 4,500 booths across halls 1 and 2, showcasing advanced technologies including AI-powered robots, automation equipment and smart logistics, event organizers said. The expo, which runs through Saturday, showcases key technologies required for humanoid robots, including AI computing, visual recognition, sensing systems, motion control, power supplies, servo motors and joint actuators, organizers said.

Techman Robot Inc yesterday showcased its new TM45S heavy-load dual-arm collaborative robots for artificial intelligence (AI) server assembly and semiconductor handling at the Taipei International Industrial Automation Exhibition amid rising demand. Each arm can carry up to 50kg, or 100kg combined, allowing the system to handle AI servers and other heavy components, Techman chief operating officer Scott Huang said. TM45S’ built-in vision positioning allows it to adjust its pick-and-place position automatically when components shift, he said. The product is in the proof-of-concept (POC) stage at server and chipmaking production lines, with sales set to begin by the end of this year and customer deliveries to start in the first quarter of next year, he said. Techman is a subsidiary of Quanta Computer Inc. It operates a manufacturing facility in New Taipei City’s Linkou District, with customers spanning semiconductors, automotive components and traditional industries such as textiles. The company plans to provide its TM Xplore I humanoid robot, showcased last year, to select customers for development and testing in the second half of this year, with commercial sales likely next year, Huang said.

Taiwan should pursue nuclear and renewable power together to ensure a stable electricity supply as the rapid development of artificial intelligence (AI) drives demand for computing infrastructure and electricity. Third Wednesday Club chairman Lin Por-fong said yesterday. “Without a stable supply of electricity, there can be no industrial development,” Lin said on the sidelines of the trade group’s monthly gathering in Taipei. High solar-power costs and difficulties in developing offshore wind made it necessary to reconsider the country’s energy policy, said Lin, who is also chairman of Taiwan Glass Industry Corp.

CHINA
China and South Korea are neighbors and cooperative partners, Chinese Foreign Ministry spokesperson Lin Jian said. Over the 34 years since the establishment of diplomatic relations, China-South Korea relations have developed comprehensively and rapidly, bringing tangible benefits to the peoples of both countries and making positive contributions to promoting regional peace, stability, development and prosperity. Lin pointed out that Chinese President Xi Jinping and South Korean President Lee Jae Myung successfully conducted mutual visits and reached important consensus at the end of last year and the beginning of this year, opening up a new chapter for the development of China-South Korea relations. Chinese Foreign Minister Wang Yi will soon visit South Korea. Lin said he believes Wang’s visit will help both sides further implement the important consensus reached by the two heads of state, strengthen communication, enhance mutual trust, deepen exchanges and cooperation, and jointly promote the continuous advancement of the China-South Korea strategic cooperative partnership.

Deployment of humanoid robots in China has begun expanding into diversified scenarios including automobiles, 3C, aviation, logistics and energy, while the commercialization test for products is also unfolding, according to the latest robotics industry research from TrendForce. TrendForce estimated that China’s humanoid robot market will reach RMB15 billion in 2026. As mass production scales up and application scenarios increase, the market was projected to maintain growth of at least over 60% in 2027. Looking at recent developments among major Chinese humanoid robot companies, AgiBot had cumulatively rolled off 15,000 robots from mass production lines by June 2026, and continues to advance into 3C manufacturing scenarios. Products from UBTECH ROBOTICS (09880.HK) were introduced to customers including Airbus, while pre-orders for its U1 reached 13,361 units by the end of June. Galbot meanwhile partnered with CATL (03750.HK) and won a RMB236 million embodied intelligence equipment procurement project tender.

Revenue of above-scale enterprises in the robotics industry of China crossed RMB300 billion in 2025, with average annual growth topping 20% over the past five years, China’s Vice Minister of Industry and Information Technology Xin Guobin said at the opening ceremony of the 2026 World Robot Conference. In 1H26, revenue reached RMB165.5 billion, up 24.5% YoY. Robotics technologies and products were widely applied across various aspects of the national economy and social development, becoming an important force driving high-quality development.

In response to the US asking parties to “choose sides” between the US and Chinese AI ecosystems, Chinese Foreign Ministry spokesperson Lin Jian said that AI is a collective achievement and valuable asset of all humanity, and the international community generally expects broad AI cooperation. Countries have the right to choose partners based on their own national conditions and development needs. Lin underscored that China adamantly opposes forcing countries to choose sides and engaging in bloc confrontation on AI issues. China hopes all parties will abandon zero-sum thinking, uphold solidarity and cooperation, respect the digital sovereignty of all countries, and jointly build a fair and reasonable global AI governance system, allowing AI to become an important driving force for promoting shared prosperity and safeguarding common security.

NVIDIA Corporation (NVDA.US)’s H200 chips have been approved for export to China, the Financial Times, citing sources, reported. ByteDance and TENCENT (00700.HK) have each received about 10,000 H200 chips in recent weeks, while some other Chinese tech companies may soon obtain similar quantities of the chips. Although the US has reportedly approved Chinese companies to purchase up to 100,000 H200 chips each, China hopes companies will keep most of the H200 chips deployed outside China to support the development of domestic chip manufacturers. Chinese regulators have informed companies that, apart from a small number of H200 chips allowed to enter China, the chips may also be shipped to Hong Kong for deployment. However, due to Hong Kong’s lack of sufficient data centers and power capacity, the situation is unlikely to change in the short term. NVIDIA currently has an inventory of about 500,000 H200 chips, mainly supplied to Chinese customers. However, purchases of H200 chips still require separate approval from relevant authorities. LENOVO GROUP (00992.HK) reportedly informed Chinese customers last week that orders for products equipped with H200 chips could resume.

Sales of electric trucks and buses nearly doubled globally in 2025, data ​from research organization the International Council ‌on Clean Transportation showed in a report published on Thursday. China drove most of the ​growth and other markets such as ​the European Union and India saw ⁠a double-digit increase, the organization said.
*Electric ​trucks and buses crossed the half-million-units mark ​globally in 2025, with sales up 86% year-on-year
*China accounted for nearly 90% of global electric truck ​and bus sales, with sales in ​medium and heavy truck segments more than quintupling ‌over ⁠two years
*Excluding China and the United States, battery electric buses accounted for 56% of zero-emission medium- and heavy-duty vehicle sales, ​with the ​European ⁠Union and India leading in volume at around 9,800 and ​5,000 units, respectively
*Battery electric truck sales ​remained ⁠relatively low, reaching about 41,000 units sold outside of China
*In the EU, electric ⁠truck ​sales increased by 71% ​in 2025, reaching a 4.5% market share.

China said on ​Wednesday that a European Union investigation into Chinese ‌e-commerce giant JD.com (9618.HK) constituted “improper extraterritorial jurisdiction” and ordered entities not to implement or assist with the probe. The ​order, issued by the justice ministry, is ​the second time that China has invoked ⁠its regulations countering “unlawful extraterritorial jurisdiction measures”. Introduced in ​April, the regulations expanded Beijing’s economic pressure toolkit amid ​strained ties with trading partners including the EU.

HONG KONG
Earnings For more https://www.aastocks.com/en/stocks/news/aafn/latest-news

KINGSOFT CLOUD (03896.HK) announced its results for the second quarter ended June 2026. Revenue amounted to RMB3.072 billion, up 30.8% YoY. Net loss narrowed to RMB92.977 million, compared with a loss of RMB456.9 million in the same period last year. LPS was RMB0.02.

XTALPI (02228.HK) announced its interim results for the six months ended June 2026. Revenue was RMB394 million, down 23.9% YoY. The company swung to a loss of RMB251 million, compared with a net profit of RMB82.795 million in the corresponding period last year. LPS was RMB0.06. No dividend was declared.

CHANJET (01588.HK) announced its interim results for the six months ended June 2026. Revenue amounted to RMB548 million, up 13% YoY. Net profit rose 24% YoY to RMB41.61 million, with EPS of RMB0.13. The board proposed an interim dividend of RMB0.14 per share.

CHAMPION REIT (02778.HK) announced its interim results for the six months ended June 2026. Revenue sagged 6.6% YoY to HKD1.086 billion. The REIT swung to a profit of HKD548 million from a loss of HKD1.643 billion in the same period last year. Basic earnings per unit were HKD0.09, vs basic loss per unit of HKD0.27 in the same period last year. Distributable income decreased 9.1% YoY to HKD2.432 billion. Interim distribution per unit was HKD0.0633, compared with HKD0.0701 in the same period last year.

SBP GROUP (01177.HK) announced its interim results for the six months ended June 2026. Revenue added 10.6% YoY to RMB19.44 billion. It recorded a net profit uplift of 1.4% YoY to RMB3.43 billion, while EPS was RMB0.191. The company declared an interim DPS of HKD0.07, compared with HKD0.05 in the same period last year.

Government
Asked about studying the extension of Hong Kong stock market trading hours to enhance market competitiveness, HKEX (00388.HK) CEO Bonnie Chan stressed that HKEX has the capability to extend trading hours. Currently, the derivatives market operates until 3 a.m. the following day, and investors in the Americas trading session have shown clear demand for extending trading hours by two more hours. Relevant adjustments will be prioritized. She explained that extending trading hours by several hours would improve connectivity with the North American market and increase participation from institutional investors there. However, as the spot market involves a broader range of investors, including local, Mainland Chinese and international retail and institutional investors, with varying needs and trading habits, more comprehensive consideration and full communication with all stakeholders are necessary before proceeding. Further announcements will be made at an appropriate time if discussions advance to the next stage. She also revealed that IPO fundraising in the first eight months has already surpassed the full-year level of last year. There are currently many listing applications in the pipeline, but she believed the importance of specific figures declined. The exchange is more focused on diversified development, saying that the product shelf must be comprehensive to cater the needs of different investors.

Warning / Alerts
CH RENEW EN INV (00987.HK) expected to record a net loss of approximately HKD9-10 million for the six months ended 30 June 2026, compared to a net profit of approximately HKD31 million in the same period last year.

JINYUAN HCHEM (02502.HK) issued a positive profit alert, expecting to record a profit of approximately RMB41.6 million for the first half of the year, compared with a loss of approximately RMB9.3 million in the corresponding period last year. The turnaround was mainly attributable to expanded gross profit margins of the Group’s principal products, namely hydrogenated benzene-based chemicals and liquefied natural gas, primarily because price adjustments for these products were more favorable relative to their respective raw materials.

ZHENRO PPT (06158.HK) issued a profit warning, expecting a loss of RMB8.2 billion to RMB8.4 billion for 1H26, compared with a loss of RMB6.463 billion in the same period last year. The increase was mainly attributable to: (1) the number of projects delivered decreased significantly from approximately 2,000 in the same period last year to approximately 600 in the current period, resulting in a decrease in gross profit of approximately RMB93.5 million YoY; (2) a decline in the interest capitalization ratio, leading to an approximately 24% YoY increase in financing costs, or approximately RMB469 million; (3) impairment losses of approximately RMB2.69 billion recognized on properties under development and completed properties held for sale during the current period; and (4) net impairment losses of approximately RMB2.27 billion recognized on financial assets during the current period.

K2 F&B (02108.HK) issued a profit warning, expecting a loss of approximately SGD800,000 for 1H26, compared with a consolidated profit attributable to shareholders of approximately SGD200,000 in the corresponding period of 2025. The result was mainly attributable to a one-off loss of approximately SGD1.1 million recognized upon completion of the disposal of non-current assets held for sale, including directly attributable transaction costs. Excluding this one-off disposal loss, the group would record an adjusted profit before tax of approximately SGD600,000 and an adjusted profit of approximately SGD300,000 for the reporting period.

Buybacks
TENCENT (00700.HK) repurchased 673,000 shares of the company Wednesday (19th) at a price ranging from HKD438.2 to HKD449.2 per share, involving approximately HKD300 million. Since the repurchase mandate resolution was approved, the group has cumulatively repurchased 38.0997 million shares, accounting for 0.41785% of its issued shares.

HSI Short Selling Wednesday 18% vs 18.6% Tuesday
Top shorts Galaxy Ent (27) 57%, Henderson Land (12) 50%, Bud APAC (1876) 45%, Hengan (1044) 43%, Chow Tai Fook (1929) 43%, ZTO Express (2057) 43%, Sinopharm (1099) 42%, Haier Smarthome (6690) 42%, Power Assets (6) 41%, Xinyi Glass (868) 40%,

BoC HK (2388) 39%, Ali Health (241) 39%, Haidilao (6862) 39%, MTRC (66) 38%, J&T Express (1519) 37%, Midea Group (300) 37%, China Shenhua (1088) 37%, CK Asset (1113) 36%, CK Hutch (1) 34%, China Res Power (836) 34%, BYD Electronics (285) 34%, JD Health (6618) 33%, Shenzhou (2313) 33%, Sunny Optical (2382) 33%, Li Auto (2015) 32%, Sands China (1928) 32%, SBP (1177) 32%, Kuaishou (1024) 31%, CATL (3750) 31%, Link REIT (823) 30%

CLP (2) 29%, Trip Com (9961) 28%, Wuxi Apptec (2359) 28%, Xinyi Solar (968) 28%, SHKP (16) 28%, Wharf REIC (1997) 27%, China Overseas (688) 27%, Nongfu Spring (9633) 27%, Longfor (960) 27%, HSBC (5) 26%, WH Group (288) 25%, Bidu (9888) 25%, CKI (1038) 25%, Hang Lung Ppty (101) 25%

WATCH
DATANG RENEW (01798.HK) announced that it completed the issuance of the sixth tranche of 2026 super short-term commercial paper on August 17, with a total issuance amount of RMB1 billion, a term of 87 days and an interest rate of 1.39%

MTR CORPORATION (00066.HK) Wednesday (19th) commenced road trials of an autonomous vehicle (AV) connection service in West Kowloon, paving the way for the service launch in the second quarter of next year. The innovative service will provide a connecting service for passengers travelling between the High Speed Rail (HSR) and Airport Express Kowloon Station. As demand for transit service between HSR and air services (Rail-Air Intermodal Service) continues to grow, the planned AV service will offer an additional transfer option. It will complement the existing pedestrian link between the two stations and further enhancing passenger experience for HSR and air services, fostering the development of the “Rail-Air Intermodal Service”. Following the granting of a pilot licence for autonomous vehicles by the Transport Department (TD), the Corporation will deploy four sixth-generation BIDU-SW (09888.HK) -11.150 (-11.029%) Short selling $853.03M; Ratio 25.260% ‘s Apollo autonomous private cars for the trial. The vehicles will operate along designated road sections between the two stations. During the initial trial period, no passengers will be carried. Each vehicle will be accompanied by a backup operator provided by the contractor, who will continuously monitor the operation and intervene when necessary. To ensure safe and reliable operation, MTR will work closely with the contractor to advance the project and review the trial results, with a view to progressively moving towards a driverless trial with passengers on board, subject to approval from TD.

NEW WORLD DEV (00017.HK)’s Xili project in Nanshan, Shenzhen, has reportedly been officially named “THE BAY PAVILIA”, and is expected to be launched to the market in 3Q26.

CATHAY PAC AIR (00293.HK) announced that Cathay Pacific carried 9% more passengers in July 2026 compared with July 2025, while Available Seat Kilometres (ASKs) increased by 5%. In the first seven months of 2026, the number of passengers carried increased by 16% compared with the same period for 2025. Cathay Cargo carried 6% more cargo in July 2026 than in July 2025, while Available Freight Tonne Kilometres (AFTKs) were at a similar level. In the first seven months of 2026, the total tonnage increased by 8% compared with the same period for 2025.

Wednesday closings in EUROPE and US
DAX -0.14%, CAC -0.09%, FTSE 0.14%
Markets opened around flat; FTSE drifted lower through the morning and then rallied in the afternoon. DAX traded around flat all day. CAC worked higher in the morning and drifted lower in the afternoon.

European inflation was inline.

UK July inflation rose to 2.9% as gas prices jump vs 2.6% June. The inflation print, which was in line with forecasts, was driven by a 3.4% rise in services costs, compared to a more modest rise of 1.7% in goods prices.

DOW 0.22%, NDX 0.16%, S&P 0.21%, Russel 2K 0.5%
Dow opened higher dipped and then worked better for the first two hours and then trended lower to trade just above flat for the rest of the day. NDX opened higher but dipped into the red but then worked better in the morning but eased back to trade just above flat in the afternoon. The S&P opened higher dipped and then worked better for the next hour before trending lower to trade sideways above flat. NDX & S&P both ticked lower into the close.

Yields on the long end of the Treasury curve sank after the Treasury Department said it’s going to at least double the size of its government debt repurchases. The increased buyback is aimed at the 10- to 30-year parts of the market. That’ll include the 20-year.

FOMC minutes showed a fracture vote on interest rates, no surprises. Inflation concerns remain. Officials touched on structural efficiency, including a proposal by Chairman Kevin Warsh to potentially reduce scheduled meetings from eight down to six per year.

Moderna 177% its best day on record after an experimental skin cancer vaccine developed with Merck 12.6% showed success in a late-stage trial.

Marvell Technology 21.27% after announcing an agreement with Google related to its tensor processing units and issuing Alphabet a warrant to buy as much as almost 59 million shares of Marvell common stock.

OpenAI disclosed Q2 results that disappointed investors. While revenue expanded by 18% between the Q1and Q2 losses grew as well.

Stocks viewed as beneficiaries of lower rates saw some gains: Home Depot 2.02%, Lowe’s 2.02% after the company issued a lackluster full-year revenue guidance and earnings guidance. Results for Q2 were also mixed.

Target 4.28% posted quarterly earnings that were boosted by tariff refunds and raised its FY guidance, as the retailer shows more signs its turnaround is taking hold.

Banks JPMorgan Chase -1.65%, Citigroup -3.46% Wells Fargo -1.67%, Amex 0.41%
Ecommerce Meta 0.43%, Apple 2.19%, Amazon 2.46%, Netflix 3.15%, Disney 2.87%, Zoom Comms 2.64%, Alphabet 0.12% and Microsoft 0.56%
Tech NXP Semi -1.11%, Nvidia -0.99%, Micron -0.39%, AMD -3.71%, Skyworks 1.56%, Intel -4.02%
Industrial/Discretionary Boeing -0.39%, Caterpillar -2.94%, Simon Property 1.16%, Kohl’s 0.75%, Gap 0.1%, United Airlines -2.48%, Carnival -2.13%, Wynn Resorts -1.17%
Healthcare Eli Lilly 4.46%, UntiedHealth -1.35%, Johnson & Johnson 0.85% Merck 12.6%
Auto Ford 4.09%, GM 1.49%, Tesla 4.23%
Energy Chevron 0.88%, Exxon Mobil -0.48%, ConocoPhillips 1.54%
Consumer Staples Campbell Soup 4.16% General Mills 5.02%, JM Smucker 3.66%
Buffet’s Top Five Retirement Stocks Coca Cola 1.72%, Apple 2.19%, Johnson & Johnson 0.85%, Proctor & Gamble 0.65%, Berkshire -0.66%

DAILY US CLOSING DATA
USD weaker after Treasury announcement. Bitcoin 7.84% at $69,735.3 on hopes of more regulatory reform via the ‘Clarity Act’; VIX -6% at 14.89
US Bonds T10 down more than 6 bpts to 4.637%, T2 flat at 4.162% and T30 down more than 10 bpts at 5.184%
OIL Brent 0.7% at $91.62, WTI 1% at $85.83 on escalating tension over US/Iran and the wider Middle East as the UAE suspend all financial and economic transactions with Iran.
Spot Gold 3.4% to break above its 100 day moving average
Early Thursday trading. Gold 0.73% Silver 2.04%, Copper 0.19% Platinum 1.25%, Palladium 0.81%.

Also in the mix is the long term funding of AI/tech; as Anthropic’s revolving credit facility is set to rise above its roughly $10 billion target as the AI firm prepares for its highly anticipated IPO. It has proposed the expansion of its so-called revolver, drawing a clutch of banks seeking to bolster their pitch for roles on the IPO.

All of which is going to squeeze household spending along with Government budgets; which is a negative for the global economy.

Although in China yields are bucking the trend as weak domestic demand saw the Chinese T10 slipped 1 bp Tuesday to 1.67%, the lowest level since July last year. Also notable is that China cut its holdings of US Treasuries to a nearly 18-year low in June.

Also of concern was the rising oil prices as tensions rose in the US/Iran conflict; with Trump threatening Oman. Oil prices rising in early trading in Asia.

Canada facing increased tariffs with no sign of any compromise. The White House has signalled that the chances of a deal are a coin flip or less. However, Trump has repeatedly made threats only to back down at the last minute. He was scheduled to speak again with PM Mark Carney Tuesday. The two also held a phone call on Monday. The two sides face a midnight deadline before 50% tariffs on billions of dollars worth of Canadian goods would kick in.

More people talking about the potential for a ’Super” El Niño later this year another concern especially for Asian nations.

Housekeeping
On Monday morning I was on RTHK’s Money Talk with host Megha Chaddah and other guest Hao Zhou Chief Economist at GTJAI looking at the recent economic data and the outlook for stocks going forward.
If there is a topic you would like discussed next week; then let them know or drop me a message, or if you just want to listen to the programme, click the link https://gbcode.rthk.hk/TuniS/www.rthk.hk/radio/radio3/programme/money_talk

Last Thursday afternoon I was on RTHK’s the Close with host Nitin Dialdas and the other guest was Olivier D’Assier, Head of Applied Research, APAC, SimCorp as the other guest. We looked at Japanese PPI, Yen policy and the impact on the wider economy. We also discussed AI and monetisation, contrasting the Chinese and Western models.
If there is a topic you would like discussed this week, when Nitin will host and the other guest will be Daniel Xystus, Chief Investment Officer, AOP Capital, then please message me or contact them via WhatsApp +852 6899 8518 or via the link below, which can also be used to listen to the programme.
click the link https://www.rthk.hk/radio/radio3/programme/the_close

Latest thoughts from Market Thinker - challenging the narrative. Crashenbrenner
A story of West Coast leverage versus East Coast leverage and who gets to create the money?

Looks at the rise and fall of Leopold Ashenbrenner. Linked-in is full of articles about inexperience, hubris, poor risk management and ultimately nemesis in the form of grizzled Wall St trading titans like Ken Griffin and Izzy Englander.

Well worth a read.

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Market opening indications and data due

New Zealand
NZX 50 opened higher testing 13,900 in early trades now trading around 13,890 level.

On Tuesday the NZX opened up and tended higher in choppy trading to close up 144 pts, or 1.1%, to close at 13,866, rebounding from losses in the previous session.
Leaders consumer staples, consumer discretionary, and real estate.
A2 Milk 10.1%, recovering sharply from a 5.7% plunge on Monday after the company reported a 44% plunge in net profit for the 12 months ended June.
Mercury NZ 2.6% after Mercury Energy posted a jump in operating earnings for the 12 months ended June.
Data due out after the open
PPI Input Q2 2.9% QoQ vs 1.4% Q1 (F/cast is 2)
PPI Output Q2 1.6% QoQ vs 0.8% Q1 (F/cast is 1.7)
Out after the close Tuesday
Global Dairy Trade Price Index 18 Aug 2.3% vs 0.1% prior

Australia
ASX futures indicate the market to open -21pts -0.2% at 8,979 with weakness in Gold and Tech. Support from Energy names
Earnings from Evolution Mining, (ASX: EVN), mineral sands producer Iluka Resources Ltd (ASX: ILU), lotteries company Lottery Corporation Ltd (ASX: TLC), energy giant Santos, and coal miner Whitehaven Coal Ltd

On Tuesday the ASX 200 opened lower but worked better to test 9,110 in the morning session but then eased back and was range bound in the PM to finish flat -3.2pts -0.035% at 9,070
Leaders were Health Care (CSL 17.25% for stronger-than-expected FY27 guidance) and Materials (as BHP 2.7% after reporting a 30% surge in underlying profit and its highest cash dividend return in four years).
Laggards were Financials (after regional lender Bendigo and Adelaide Bank -5.61% following a warning regarding APRA licence conditions over non-financial risks), InfoTech and Consumer Staples
Data out 90 minutes after the open
Wage Price Index Q2 QoQ vs 0.8% Q1 (F/cast is 0.8%)
Wage Price Index Q2 YoY vs 3.3% Q1 (F/cast is 3.2%)
Mid morning
RBA Hauser Speech

Japan
Chicago Nikkei Futures -290pts -0.44% at 66,005.00
Yen 159.59

On Tuesday the Nikkei opened lower ticked higher but then reversed and sold down for the rest of the day to close -2.54% -1,759.52 pts at 67,460.73. Snapping a 5 day winning streak. Tech and Auto’s under pressure but Softbank rallied. Turnover dropped significantly vs Monday, the thin volume enhancing the downward moves.
Data due 10 minutes before the open
Machinery Orders Jun MoM vs -12.4% May (F/cast is 9.5%)
Machinery Orders Jun YoY vs -1.9% May (F/cast is 4%)
Mid Morning
52-Week Bill Auction vs 1.2066% prior
BoJ JGB Purchases

S Korea - No Data Scheduled
Kospi Futures indicate opening -46.3pts -4.29% at 1,031.95. The Seoul AI summit kicks off today.

The Kospi on Tuesday re-opened higher up 2% and ticked higher but trended lower and closed -108.11 pts, or 1.55%, to end at 6,869.83.
Trade volume was moderate at 399.04 million shares worth 29.64 trillion won ($20.9 billion) with decliners outnumbering gainers 679 to 195.
Institutions sold a net 784.9 billion won worth of stocks, while foreigners bought a net 91.4 billion won and retail investors bought 731.29 billion won.
Large cap stocks were mixed.
The Korean won was quoted at 1,411.8 won against the US dollar at 3:30 p.m. Tuesday, up 1.2 won from the close of the previous stock trading session.

Taiwan - No Data Scheduled
Taiex futures indicate market to open -462pts -1.02% at 44,626

On Tuesday the Taiex opened flat but trended lower to close down 548.59 pts, or -1.2%, at 45,308.68 after moving between 45,225.42 and 46,064.09. Turnover totaled NT$958.44 billion (US$30.10 billion) vs NT$942.03 billion (US$29.47 billion) Monday. As investors rushed to pocket recent gains amid fears over volatility on the settlement of August futures contracts.
Foreign institutional investors held about 83,000 more short positions than long positions in August futures contracts, a relatively high level, indicating foreign investors’ growing caution about the possibility of a major pullback after the recent strong upturn.
Tech sector was weak but there was support from Shipping and Financials.
According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$11.99 billion of shares on the main board Tuesday.

China - No Data Scheduled
Golden Dragon Index closed -64pts -1% at 6,256.97
FTSE A50 futures -48pts -0.32% at 15,045
MSCI A50 futures -5pts -0.18% at 2,780.2

On Tuesday the A shares opened mixed, they traded lower in the morning and rebounded in the afternoon.
Shanghai Composite: closed 0.19% at 3,990.30
Shenzhen Component: closed -0.56% at 14,622.50
ChiNext Index: closed -0.92% at 3,705.56
STAR Composite Index:0.27% at 2,104.77
Combined Turnover: Around 2.4 trillion yuan (approx. $353.43 billion USD), increasing slightly from the prior session.
Leaders: Agriculture, fishery, petrol, and food & beverage sectors.T
Laggards: Film and television, gaming, and brain-computer interface concepts.
USD/CHN flat at 6.7465
RMB spot exchange rate against the USD closed down 45 bps today (18th) at 6.7427 against the USD. As of 4:47 pm, RMB night trading fell 27 bps; offshore RMB fell 49 bps to 6.7455 against the USD, representing a 28-bps discount to the onshore rate.

Hong Kong - No Data Scheduled
ADR’s closed -344.15pts -1.36% at 25,324 all. ADR’s in the red except CLP and SHKP. Big week for earnings over night Bidu and Xiaomi disappointed.
Hang Seng Futures indicate -70pts -0.28% at 25,371
Turnover Tuesday HK$255.54B vs HK$236.4B Monday
Short Selling Tuesday 18.6% vs 18.3% Monday

On Tuesday the HSI opened lower initially ticked higher but then reversed to trade 25,250/350 through the morning. It rallied in the afternoon and closed up 0.07% at 25,471.15 pts
Leaders. Alibaba up 0.9%. Tech and Auto Heavyweights: Underwent a late-session rotation as foreign capital rotated into undervalued internet and auto leaders.State-Owned Lenders: Provided baseline stability after absorbing early selling pressure in the morning session
Laggards. Xiaomi Corp: -4.8% after global investment banks cut target prices over rising memory chip costs.
AIA Group: -1.9% to heavily weigh down the financial sector benchmark. Ping An Insurance: -1.2% amid broad weakness in large insurance names.
HSBC -0.7% following macroeconomic pressures and regional banking caution

Macau - No Data Scheduled
Singapore - No Data Scheduled
Malaysia - No Data Scheduled

Indonesia - Data Scheduled after lunch
Interest Rate Decision Aug no change from existing 5.75% expected
Deposit Facility Rate Aug no change from existing 4.75% expected
Lending Facility Rate Aug no change from existing 6.5% expected
Loan Growth Jul YoY vs 12.67% Jun (F/cast is 13%)

Philippines - No Data Scheduled
Thailand - No Data Scheduled

Vietnam - No Data Scheduled
Google has told suppliers it plans to have all of its Pixel smartphones, watches and wireless earbuds produced outside of China starting next year amid ongoing Washington-Beijing tensions, Nikkei Asia has learned. Google has been aggressively expanding capacity in Vietnam and India to lower its dependency on China in recent years. This will be a significant boost to Vietnam’s economy and should help it avoid the middle income trap.
That comes as Vietnam taps Samsung hub and Ha Long Bay province as growth zones. Bac Ninh and Quang Ninh set for central government status as Hanoi seeks to boost investment and industry.

Cambodia - No Data Scheduled
Myanmar - No Data Scheduled
India - No Data Scheduled

Europe
Eurozone - ECB’s Lagarde Speech, Current Account, Core Inflation Rate Final, CPI Final, Inflation Rate Final
Germany - 10-Year Bund Auction
France - No Data Scheduled
United Kingdom - Inflation Rate, Core Inflation Rate, PPI Core Output, PPI Input, PPI Output, Retail Price Index

United States
Futures opened Dow -12pts -0.02% S&P -0.07% NDX -0.19%
After Market
API Crude Oil Stock Change 14 Aug -3.28M vs 9.072M prior
Data Scheduled: MBA Mortgage Data (30-year Rate, Applications, Mortgage Index, Refinance Index, Purchase Index), EIA Oil Report, 17-Week Bill Auction, 20-Year Bond Auction, FOMC Minutes.

HEADLINES & NEWS
NEW ZEALAND & AUSTRALIA
CBA punishes Qantas customers in reward points overhaul. The bank has struck a new partnership with Virgin ahead of a move by the RBA to cut the fees that can be charged for credit card transactions.

Almost 150 BHP employees were subjected to sexual harassment, including indecent touching and stalking, or racial abuse in just 12 months, leading to 131 sackings and resignations at the mining giant in response.

JAPAN
Idemitsu Kosan (5019.T) Japan’s second-largest oil refiner, has begun sourcing Saudi crude from Yanbu via the Suez route and the ‌Cape of Good Hope and sees no near-term threat to stable supplies, helped by UAE crude routed via Fujairah and imports from North America, its president said on Tuesday. “If you set aside longer shipping times and higher transportation costs, we don’t expect any significant disruption to crude procurement,” President ​Noriaki Sakai told Reuters. Saudi Aramco has offered additional crude cargoes for loading from Egypt’s Mediterranean port of Sidi Kerir ​since July. The crude, loaded from Saudi Arabia’s Red Sea port of Yanbu, is shipped to Ain Sukhna in Egypt, then transported through the Suez-Mediterranean Pipeline to Sidi Kerir for export.

SoftBank Group is planning to issue around 1 trillion yen ($6.26 billion) of corporate bonds aimed at retail investors in Japan, Nikkei learned Tuesday. The bond sale is expected to be the largest-ever retail issue by a Japanese company. As competition to invest in artificial intelligence heats up globally, the Japanese technology conglomerate aims to raise funds from Japan’s abundant pool of personal wealth.
Softbank Group also unveiled a new stake in Capital ​One (COF.N) and disclosed that it ‌sold 71.5% of its stake in Taiwan Semiconductor Holdings during Q2 in filings ​with the US Securities and ​Exchange Commission.

Russia delivered a strong protest to Japan’s ambassador to Moscow on Tuesday over what it ​called anti-Russian remarks by PM Sanae Takaichi in a dispute ‌over a group of Russian-controlled islands off northeast Japan. Moscow’s summoning of envoy Akira Muto is the latest development in a simmering row between the two countries after Russian President ​Vladimir Putin visited one of the disputed islands last week.

German drone maker Helsing has enlisted Japanese e-commerce and finance firm Rakuten (4755.T) ​to help finalise a deal to sell its unmanned systems to Japan’s army, a spokesperson ‌for Rakuten said on Monday. Japan’s Ground Self-Defence Forces are currently testing Helsing’s HX-2 strike drone, as Tokyo looks to modernise its military and counter an increasingly assertive China. The field tests will run until the end of September, the spokesperson said.

SOUTH KOREA
Moody’s has raised South Korea’s 2026 growth forecast to 3.5% from 2.5%, betting that the AI-driven memory chip boom will extend into mid-2027. Earlier this month, the ratings agency projected that Korea’s GDP would grow 3.5% this year and 2.7% next year in its periodic review of the country’s sovereign credit ratings. The latest outlook marks a full percentage-point increase from Moody’s May forecast of 2.5% growth for the Korean economy in 2026. It also nearly doubles the agency’s projection from February when it estimated growth at 1.8%.

South Korea needs more than a won-denominated stablecoin to keep digital asset activity onshore, as more investors seek a wider range of products unavailable at home, according to Vincent Chok, CEO and co-founder of stablecoin issuer First Digital. First Digital is a digital asset financial services firm and the issuer of FDUSD, a dollar-backed stablecoin that sits among larger stablecoins traded on global crypto markets. A net 14.92 trillion won ($10.5 billion) in stablecoins moved from Korea’s five major crypto exchanges to overseas platforms from January 2025 through June this year, according to Financial Supervisory Service data recently submitted to Rep. Lee Jong-wook. Outflows exceeded inflows for 18 straight months, averaging 829.1 billion won a month.

Hyundai Engineering & Construction said Tuesday it has been selected as a construction partner for BIll Gates-backed TerraPower’s next-generation nuclear power projects, strengthening its push to secure a lead in the global advanced energy supply chain. Under the agreement, the companies will expand cooperation in the nuclear power sector, including TerraPower’s advanced nuclear reactor project Natrium, and jointly identify new business opportunities by combining their respective technologies and expertise. Hyundai E&C said it will serve as an engineering, procurement and construction, or EPC, partner for up to eight additional Natrium reactor units that TerraPower plans to develop following its first project in Wyoming.

TAIWAN
Outbound investments approved by Taiwan’s government surged 200 percent from a year earlier during the January-July period largely due to TSMC spending heavily overseas, according to the Ministry of Economic Affairs (MOEA). Data released by the MOEA’s Department of Investment Review on Monday showed approved outbound investments for the first seven months of this year totaled US$61.26 billion in 395 applications, up 208.43% from a year earlier.

Taiwan Power Co (Taipower) yesterday said higher natural gas prices caused by the Middle East conflict could increase its fuel costs by more than NT$120 billion (US$3.76 billion) this year. The estimated cost increase comes as CPC Corp has raised natural gas prices for power generators aggressively this year, with hikes of about 50% in April and May and another hike of 10% this month, Taipower vice president Tsai Chih-meng said during a news conference in Taipei. Taipower’s data showed that the average purchasing price of natural gas in the first seven months of this year stood at NT$16.2910 per cubic meter, up from the average of NT$13.8013 per cubic meter last year.

Innolux Corp yesterday said its fan-out panel-level packaging (FOPLP) business is expected to see double-digit percentage growth in shipments this year, along with a positive outlook for next year, company chairman Jim Hung said during an earnings conference. The company’s FOPLP monthly shipments have reached more than 40 million units, Hung said. The shipments of its first chip-first FOPLP project have increased more than tenfold since its test run, he said.

Manz Taiwan which specializes in panel-level packaging equipment manufacturing, yesterday said the semiconductor ecosystem has developed rapidly in Taiwan, boosting its business outlook. The company supplies electrochemical deposition (ECD) equipment used in panel-level packaging, including chip-on-panel-on-substrate (CoPoS) and fan-out panel-level packaging (FOPLP) with square panel sizes ranging from 310x310mm and 510x510mm to 700x700mm. That places Manz as the third company in the world — after Applied Materials Inc and Lam Research Corp — capable of supplying such equipment used in panel-level packaging production.

CTBC Financial Holding Co expects earnings momentum to remain strong in coming quarters as robust banking and insurance businesses, overseas operations and capital-market activity underpin growth, executives said yesterday. The company expects Taiwan’s strong economic growth and corporate profitability to sustain demand for banking, wealth management and insurance services, while overseas operations are becoming an increasingly important source of earnings, CTBC Financial president Rachael Kao said at an earnings conference in Taipei. CTBC Financial’s net profit rose 10% to a record NT$39.54 billion (US$1.24 billion) in the first half of this year, as its banking arm, CTBC Commercial Bank Co, posted strong growth across core businesses, with net interest income rising 24% YoY and fee income increasing 26%. Wealth-management revenue surged 44% as buoyant capital markets lifted demand for investment products.

Taiwan and other technology democracies have a “golden but narrowing” three-to-five-year window to lay the foundations for an advanced robotics supply chain outside China, particularly for humanoid robots, a Taiwan-based researcher said yesterday. A report released on Monday by the Research Institute for Democracy, Society and Emerging Technology (DSET) examines China-West competition in physical artificial intelligence (AI) and Taiwan’s potential role in developing alternatives to Chinese robot supply chains. Humanoid robots remain unproven, meaning China’s lead in shipments currently has a limited impact on the real economy, Nathanael Cheng a policy analyst in the DSET Economic Security Program, said in a written response to CNA.

CHINA
The World Robotics Conference in Beijing starts today; that could be a new growth sector for China to dominate. There are expected to be more than 2,000 exhibits and see over 150 new product launches as China presses for leadership in the industry. Companies like Unitree Robotics are eying production capacity expansions in anticipation of growing humanoid demand. The conference coincides with the Shanghai stock market debut of Unitree, one of the world’s largest humanoid robot makers by sales volume, after an initial public offering that was more than 8,000 times oversubscribed by retail investors. Unitree founder Wang ​Xingxing will address the conference’s main forum on Thursday on the next decade of the humanoid industry, according to the Beijing municipal government.

Nokia plans to cut most ‌of its workforce in mainland China and close sites in ​stages by year end, ​the South China Morning Post reported ⁠on Tuesday, citing sources ​familiar with the situation. A Nokia ​spokesperson said the group has communicated earlier that it has been taking ​steps to better align ​its operations in China with its ‌global ⁠operations, and that its China business has steadily declined in recent years years.

A US congressional advisory body said on Tuesday that China is commercialising and monetising data as a strategic national asset to power its AI and technology goals, which could potentially give it an advantage ​over the U.S. in the AI race. Beijing is “marshalling data to drive productivity ... (and) improve its intelligence collection ‌and military capabilities,” the U.S.-China Economic and Security Review Commission wrote in a report released on Tuesday.

Foreign Minister Wang Yi ​will visit South Korea from August ‌19 to 20, South Korea’s Foreign Ministry said on Tuesday, marking his first official trip to the ​country in five years. South Korean President ​Lee Jae Myung will receive Wang on ⁠Thursday at the Blue House to ​discuss bilateral relations and regional affairs and ​convey his regards to Chinese President Xi Jinping, according to the presidential office.

HONG KONG
Earnings For more https://www.aastocks.com/en/stocks/news/aafn/latest-news
GIANT BIOGENE (02367.HK) announced its interim results for the six months ended June 2026. Revenue was RMB2.918 billion, down 6.3% YoY. Net profit was RMB940 million, down 20.5% YoY. EPS was RMB0.89. No dividend was declared. During the period, gross profit amounted to RMB2.318 billion, down 8.8% YoY, mainly due to a decrease in sales revenue and an increase in cost of sales. Gross margin declined from 81.7% to 79.5%, primarily because the company continued to expand its product portfolio by introducing more skincare product categories beyond dressings and serums, leading to structural fluctuations in overall gross margin.

XIAOMI-W (01810.HK) announced its interim results for the six months ended June 2026. Revenue amounted to RMB208.063 billion, down 8.4% YoY. Net profit was RMB14.186 billion, down 37.9% YoY, with EPS at RMB0.55. No dividend was declared. Under non-IFRS measures, adjusted net profit for 1H26 was RMB12.291 billion, down 42.8% YoY. For 2Q alone, revenue was RMB108.922 billion, down 6.1% YoY and in line with market expectations. Profit for the period fell 20.5% YoY to RMB9.463 billion. Under non-IFRS measures, adjusted net profit for 2Q was RMB6.219 billion, down 42.6% YoY. Revenue from the Smartphone x AIoT segment in 2Q reached RMB84 billion, down 11.3% YoY, with gross margin at 20%. Average selling price of smartphones rose 25.9% YoY to RMB1,351, hitting a record high. Revenue from the Smart EV and AI and other innovative businesses segment increased 17.1% YoY to RMB24.9 billion. Smartphone shipments in 2Q decreased 26.5% YoY to 31.2 million units. R&D expenses in 2Q rose 18.9% YoY to RMB9.2 billion. Capex in 2Q amounted to RMB3.6 billion, including RMB2.4 billion of capex for the Smart EV and AI and other innovative businesses segment.

BIDU-SW (09888.HK) announced its results for 2Q26 ended June 2026. Non-GAAP net profit amounted to RMB2.573 billion, down 46.3% YoY. Non-GAAP diluted earnings per ADS was RMB7.22, below market expectations of RMB9.84. During the period, total revenue of the group was RMB31.325 billion, down 4% YoY, compared with market expectations of RMB31.59 billion. Revenue from Baidu General Business was RMB25.2 billion, of which AI business revenue accounted for 50%, marking the second consecutive quarter in which the proportion exceeded half. Baidu founder Robin Li said the continued growth of the AI business further validated Baidu’s transition from an internet-centric company to an AI-first company.

CHANGMAO BIO (00954.HK) announced its interim results for the six months ended June 2026. Revenue rose 6.3% YoY to RMB290 million. Loss narrowed to RMB4.932 million from RMB25.79 million in the same period last year, with LPS of RMB0.009. No dividend was declared.

WEIMOB INC (02013.HK) announced its interim results for the six months ended June 2026. Revenue was RMB869 million, up 12.1% YoY. Loss widened to RMB157 million, compared with a loss of RMB33.06 million in the same period last year. LPS was RMB0.04. No dividend was

FUYAO GLASS (03606.HK) announced its interim results for the six months ended June 2026. Under the China Accounting Standards for Business Enterprises, revenue amounted to RMB21.971 billion, up 2.44% YoY. Net profit was RMB3.97 billion, down 17.37%. EPS was RMB1.52. The company proposed an interim dividend of RMB1 per share, compared with RMB0.9 in the corresponding period of the previous financial year.

DAPHNE INT’L (00210.HK) announced its interim results for the six months ended June 2026. Revenue was RMB179 million, down 10% YoY. Net profit was RMB49.35 million, down 24% YoY. EPS was RMB0.025. No dividend was declared.

Government
A spokesman for the Environment and Ecology Bureau (EEB) said Tuesday (18th) that the Inter-departmental Working Group on Using Hydrogen as Fuel has given an agreement-in-principle to another application of a trial project on hydrogen fuel technology. The said project concerns an application jointly submitted by Pacific Gate Development Limited, HK & CHINA GAS (00003.HK) and EnerVenue Hong Kong Limited, which involves the supply of electricity for a meeting room through the utilisation of metal hydrogen energy storage technology at a construction site in Central.

Warning / Alerts
HONY MEDIA (00419.HK) issued a profit warning, expecting loss for the six months ended June to narrow to less than HKD10 million, compared with HKD43 million recorded in the corresponding period last year. The substantial reduction in loss was mainly attributable to the Medinova business segment turning from loss to profit; a gain of HKD5 million from the disposal of the smart healthcare service platform business; and a gain of approximately HKD11 million arising from the extension of the principal maturity date and interest payment date of convertible bonds.

KA SHUI INT’L (00822.HK) issued a profit warning, expecting to record a net loss of up to HKD60 million for the interim period ended 30 Jun 2026, compared with a loss of approximately HKD39.4 million in the same period last year. The wider loss was mainly attributable to the industry’s common pricing and tendering mechanism, under which peers generally adopted highly aggressive pricing strategies to compete for orders. After the group adjusted its pricing strategy accordingly, revenue growth in 1H26 fell short of expectations. Meanwhile, amid global macroeconomic uncertainties, customers became more cautious in procurement and requested product price reductions and adjustments to order volumes, resulting in a sharp decline in short-term gross profit margin during the period. The group emphasized that it will accelerate the application of material substitution solutions in high-growth industrial sectors such as AI PCs, AI data centers, low-altitude flight platforms and humanoid robots in the future, in order to further strengthen its competitive position in the lightweight material solutions market.

Buybacks
TENCENT (00700.HK) repurchased 681,000 shares Tuesday (18th), with prices ranging from HKD437.8 to HKD445 per share, involving HKD300 million. Since the repurchase mandate resolution was approved, the group has cumulatively repurchased 37.4267 million shares, accounting for 0.41% of issued shares.

HSI Short Selling Tuesday 18.6% vs 18.3% Monday
Top shorts Hengan (1044) 48%, Galaxy Ent (27) 48%, Power Assets (6) 47%, Chow Tai Fook (1929) 46%, Henderson Land (12) 43%, HK & China Gas (3) 43%, Bud APAC (1876) 43%, HSBC (5) 41%, China Res Land (1109) 41%, CLP (2) 41%, J&T Express (1519) 40%, SBP (1177) 40%, Haier Smarthome (6690) 40%,

MTRC (66) 39%, Xiomi (1810) 38%, Midea Group (300) 37%, Ali Health (241) 36%, ZTO Express (2057) 36%, CKI (1038) 35%, CATL (3750) 34%, Sinopec (386) 34%, Wharf REIC (1997) 33%, CK Asset (1113) 33%, Longfor (960) 32%, Xinyi Glass (868) 32%, Shenzhou (2313) 32%, Wuxi Apptec (2359) 31%, Sands China (1928) 31%, Li Auto (2015) 30%, CK Hutch (1) 30%

China Overseas (688) 29%, HKEX (388) 29%, Xinyi Solar (968) 29%, Sunny Optical (2382) 28%, Sinopharm (1099) 28%, SHKP (16) 28%, BYD Electronics (285) 27%, Laopu Gold (6181) 26%, CSPC Pharma (1093) 25%,

WATCH
HKEX (00388.HK) welcomes the announcement by the National Financial Regulatory Administration (NFRA) enabling Chinese Mainland insurance funds to invest in Hong Kong exchange traded funds (ETFs) through Southbound Stock Connect. HKEX CEO Bonnie Chan commented that the new measures will not only facilitate mainland insurance institutions’ cross-border diversified asset allocation, but will also significantly enhance liquidity in Hong Kong’s ETF market, further increase the attractiveness of the Shanghai-Shenzhen-Hong Kong Stock Connect, and fortify Hong Kong’s position as an international financial center.

BOC HONG KONG (02388.HK) assisted Export Development Canada in issuing its first public HKD bond (wonton bond). It is Canada’s first wonton bond issued by a quasi-sovereign institution, with a tenor of three years, an issuance size of HKD3 billion, and pricing at 3.627%.

HKEX (00388.HK) announced enhancements to the methodology of the HKEX Tech 100 Index, including updated definitions for technology theme-related sectors and expanded coverage of emerging technology trends, including opportunities across the AI industry chain. The exchange will also revise constituent eligibility criteria, listing history and revenue distribution requirements, while lowering the single constituent weight cap and introducing a sector weight cap to enhance the index’s representativeness and diversification, and to better reflect market developments. The index will introduce a quarterly rebalancing mechanism to include securities meeting constituent eligibility requirements. In terms of weighting calculations, the cap for each constituent stock will be lowered to 8%, while a new sector weight cap of 25% will also be introduced. The optimized index methodology and related constituent adjustments will be implemented after market close on September 11 and take effect on September 14. HKEX said it will continue expanding its index business and work with the industry to develop innovative indices and investment products, enriching investor choices and adding vitality to Hong Kong’s diversified asset ecosystem. The HKEX Tech 100 Index, launched in December 2025, is a broad-based technology index designed to reflect the performance of the 100 largest Hong Kong-listed companies highly related to technology themes and eligible for Southbound Stock Connect
Constituents include TENCENT (00700.HK), BABA-W (09988.HK), MEITUAN-W (03690.HK), XIAOMI-W (01810.HK), NTES (09999.HK), BYD COMPANY (01211.HK), SMIC (00981.HK), BEONE MEDICINES (06160.HK), WUXI BIO (02269.HK), KUAISHOU-W (01024.HK), LENOVO GROUP (00992.HK) and SENSETIME-W (00020.HK). Among them, the weightings of TENCENT, BABA-W, MEITUAN-W and XIAOMI-W in the index had all surpassed 8% as of end-July 2026.

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Tuesday closings in EUROPE and US
DAX -0.8%, CAC -0.82%, FTSE 0.07%
Markets open mixed; FTSE opened flat, it ticked higher in early trades but then reversed down to 5,777 before working better for the rest of the day. DAX dipped on the open and then drifted higher to just below flat. CAC dipped on the open and then traded sideways for the rest of the day.

UK unemployment was steady at 4.9% slightly higher than the estimate. The number of payrolled employees rose 83,000 in the three-month period, missing the 129,000 forecast in a Reuters poll. Average weekly earnings were up 4.1% YoY in line with expectations of 4%.

H&M 4.05% following price target upgrades by Citigroup and Jefferies.

DOW -0.22%, NDX -1.33%, S&P -0.69%, Russel 2K -1.3%
Markets opened lower, with DOW, NDX and S&P seeing choppy trading sideways in a tight range. Russell 2000 trended lower. Tech under pressure1. Western Digital -7%, Sandisk -9%. Marvell Technology -8% and Seagate Tech -9%. But Health care and biotechnology stocks climbed to all-time highs as investors rotate into stocks outside tech.

Building Permits rose MoM but Housing Starts fell significantly as did Pending Home Sales. Other data was mixed

Home Depot -0.12% having pickup up 1% in early trade ;Q2 results beat analyst consensus expectations but the company kept its full-year guidance unchanged.

Carvana -7.3% following sales of the stock from two of its directors last week.

UGI 9.4% after The Wall Street Journal reported that KKR made a $9 billion bid to take over the utility.

Banks JPMorgan Chase 0.63%, Citigroup -0.62% Wells Fargo -0.16%, Amex 0.69%
Ecommerce Meta -4.45%, Apple 1.45%, Amazon -0.71%, Netflix 2.3%, Disney 0.43%, Zoom Comms -0.81%, Alphabet -0.05% and Microsoft 0.27%
Tech NXP Semi -1.79%, Nvidia -2.34%, Micron -7.02%, AMD -4.27%, Skyworks -0.44%, Intel -6.58%
Industrial/Discretionary Boeing -1.28%, Caterpillar -4.63%, Simon Property -0.48%, Kohl’s -3.01%, Gap -0.5%, United Airlines -2.9%, Carnival -1.66%, Wynn Resorts -1.46%
Healthcare Eli Lilly 3.6%, UntiedHealth -0.43%, Johnson & Johnson 3.33% Merck -0.59%
Auto Ford -0.85%, GM -0.78%, Tesla -0.72%
Energy Chevron 1.5%, Exxon Mobil 2.54%, ConocoPhillips 2.24%
Consumer Staples Campbell Soup 0.79% General Mills 0.26%, JM Smucker 0.57%
Buffet’s Top Five Retirement Stocks Coca Cola 2.12%, Apple 1.45%, Johnson & Johnson 3.33%, Proctor & Gamble 0.23%, Berkshire 0.95%

DAILY US CLOSING DATA
USD softer. Bitcoin 0.37% at $64,538.45, VIX up 4.28% at 15.84
US Bonds T10 down more than 1 bpts to 4.706%, T2 down more than 1 bpts at 4.175% and T30 down more than 2 bpts at 5.285% having hit an intraday 19 year high.
OIL Brent up 15 cents at $91.02, WTI up 44 cents, 0.5% at $84.94 as US/Iran tensions escalate.
Spot Gold -0.5% Silver -4.24%, Copper -2.42% Platinum -3.86%, Palladium -3.58%.

US and European markets drifted lower overnight, a sign that the summer doldrums are upon us; data likely to remain light for the next couple of weeks.. Trump again sort to injection some contention, claiming the US had total control over the Straits of Hormuz and will claim sovereignty over it in due course. He threatened to bomb Oman ‘if they get in the way’ and to scale back US/S Korea war exercises to appease the N Korean dictator.

The response from Iran was clear; the country would shift to an offensive posture if diplomacy with the US fails. Oil prices rose along with US Treasury yields; the T30 hit its highest since June 2007.

A lot of the data out yesterday missed expectations and might indicate that the US/Iran war and the conflicts are having a significant impact on the world economy; especially on China. Today in Asia ii is a relatively light day for data but from the US we get ADP Employment and Housing Data, Industrial and Manufacturing Production and API Crude Oil Stock Change; so expect some caution ahead of that.

US earnings are also wrapping up; but this week we get a number of retail company earnings; Home Depot today, Lowe’s Wednesday and Walmart Thursday; so more focus on the US consumer along with the Housing Data.

In the Tech world, Micron Tech 4.13% on news that the Trump administration is not in support of Apple buying memory chips from China. Bloomberg reported that Anthropic’s second-quarter revenue was more than $11.5 billion; a massive jump from a year earlier.

Nike -4% on Monday and -38% YTD, still under pressure despite implementing a recovery plan; it continues to face competition from brands like On and Hoka, along with weaker demand in key China; where it is looking to change its distibution channels.

On the wider economy; former St. Louis Fed President Jim Bullard said that now was a good time for the Fed to raise rates to actually get inflation down below 2%. Later this week we will get FOMC minutes. Traders have sharply pulled back their expectations for Fed tightening. Futures pricing Monday afternoon pointed to just a 32.6% probability of a cut at the Sept. 15-16 meeting, after just a few weeks ago assigning strong odds to a move, according to the CME Group’s FedWatch. A December hike is now the general expectation.

The New York Fed’s Empire State Manufacturing Survey posted a reading of 20.6, its best level in more than four years, up 5 points from July and well ahead of the Dow Jones consensus for 12. Though readings on new orders and shipments were softer than July, they both still showed expansion. Unfilled orders jumped to 15.5, up 10 points from a month ago, while the employment measure edged lower to 9.3. The prices paid index rose but the prices received measure decreased.

The index survey the percentage difference between managers reporting growth against contraction.

On Monday, Chinese markets, including the HSI closed higher, despite weak economic data out Friday and Monday. Team China still active and I suspect some investors still believe that Beijing will introduce stimulus to get the economy moving. I remain doubtful of that and I worry that it is facing pushback from many developed markets to whom it exports; especially in the Electric Auto and Solar sectors. Press reports highlight that Australian Prime Minister Anthony Albanese’s tone toward China is hardening. All whilst China’s domestic consumption remains weak and I think that is still related to the weakness in the housing markets. Whilst I can understand Beijing wanting to fund investment into Tech it has not managed to convince the investing public that they will benefit.

With that in mind it will be interesting to see how the World Robotics Conference in Beijing goes, it starts Wednesday; that could be a new growth sector for China to dominate. There are expected to be more than 2,000 exhibits and see over 150 new product launches as China presses for leadership in the industry. Companies like Unitree Robotics are eying production capacity expansions in anticipation of growing humanoid demand.

The Japanese Yen remains in focus for many and the lack of dialog from the BoJ is a worry for me; clearer policy I think would send a better signal; especially as the Japanese economic growth slowed to 1.1% pa; Exports were the main driver of growth, with shipments from the country beating expectations for all three months of the quarter. However, this was helped by the weak yen as opposed to simply a higher volume of shipments.

Today many will be watching Tata Son’s AGM,loook out for any updates on the plan to turn around the loss-making airline Air India, and the strategy to counter the impact of AI on the group’s crown jewel, Tata Consultancy Services. It comes as Chairman Natarajan Chandrasekaran announce he will step down in February next year, and his successor will face a multitude of challenges.

Key data points this week will be PMI data out at the end of the week. A rate decision for Indonesia. Also later this week; trade data from Japan & Malaysia and Hong Kong inflation.

Next Sunday we get Singapore Prime Minister Lawrence Wong making an annual address to mark the independence of the city-state. Wong is expected to address how his government can further support families as the Southeast Asian financial hub struggles with raising its birth rate.

Kazakhstan will head to the polls for the second time in three years after a new constitution was adopted on July 1. Seven parties will contest the election, however no genuine opposition parties have been registered -- elections in the Central Asian country are not considered free or fair by international observers.

Markets are expected to open lower

New Zealand
NZX 50 opened higher currently up 60.47pts 0.44% at 13,782.45

Australia
ASX 200 futures indicate -36pts -0.4%

Japan
Nikkei Futures -320pts -0.46% at 68,970
Chicago Futures -50pts -0.07% at 69,040
Yen159.42

S Korea
Markets re-opens after Liberation Day Futures -3.95, -0.36% at 1,094.95

Taiwan
Taiex futures -56pts -0.12% at 45,811

China
China Golden Dragon Index closed up 23.5pts 0.37% at 6,320.94
FTSE A50 futures -35pts -0.23% at 15,131
MSCI A50 futures -5.4pts -0.19% at 2,794.2

Hong Kong
HK ADR’s -282.93pts -1.11% at 25,385. All in the red except CLP and Baba
HSI Futures -68pts -0.27% at 25,355

Oil Brent Crude $2.35, 2.65% at $90.87
Oil NY Crude $0.48, 0.57% at $84.98

US T30 -0.0467 at 5.306%

Housekeeping
On Monday morning I was on RTHK’s Money Talk with host Megha Chaddah and other guest Hao Zhou Chief Economist at GTJAI; looking at the recent data and propsects for the markets

If there is a topic you would like discussed next week; then let them know or drop me a message, or if you just want to listen to the programme, click the link https://gbcode.rthk.hk/TuniS/www.rthk.hk/radio/radio3/programme/money_talk

On Friday morning I was on Peter Lewis’ Money Talk podcast with Francis Lun discussing US PPI/CPI and the impact on future rate decisions. We looked at the Yen and intervention along with the yo-yo nature of the Kospi and the outlook for the Chinese AI and its export driven economy.

You can click the podcast to listen to the podcast or wherever you listen:

Peter Lewis' Money Talk

PETER LEWIS' MONEY TALK - Friday 14 August 2026

On Friday’s “Peter Lewis’ Money Talk” podcast, I’m joined by Francis Lun, the CEO of Venture Smart Asia, and Andrew Sullivan, Founder of Asian Market Sense. With a view from Sydney, is Australian Business and Economics Analyst, Toby Laws…

Listen now

21 days ago · Peter Lewis

Last Thursday afternoon I was on RTHK’s the Close with host Nitin Dialdas and the other guest was Olivier D’Assier, Head of Applied Research, APAC, SimCorp as the other guest. We looked at Japanese PPI, Yen policy and the impact on the wider economy. We also discussed AI and monetisation, contrasting the Chinese and Western models.

If there is a topic you would like discussed this week please message me or contact them via WhatsApp +852 6899 8518 or via the link below, which can also be used to listen to the programme.
click the link https://www.rthk.hk/radio/radio3/programme/the_close

Latest thoughts from Market Thinker - challenging the narrative. Thanks for the Memory.. Mean (reverting) Markets. August Market Thinking

Notes that ‘The biggest hits came in the crowded tech hardware stocks, where we discovered at the end of the month one particularly large and heavily leveraged fund was forced into a dramatic unwind. Not unconnected, over 1 million S. Korean retail investors apparently received margin calls on positions in the two big Korean memory stocks - Samsung and S K Hynix - the latter having just launched an ADR.

The two Korean giants dominate not just the Kopsi, but a number of regional ETFs like the Asia 50 and even the Emerging Markets ETFs. As such, their stock specific technicals have tended to create false messages for the markets about some of the more traditional macro trends. For longer term investors it remains important to stay focussed on the underlying signals rather than be distracted by the noise.’

He goes through his normal structure
Short Term Uncertainties - Price Driven Narratives
Medium Term Risks - cash is not recycling
Long Term Trends - energy, AI and banks

Well worth a read

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Data impacting Asia August 17 - 21

New Zealand
Monday Composite PCI, Services PSI, Electronic Retail Card Spending, Food Inflation
Tuesday 1 year, 3-month and 6-month Bill Auctions. Could get Global Dairy Trade Price Index
Wednesday PPI (Input and Output)
Thursday No Data Scheduled
Friday Balance of Trade, Exports & Imports

Australia
Monday No Data Scheduled
Tuesday Consumer Confidence Change and Index
Wednesday Wage Price Index, RBA Hauser Speech
Thursday Consumer Inflation Expectations, Employment Change, Full Time Employment Change, Unemployment Rate, Part Time Employment Change, Participation Rate
Friday Flash PMI (Manufacturing, Services and Composite)

Japan
Monday GDP (Growth Rate, Growth Annualised, Capital Expenditure, External Demand, Price Index, Private Consumption), Capacity Utilisation, Industrial Production, Tertiary Industry Index
Tuesday 5-Year JGB Auction
Wednesday Machinery Orders, 52-Week Bill Auction, BoJ JGB Purchases
Thursday Balance of Trade, Exports & Imports, Foreign Stock & Bond Investment data, 20-Year JGB Auction
Friday Inflation Rate, Core Inflation Rate, Inflation Rate Ex food & Energy, Flash PMI (Manufacturing, Services and Composite), 3-Month Bill Auction

S Korea
Monday No Data Scheduled
Tuesday 10-Year KTB Auction
Wednesday No Data Scheduled
Thursday No Data Scheduled
Friday PPI

Taiwan
Monday No Data Scheduled
Tuesday No Data Scheduled
Wednesday No Data Scheduled
Thursday Export Orders, Current Account
Friday No Data Scheduled

China
Monday House Price Index, Industrial Production, Fixed Asset Investment, Unemployment Rate
Tuesday No Data Scheduled
Wednesday No Data Scheduled
Thursday Loan Prime Rates (1-Year and 5-Year)
Friday No Data Scheduled

Hong Kong
Monday No Data Scheduled
Tuesday No Data Scheduled
Wednesday No Data Scheduled
Thursday Inflation Rate, Unemployment Rate
Friday No Data Scheduled

Macau
Monday No Data Scheduled
Tuesday No Data Scheduled
Wednesday No Data Scheduled
Thursday No Data Scheduled
Friday Inflation Rate, Retail Sales, Tourist Arrivals

Singapore
Monday Balance of Trade, Non-oil Exports
Tuesday MAS 12-week, 36-week and 4-week Bill Auction
Wednesday No Data Scheduled
Thursday No Data Scheduled
Friday No Data Scheduled

Malaysia
Monday Inflation Rate
Tuesday No Data Scheduled
Wednesday No Data Scheduled
Thursday Balance of Trade, Exports & Imports
Friday No Data Scheduled

Indonesia
Monday No Data Scheduled
Tuesday No Data Scheduled
Wednesday Interest Rate Decision, Deposit Facility Rate, Lending Facility Rate. Loan Growth
Thursday No Data Scheduled
Friday Current Account, M2 Money Supply

Philippines - No Data Scheduled this week

Thailand
Monday GDP Growth Rate
Tuesday No Data Schedule
Wednesday No Data Scheduled
Thursday No Data Schedule
Friday No Data Scheduled

Vietnam - No Data Scheduled this week
Cambodia - No data scheduled this week
Myanmar - No data scheduled this week

India
Monday Unemployment Rate
Tuesday No Data Schedule
Wednesday No Data Schedule
Thursday Infrastructure Output
Friday Flash PMI (Composite, Manufacturing and Services)

Euro Area
Monday ECB’s Lane Speech
Tuesday ZEW Economic Sentiment Index, ECB’s Lane Speech
Wednesday ECB’s Lagarde Speech, Current Account, Core Inflation Rate Final, CPI Final, Inflation Rate Final
Thursday Construction Output, Labour Cost Index Flash, ECB Monetary Policy Meeting Accounts
Friday Flash PMI (Composite, Manufacturing and Services), Consumer Confidence Flash, Negotiated Wage Growth

Germany
Monday 12 & 6-Month Bubill Auction
Tuesday ZEW Economic Sentiment Index and Current Conditions
Wednesday 1t0-Year Bund Auction
Thursday PPI
Friday Flash PMI Manufacturing, Composite and Services)

France
Monday 12-Month, 3-Month and 6-Month BFT Auctions
Tuesday No Data Scheduled
Wednesday No Data Scheduled
Thursday OAT Auction, OAT€I Auction, OATi Auction
Friday Business Confidence, Business Climate Indicator, Flash PMI (Composite, Manufacturing and Services)

United Kingdon
Monday No Data Scheduled
Tuesday Unemployment Rate, Average Earnings incl Bonus (3-Month/Yr), Employment Change,Average Earnings Excl Bonus (3-Month/Yr), Claimant Count Change, HMRC Payroll Change, Labour Productivity, Treasury Gilt 2036 Auction
Wednesday Inflation Rae, Core Inflation Rate, PPI Core Output, PPI Input, PPI Output, Retail Price Index
Thursday Industrial Trends Orders
Friday Consumer Confidence, Retail Sales, Public Sector Net Borrowing Ex Banks, Retail Sale Ex Fuel, Flash PMI Manufacturing, Composite and Services)

United States
Monday NY Empire State. Manufacturing Index, NAHB Housing Market Index, 3-Month and 6- Month Bill Auction, NOPA Crush Report, Net Long Term TIC flows, Foreign Bond Investment, Overall Net Capital Flows

Tuesday ADP Employment Change, Building Permits Prelim, Housing Starts, Export & Import Prices, NY Fed Services Activity Index, Redbook, Industrial & Manufacturing Production, Capacity Utilisation, Pending Home Sales, 6-Week Bill Auction, API Crude Oil Stock Change.

Wednesday MBA Mortgage Data (30-year Rate, Applications, Mortgage Index, Refinance Index, Purchase Index), EIA Oil Report, 17-Week Bill Auction, 20-Year Bond Auction, FOMC Minutes.

Thursday Initial Jobless Claims, Continuing Claims, 4 week Average Claims, Philadelphia Fed Manufacturing Index, Philly Fed (Business Conditions, CAPEX index, Employment, New Ordes, Prices Paid), Leading Index, EIA Gas Report, 4-week & 8-week Bill Auction, 15-year & 30-year Mortgage Rate, 30-Year TIP’s Auction, Fed Balance Sheet

Friday Flash PMI (Composite, Manufacturing and Services), Baker Hughes Oil Rig Count.

Against that background Cleveland Federal Reserve Bank President Beth Hammack doubled down on her view that the central bank should raise rates immediately to bring down inflation. That as initial claims rose more than expected and the fact that the US 30 Treasury auction did not go well; with the US now paying 5.216%; the most in a quarter of a century (since 2001). The sale showed soft-to-mediocre demand with a slight tail, reflecting investor anxiety over expanding fiscal deficits and sticky inflation.

Interesting to see Iran announcing it will join BRIC New Development Bank, as it enters a nearly six month war with the U.S. and Israel.

Looking forward The Financial Times reported Wednesday that Anthropic investors expect the company’s valuation to exceed $2 trillion when it makes its stock market debut. It could go public as soon as October the article noted.

Overhanging Asian trading today will be the potential for the latest Chinese loan details, likely to come out after market and then a Chinese data dump on Monday morning. That follows investor disappointment on Thursday with Beijing’s support for the wider economy.

Earnings today
Friday SANDS CHINA LTD (01928.HK), BAY AREA DEV (00737.HK), FUDANZHANG JIANG (01349.HK), MIRAMAR HOTEL (00071.HK), SINOPEC SEG (02386.HK), SOUTHGOBI (01878.HK), XIAOCAIYUAN (00999.HK), ZIJIN GOLD INTL (02259.HK)

In UK politics the polls in Clacton by election have closed and now we await the result; whilst there were 34 candidates the major political parties boycotted the election which is estimated to have cast UK taxpayer around £250,000. Maybe Nigel Farage should be rename Nigel Farce?

Housekeeping
On Thursday afternoon I was on RTHK’s the Close with host Nitin Dialdas and the other guest was Olivier D’Assier, Head of Applied Research, APAC, SimCorp as the other guest. We looked at Japanese PPI reading, Yen policy and the impact on the wider economy. We also discussed AI and monetisation, contrasting the Chinese and Western models.
If there is a topic you would like discussed next week please message me or contact them via WhatsApp +852 6899 8518 or via the link below, which can also be used to listen to the programme.
click the link https://www.rthk.hk/radio/radio3/programme/the_close

This morning I will be on Peter Lewis’ Money Talk podcast with Francis Lun so if there is a topic you want discussed please let him or me know

On Monday morning I will be on RTHK’s Money Talk with host Megha and other guest, Hao Zhou, head of research at GTJAI.
If there is a topic you would like discussed; then let them know or drop me a message, or if you just want to listen to the programme, click the link https://gbcode.rthk.hk/TuniS/www.rthk.hk/radio/radio3/programme/money_talk

Latest thoughts from Market Thinker - challenging the narrative. DRAMatic Price Moves Another STAR rising in the east. Takes a look at CXMT the fourth largest DRAM maker that saw a 466% jump on its market debut. Its IPO was oversubscribed by 570x for the institutional portion and 244x for the retail side. For context, at an initial price of $1.28, that means Chinese retail had to lodge $1.2tn with the exchange.

He contrasts it with SpaceX which paid insiders and left nothing for those that bought the IPO. He also highlights other differences and suggests that investors should be looking closer at Chinese tech markets.

Market opening indications and data due
New Zealand
NZX futures opened lower testing down to 13,790 but then bounced and now trading higher up 35pts 0.26% at 13,861. Business PMI dropped but still in expansion while Visitor arrivals came in higher than expected.

On Thursday the NZX opened lower but worked higher through the day to close up 88pts 0.6% at 13,825, driven by gains in healthcare, financials, and consumer staples. 53 stocks advanced against 31 decliners. Market sentiment turned sharply positive after the Reserve Bank of New Zealand’s (RBNZ) Q3 survey revealed that business inflation expectations have cooled down to 2.34% over the next two years. This alleviated fears of aggressive interest rate hikes and triggered a broad-based relief rally across the index.
Data due after the open
Business PMI Jul 54.3 vs 59.7 Jun (F/cast is 58.4)
Visitor Arrivals Jun 8.1% YoY vs 6.7% May (F/cast is 7%)

Australia
ASX futures indicate the market to open -38pts -0.4% at 9,090 with weakness in Energy names, miners mixed but some support from healthcare.
Earnings from Abacus Storage King and QBE Insurance

On Thursday the ASX 200 opened lower and initially dipped to the day low and then worked slightly better to close -20.9 pts, or 0.2%, at 9188.50, with falls in heavyweight stocks; CBA, Rio Tinto and Telstra pushing down the market.
Data Scheduled pre market
RBA Gov Bullock Speech
90 minutes After the open
Home Loans Q2 QoQ vs -4.3% Q1 (F/cast is -2.3%)
Investment Lending for Homes Q2 vs -3% Q1 (F/cast is -6.4%)

Japan
Nikkei Futures 880pts 1.29% at 69,140
Chicago Nikkei Futures -10pts -0.01% at 69,190
Yen 159.53 Trading 159.46 in early trades.

On Thursday the Nikkei opened higher and traded sideways in a range to close up 784.53pts 1.16% at 68,308.59 off the initial highs. Driven by strong gains in semiconductor and technology shares.
Leaders were Real Estate, Banking, and Textile. On a thematic level,Semiconductor and AI-related tech stocks were the primary growth engine for the day’s rally.
Laggards were specific defensive consumer names and select industrials; Kao Corp -3.6% and Fanuc -3.2%.
Data Scheduled pre market
Foreign Bond Investment 8 Aug vs ¥477.9B prior
Foreign Stock Investment 8 Aug vs ¥-392.5B prior
Due late morning
3-Month Bill Auction vs 1.0665% prior

S Korea
Kospi Futures indicate opening 21.7pts 2.02% at 1,095.45 with the focus on tech but the weak Export/Import Prices could be a dampener.

The Kospi Thursday opened higher and worked better to close higher for a fourth day; up 210.97 pts, or 3.21% at 6,790.01.
Trade volume was moderate at 416 million shares worth 34.45 trillion won ($24.22 billion) trading hands, with losers outnumbering gainers 532 to 332.
Foreigners bought a net 2.09 trillion won and institutions purchased 679.8 billion won worth of stocks, while retail investors alone offloaded a net 2.71 trillion won in shares.
The Korean won was quoted at 1,419.4 won against the US dollar at 3:30 pm.Thursday, up 3.7 won from the close of stock trading Wednesday.
Data out pre market
Export Prices Jul 49.1% YoY vs 48.9% Jun (F/cast is 55%)
Import Prices Jul 18.7% YoY vs 20.6% Jun (F/cast is 31%)
Mid morning
50-Year KTB Auction vs 4.345% prior

Taiwan
Taiex futures indicate market to open up 335pts 0.73% at 46,360 driven by tech names, but the disappointment with the Applied Material earnings a concern; investor expectations at pricing for perfection.
FTSE Taiwan Index Aug 25: up 34.75pts 0.87% at 4,050.75

On Thursday the Taiex opened higher and worked better to close; up 503.41 pts, or 1.11% at 46,021.48 Thursday on turnover of NT$1.05 trillion (US$32.60 billion) vs NT$858.73 billion (US$26.66 billion) Wednesday.
Tech stocks lead with strong gains from heavyweights like TSMC 0.8%, MediaTek 5.4%, and Delta Electronics 4.8% posted strong gains alongside Yageo Corp 10%.
Data due after market
GDP Growth Rate Final Q2 YoY vs 14.55% Q1 (F/cast is 12.92%)

China - No Data Scheduled
Golden Dragon Index closed -117.31pts -1.84% at 6,259.42 but expect caution into the close ahead of China loans data and Monday’s data dump (House Prices, Industrial Production, Fixed Asset Investment, Unemployment Rate). Watch drone makers as US to apply tariffs of up to 100% on foreign drones.
FTSE A50 futures up 7pts, 0.05% at 15,009
MSCI A50 futures up 4.8pts, 0.17% at 2,770.6

On Thursday the A shares opened higher and traded sdeways in the green but sold down in the last hour to close in the red with investors disappointed but the PBoC announcing targeted support rather than large-scale easing measures. ShanghaiComposite dropped 0.50% to finish at 3,927
Shenzhen Component fell 0.87% to close at 14,289.4.
Leaders were utilities and large-cap financials
Laggards were basic materials, mining, and technology sector
USD/CHN -0.00053pt -0.01% at 6.744
Spot USD/CNY inched up 5 bps to close at 6.7451 Thursday (13th). As of 4:36 pm, USD/CNY in the night session hiked 84 bps. USD/CNH lowered 23 bps to 6.7466, 15 bps below USD/CNY.
Data due after market
Current Account Prelim Q2 vs $184.3b Q1 (F/cast is $150B)
Could get, likely after market
New Yuan Loans Jul vs CNY 1610B Jun (F/cast is CNY -80B)
M2 Money Supply Jul vs 8% Jun (F/cast is 8.2%)
Outstanding Loan Growth Jul YoY vs 5.2% Jun (F/cast is 5.1%)
Total Social Financing Jul vs CNY 3360B Jun (F/cast is CNY 1000B)

Hong Kong
ADR’s closed -384.57pts -1.52% at 25,283 with only HSBC, CLP, SHKP and BoC HK in the green. Sentiment hurt by Tencent’s softer than expected earnings and surging CAPEX. The Hang Seng TECH Index is trading around 4,776. With support at 4,750. If this fails next support 4,620 level. But resistance is around 4,835; it faces a dense cluster of short-term moving averages here, indicating a firm “Sell” outlook unless it clears this level.
Hang Seng Futures indicate the market opening -159pts -0.63% at 25,214
Turnover Thursday HK$263.71B vs HK$216.779B Wednesday
Short Selling Thursday 15.2% vs 17% Wednesday

On Thursday the HSI opened lower -152 pts before briefly turning positive, while giving back gains near the close. The index ended at 25,396, -43 pts or 0.17%.
The HSTECH closed at 4,792, up 15 pts or 0.33%.
The HSCEI closed at 8,426, down 19 pts or 0.23%.
Data Scheduled after market
GDP Growth Rate Final Q2 QoQ vs 2.9% Q1 (F/cast is -0.6%)
GDP Growth Rate Final Q2 YoY vs 5.9% Q1 (F/cast is 4.3%)

Macau - Data Scheduled after market
GDP Growth Rate Final Q2 YoY vs 7.1% Q1 (F/cast is 0.3%)

Singapore - No Data Scheduled

Malaysia - Data Scheduled late morning
Current Account Q2 vs MYR 15.2B Q1 (F/cast is MYR 8.9B)
GDP Growth Rate Final Q2 QoQ vs 0% Q1 (F/cast is 2%)
GDP Growth Rate Final Q2 YoY vs 5.4% Q1 (F/cast is 5.8%)

Indonesia - Data Scheduled
Indonesian President Prabowo Subianto is set to deliver the annual State of the Nation Address ahead of the country’s Independence Day on Aug. 17. Prabowo will also present the government’s macroeconomic assumptions and fiscal policy framework for the proposed 2027 state budget. The address is expected to outline policy priorities in his administration’s third year and set out major targets, including projected economic growth and government spending.

Philippines - Data could get
Cash Remittances Jun vs $2.7B prior

Thailand - No Data Scheduled
Vietnam - No Data Scheduled
Cambodia - No Data Scheduled
Myanmar - No Data Scheduled

India - Data Scheduled after lunch
WPI Data
Food Index Jul YoY vs 6.14% Jun (F/cast is 6.6%)
Fuel Jul YoY vs 27.14% Jun (F/cast is 20%)
Inflation Jul YoY vs 9.87% Jun (F/cast is 10.2%)
Manufacturing Jul YoY vs 7.48% Jun (F/cast is 8.5%)
After market
Bank Loan Growth 24 Jul YoY vs 17.7% prior
Deposits Growth 24 Jul YoY vs 12.7% prior
Foreign Exchange Reserves 7 Aug vs $692.87B prior
Could get
Passenger Vehicle Sales Jul YoY vs 18.2% prior
On Saturday PM Modi will give his Independence Day speech watch for what he says about job opportunities and inequality.

Europe
Eurozone - Balance of Trade, Employment Change Prelim, GDP Growth Rate 2nd Estimate
Germany - Wholesale Prices
France - Harmonised Inflation Rate Final, Inflation Rate
United Kingdom - No Data Scheduled - Clacton by-election result.

United States
Futures opened Dow 12pt 0.02% S&P 0.02% NDX 0.06%
After Market
Applied Materials -3% off initial lows earnings disappointed. Q4 growth shows signs of slower; with free cash flow concerns and heavy infrastructure investment offsetting strong AI chips revenue guidance.
QXO 2.7% strong Q2 revenue beat forecasts
Globant -13.2% Q2 earnings missed
Data Scheduled: Retail Sales, Retail Sales Control Group, Retail Sales Ex Auto, Retail Sales Ex Gas/Autos, Michigan Survey Prelim (Consumer Sentiment, 5-Year Inflation Expectations, Current Conditions, inflation Expectations) Business Inventories, Retail Inventories Ex Auto, Baker Hughes Oil Rig Count.

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HEADLINES & NEWS

NEW ZEALAND & AUSTRALIA
New Zealand’s security agency yesterday said it disrupted an attempt by a Chinese state-linked observatory to install satellite-tracking infrastructure in the country, highlighting the case in its annual assessment of an increasingly dangerous espionage environment. The New Zealand Security Intelligence Service (NZSIS) said that Purple Mountain Observatory, an organization based in China with close ties to the government in Beijing, had sought to install ground-based space infrastructure through a local company that was likely unaware that the equipment could collect intelligence of military value. The agency did not identify the New Zealand company or detail how the plans was disrupted.

The $2.5 billion taxpayer rescue of Australia’s largest aluminium smelter has reignited questions over whether public funds are backing uncompetitive manufacturers without first undergoing enough scrutiny, even as the deal gained extensive praise as a nation-building investment.

Australia’s industrial umpire has approved new minimum standards requiring food and grocery delivery workers to be paid ‌hourly rates above the national minimum wage and covered by injury insurance while on the job. Gig workers will be paid at least A$31.30 ($22.11) an hour, above ‌Australia’s minimum wage of A$26.44, while remaining responsible ⁠for maintaining third-party insurance for vehicles used for ⁠deliveries, the Fair ⁠Work Commission (FWC) said in an order issued late on Tuesday. Companies ‌will be required to provide “a reasonable minimum level of cover” for personal ⁠accident insurance, although the order ⁠did not specify a minimum level of coverage. The order takes effect on August 17 and is expected to benefit about 250,000 workers. Under the order, workers will be paid a ⁠minimum hourly rate for “engaged” time, covering the period between accepting ⁠a job and completing the delivery.

‘Accountability rests with me’: Telstra boss rakes in $6.8m but Triple Zero outage costs her. Vicki Brady’s pay package rose 11 per cent for a financial year that ended three weeks before the nationwide outage that cut off Triple Zero calls, but the incident did hit her hip pocket.

Virgin plane aborts take-off as Qantas plane crosses Sydney runway. The incident, also involving a Qantas 737, is the third such occurrence in Sydney airport in under three weeks, with links to air traffic control.

Penfolds maker cracks down on Chinese grey market amid $1.1b loss The wine giant is getting out of cheap wine, doubling down on Penfolds’ status as a luxury brand, while trying to figure out what to do with its struggling US business.

JAPAN
Russian President Vladimir Putin visited a disputed island close to ​Japan on Thursday, drawing strong condemnation from Tokyo. The island, known in Russia as Iturup and in Japan as ‌Etorofu, is one of four in the Kuril chain - close to Japan’s main islands - that were seized by Moscow in the days after Japan’s surrender in World War Two. Tokyo has maintained its claim to them, making their return a condition for concluding a formal peace treaty that ​would unlock closer economic ties. The visit “hurts the feelings of the Japanese people and is absolutely unacceptable,” Prime Minister Sanae ​Takaichi said in a televised statement. “We hope that the Russian side will take the seriousness of ⁠this matter fully to heart,” she added. Within hours, Russian Foreign Ministry spokeswoman Maria Zakharova dismissed the prime minister’s comments, saying they “cause ​extreme outrage and are absolutely unacceptable”.

More than 80% of Japanese ​companies use artificial intelligence in only a limited capacity in their operations or not at all, a ‌Reuters survey showed on Thursday, a trend that could hinder official efforts to boost productivity. About 60% of respondents said AI is being used only in some parts of their companies or in other limited ways. Another 18% said they have not decided whether to introduce AI ​into the workplace while 6% are not even considering AI adoption. The remaining 16% have deployed AI company-wide as ​an integral tool, the survey showed. A government report this year showed Japan lagged other industrial powers ​in AI adoption, with 86.4% of local firms using generative AI for at least one task, compared with China’s 98.1%, Germany’s 91.6% and the United States’ 90.9%. Asked in the Reuters poll about their AI budgets for the next one to two years, 4% said they expect annual ​growth of 50% or more, 21% said the increase will likely be somewhere between 10% and 50%, and 30% ​projected single-digit expansion. Another 14% said their AI budgets would likely remain largely unchanged, while 31% have not decided yet. None of the respondents ‌said ⁠they will be spending less on AI.

Chinese automakers are increasingly shifting from exporting vehicles to building them in Africa, betting that rapid urbanization, a growing middle class and supportive government policies will make the continent one of the industry’s last major growth markets. It’s part of a strategy for coping with slowing demand at home and rising trade barriers in Europe and North America. Analysts say the shift could reshape Africa’s automotive industry by creating jobs, developing local supply chains and accelerating adoption of electric vehicles, although weak infrastructure and policy uncertainty remain significant obstacles. In July, Chery, China’s largest auto exporter, acquired Nissan’s former Rosslyn plant near Pretoria, South Africa, where it plans to make plug-in hybrids, battery-electric vehicles and models under its Jetour brand. The move reflects a broader strategy by Chinese automakers to manufacture closer to African consumers rather than rely solely on imports, though the trend is just getting started. Beijing Automotive Group (BAIC) has an automotive manufacturing and assembly facility in Gqeberha (Port Elizabeth), South Africa, and China’s Great Wall Motor has some localized assembly and component distribution capacity.

SOUTH KOREA
Kyungpook National University said Thursday it would launch a new employment-linked contract major with Samsung Electronics to train specialists in mobile engineering and advanced artificial intelligence technologies. The university will reorganize its existing undergraduate Mobile Engineering program into a combined bachelor’s-master’s track called Mobile AI Engineering and begin recruiting students for the 2027 academic year. The program will admit a total of 20 students.

SK hynix, the global leader in HBM, is investing USD720 billion to build what it calls the world’s largest memory factory network. SK hynix’s market cap has skyrocketed more than 5x over the past year and now exceeds USD1 trillion. According to Counterpoint Research data, SK hynix held a 58% share of the HBM market in 1Q26, followed by Samsung Electronics and Micron Technology of the US, both at 21%. To support its large-scale capacity expansion, SK hynix raised USD26.5 billion through a Nasdaq listing in July, setting a record for the largest US market fundraising by a foreign company. SK hynix also operates three memory wafer fabs in China, but US export controls prevent it from selling the most advanced HBM products to China. China also has emerging AI memory manufacturers including CXMT (688825.SH) whose recent Shanghai market listing has performed strongly. MS Hwang, Research Director at Counterpoint Research, said that this is a race, and the competitor now is China. That will be a bigger threat than anything else in the world.

Nexon has posted record first-half earnings on the back of continued growth of its flagship MapleStory franchise and the strong performance of ARC Raiders in Western markets. According to Nexon on Thursday, its first-half sales reached 2.56 trillion won ($1.8 billion), up 17 percent from a year earlier. Operating profit rose 13 percent to 838 billion won while net profit more than doubled to 814 billion won. In the second quarter alone, Nexon logged 1.14 trillion won in sales, 294.3 billion won in operating profit and 278.8 billion won in net profit. All three figures exceeded the company’s previously announced earnings guidance.

Homeplus reopened 67 stores nationwide Thursday, drawing crowds of shoppers eager to take advantage of reopening discounts as the retailer seeks to recover from a severe liquidity crisis. The reopening marked a striking change from earlier this month, when the store was operating with largely empty shelves amid the company’s financial troubles. Some food sections had been left sparsely stocked, with household goods filling otherwise empty displays. Homeplus entered court-led rehabilitation earlier this year after struggling to meet its financial obligations. The retailer later secured 200 billion won ($141 million) in emergency operating funds, allowing the 67 temporarily closed stores to resume business.

TAIWAN
MSCI Inc yesterday raised Taiwan’s weightings in its key global indices, reflecting the robust performance of Taiwan-listed stocks and changes in their accessibility to foreign investors. Taiwan’s weighting in the MSCI All Country World Index is set to rise to 3.13% from 3.08% while its weighting in the MSCI Emerging Markets Index is to increase to 26.85% from 26.6%. In the MSCI All Country Asia ex Japan Index, Taiwan’s weighting is set to climb to 30.03% from 29.75%. The adjustments are to take effect after the market closes on Aug. 31, the global stock index compiler said in a statement.
Memory makers Nanya Technology Corpand, Winbond Electronics, along with Phison Electronics, Kinsus Interconnect Technology, Nan Ya Printed Circuit Board and Taiwan Union Technology, are to be moved from the MSCI Taiwan Small Cap Index to the MSCI Taiwan Index in the latest adjustments. The changes could raise the companies’ visibility among international investors and prompt portfolio adjustments by funds that track the benchmarks, the Taiwan Stock Exchange (TWSE) said.

Overseas hackers used artificial intelligence agents to target Taiwan government agencies in a July cyberattack, the Ministry of Digital Affairs (MODA) said Thursday, following a Financial Times report on the incident. In a news release, MODA’s Administration for Cyber Security said its cybersecurity monitoring unit detected the attacks in July and that the National Institute for Cyber Security began issuing alerts on July 20. An investigation was launched immediately, and the source, methods and scope of the attacks have been determined, while affected agencies have completed their responses, it said. However, the ministry did not disclose where the attacks originated.

The air force is to form a dedicated combat drone unit early next year, a high-ranking military official said. The planned air group would utilize multiple types of uncrewed aerial vehicles (UAVs), including the domestically developed Chien Hsiang (“Rising Sword”) loitering munitions, which specialize in neutralizing radar systems, the source said, speaking on condition of anonymity. The new unit would be tasked with preparing for potential long-range strikes against targets in China, enabling the air force to attack rather than passively defend Taiwanese airspace, they said.

Contract electronics maker Compal Electronics yesterday said PC shipments are expected to fall by 15 to 17% YoY in the second half of the year, as rising memory chip prices weigh on consumer demand. Compal shipped 12.1 million PCs in the first half, down 14.2% YoY. Compal expects full-year shipments to decline by a mid-teens percentage from last year’s 28 million units, Compal president Anthony Peter Bonadero told an online earnings conference. Despite replacement demand for Windows 10, higher component costs are making enterprise customers and consumers more cautious about spending in the second half, Bonadero said. Even so, Compal’s PC unit profitability has remained stable, thanks to a higher production share of artificial intelligence (AI) PCs and commercial PCs, increasing selling prices and improving operational efficiency, he said. AI PCs account for about 50 percent of Compal’s PC shipments and the ratio is expected to rise as the market enters an AI PC refresh cycle, he said.

E Ink Holdings, yesterday revised downward its revenue growth forecast for this year to between 10% and 15%, from the 20% to 25 % it previously estimated, as surging memory prices are hurting demand for its e-readers and e-notes. The company had expected a transition from monochrome color e-paper displays to color displays used in e-readers and e-notes to continue this year. However, rapidly increasing memory prices have caused customers to postpone new product launches, while demand for models from previous generations has also dwindled due to higher prices, E Ink said.

Skytech on Wednesday said that it expects customer demand to be high through the Q2 2027, particularly for equipment used in advanced chip manufacturing and packaging technologies driven by the artificial intelligence (AI) boom. The company’s new physical vapor deposition devices used in panel-level packaging (PLP) have been rapidly gaining traction, with three machines to be delivered to server customers and one to a US customer in the first quarter next year, Skytech chief executive officer George Yi said in Hsinchu City.

CHINA
DeepSeek on Thursday formally released its official V4 Pro model, aiming to regain ground against fast-moving domestic rivals as ​it expands hiring, computing capacity and fundraising efforts. DeepSeek said the V4-Pro-0813 ‌greatly enhances agent capabilities and is available through the API, APP and Web channels. The company also said it will raise API pricing for its V4 Pro and V4 Flash models ​and introduce peak and off-peak pricing. The release will be closely watched after ​DeepSeek’s cheaper V4 Flash model unexpectedly outperformed the April preview of ⁠V4 Pro in several independent tests. That was unusual because Pro is ​designed as the company’s more capable product, suggesting DeepSeek had improved its technology rapidly ​between the preview release and the official launch. DeepSeek became one of China’s most closely watched AI companies after its R1 model went viral in early 2025, raising questions about whether ​powerful AI systems could be built at much lower cost than those of ​U.S. rivals.

CXMT (688825.SH) has become China’s most valuable listed company after its total market cap crossed that of TENCENT (00700.HK) for the first time, just over two weeks after listing on the STAR Market. Since its listing, CXMT has skyrocketed more than 500% cumulatively, with its total market cap touching approximately RMB3.54 trillion. As for TENCENT, after announcing its quarterly results today (13th), its share price closed down 4.46% at HKD441, as the market was concerned that the group’s substantial increase in AI investment could weigh on profitability and cash flow performance. The group’s latest market cap dropped to approximately RMB3.44 trillion. Gary Tan, portfolio manager at Allspring Global Investments, said CXMT overtaking TENCENT sends a message to the market that chips are replacing clicks. As agentic AI occupies an increasingly larger share of internet traffic, the gap between the two companies is expected to widen.

A European Union ban on public funding for utility-scale solar inverters from “high-risk” countries is set to shift the ​market towards European suppliers, SMA Solar’s chief executive said ‌on Thursday. The 27-country bloc imposed the ban in May, mainly affecting Chinese-made products, citing fears that internet-connected inverters supplied by what it called “high-risk” countries could ​be used to disrupt Europe’s power grid. Chinese manufacturers, led by Huawei and Sungrow, supplied about 70% of Europe’s inverters in recent ​years, leaving the region reliant on foreign equipment for a ​fast-growing share of its electricity supply. Based on current deployment levels, the EU-wide ban ‌would ⁠affect at least 14 gigawatts of new solar capacity, according to Reuters calculations.

Microsoft retreats in China, but AI boom helps it keep a window open. Microsoft shut at least 15 China branch offices and joint ventures in past five years, filings show. Tech firm badly hit by Beijing’s push for domestic software, as well as U.S. export restrictions. Company considered quitting China in 2023 but has no current exit plans, source says. Microsoft has found a profitable line servicing Chinese companies going global

Online fast-fashion platform Shein on Thursday lost ‌its London lawsuit against rival Temu over alleged copyright infringement, in a ruling that could be beneficial for online marketplaces hosting third-party sellers. The ruling, which comes as Shein aims for a more than $30 billion valuation in a Hong Kong initial public offering, concerns the ​first round of the companies’ London legal battle. Temu’s counterclaim that Shein broke competition law by ​tying suppliers to exclusive agreements is due to go to trial next year.

HONG KONG
Earnings
JD-SW (09618.HK) announced its results for the three months ended June 30, 2026 (2Q26). JD recorded total revenue of RMB346.401 billion, down 2.9% YoY and slightly above market expectations of RMB342.1 billion, mainly due to a high base in the same period of 2025. Net profit attributable to ordinary shareholders reached RMB7.129 billion in 2Q26, up 15.4% YoY. Under non-GAAP measures, adjusted net profit attributable to ordinary shareholders amounted to RMB8.93 billion, up 20.8% YoY. Non-GAAP EBITDA reached RMB7.933 billion during the period, soaring 164.5% YoY and exceeding market expectations of RMB7.7 billion. Diluted earnings per ADS were RMB5.01, while non-GAAP diluted earnings per ADS were RMB6.29, higher than market expectations of RMB5.4.. JD.com, Inc. (JD.US) traded lower in the US pre market.

SF REIT (02191.HK) announced its interim results for the six months ended June 2026. Total distributable income amounted to HKD111 million, down 7.3% YoY. Profit before transactions with unitholders during the period was HKD97.734 million, compared with a loss of HKD362 million in the corresponding period last year. Basic. EPS was HKD0.1191 per unit. The REIT manager announced that the distribution ratio will be maintained at 90%. Interim distribution per unit was HKD0.1215 (vs HKD0.1311 in the corresponding period of the previous financial year). Based on the closing price of HKD2.47 on the last trading day of the reporting period, the annualized distribution yield was 9.9%. SF REIT’s interim revenue was HKD219 million, down 4.6% YoY. Net property income was HKD179 million, down 7.1% YoY. As of the end of June, SF REIT’s overall occupancy rate was 96.8%, down 0.1 ppts from the end of last year. Among them, the occupancy rate of the Tsing Yi property in Hong Kong was 94.9%, up 0.1 ppts from the end of last year.

JD INDUSTRIALS (07618.HK) announced its interim results for the six months ended June 2026. Revenue rose 27.4% YoY to RMB13.06 billion. Net profit increased 37.2% YoY to RMB619 million, with EPS of RMB0.23. No dividend was declared. During the period, non-IFRS profit climbed 43.4% YoY to RMB751 million

HUA HONG GRACE (01347.HK) announced its results for 2Q ended June 2026. Sales revenue reached USD717.5 million, up 26.8% YoY and hitting a record high. Net profit amounted to USD38.639 million, up 385.9% YoY. EPS was 2.2 US cents. Gross margin for 2Q was 16.5%, up 5.6 ppts YoY and 3.5 ppts QoQ. During the quarter, sales revenue from China amounted to USD564 million, accounting for 78.6% of total sales revenue and representing a 20% YoY increase. Sales revenue from N America amounted to USD93.8 million, up 77% YoY. Sales revenue from other Asian regions amounted to USD32 million, up 11.6% YoY. Sales revenue from Europe amounted to USD28 million, up 90.1% YoY. For 3Q guidance, the company expects sales revenue to range between USD770 million and USD780 million. Gross margin is expected to range between 16% and 18%.

CR ASIA (00831.HK) the operator of Saint Honore Cake Shop and franchisee of Zoff eyewear stores, announced its interim results for the six months ended end-Jun 2026. Revenue rose 3.9% YoY to HKD715 million. Net profit increased 16.5% YoY to HKD17.538 million, while EPS was HKD0.023. The company declared an interim dividend of HKD0.01, unchanged from the same period last year.

MARKETINGFORCE (02556.HK) announced its interim results for the six months ended June 2026. Revenue reached RMB1.96 billion, up 111.2% YoY. Net profit surged nearly 4.51x YoY to RMB206 million. EPS was RMB0.8. No dividend was declared. Under non-IFRS measures, adjusted net profit rose 150.9% YoY to nearly RMB213 million.

SMIC (00981.HK) announced its results for the second fiscal quarter ended June 2026. Revenue rose 36.1% YoY to USD3.006 billion. Net profit increased 261.7% YoY to USD479 million, with EPS of USD0.06. In the second quarter, SMIC’s capacity utilization rate increased to 93.7% from 93.1% in the first quarter. Gross margin was 25.3%, up 5.2 ppts QoQ. For third-quarter guidance, the company expects revenue to grow 2% to 4% QoQ, while gross margin guidance is set at 26% to 28%. Looking ahead to 2H26, SMIC said the industrial momentum and spillover effects generated by artificial intelligence will continue, bringing broad demand for integrated circuit manufacturing. The company is flexibly allocating existing capacity and rapidly validating new capacity additions to help ease supply shortages across the industry chain. It remains optimistic about industry trends and the company’s development prospects.

CKH HOLDINGS (00001.HK) announced its interim results for the six months ended June 2026. Based on post-IFRS 16 standards, total revenue lifted 6% YoY to HKD255.392 billion. Net profit amounted to HKD26.801 billion, surging 30.46x YoY, with EPS at HKD7. Underlying net profit (excluding the UK telecom business) added 7% to HKD12.581 billion. Interim DPS was raised to HKD0.7455 from HKD0.71 in the same period last year. Based on pre-IFRS 16 standards, the group recorded underlying earnings of HKD12.592 billion for 1H26, representing YoY growth of 6% in reported currency terms. During the period, the group disposed of interests in UK Rails and UK Power Networks, recognizing combined gains of HKD17.753 billion. In addition, in May, CKH HOLDINGS announced the disposal of its remaining 49% stake in VodafoneThree for consideration of approximately GBP4.3 billion. The transaction was completed on 30 July, with disposal gains of approximately HKD5.9 billion and cash consideration to be recognized in 2H26.

CK ASSET (01113.HK) announced its interim results for the six months ended June 2026. Group revenue rose 58.8% YoY to HKD40.306 billion. Net profit increased 37.8% YoY to HKD8.683 billion, while EPS was HKD2.48. An interim DPS of HKD0.41 was declared, up 5.1% YoY. During the period, underlying profit increased 4.9% YoY to HKD6.64 billion. Underlying EPS was HKD1.9. As at 30 June 2026, the group held net cash of HKD21.9 billion. Chairman Victor Li said in the report that the changing global landscape has been marked by increasingly unpredictable geopolitical developments. As regional conflicts and inflationary pressures continue to affect international commerce, economic growth is expected to moderate in 2026. Climate challenges and rapid advances in artificial intelligence and other technologies are transforming industries and business models, creating significant opportunities and new risks while redefining competition and shifting the balance of power and influence. Against this backdrop, the Group will responsibly consider potential opportunities that meet with its investment criteria with caution and prudence. It also conducted an impairment assessment on its investment in HUI XIAN REIT (87001.HK) considering the latest annual distributions received and market value of Hui Xian REIT units. An impairment loss of HKD6.023 billion was determined based on an estimation of the present value of projected recoverable amounts. CK ASSET stated that the impairment was made because the market value of HUI XIAN REIT fund units was significantly below their book value. Following the assessment, the company considered it appropriate to make the impairment. The impairment is a non-cash item.

JD HEALTH (06618.HK) announced its interim results for the six months ended 30 June 2026. Net profit reached RMB3.44 billion, up 32.4% YoY, with basic EPS of RMB1.08. Non-IFRS profit amounted to RMB3.873 billion, up 8.5% YoY. Non-IFRS operating profit increased 40.3% YoY to RMB3.483 billion, while the Non-IFRS operating margin improved from 7% to 8.5%.

CHINA MOBILE (00941.HK) announced its interim results for the six months ended 30 June 2026. Net profit amounted to RMB78.934 billion, down 6.3% YoY. EPS was RMB3.64. The group declared an interim DPS of RMB2.51, equivalent to HKD2.9003, representing a 5.5% hike from the interim DPS of HKD2.75 in the same period last year.

MTR CORPORATION (00066.HK) announced its interim results for the six months ended June 2026. Revenue fell 4.1% YoY to HKD26.231 billion. Net profit rose 105.9% YoY to HKD15.872 billion, with EPS at HKD2.55. The interim DPS was maintained at HKD0.42. During the period, profit from property development spiked 120.7% YoY to HKD12.233 billion, mainly arising from Tai Wai Station and THE SOUTHSIDE Package 5. Much of the profit would contribute to its asset replacements and management as well as new railway projects. The tender of Kam Sheung Road Station Phase 2 property project was awarded in April 2026. Subject to the progress of construction and sales, the group expected to book property development profit from THE SOUTHSIDE Package 6 and the Yau Tong Ventilation Building project and continue to book profit from Tai Wai Station in the second half of 2026. The tendering of the Tuen Mun A16 Station Package 2 property development project was launched in July 2026. Subject to market conditions, the group expected to tender two projects in the coming 12 months or so. In terms of existing projects, the group had eight residential property projects under construction and along with the completed residential property projects, the group anticipated to contribute about 9,300 units to the market for sale while supporting the development of new rail lines.

CITIC TELECOM (01883.HK) announced its interim results for the six months ended June 2026. Revenue declined 1.2% YoY to HKD4.748 billion. Net profit rose 0.4% YoY to HKD463 million, with EPS at HKD0.125. The company declared an interim DPS of HKD0.05, compared with HKD0.06 in the same period last year.

Warning / Alerts
CHANGYOU INT GP (01039.HK) issued a positive profit alert, expecting to record a consolidated profit of approximately RMB3.8 million for the first half of the year, compared with a loss of RMB3.7 million in the same period last year. The turnaround was mainly attributable to a net foreign exchange gain of approximately RMB8.3 million recorded during the period due to the appreciation of RMB against HKD, as well as a decrease in income tax expenses to approximately RMB900,000.

ILUVATAR COREX (09903.HK) expected net profit for the six months ended 30 June 2026 to range from approximately RMB60 million to RMB140 million, compared with a net loss of approximately RMB609 million in the same period of 2025. The turnaround to profit was mainly attributable to fair value gains on financial assets at fair value through profit or loss ranging from approximately RMB730 million to RMB790 million, primarily due to a substantial increase in unrealized net gains generated from the Group’s investment in shares of a company listed on the Shanghai Stock Exchange.

SG MICRO (03661.HK) expects net profit for the six months ended 30 June 2026 to range from approximately RMB402 million to RMB432 million, compared with net profit of approximately RMB200 million in the corresponding period last year. The YoY increase in net profit was mainly attributable to: 1) the company’s continuous launch of new products over recent years, with a gradual increase in high-end products; continued expansion into application areas; and continued enlargement of its customer base; 2) diversified product deployment and comprehensive customer coverage in markets such as optical modules, aligning with industry growth opportunities; and 3) increased sales volume of related products driven by factors including long-term accumulation in the industrial sector, resulting in YoY growth in operating revenue.

CHINA TRAVEL HK (00308.HK) expects to record a consolidated net profit of more than HKD80 million for the six months ended 30 Jun 2026, compared with a loss of HKD87 million in the same period last year. The turnaround to profit was mainly attributable to the spin-off of the tourism real estate business from the group through completion of an in-kind distribution, enabling the disposal of continuously loss-making businesses; and new revenue growth drivers brought by the acquisitions of Jilin Songhua Lake International Resort Development Co., Ltd. and CTS (Beijing) Ice and Snow Sports Development Co., Ltd., which were completed on 27 Oct last year.

Buybacks - None announced

HSI Short Selling Thursday 15.2% vs 17% Wednesday
Top shorts MTRC (66) 54%, Henderson Land (12) 50%, HK & China Gas (3) 46%, CATL (3750) 46%, Ali Health (241) 46%, Chow Tai Fook (1929) 43%, Galaxy Ent (27) 42%, Sands China (1928) 40%

OOIL (316) 39%, ZTO Express (2057) 38%, BYD Electronics (285) 38%, Bud APAC (1876) 35%, Hengan (1044) 34%, Haidilao (6862) 34%, Haier Smarthome (6690) 33%, BoC HK (2388) 33%, Sinopharm (1099) 33%, Power Assets (6) 33%, Li Auto (2015) 32%, Laopu Gold (6181) 31%, Longfor (960) 30%, Mengniu Dairy (2319) 30%

Sunny Optical (2382) 29%, Xiomi (1810) 29%, Shenzhou (2313) 29%, SHKP (16) 29%, Xinyi Glass (868) 29%, HSBC (5) 28%, Wuxi Apptec (2359) 27%, Sinopec (386) 26%, Wharf REIC (1997) 26%, CK Hutch (1) 25%, China Res Power (836) 25%.

WATCH
Samsonite Group 7.2% on Thursday after the luggage maker announced it had agreed to acquire an 85% stake in BÉIS, a U.S.-based lifestyle and travel brand, for $178.5 million. BÉIS targets younger, predominantly female consumers and has expanded into lifestyle bag categories. The brand generated roughly $210 million in net sales in 2025. It comes as Samsonite prepares for a US dual listing.

CHINA SHENHUA (01088.HK) announced that coal sales volume in Jul was 53.1 million tonnes, down 4.5% YoY, while commercial coal output was 43.4 million tonnes, down 3.1%. For the first seven months, coal sales volume rose 0.8%, while commercial coal output fell 3.5%.

GEELY AUTO (00175.HK) announced that it completed the issuance of the second tranche of medium-term notes for the year Wednesday (12th), with an aggregate principal amount of RMB1.5 billion and a term of two years. The fixed annual interest rate for the first year of the medium-term notes is 1.52%. The proceeds will be used to repay the company’s existing debts.

XIAOMI-W (01810.HK) Partner and President Lu Weibing said recruitment for the first batch of Xiaomi HyperOS 4 Beta devices officially opened at 11 a.m. Thursday (13th) on the Xiaomi Community platform. No launch event will be held this time, as the company aims to continuously optimize the user experience through broader user feedback. Xiaomi HyperOS 4 Beta introduces three major upgrades. Xiaomi HyperCore, Xiaomi’s self-developed kernel, adds load estimation and memory preloading technologies, while also building a Xiaomi HyperOS application runtime environment. The company hopes to reduce system load for frequently used home screen functions and selected first-party applications at both the kernel and application layers, enabling stronger performance allocation and smoother animation effects during operation. The first batch of devices to receive the upgrade experience program tomorrow (14th) will cover multiple flagship models. Smartphone models include Xiaomi 17 Ultra and Xiaomi 17 Ultra Leica Edition, Xiaomi 17 Pro Max, Xiaomi 17 Pro, Xiaomi 17, REDMI K90 Pro Max and REDMI K90 Pro Max Champion Edition, and REDMI K90. Tablet models include Xiaomi Pad 8 Pro and Xiaomi Pad 8. The second batch of Beta experience upgrades will begin on August 27, while upgrade arrangements for the third batch of experience devices are scheduled for September 17.

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Thursday closings in EUROPE and US
DAX -0.12%, CAC -0.28%, FTSE -0.56%
FTSE opened lower dipped lower but then worked better through the morning but then drifted lower in the afternoon to close at the day low. DAX & CAC opened higher. DAX worked better in the morning but trended lower in the afternoon. CAC initially dipped then rebounded only to trend lower for the rest of the afternoon.

Defensive and select consumer/telecom segments along with travel & Leisure outperformed, while basic resources and energy lagged behind as commodity and crude prices softened.

Maersk 9.4% hiked its 2026 earnings guidance for the second time this year, as global trade movements remain stymied by the Strait of Hormuz blockade.

Business investment in the UK jumped 1.7% in Q2 beating the -0.5% forecast, as GDP rose in the three months to the end of June. Q2 Real GDP increased 0.4% vs 0.6% Q1, but in line with expectations. Monthly GDP was up 0.3%, following no growth in May.

DOW 0.13%, NDX 0.81%, S&P 0.65% (a new high), Russel 2K 0.24%
Markets opened higher after a lower than expected PPI number and falling oil prices. DOW initially ticked lower, bounced but then sold down into the red after a couple of hours and then worked slowly better for the rest of the day. NASDAQ & S&P spiked higher on the open, then gave up some of the gains, then trended slightly better for the rest of the day.

Worth noting that Redfin reported pending home sales edged up 0.4% WoW during the four weeks ending August 9 on a seasonally adjusted basis, offering a small boost to this summer’s sluggish housing market. Mortgage-purchase applications rose 3% WoW. Pending sales are still at their second-lowest level since March, and the latest weekly uptick may reflect normal week-to-week changes rather than a meaningful shift in momentum. Pending sales are -1.6% YoY. Many would-be homebuyers are still on the sidelines, largely because mortgage rates are high: The weekly average mortgage rate is 6.69%, its highest level in over a year, pushing the median monthly housing payment up 1.7% YoY to $2,626. Some house hunters are also turned off by the topsy turvy economy.

Cisco Systems -8% after its latest quarterly results failed to impress investors. Cerebras -12% and Coherent -8% after their earnings updates.

Workday 18% off the highs when the news that is in talks to be acquired by private equity firm Silver Lake, was announced by Reuters.

Netflix 5.4% after Bill Ackman’s Pershing Square disclosed a new stake in Netflix. The firm last took a position in Netflix in early 2022 but sold it roughly three months later.

Super Micro Computer 4.1% but off morning highs; adding to its 19% advance from Wednesday. After guidance for the Q1 surpassed estimates.

Birkenstock 11.6% after its quarterly revenue and adjusted EBITDA beat expectations. It also said it expects its FYr revenue and adjusted EBITDA to come in at the high end of its prior guidance.

Yeti -9.9% after the company reported mixed Q2 results

Banks JPMorgan Chase -0.57%, Citigroup 0.84% Wells Fargo -0.92%, Amex -0.12%
Ecommerce Meta 2.78%, Apple 1%, Amazon -0.8%, Netflix 5.43%, Disney 1.53%, Zoom Comms 4.48%, Alphabet 0.46% and Microsoft 0.9%
Tech NXP Semi -0.64%, Nvidia 0.54%, Micron 4.23%, AMD 0.02%, Skyworks 0.11%, Intel 3.58%
Industrial/Discretionary Boeing -0.38%, Caterpillar -0.12%, Simon Property 0.41%, Kohl’s 1.82%, Gap 0.69%, United Airlines 0.98%, Carnival 2.71%, Wynn Resorts -0.58%
Healthcare Eli Lilly -0.92%, UntiedHealth -1.61%, Johnson & Johnson 0.47% Merck 1.98%
Auto Ford 0.43%, GM -0.43%, Tesla 3.8%
Energy Chevron 0.56%, Exxon Mobil -0.71%, ConocoPhillips 0.81%
Consumer Staples Campbell Soup 3.01% General Mills 1.91%, JM Smucker 1.55%
Buffet’s Top Five Retirement Stocks Coca Cola 0.82%, Apple 1%, Johnson & Johnson 0.47%, Proctor & Gamble 0.12%, Berkshire -0.6%

DAILY US CLOSING DATA
USD weaker. Bitcoin 0.07% at $63,350.41 VIX 0.55% at 14.63
US Bonds T10 down more than 4 bpts to 4.645%, T2 down more than 5 bpts at 4.145% and T30 down 3 bpts at 5.214%
OIL Brent -2% at $87.07, WTI -2.4% at $81.25 after Energy Secretary Chris Wright claimed that exports through the Strait of Hormuz are higher than many independent estimates.
Spot Gold -0.9% Silver -1.72%, Copper -0.47% Platinum -2.53%, Palladium -4.29%.

Donald Trump’s net approval rating has fallen to a record low of -27, according to The Economist’s tracker. The resumption of strikes on Iran in mid-July may be to blame. Click the link to read the article.
https://www.economist.com/interactive/trump-approval-tracker?utm_campaign=r.the-economist-today&utm_medium=email.internal-newsletter.np&utm_source=salesforce-marketing-cloud&utm_term=8/11/2026&utm_id=2223410

His claims of total control over the straits of Hormuz seem hallow. That comes as Iran‑backed Houthi rebels killed six people in an attack on a cargo vessel in the Bab el‑Mandeb Strait; which is likely to worry investors about potential. escalation.

The International Energy Agency (IEA) said on Wednesday that as the impact of the closure of the Strait of Hormuz deepens, the decline in global oil demand this year will widen further from previous expectations. The IEA forecast that demand in 2026 will decrease by 1.6 million barrels per day, 510,000 barrels per day more than its previous monthly forecast in July. The agency said high fuel prices will continue to weigh on consumption, but demand is expected to recover within the year and resume growth in 4Q26. The situation surrounding the Strait of Hormuz remains chaotic, with no progress in negotiations between Washington and Tehran on reopening the vital waterway, as both sides continue to publicly put forward their own demands. The IEA said on Wednesday that “renewed hostilities and maritime disruptions” are undermining efforts to increase global oil supply, with July supply still down 6.3 million barrels per day YoY. Crude oil prices have therefore become more volatile. International benchmark Brent crude oil rose above USD100 per barrel last month, later fell close to USD70 per barrel, and was last reported at slightly below USD90 per barrel.

In the northern hemisphere there was a total eclipse of the sun and the European power grid managed to cope which is encouraging. Whereas South Korea’s record-breaking heat wave threw competing demands on its power system into sharp relief as the country seeks to meet rising electricity needs with nuclear and renewable energy. In Europe, extreme heat and drought have forced some nuclear plants to cut output because of cooling-water constraints. Korea faces a different problem as rapidly expanding solar generation produces large amounts of electricity during the day, while nuclear plants are slow to adjust output amid shifting supply and demand. Experts say the challenge is no longer about whether to favor nuclear power or renewables. It is whether Korea can build a power system flexible enough to accommodate both, with sufficient transmission capacity, energy storage and generation that can respond quickly when supply and demand fall out of balance.

Former Chinese Premier Zhu Rongji, who supervised China’s entry into the World Trade Organization and modernized its financial system, died on Wednesday in Beijing, state news agency Xinhua reported. He was 97. I wonder whether it will make Xi consider his own succession?

Earnings this week include;
Thursday Applied Materials, Inc. (AMAT.US), Coach parent Tapestry, Maersk, Hapag-Lloyd; CKH HOLDINGS (00001.HK), MTR CORPORATION (00066.HK), CHINA MOBILE (00941.HK), SMIC (00981.HK), LENOVO GROUP (00992.HK), CK ASSET (01113.HK), JD LOGISTICS (02618.HK), JD HEALTH (06618.HK), JD-SW (09618.HK), JD INDUSTRIALS (07618.HK), CHINA GOLD INTL (02099.HK), CITIC TELECOM (01883.HK), CR ASIA (00831.HK), HUA HONG GRACE (01347.HK), HYSAN DEV (00014.HK), IGG (00799.HK), LANGHAM-SS (01270.HK), LIU CHONG HING (00194.HK), MARKETINGFORCE (02556.HK), ONEWO (02602.HK), SAMSONITE (01910.HK), SF REIT (02191.HK), SIICENVIRONMENT (00807.HK), WL DELICIOUS (09985.HK)

Friday SANDS CHINA LTD (01928.HK), BAY AREA DEV (00737.HK), FUDANZHANG JIANG (01349.HK), MIRAMAR HOTEL (00071.HK), SINOPEC SEG (02386.HK), SOUTHGOBI (01878.HK), XIAOCAIYUAN (00999.HK), ZIJIN GOLD INTL (02259.HK)

Worth noting that Norway’s sovereign wealth fund, the world’s largest, yesterday reported a record return on investments of US$185 billion in the first half of the year, recovering from heavy losses seen in the first three months of the year. The 9.4% return was due largely to its holdings in Asian technology firms, which have powered ahead on massive demand for artificial intelligence (AI) gear.

It marked a sharp rebound from the US$58 billion loss reported in Q1, when the fund was weighed down by declines in US tech companies. At the end of June, the fund, which is fueled by the Norwegian state’s oil revenues and invested in assets worldwide, was valued at 22.6 trillion kroner (US$2.38 trillion).

Nicolai Tangen, chief executive of Norges Bank Investment Management, which manages the fund, attributed the increase to “chips, chips, chips” at a press conference, referring to demand to develop and power AI models. The technology sector alone accounted for 1.065 trillion kroner (US$112 billion) of the gains in the first half.

Housekeeping
This afternoon I will be on RTHK’s the Close with host Nitin Dialdas and the other guest was Olivier D’Assier, Head of Applied Research, APAC, SimCorp as the other guest. If there is a topic you would like discussed please message me or contact them via WhatsApp +852 6899 8518 or via the link below, which can also be used to listen to the programme.
click the link https://www.rthk.hk/radio/radio3/programme/the_close

On Friday I will be on Peter Lewis’ Money Talk podcast with Francis Lun so if there is a topic you want discussed please let him or me know

On Monday morning I was on RTHK’s Money Talk with host Magha Chaddah and portfolio manager Shuyan Feng as the other guest. We looked at what was likely to impact this week’s trading: the China inflation & PPI data, this weeks China loans data and the US CPI and PPI data. Earnings season results so far and up coming earnings in HK. The recent Yen intervention and its implications. Also implication on other asset classes.

I actually did a second item this week, looking at the US/Iran standoff. Also the recent volatility in AI stocks and whether the manufacturers still provide good opportunities.

If there is a topic you would like discussed next week; then let them know or drop me a message, or if you just want to listen to the programme, click the link
https://gbcode.rthk.hk/TuniS/www.rthk.hk/radio/radio3/programme/money_talk

Latest thoughts from Market Thinker - challenging the narrative. DRAMatic Price Moves Another STAR rising in the east. Takes a look at CXMT the fourth largest DRAM maker that saw a 466% jump on its market debut. Its IPO was oversubscribed by 570x for the institutional portion and 244x for the retail side. For context, at an initial price of $1.28, that means Chinese retail had to lodge $1.2tn with the exchange.

He contrasts it with SpaceX which paid insiders and left nothing for those that bought the IPO. He also highlights other differences and suggests that investors should be looking closer at Chinese tech markets.

Market opening indications and data due
New Zealand
NZX futures opened higher initially testing 13,770, then consolidated before working higher, currently up 29pts at 13,766.26

On Wednesday the NZX opened flat and trended lower all day and ticked lower at the end to close -123pts -0.89% at 13,737.66
Leaders were consumer staples, consumer discretionary, and select tech/producer manufacturing shares showed resilient pockets of strength earlier in the session, though the broader market drop eventually flattened overall sector gains
Laggards were materials, industrials, and financials
Data due late morning
Business Inflation Expectations Q3 vs 2.53% Q2 (F/cast is 2.7%)

Australia
ASX futures indicate the market to open -25pts -0.3% at 9,127 with weakness in energy names and miners mixed. Tech and Financials also likely to be mixed.
Earnings from ASX, Insurance Australia, Orora, Origin Energy, Transurban, Telstra and Treasury Wine Estate

On Wednesday the ASX 200 opened lower, and drifted lower through the morning and then worked better in the afternoon to close; -41.2pts -0.45% at 9,209.4 with 9 out of 11 sectors in the red.
Leaders were Utilities and IT and the main laggard was Real Estate. Financials were weak after Commonwealth Bank -1.2% after its results.
No Data Scheduled but RBA’s Kent speaks pre market

Japan
Nikkei Futures 37.5pts 0.05% at 68,572.5
Chicago Nikkei Futures 55pts 0.08% at 68,600
Yen 159.40. with reports that PM Takaichi and US Treasury Secretary Scott Bessent are at odds about BoJ policy to support the Yen. Trading 159.38 in early trading

On Wednesday the Nikkei re-opened around flat and traded sideways for the first couple of hours before spiking higher and then re-worked better in the afternoon with resistance at 67,570 to close up 553.84pts 0.83% at 67,524.06
Leaders mining, petroleum and coal products, and nonferrous metal sectors
Laggards retail, E-commerce and individual heavyweight stocks
Data Scheduled pre market
PPI Jul MoM vs 0.4% Jun (F/cast is 0.4%)
PPI Jul YoY vs 7.1% Jun (F/cast is 7.2%)
Due mid morning
BoJ JGB Purchases

S Korea - No Data Scheduled
Kospi Futures indicate opening up 34.05 pts 3.29% at 1,069.35

The Kospi Wednesday opened higher up 1.47% and worked better through the morning but hit resistance at 6,670 and sold off in the afternoon but ticked higher at the end to close up 233.51 pts, 3.68% at 6,579.04; up for a third day
At 11:57 a.m., the bourse operator activated a buy-side sidecar. Program trading for the Kospi-listed shares was suspended for five minutes.
Trade volume was moderate at 355 million shares worth 26.21 trillion won ($18.49 billion) trading hands, with losers outnumbering gainers 477 to 378.
Foreigners bought a net 2.83 trillion won and institutions purchased 527.7 billion won worth of stocks, while retail investors alone offloaded a net 3.19 trillion won in shares.
Large cap stocks closed higher.
The Korean won was quoted at 1,415.7 won against the US dollar at 3:30 pm.Wednesday up 0.3 won from the close of stock trading the day before.

Taiwan - No Data Scheduled
Taiex futures indicate the market opening up 601pts 1.32% at 46,117

On Wednesday the Taiex opened higher and worked slightly better through the day to close up 397.35 pts, or 0.88% at 45,518.07. Turnover totaled NT$858.73 billion (US$26.66 billion),vs NT$869.02 billion (US$26.96 billion) Tuesday and below the average of NT$892.1 billion for the previous five sessions.
Led by AI-related stocks.
TSMC 0.84% contributing about 160 points to the Taiex. Hon Hai was 2.66% ahead of earnings out after market. Old economy stocks were largely mixed but some machinery makers posted gains on strength in robotics production. Financials were mixed.
According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$11.02 billion of shares on the main board Wednesday.

China - No Data Scheduled
Golden Dragon Index closed -155.68pts -2.38% at 6,376.73
FTSE A50 futures 59pts 0.39% at 15,042
MSCI A50 futures 9.6pt 0.35% at 2,787

On Wednesday the A shares worked better through the day led by a rebound in technology stocks. Finance and Energy were laggards
The benchmark Shanghai Composite Index 0.32% at 3,946.7 pts
The Shenzhen Component Index 1.09% at 14,414.4
The People’s Bank of China (PBOC) announced that, in order to better match the short-term liquidity needs of the banking system, it will conduct overnight reverse repo operations on August 14 and August 17-19, adopting a fixed-rate and quantity-based bidding method, with the daily operation size not exceeding RMB600 billion.
USD/CHN 0.00373pt 0.06% at 6.7455
Spot USD/CNY edged up 1 bp to close at 6.7456 Wednesday (12th). As of 4:45 pm, USD/CNY in the night session dropped 76 bps. USD/CNH faded 12 bps to 6.7463, 7 bps below USD/CNY.
Could get, likely after market
New Yuan Loans Jul vs CNY 1610B Jun (F/cast is CNY -80B)
M2 Money Supply Jul vs 8% Jun (F/cast is 8.2%)
Outstanding Loan Growth Jul YoY vs 5.2% Jun (F/cast is 5.1%)
Total Social Financing Jul vs CNY 3360B Jun (F/cast is CNY 1000B)

Hong Kong - No Data Scheduled
ADR’s closed -192.73pts -0.76% at 25,475 only HSBC, CLP, SHKP, BoC HK and Baba in the green. Downside may be cushioned by the good earnings from Tencent although the ADR closed lower
Hang Seng Futures indicate the market opening -221pts -0.87% at 25,324
Turnover Wednesday HK$216.779B vs HK4210.942B Tuesday
Short Selling Wednesday 17% vs 17% Tuesday

On Tuesday the HSI opened lower an drifted lower through the morning and then saw an uptick around lunchtime and then worked slightly better in the afternoon.
The HSI closed -212.65 pts -0.83% at 25,440.17
The Hang Seng TECH Index -0.99%.
Leaders were the Mainland Property names following policy optimization signals from Beijing to stabilize housing markets and Optical Communication stocks
Laggards were Technology and Consumer Discretionary

Macau - No Data Scheduled

Singapore - Data Scheduled lunchtime
6-Month T-Bill Auction vs 1.59% prior

Malaysia - Data Scheduled late morning
Construction Output Q2 YoY vs 8.5% Q1 (F/cast is 4%)

Indonesia - No Data Scheduled

Philippines - Data Scheduled pre-market
Foreign Direct Investment May vs $0.3B Apr (F/cast is $0.4B)

Thailand - No Data Scheduled - Market re-opens
Could get Consumer Confidence Jul vs 50.7 Jun (F/cast is 51.1)

Vietnam - No Data Scheduled
Cambodia - No Data Scheduled
Myanmar - No Data Scheduled

India - No Data Scheduled
Out after market Wednesday
Inflation Rate YoY for Jul 4.45% YoY vs 4.38% Jun (f/cast was 4.5%)

Europe
Eurozone - Industrial Production
Germany - Factory Orders, Construction PMI
France - No Data Scheduled
United Kingdom - RICS House Price Balance Jul -30% vs -32% Jun revised frm -33% (F/cast was -30%) out in Asian time.
GDP Growth Rate, GDP, GDP 3-Month Average, Business Investment, Goods Trade Balance and Non EU, Industrial & Manufacturing Production, Balance of Trade, Business Investment Prelim, Construction Orders, NIESR Monthly GDP Tracker

United States
Futures opened Dow 23pts 0.04% S&P -0.01% NDX -0.16%
After Market
Cisco -4.5% despite good earnings it failed to meet investors elevated expectations.
Cerebras -16% Q2 2026 financial results missed Wall Street expectations on both top and bottom lines.
Coherent -4% despite results exceeding the market’s revenue expectations, with sales up 33.7% year on year to $2.05 billion.

Data Scheduled: Fed Hammack Speech, PPI, Core PPI, Initial Jobless Claims, Continuing Claims, 4 week Average Claims, PPI Ex Food, Energy and Trade, Fed Barkin Speech, EIA Gas Report, 4-week & 8-week Bill Auction, 15-year & 30-year Mortgage Rate, 30-Year Bond Auction, Fed Balance Sheet

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HEADLINES & NEWS

NEW ZEALAND & AUSTRALIA
Australia’s biggest aluminium smelter is set to receive a major bailout package following long-running crisis talks with the federal and NSW governments. Which is a big bill for taxpayers to foot.

Commonwealth Bank has reported a sharp drop in applications from property investors as the housing slump puts the brakes on the $2.5 trillion mortgage market but the sweet spot is approaching for first home buyers

Macquarie’s chairman, former Reserve Bank governor Glenn Stevens, has been called to appear before the parliamentary committee looking into the KPMG whistleblower scandal.

JAPAN
After years of paying investors almost nothing, Japanese government bonds are suddenly ​worth owning again, and domestic asset managers are hurrying to give ordinary investors a way in. With yields on long-term JGBs now ‌rivalling those of U.S. Treasuries and German bunds, Mitsubishi UFJ Asset Management has joined Daiwa Asset Management and Amova Asset Management in selling investment trusts focused on the super-long bonds. Japan’s 30-year JGBs trade at a near 4% yield, higher than Germany’s 30-year bond yield of around 3.6%, and close to the 5.2% of 30-year U.S. Treasuries. While the size of each ​fund is relatively small at no more than 3 billion yen ($18.84 million), their proliferation is a sign of reinvigoration of the debt ​market that had been dominated by the central bank for more than a decade.

Nintendo (7974.T) said on Wednesday that it would launch its Switch consoles in Indonesia for the ​first time this year, marking its entrance into Southeast ‌Asia’s largest economy.

Toyota (7203.T) is recalling 508,354 vehicles in ​the U.S. as an ‌instrument cluster that fails to display critical safety ​information increases the ​risk of a crash ⁠or injury, the ​National Highway Traffic Safety ​Administration said on Tuesday.

SOUTH KOREA
Rep. Kim Min-seok is leading by a narrow margin in the ruling Democratic Party leadership race, indicating that the final outcome is likely to hinge on Seoul and the Jeolla provinces.

South Korea’s Financial Services Commission announced that it will require new investors in single-stock leveraged ETFs to undergo simulated trading exercises, further tightening rules on these high-risk products that have exacerbated market volatility. The commission said new investors in single-stock leveraged ETFs must complete at least five days and a cumulative minimum of five hours of simulated trading. The new requirement will apply to both domestic and overseas investments starting next Wednesday (19th). Previously, critics said leveraged products linked to Samsung Electronics and SK Hynix had intensified volatility in South Korea’s Kospi Index, prompting authorities to introduce multiple regulatory measures. Since higher margin requirements took effect on July 31, trading volume of single-stock leveraged ETFs has declined. Related turnover dropped to only KRW700 billion yesterday (11th), compared with KRW12.4 trillion on July 30, representing a decline of more than 94%.

South Korea’s media watchdog concluded Wednesday that US-based Google LLC. and Apple Inc. violated related laws by abusing their dominance in their respective app marketplaces. The level of sanctions will be decided at a later date, the Korea Media Communications Commission said at a regular meeting held in the afternoon.

Hanwha Life Insurance said its major overseas businesses generated a combined net profit of 103 billion won ($72.7 million) in the first half, nearing the 117.8 billion won they earned for all of last year as its push to diversify beyond insurance began to pay off. The overseas operations accounted for about 11 percent of Hanwha Life’s consolidated net profit of 904.5 billion won for the six-month period. Its Vietnamese life insurance unit posted 32 billion won in net profit, up 23 percent from 26 billion won a year earlier. The growth was supported by improved insurance margins and stronger investment income, helped by higher local interest rates.

Musinsa said Wednesday it would accelerate its expansion in Southeast Asia by opening its first offline stores in the Philippines, starting with a Musinsa Standard location in Manila this year. The expansion follows an exclusive distribution agreement signed July 17 with ACX Holdings, a distribution affiliate of Ayala Group, one of the Philippines’ largest conglomerates. ACX Holdings manages the entry and operation of global brands in the Philippine market. Under the agreement, Musinsa will serve as the company’s fashion business partner, tapping its local distribution network and market expertise to build a domestic presence.

CXMT is showing signs that its push into mainstream PC memory may be moving from qualification toward repeatable commercial production, as a new Chinese report claims its DDR5 manufacturing yield has surpassed 90 percent while major PC makers begin using its chips in limited volumes. Chinese technology outlet MyDrivers reported Monday that the yield on CXMT’s 17-nanometer-class DDR5 had “surpassed 90 percent,” saying the improvement had “significantly improved overall supply conditions.”

By shipments in the NAND flash market in 2Q26, Samsung (005930.KS), SK hynix Inc. (SKHY.US) and YMTC accounted for 25%, 22% and 14% market share respectively, data from market research firm Counterpoint showed. This marked the first time that YMTC entered the top three globally by market share. However, by revenue, YMTC ranked fifth in the industry, behind Micron Technology, Inc. (MU.US) and Kioxia (285A.JP), mainly because its product mix is concentrated in consumer applications, while the proportion of higher-priced enterprise SSDs for data centers is relatively low.

TAIWAN
The Indonesian Navy yesterday said that joint naval exercises that China said took place east of Taiwan were routine and not related to “war fighting,” after Taipei expressed alarm and called them dangerous. China in June began coast guard patrols off Taiwan’s east coast, causing anger in Taipei and concern in Washington and some other Western capitals. The drill, which China described as a “navigation exercise,” was the first time the country has carried out such an operation with a foreign military in those waters.

The Chinese Nationalist Party (KMT) and other opposition politicians are “taking Taiwan’s democracy hostage” for selfish gain, The Economist said in a column published online on Tuesday. “Taiwan’s freedoms should be a strength, raising the costs to China of a takeover. Shamefully, they are being betrayed from within,” the British news magazine said. While a lot of countries have toxic politicians, Taiwan’s stand out as particularly irresponsible, and “the blame is not evenly distributed,” it said.

Hon Hai Precision Industry Co. reported its highest-ever net profit for Q2 Wednesday, with cloud and networking devices accounting for more than 50 percent of its revenue during the current AI boom. It posted NT$59.97 billion (US$1.86 billion) in net profit during the April-June period, up 35% YoY and up 20%. QoQ. Its earnings per share for Q2 hit NT$4.27, compared with NT$3.19 a year earlier and NT$3.56 in Q1.
In Q2 it generated NT$2.53 trillion in consolidated sales, up 41% YoY (19% QoQ).
The cloud and networking division accounted for 51% of Q2 total revenue, up from 48% in Q1 while the smart consumer electronics division made up 29% of total sales in the April-June period with the computing division 15% and the electronic components division 5%
Its gross margin was 6.12% in Q2 -0.21 percentage points YoY and down 0.06 percentage points QoQ. Its operating margin was 3.75% up 0.6 percentage points YoY (0.18 percentage points QoQ). Its CAPEX for 2026 will focus on AI production expansion, while the company will allocate funds to strengthen global R&D and production, especially in the United States.

Yesiang Enterprise, the nation’s largest supplier of semiconductor chemical filters, yesterday said that revenue in the second half would significantly outgrow the first half, driven by rising demand for filters in advanced 2-nanometer chip plants. Another key growth driver comes as a major customer begins to adopt the company’s chemical filters at a new chip-on-wafer-on-substrate packaging plant in Tainan next month and at upcoming packaging facilities, Yesiang said. “The company’s revenue growth started taking off in May, with sales growing more than 100 percent annually,” Yesiang chairman James Chuang told an earnings conference in Taipei. “Driven by such strong growth momentum, we believe revenue will show significant growth in the second half.”

Taiwanese companies are taking longer to fill vacancies while losing new hires more quickly, highlighting a widening talent crunch as employers compete for workers in an increasingly tight labor market, a report released yesterday by 104 Job Bank showed. Companies needed an average of 44.9 days to hire an employee last year, while only 62.2 percent of new hires remained on the job for at least six months, down 4 percentage points from a year earlier, the job bank’s Human Resources Report said. Hiring difficulties are especially acute for managers, the report said, as companies took an average of 77 days to find suitable managerial candidates, compared with 40 days for general employees.

CHINA
Ford Motor plans to move ​production of some Lincoln models ‌from China to the US in 2030, Ford’s CEO told Reuters on ​Wednesday, adding the move was ​difficult but necessary to strengthen ⁠the U.S. auto manufacturing base. Gasoline-powered ​cars and electric vehicles imported from ​China are subject to hefty duties. The U.S. tariff on the Lincoln Nautilus, ​the main vehicle Ford imports ​from China, is 52.5%.

Xiaohongshu announced that it will hold RED LAND 2026 at Fuxing Island in Yangpu, Shanghai from October 2 to 6. This marks the second consecutive year that RED LAND will be held at Fuxing Island, and the event will launch a large-scale immersive interactive float parade themed around gaming and anime culture for the first time. The parade lineup will feature iconic IP characters, NPCs, cosplayers and creative floats. This year’s RED LAND will reportedly bring together more than 100 well-known gaming and anime IPs, double the number from last year. Featured popular gaming IPs include “Honor of Kings”, “Black Myth: Wukong”, “Genshin Impact” and “Honkai: Star Rail”, alongside globally recognized pop culture IPs such as Disney’s Zootopia and Marvel. In terms of interactive experiences, this year’s event will continue the concept of an “open-world adventure island”, expanding the exploration area to more than 100,000 square meters.

The China Association of Automobile Manufacturers (CAAM) announced automobile industry production and sales data for July. During the period, automobile production and sales reached 2.573 million units and 2.584 million units respectively, down 6.8% and 8% MoM, and down 0.7% and 0.3% YoY respectively. In 7M26, automobile production and sales totaled 17.567 million units and 17.602 million units respectively, both down 3.7% YoY, with the declines narrowing further from 1H26. Exports of ICEVs totaled 490,000 units, down 4.6% MoM and up 40% YoY. In 7M26, NEV exports reached 2.909 million units, up 1.2x YoY, while exports of ICEVs totaled 3.231 million units, up 36.2% YoY. In July, NEV production and sales reached 1.576 million units and 1.561 million units respectively, representing YoY growth of 26.8% and 23.7% respectively. NEV sales accounted for 60.4% of total new vehicle sales. In 7M26, NEV production and sales reached 9.014 million units and 9.007 million units respectively, up 9.5% and 9.6% YoY. NEV sales accounted for 51.2% of total new vehicle sales.

China Changan Automobile Group announced that it signed a strategic cooperation framework agreement with Huawei Technologies in Shenzhen Tuesday (11th). The two parties will further explore cooperation directions and scenarios in areas including AI products and applications, general and automotive vertical large models, digital infrastructure, computing power, and hardware and software. They will also strengthen cooperation in digital energy, internationalization, and planning and training of digital intelligence talent, jointly promoting deep integration.

Copper foil maker Londian Wason New Energy Tech (FOIL.N) was valued at $2.01 ​billion in its New York Stock Exchange debut on Wednesday, marking ‌the largest IPO of a Chinese company in the U.S. in more than a year. The Shenzhen-based company’s shares opened at $26 apiece, above their offer price of $22, after it raised $94.3 ​million in Tuesday’s upsized offering. Chinese IPOs in the United States have dwindled ​in recent years amid escalating tensions between Washington and Beijing ⁠and increased scrutiny of China-based issuers.

HONG KONG
Earnings
TENCENT (00700.HK) announced its results for the second quarter ended June 2026. Revenue added nearly 11% YoY to RMB204.785 billion, slightly above market expectations of RMB202.84 billion. Net profit reached RMB56.022 billion, up 0.7% YoY and down 4% QoQ. Under non-IFRS measures, net profit reached RMB68.4 billion, up 8.5% YoY. EBITDA for the period amounted to RMB85.776 billion, up nearly 8% YoY. Adjusted EBITDA was RMB91.372 billion, representing growth of 7.3%. Revenues from VAS increased by 8% YoY to RMB98.414 billion for 2Q26. Domestic Games revenues were RMB47.3 billion, up 17% YoY, driven by growth from most of the group’s major games, with notable contributions from Delta Force, VALORANT PC and MOBILE, and Roco Kingdom: World. International Games revenues went up 4% YoY in constant currency terms. Capital expenditure in 2Q26 reached RMB52.784 billion, representing an upsurge of 1.76x from RMB19.107 billion in the same period last year, and topping market forecasts of around RMB32.1 billion.

CKI HOLDINGS (01038.HK) announced its interim results for the six months ended June 2026. Revenue lost 3.6% YoY to HKD19.631 billion. Net profit swelled 389% YoY to HKD21.252 billion, mainly benefiting from substantial gains recorded from the disposal of UK Power Networks (UKPN) and UK Rails. EPS was HKD8.43, compared with HKD1.73 in the corresponding period last year. An interim DPS of HKD0.75 was declared, compared with HKD0.73 in the same period last year.

POWER ASSETS (00006.HK) announced its interim results for the six months ended June 2026. Revenue faded 15.3% YoY to HKD298 million. Benefiting from the group’s disposal of interests in UK Power Networks (UKPN) and UK Rails, net profit leaped 383% YoY to HKD14.704 billion, while EPS was HKD6.9. The interim DPS was maintained at HKD0.78, flat YoY over the same period.

POU SHENG INT’L (03813.HK) announced its interim results for the six months ended end-June 2026. Revenue was RMB8.965 billion, down 2.1% YoY. Net profit was RMB244 million, up 29.9% YoY, with EPS at RMB0.047. The company declared an interim dividend of HKD1.6 cents and a special dividend of HKD1.6 cents, compared with HKD1.15 cents each in the corresponding period last year, representing an increase of 39.1%.

GALAXY ENT (00027.HK) Chairman Francis Lui said in the interim results report that the tournament’s extended match schedule this year temporarily affected customer traffic and revenue. The group’s targeted marketing and promotional initiatives helped to partially offset the impact. Importantly, Macau experienced a recovery in gaming revenue toward the end of the World Cup, and this momentum has continued into August. Looking ahead, the group is undertaking a comprehensive renovation and upgrade program at StarWorld Macau. It has completed the refurbishment of the gaming floors on levels 1 and 3. It has also recently commenced the renovation of the hotel rooms and suites. The project is expected to be fully completed by 1Q27.

CHANGHONG JH (03991.HK) announced its interim results for the six months ended end-Jun 2026. Revenue rose 31.24% YoY to HKD27.782 billion. Net profit increased 13.52% YoY to HKD206 million, with EPS of HKD0.08. No dividend was declared.

NEXTEER (01316.HK) announced its interim results for the six months ended June 2026. Revenue rose 3.9% YoY to USD2.329 billion. Net profit hiked 35.2% YoY to USD85.81 million, with EPS of US3.4 cents. The board did not recommend the payment of an interim dividend.

DMALL (02586.HK) announced its interim results for the six months ended June 2026. Revenue was RMB1.1545 billion, up 7.1% YoY. Net profit was RMB108.6 million, up 60.9% YoY. EPS was RMB0.12. No dividend was declared.

SUNSHINE OIL (02012.HK) announced its interim results for the six months ended June 2026. Net loss and comprehensive loss attributable to owners of the company was CAD19.74 million, compared with a loss of CAD1.981 million in the same period last year. LPS was CAD0.28.

YUE YUEN IND (00551.HK) announced its interim results for the six months ended June 2026. Revenue amounted to USD3.972 billion, down 2.2% YoY. Net profit was USD71.998 million, down 57.9% YoY, with EPS of US4.49 cents. An interim DPS of HKD0.4 was declared, flat YoY.

Government
The Financial Services and the Treasury Bureau responded to media enquiries regarding the carried interest tax concession regime, saying there are no plans to further expand the scope of the concession measures and that administrative guidance will be issued to clarify details when necessary. The government said one of the key initiatives under the Inland Revenue (Amendment) (Preferential Tax Regimes for Funds, Family-owned Investment Holding Vehicles and Carried Interest) Bill 2026 is to expand the scope of the carried interest tax concession regime. Businesses that use proprietary capital to trade or hold assets for their own account to generate income, generally referred to as proprietary trading businesses, do not meet the relevant definition of a “fund”. As such, performance-based remuneration distributed by such businesses would not qualify for the proposed tax exemption under the Bill. The Bill is currently being scrutinized by the Bills Committee of the Legislative Council, which has completed clause-by-clause examination. The government aims to resume the second reading debate of the Bill in 2H26. Subject to Legislative Council approval, the measures may take effect from the 2025/26 year of assessment.

The Hong Kong Government launched a one-month public consultation on the proposed amendments to the Building Management Ordinance (Cap. 344) (BMO). The proposals aim to further enhance the regulatory regime under the BMO following the enactment of the Building Management (Amendment) Ordinance 2024 to better cope with the changing needs of the building management and meet public expectations. The proposed amendments cover five major areas: imposing a higher attendance requirement and voting thresholds for decisions on large-scale maintenance procurement and high-value procurement; improving the system for proxy instruments; optimizing the system for declaration of interests; strengthening the powers of the authority; and clarifying meeting procedures.

Following foreign media reports last month that HKEX (00388.HK)was weighing an extension of trading hours, local media cited sources as saying that HKEX plans to first issue a discussion paper in view of mixed market reactions to the proposed changes. If the discussion paper receives a positive market response, HKEX will later launch a public consultation paper to formally propose new trading hour arrangements, report told.

Warning / Alerts
CR MEDICAL (01515.HK) expects net profit for the six months ended 30 June 2026 to range from approximately RMB252 million to RMB278 million, representing a YoY decline of approximately 25.9% to 18.1% compared with the same period in 2025. Excluding the approximately RMB210 million in prior-year management fees and supply chain loss compensation received on a one-off basis under the Yanhua IOT agreement in 2025, as well as the corresponding corporate income tax, net profit would increase by approximately 36.2% to 50.6% YoY compared with the same period in 2025.

LEGION CONSO (02129.HK) issued a positive profit alert, expecting to record a net profit of approximately SGD700,000 for the six months ended end-Jun 2026, compared with a loss of approximately SGD1.56 million in the corresponding period last year. The expected turnaround to profit was mainly attributable to increased customer demand for trucking transportation services and freight forwarding services during the period, which drove revenue growth, as well as lower professional fees due to a decline in consulting and advisory costs compared with the previous period.

Buybacks - None announced

HSI Short Selling Wednesday 17% vs 17% Tuesday
Top shorts Ali Health (241) 52%, Li Auto (2015) 49%, MTRC (66) 48%, Sands China (1928) 45%, Haier Smarthome (6690) 44%, CATL (3750) 41%,

Bud APAC (1876) 38%, China Res Land (1109) 36%, Xiomi (1810) 36%, Xinyi Solar (968) 35%, China Shenhua (1088) 34%, Xinyi Glass (868) 32%, Power Assets (6) 32%, Galaxy Ent (27) 30%,

PopMart (9992) 29%, Chow Tai Fook (1929) 29%, Trip com (9961) 29%, ZTO Express (2057) 29%, Anta Sports (2020) 28%, BoC HK (2388) 28%, Laopu Gold (6181) 27%, Sinopharm (1099) 27%, CLP (2) 27%, SHKP (16) 27%, Shenzhou (2313) 26%, Haidilao (6862) 26%, BYD Electronics (285) 26%, HK & China Gas (3) 26%, CK Hutch (1) 26%, Lenovo (992) 25%,

WATCH
Delisted CHINA EVERGRANDE won a ruling from the High Court allowing it to recover a loan of about HKD6 billion from Yingjia International Properties. The case dates back to March 2021. According to the case details, EVERGRANDE subsidiary State Hero Holdings agreed to provide a RMB5 billion loan to Yingjia, which had to be fully repaid within two years to avoid interest charges, while overdue repayment would incur an annual interest rate of 4%. The funds were ultimately transferred to Honour Best International Trade in April 2021 and were later used to subscribe for 183 million new shares issued by EVERG VEHICLE (00708.HK). Yingjia previously attempted to prevent State Hero from filing a winding-up petition against it and submitted two injunction applications in this regard, but both applications were rejected by the judge, including a request aimed at delaying the handling of the winding-up petition pending an appeal. However, the High Court considered Yingjia’s defense arguments to be entirely fabricated and approved EVERGRANDE to continue with the recovery proceedings.

Victoria Voyage in Kai Tak, jointly developed by CHINA OVERSEAS (00688.HK) , WHARF HOLDINGS (00004.HK), HENDERSON LAND (00012.HK) and K. WAH INT’L (00173.HK), recorded a bulk purchase in which a buyer spent HKD48.172 million to acquire two units. The transacted units were at Unit B, 20/F and Unit B, 21/F, Tower 5B, both with a saleable area of 667 square feet and featuring a three-bedroom layout with one ensuite. Among them, Unit B, 20/F was sold for approximately HKD24.026 million, or HKD36,021 per square foot, while Unit B, 21/F was sold for HKD24.146 million, or HKD36,201 per square foot.

Blue Pool Capital, the family office jointly founded by BABA-W (09988.HK) founder Jack Ma and group chairman Joe Tsai, has reportedly completed the first close of fundraising for the second new fund under its Harborside series last month, involving USD300 million. The fund will be used for hedge fund strategies and targets a size of USD500 million, with completion expected before the end of 2026. The first fund under the Harborside series had previously completed fundraising and commenced operations, report revealed. The new fund is estimated to continue its diversified investment strategy style.

STANCHART (02888.HK) Chief Operating Officer Tanuj Kapilashrami expects the group’s global workforce structure to be reshaped as AI becomes increasingly widespread, but anticipates headcount in India, which serves as the group’s global capability center, will increase. Kapilashrami said the group currently employs about 22,000 staff at its global capability center in India to support the group’s worldwide operations. At the same time, while promoting AI technology adoption among employees, the group is also focused on establishing guardrails for AI implementation.

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Wednesday closings in EUROPE and US
DAX -0.23%, CAC -0.46%, FTSE -01%
Markets opened around flat FTSE traded around flat all day, the DAX trended better in the morning but sold off in the afternoon. CAC dipped initially but worked back to flat by lunch but sold off in the afternoon.

Pulling back slightly from record highs as investors digested a busy corporate earnings calendar, monitored deadlocked US-Iran Middle East peace talks, and reacted to a benign US consumer price inflation reading that eased Federal Reserve rate hike fears

Vestas Wind Systems 19.7% after the Danish wind turbine maker’s Q2 adjusted earnings before interest and taxes reached 446 million euros, more than double the 205 million euros estimated by analysts.

DOW -0.04%, NDX 0.54%, S&P 0.26%, Russel 2K 0.61%
Markets opened higher after in-line CPI data and traded sideways in a tight range. Tech/AI names strong after good results from Coreweave and Super Mirco Computer. 11 of the S&P 500 sectors closed in the green; only consumer discretionary, materials and communications services sector in the red.

Wendy’s 14.7% after The Financial Times reported, citing sources, that Nelson Peltz’ Trian Fund Management was preparing a bid to take the company private.

National Vision -11.6 the optical retail company; after full-year guidance failed to impress Wall Street.

Banks JPMorgan Chase 0.87%, Citigroup 1.33% Wells Fargo 1.69%, Amex 0.96%
Ecommerce Meta -3.38%, Apple -0.87%, Amazon -1.83%, Netflix -0.78%, Disney -0.3%, Zoom Comms -0.88%, Alphabet -0.18% and Microsoft -2.26%
Tech NXP Semi -1.26%, Nvidia 3.03%, Micron 4.92%, AMD 1.82%, Skyworks 1.98%, Intel 3.32%
Industrial/Discretionary Boeing -0.87%, Caterpillar 1.45%, Simon Property 0.47%, Kohl’s 4.22%, Gap -3.39%, United Airlines 0.94%, Carnival -0.22%, Wynn Resorts -1.74%
Healthcare Eli Lilly 0.43%, UntiedHealth 0.85%, Johnson & Johnson 0.41% Merck 1.92%
Auto Ford -1.07%, GM -2.9%, Tesla -1.59%
Energy Chevron -0.03%, Exxon Mobil -0.03%, ConocoPhillips 0.11%
Consumer Staples Campbell Soup -0.53% General Mills 0.66%, JM Smucker 1.24%
Buffet’s Top Five Retirement Stocks Coca Cola 0.27%, Apple -0.87%, Johnson & Johnson 0.41%, Proctor & Gamble -0.78%, Berkshire -1.24%

DAILY US CLOSING DATA
USD weaker. Bitcoin 0.18% at $63,471.89 VIX -4.78% at 14.55
US Bonds T10 up less than 1 bpts to 4.69%, T2 down less than 1 bpts at 4.203% and T30 up more than 1 bpts at 5.354%. Worth noting that the treasury action on Wendesday struggled which is not a good signal ahead of the 30-year auction today
OIL Brent 0.08% at $88.98, WTI 0.08% at $83.27
Spot Gold 1% Silver -0.55%, Copper -0.38% Platinum -0.68%, Palladium -0.43%.

Concerns over AI valuations have rocked China’s stock market in recent weeks, posing a major test for Beijing’s efforts to engineer a steady upward trend, known as a “long bull.” Nikkei reports tech ETF’s have draw record inflows - team China is at work it would appear.

Trump trying again to fire Fed President Lisa Cooke, by sending her a letter giving her three weeks notice to respond to the allegations of mortgage fraud.

Traders are now pricing in a 50% chance of a rate hike in September and an 81% chance in December, according to the CME FedWatch ​tool. But a hike risk may rise if oil prices remain high.

Todd Blanche has now been sworn in as the Attorney General after a 50/49 vote at the weekend.

Earnings this week include;
Tuesday Lumentum Holdings Inc. (LITE.US), Super Micro Computer, Inc. (SMCI.US), CoreWeave, Inc. (CRWV.US) ; WH GROUP (00288.HK), TINGYI (00322.HK), HKELECTRIC-SS (02638.HK), WHARF HOLDINGS (00004.HK), ASIAINFO TECH (01675.HK), CEB WATER (01857.HK), CHINA LIT (00772.HK), CHINA TOWER (00788.HK), CKLIFE SCIENCES (00775.HK) HUI XIAN REIT (87001.HK), IMPRO PRECISION (01286.HK), KINGDEE INT’L (00268.HK), MMG (01208.HK)

Wednesday Coherent Corp. (COHR.US), Nebius Group N.V. (NBIS.US), Cisco Systems, Inc. (CSCO.US) ; TENCENT (00700.HK), POWER ASSETS (00006.HK), GALAXY ENT (00027.HK), CKI HOLDINGS (01038.HK), BLOKS (00325.HK), CEB GREENTECH (01257.HK), CHANGHONG JH (03991.HK), DMALL (02586.HK), GDS-SW (09698.HK), NEXTEER (01316.HK), POU SHENG INT’L (03813.HK), WERIDE-W (00800.HK), YUE YUEN IND (00551.HK), YUEXIU REIT (00405.HK)

Thursday Applied Materials, Inc. (AMAT.US), Coach parent Tapestry, Maersk, Hapag-Lloyd; CKH HOLDINGS (00001.HK), MTR CORPORATION (00066.HK), CHINA MOBILE (00941.HK), SMIC (00981.HK), LENOVO GROUP (00992.HK), CK ASSET (01113.HK), JD LOGISTICS (02618.HK), JD HEALTH (06618.HK), JD-SW (09618.HK), JD INDUSTRIALS (07618.HK), CHINA GOLD INTL (02099.HK), CITIC TELECOM (01883.HK), CR ASIA (00831.HK), HUA HONG GRACE (01347.HK), HYSAN DEV (00014.HK), IGG (00799.HK), LANGHAM-SS (01270.HK), LIU CHONG HING (00194.HK), MARKETINGFORCE (02556.HK), ONEWO (02602.HK), SAMSONITE (01910.HK), SF REIT (02191.HK), SIICENVIRONMENT (00807.HK), WL DELICIOUS (09985.HK)

Friday SANDS CHINA LTD (01928.HK), BAY AREA DEV (00737.HK), FUDANZHANG JIANG (01349.HK), MIRAMAR HOTEL (00071.HK), SINOPEC SEG (02386.HK), SOUTHGOBI (01878.HK), XIAOCAIYUAN (00999.HK), ZIJIN GOLD INTL (02259.HK)

Housekeeping
On Monday morning I was on RTHK’s Money Talk with host Magha Chaddah and portfolio manager Shuyan Feng as the other guest. We looked at what was likely to impact this week’s trading: the China inflation & PPI data, this weeks China loans data and the US CPI and PPI data. Earnings season results so far and up coming earnings in HK. The recent Yen intervention and its implications. Also implication on other asset classes.
I actually did a second item this week, looking at the US/Iran standoff. Also the recent volatility in AI stocks and whether the manufacturers still provide good opportunities.
If there is a topic you would like discussed next week; then let them know or drop me a message, or if you just want to listen to the programme, click the link https://gbcode.rthk.hk/TuniS/www.rthk.hk/radio/radio3/programme/money_talk

Last Thursday afternoon I was on RTHK’s the Close with host Nitin Dialdas and the other guest was Steve Brice, Global CIO at Standard Chartered Bank, we discussed expats returning to HK and what is means for the SAR. Also whether offering a zero percent tax on hedge fund profits makes HK attractive. We looked at India selling government shares to boost finances and whether that was enough.

This week it will be Nitin hosting and Olivier D’Assier, Head of Applied Research, APAC, SimCorp as the other guest. If there is a topic you would like discussed next week please message me or contact them via WhatsApp +852 6899 8518 or via the link below, which can also be used to listen to the programme.
click the link https://www.rthk.hk/radio/radio3/programme/the_close

Latest thoughts from Market Thinker - challenging the narrative. DRAMatic Price Moves Another STAR rising in the east. Takes a look at CXMT the fourth largest DRAM maker that saw a 466% jump on its market debut. Its IPO was oversubscribed by 570x for the institutional portion and 244x for the retail side. For context, at an initial price of $1.28, that means Chinese retail had to lodge $1.2tn with the exchange.

He contrasts it with SpaceX which paid insiders and left nothing for those that bought the IPO. He also highlights other differences and suggests that investors should be looking closer at Chinese tech markets.

Market opening indications and data due
New Zealand
NZX futures opened lower testing 13,870 in early trades before rebounding to flat and then seeing choppy trading around flat.

On Monday the NZX opened higher testing to13,912 in early trades but then easing back to trade just above flat for most of the day and then spike higher to close up 64pts 0.46% at 13,888. Leaders were healthcare, financials, and industrials.
Laggards were retail and consumer segments with concerns over energy and other input costs; keeping a total of 63 main board stocks in the red despite the benchmark’s positive close.
Data Scheduled after the open
1 year Bill Auction vs 3.4% prior
3-month Bill Auction vs 2.761% prior
6-month Bill Auction vs 2.99% prior

Australia
ASX futures indicate the market to open -3pts -0.03% at 9,178 with weakness in financials ahead of the RBA rate decision but support from energy and miners. Tech mixed.
Earnings from SGH Ltd (ASX: SGH), Helia Group Ltd (ASX: HLI), Amotiv Ltd (ASX: AOV) and Life360 Inc. (ASX: 360).

On Monday the ASX 200 opened lower, ticked higher and then sold down to the day low and the oscillated in a tight range for the rest of the day to close -31pts -0.3% at 9,232.6 The broader All Ordinaries lost 21.1 pts, or 0.2%, to 9424. That was after a dip in mortgage applications announced at an otherwise solid trading update from Westpac raising questions about coming bank earnings. But Sunrise Energy rallied on news of a Pentagon deal.
Leaders were Communication Services, Materials (Miners) and Healthcare.
Laggards were Financials, Consumer Discretionary, and Real Estate (A-REITs).
Data Scheduled after the open
Business Confidence Jul vs -5 Jun (F/cast is -6)
Late Morning
RBA Rate Decision & Press Conference - No change from 4.35% expected

Japan - No Data Scheduled - Market closed for Mountain Day
Nikkei Futures -440pts -0.66% at 66,720
Chicago Nikkei Futures -60pts -0.09% at 66,685
Yen 159.3 further weakening after recent intervention. Trading 159.25 in early trades.

On Monday the Nikkei opened higher and worked higher in the first two hours and then traded sideways around the day highs; to close up 1,363.51pts 2.08% at 66,970.22
Leaders were Technology, Real Estate, Wire/Cable & Materials and Consumer-Focused/Retail.
Laggards were Financials & Banking (as investors rotated into high-growth tech shares) and Energy-Sensitive Stocks.

S Korea - No Data Scheduled
Kospi Futures indicate opening -4.05pts -0..41% at 974.95

The Kospi Monday opened higher 0.76% and spiked to up 2.16% but then trended lower in choppy trading and at one stage dipped into the red before closing up 40.89 pts, or 0.65%, to close at 6,299.66 ending two days of gains.
Trade volume was moderate at 629.9 million shares worth 29.09 trillion won (US$20.51 billion), with gainers far outnumbering losers 695 to 183.
Foreign investors sold a net 1.48 trillion won worth of stocks, while institutions bought a net 567.4 billion won and retail investors purchased 899.8 billion won.
Large-cap semiconductors under pressure following reports that Apple is considering adopting memory chips from Chinese CXMT, but we did see bargain hunters moved into semiconductor equipment and materials stocks. Large caps closed mixed.
The Korean won was quoted at 1,418.4 won against the U.S. dollar at 3:30 pm.Monday, down 2.3 won from the previous session.

Taiwan - No Data Scheduled
Taiex Futures indicate market opening -271pts -0.6% at 44,719 but TSMC’s good July sales could offset the downside but expect resistance at the 45,000 level.

On Monday the Taiex opened higher and worked higher for the first hour but then drifted lower, before seeing a small rally only to tick lower into the close and end up 702.85 pts, or 1.59%, at 44,928.76 after trading between 44,540.71 and 45,219.40; seeing resistance at 45k level. Turnover totaled NT$847.37 billion (US$26.33 billion) vs NT$819.20 billion (US$25.43 billion) Friday.
TSMC closed 0.42% still in consolidation mode but likely to rally after the new record sales update for July. But other large-cap electronics stocks saw strong buying as investors rebuilt their AI positions after the recent sell-off.
Non-tech stocks largely moved in line with the Taiex. Financials were up 0.6%.
According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$51.71 billion worth of shares on the main board Monday.

China - No Data Scheduled
Golden Dragon Index closed up 109.4 pts 1.65% at 6,730.14
FTSE A50 futures -35pts -0.23% at 15,010
MSCI A50 futures -6.2pts -0.22% at 2,794.8

On Monday the A shares were mixed the opening around flat after weak inflation and PPI data out Sunday off-setting the good trade data out after market Friday. But signs of ’Team China’ coming in to support the market in the afternoon.
The Shanghai composite ticked higher initially but drifted lower before rallying after lunch to close up 25.6pts 0.67% at 3,966.59
The CSI 300 and Shenzhen Composite (SZSE) trended lower in the red during the morning but rallied after lunch. The CSI 300 closed up 7.6pts 0.16% at 4,702 and the SZSE comp up 6pts 0.04% at 14,317
The ChiNext Board: -0.73% to close at 3,537.21 points.
Leaders were Consumer Staples: (Kweichow Moutai +3%), Real Estate (on hopes of Govt fiscal support as Beijing unwound some property market policies) and Defense & Coal names.
Laggards were technology, artificial intelligence (AI), and semiconductor sectors.
The PBOC conducted RMB18 billion seven-day reverse repo operations at an unchanged interest rate of 1.4%, while RMB63 billion of reverse repos matured, resulting in a net daily withdrawal of RMB45 billion.
USD/CHN -0.00055pt -0.01% at 6.7449
Spot USD/CNY lifted 59 bps to close at 6.7442 Monday (10th). As of 4:47 pm, USD/CNY in the night session hiked 70 bps. USD/CNH dipped 9 bps to 6.7433, 9 bps above USD/CNY.
Could get Vehicle Sales Jul YoY vs -3.2% Jun

Hong Kong - No Data Scheduled
ADR’s closed up 84.22pts 0.33% at 25,752 with ADR’s mixed; in the green were CLP, SHKP, HKEX, Tencent, Baba and Meituan.
Hang Seng Futures indicate the market opening up 17pts 0.07% at 25,966
Turnover Monday HK$240.28B vs HK$259.686B Friday
Short Selling Monday 16.4% vs 15% Friday

On Monday the HSI opened higher and traded sideways in morning (choppy trading) but rallied after lunch to 25,958 but then ticked lower at the end to close up 267pts 1.05% at 25,938
Leaders were traditional defensive sectors; consumer and property names.
Laggards were technology sub-sectors, notably semiconductor chipmakers and artificial intelligence (AI) firms although the mega-cap ecommerce names meant the Hang Seng TECH Index finished up 1.26% at 4,919.46 pts and the Hang Seng China Enterprises Index closed up 1.06% at 8,621.84 points.

Macau - No Data Scheduled

Singapore - Market re-opens - Data Scheduled pre market
GDP Growth Rate Final Q2 QoQ vs 1.3% Q1(F/cast is 1.1%)
GDP Growth Rate Final Q2 YoY vs 6.3% Q1(F/cast is 5.7%)

Malaysia - Data Scheduled
Industrial Production Jun YoY vs 8.4% May (F/cast is 2%)
Unemployment Rate Jun vs 3% May (F/cast is 3%)

Indonesia - Data Scheduled
Retail Sales Jun YoY vs -3.9% May (F/cast is 1.8%)

Philippines - No Data Scheduled

Thailand - No Data Scheduled
Could get Consumer Confidence Jul vs 50.7 Jun (F/cast is 51.1)

Vietnam - No Data Scheduled
Cambodia - No Data Scheduled
Myanmar - No Data Scheduled
India - No Data Scheduled

Europe
Eurozone - No Data Scheduled
Germany - 5-Year Bobl Auction
France - No Data Scheduled
United Kingdom - out pre Asian markets
BRC Retail Sales Monitor Jul 1% YoY vs 1.7% Jun (F/cast is 1.8%).

United States
Futures opened Dow -41pts -0.08% S&P -0.05% NDX -0.03%
After Market
Intel to target at least $95 a share in US$20B share sale citing strong demand
Data Scheduled: NFIB Business Optimism Index, ADP Employment Change, Redbook, NY Fed Bill Purchases 1-4 Months, Existing Home Sales, Total Household Debt, 6-Week Bill Auction, 3-Year Note Auction, API Crude Oil Stock Change.

HEADLINES & NEWS
NEW ZEALAND & AUSTRALIA
Westpac says home loan applications down 20% since budget. Westpac is the latest bank to report a sharp decline in home loan applications since the government’s curbing of tax concessions for property investors.

The Trump administration has backed plans to build an Australian scandium mine as part of a push to challenge China’s critical-minerals dominance. Sunrise Energy Metals shares closed 16% having surged as much as 29% Monday after a $400 million U.S. investment.

KPMG chair-elect admits to sending ‘naive, embarrassing and wrong’ email. Former SBS chief Michael Ebeid has apologised for undermining allegations from a whistleblower at KPMG.

‘Unacceptable’: Air traffic agency warned over Sydney airport chaos. There have been days of delays at the airport and two near misses within a fortnight after planes were given contradictory instructions by air traffic controllers. Two airport workers have been stood down and the chief of Australia’s air traffic control agency has been warned that delays at Sydney Airport have become “unacceptable”

JAPAN
Japan’s Immigration Services Agency has announced tougher draft guidelines for permanent residency. New rules require applicants to earn more than the average Japanese household income, prove projected 30-year pension contributions (or equivalent savings), show conversational Japanese proficiency, and face strict checks on tax and health insurance compliance. For a country facing an aging problem this tough stance on immigration could be a major problem with many expats and especially in lower paid jobs leaving the country. They are scheduled to be introduced by 1 October 2026.

North Korea In a commentary carried by KCNA titled “Japan’s defense ​white paper is a reinvasion-minded ‌one for the legalization of the operation of war machine,” a North ​Korean analyst said Japan’s ​2026 White Paper “groundlessly described” North Korea as ⁠the greatest strategic challenge in ​order to “justify its reckless arms buildup.” Pyongyang has ​ratcheted up its criticism of Tokyo’s defence policy, issuing statements at least seven times since ​July.

The Bank of Japan may be edging toward an early rate hike, but it faces a growing risk that ​any move to tighten policy will be offset by mounting political pressure to support the bond market. As government spending plans drive yields higher, the BOJ is being drawn into ‌an increasingly awkward battle to defend its push to normalize policy and resist calls to resume the very bond-buying it is trying to unwind. Concern over Prime Minister Sanae Takaichi’s expansive fiscal agenda has pushed Japanese government bond yields higher, raising borrowing costs for a country with the developed world’s heaviest debt burden and drawing the ire of Washington over spillovers into U.S. Treasury markets.

Sony Group (6758.T) and Taiwan’s TSMC (2330.TW) plan to spend around 1 trillion ​yen ($6.32 billion) to jointly make next-generation ‌microchips used in image sensors, the Nikkei business daily said on Monday. A joint venture owned ​about 60% by Sony and 40% ​by TSMC will start commercial production ⁠as early as 2029 in southern Japan’s ​Kumamoto prefecture, the paper said. The two tech ​giants said in May they planned to form a joint venture in Japan to develop and manufacture ​next-generation image sensors, combining Sony’s sensor ​design expertise with TSMC’s manufacturing and process technology ‌strengths.

SOUTH KOREA
South Korean and U.S. troops will begin their annual exercises next week to beef up readiness against North Korean threats, the allies announced Monday, days after North Korea resumed ballistic missile testing activities that are banned by the U.N. The Ulchi Freedom Shield is to begin next Monday for a 11-day run and its scale will be similar to previous years with about 18,000 South Korean soldiers participating in it, South Korean military spokesperson Jang Do-young told reporters. Speaking at the same news conference, U.S. military spokesperson Ryan Donald said by incorporating realistic threats including “lessons from recent conflicts,” the exercise will serve as an opportunity to further strengthen the alliance’s readiness and capabilities through combined, joint, all-domain operations.

The South Korean won is on its way to breaking past the 1,400-per-dollar mark after weakening to 1,550 in just over a month, underscoring the currency’s sharpest volatility since the global financial crisis. During trading late last week, the won strengthened to 1,407.3 per dollar, the strongest level recorded against the US currency since Oct. 2, 2025, when the won stood at 1,399.5. If the currency strengthens by roughly 10 won, the exchange rate will be pushed into the 1,300-won range for the first time since October.

Korea Zinc, the world’s leading metal refiner, is gaining significant traction from Washington’s recent announcement on securing China-free critical mineral supply chains spanning mining, processing, refining and manufacturing within the US. On Friday, US President Donald Trump introduced a $3 billion critical minerals investment package at a roundtable on the American mining industry at the US Department of State in Washington. This shift highlights growing US efforts to boost advanced industry competitiveness; spanning defense, semiconductors, artificial intelligence and batteries, by expanding processing and refining capacity as well as securing domestic raw materials.

E-commerce giant Coupang said Monday that hundreds of global brands have joined its cross-border shopping service, Rocket Jikgu, broadening Korean shoppers’ access to brands with a following abroad. Launched for US products in 2017, the service has since expanded to include goods from Japan and Hong Kong. More than 600 new brands have signed on this year alone, extending Coupang’s lineup beyond food and supplements to beauty and fashion, the company said. Exemplifying the push is J.Q. Dickinson Salt-Works, a 200-year-old salt maker from West Virginia, which built a reputation among American chefs for its deep flavor and made its Korean debut through Coupang this year.

TAIWAN
TSMC reported record sales for July, up 44.7% YoY (5.6% MoM) thanks to strong global demand for its advanced chipmaking processes amid the AI boom. In a statement, it said consolidated sales reached NT$467.58 billion (US$14.51 billion) vs NT$442.68 billion June; the previous record. TSMC said consolidated sales for the first seven months of this year totaled NT$2.87 trillion, up 37% YoY. Analysts said higher shipments of chips produced using TSMC’s advanced manufacturing processes, particularly its 2-nanometer technology, the latest technology which has entered commercial production, carrying a higher price tag, drove July sales higher.

Taiwan ‘throttles’ mobile internet for first time during annual war games. The island simulated communication disruption in the event of a Chinese attack or ‌natural disaster.

Mitsubishi Motors New Zealand (MMNZ) said Monday it will introduce a new battery electric vehicle (BEV) in the fourth quarter of this year, a model co-developed with Taiwan’s Foxtron Vehicle Technologies Co. In a statement, MMNZ confirmed the launch of the all-new ASX VR-e BEV in the fourth quarter, saying it was developed in partnership with Italian design house Pininfarina and Taiwanese EV manufacturer Foxtron, a joint venture between Taiwan-based manufacturing giant Hon Hai Precision Industry Co. and Taiwan’s automaker Yulon Motor Co.

Qisda Corp’s revenue is expected to improve sequentially this quarter, driven by growth in its business solutions, medical and artificial intelligence (AI) infrastructure products, after Q2r revenue fell 1% YoY to NT$52.73 billion (US$1.64 billion), Qisda chairman Peter Chen said yesterday. As growth momentum is projected to continue through the rest of this year, revenue in the second half is expected to surpass NT$104.3 billion in the first half, Chen told an online earnings conference. In the first half, its information technology (IT) business, including projectors, monitors and displays, accounted for 42% of total revenue, followed by business solutions at 21%, medical at 15%t, networking and communications at 10%, high-value-added IT at 7%t and others at 5%, company data showed.

Inflation-adjusted average monthly regular wages in Taiwan’s industrial and service sectors posted the strongest growth for the first half of the year in six years, the Directorate General of Budget, Accounting and Statistics (DGBAS) said Monday. According to DGBAS data, real average monthly regular wages reached NT$44,119 (US$1,368) in the January-June period, up 1.16% YoY. It was the highest since 2020, when the increase hit 1.6%
Before adjusting for inflation, average monthly regular wages for the six-month period rose 2.88YoY to NT$48,981.
Average aggregate earnings -- including regular and non-regular pay such as overtime pay and bonuses totaled NT$411,786 in the first six months of the year, up 3.48% YoY After adjusting for inflation, average aggregate earnings rose 1.75% YoY to NT$370,914, the strongest first-half increase since 2017, when they rose 2.15%.

Taiwan’s population stood at 23,235,002 at the end of last month, falling for the 31st consecutive month, data released by the Ministry of the Interior yesterday showed. That was a decline of 102,934 YoY, equivalent to an average daily decrease of 282.01 people. Compared with June, the population fell by 8,563. While the number of newborns last month rose to 7,906 last month, up 582 from June, the total number of babies born in Taiwan during the first seven months of the year was 54,250, down 10,064, or 15.7%, from 64,314 during the same period last year, the data showed.

CHINA
The Chinese Communist Party (CCP) has reportedly set four priorities for its Taiwan policy at its Beidaihe summer meeting, including opposing “Taiwanese independence” and supporting “patriotic forces” in Taiwan’s November nine-in-one local elections, an official said yesterday. The two-week Beidaihe meeting started on Monday last week, with this year’s theme being “Striving Forward in the 15th Five-Year Plan.” Aside from discussing the agenda of the CCP Central Committee’s fifth plenary session in late October and the 21st CCP National Congress, former and current Chinese officials would focus on strategies toward the US and Taiwan, as well as domestic personnel affairs. A Taiwanese national security official, speaking on condition of anonymity, yesterday said that four resolutions were put forward in regard to the strategy toward Taiwan.

Deutsche Bank said on Monday it had been named by China as a clearing ​bank for its currency, the renminbi, in a ‌first for a European lender. “Deutsche Bank will facilitate direct end-to-end processing, clearing and settlement services for cross-border RMB transactions ​for European financial institutions and businesses, acting as ​a local bridge to China’s payment systems,” Deutsche ⁠Bank said. The move gives European businesses and financial ​institutions direct access to China’s onshore financial system, ​including capital markets and liquidity infrastructure, streamlining cross-border trade and investment flows. “It strengthens China-Europe financial connectivity,” said Deutsche Bank board ​member Alexander von zur Muehlen.
It is one of ​many initiatives by China to internationalise the yuan, as the currency ‌is ⁠also known, and reduce dependence on a global payment system dominated by the U.S. dollar. In June, China announced fresh measures to promote the global use of ​the yuan. Days ​later, Standard Bank (SBKJ.J), opens new tab ⁠and Industrial and Commercial Bank of China (601398.SS), opens new tab were named jointly as the “Renminbi Clearing ​Bank of Africa,” with capacity to clear ​RMB ⁠in 19 African countries. Earlier on Monday, China’s central bank pledged in its five-year plan to keep the yuan ⁠exchange ​rate basically stable and expand ​the use of the currency in international trade and investment.

Shein is sharply scaling back its business operations in Vietnam owing to changes in US trade policies and suppliers shifting production back to China, Reuters reported, citing multiple sources. Shein reportedly leased a bonded logistics hub covering 15 hectares around Ho Chi Minh City last year as a pilot project using Vietnam as its main export base. However, the leased area has now been reduced to 6 hectares. It was also reported that the company began large-scale layoffs of local teams in April 2026, mainly because the US canceled tariff exemptions for small parcels under USD800 from all countries at the end of July 2025. Subsequent gradual tariff reductions on Chinese goods also weakened the tariff advantages of manufacturing in Vietnam. In addition, some of Shein’s suppliers pointed out that production efficiency in Vietnam is lower than in China, as it is difficult to recruit Vietnamese workers willing to work long hours and accept low wages.

The Federal Communications Commission, once better known for spectrum auctions and licensing television stations, has emerged as the unlikely leader of some of the Trump administration’s most aggressive actions against China. Under Trump ally Brendan Carr, the FCC has made a series of moves over the past nine months to crack down on what the U.S. sees as risks to American supply chains. The agency has barred imports of new models of ​Chinese drones, routers, inverters and robots and begun the process of blocking all Chinese labs from testing electronic devices such as smartphones, cameras and computers for use in the U.S. It is ‌now drafting a ban on U.S. imports of new models of Chinese data center components, seeking to protect American infrastructure that undergirds the AI boom, Reuters reported.

HONG KONG
Earnings
HUTCHTEL HK (00215.HK) announced its interim results for the six months ended June 2026. Total revenue rose 32.3% YoY to HKD2.846 billion. Net profit mounted 83.3% YoY to HKD11 million, with EPS at HKD0.0023. The company declared an interim dividend of HKD0.0228, flat YoY.

LAUNCH TECH (02488.HK) announced its interim results for the six months ended end-Jun 2026. Revenue rose 9.1% YoY to RMB1.071 billion. Net profit fell 10.3% to RMB175 million, while EPS was RMB0.426. An interim dividend of RMB0.29 was declared, compared with RMB0.31 in the same period last year.

51WORLD (06651.HK) announced its interim results for the six months ended June 2026. Revenue was RMB124 million, up 129.8% YoY. Loss narrowed from RMB91.12 million in the corresponding period last year to RMB67.572 million, with LPS of RMB0.16. No dividend was declared.

Warning / Alerts for the full list see https://www.aastocks.com/en/stocks/news/aafn/latest-news
MAOYE INT’L (00848.HK) expected to record a net loss ranging from approximately RMB120 million to RMB180 million for the six months ended 30 June 2026, compared with a net profit of RMB11.92 million in the interim period of 2025. During the period, excluding the impact of impairment losses of approximately RMB125 million arising from changes in fair value of investment properties and goodwill impairment losses of approximately RMB45 million, the operating net loss for 1H26 was approximately RMB8 million to RMB38 million.

CDB INT’L INV (01062.HK) expects to record a loss of approximately HKD90.73 million for 1H26 ended 30 June 2026, compared with a loss of HKD11.68 million in the corresponding period of 2025. The increase in loss was mainly due to a significant increase in fair value valuation losses on financial assets measured at fair value through profit or loss compared with the same period last year.

Buybacks - None announced

HSI Short Selling Monday 16.4% vs 15% Friday
Top shorts MTRC (66) 57%, Chow Tai Fook (1929) 54%, Link Reit (823) 46%, Midea Group (300) 42%, Power Assets (6) 40%, Sands China (1928) 40%.

Bud APAC (1876) 37%, ZTO Express (2057) 35%, Wuxi Apptec (2359) 34%, Xinyi Glass (868) 34%, Xinyi Solar (968) 33%, Sinopec (386) 32%, Trip com (9961) 31%, CLP (2) 30%,

Galaxy Ent (27) 29%, CKI (1038) 26%, China Res Land (11090 26%, Li Auto (2015) 25%, WH Group (288) 25%.

WATCH
After a US court preliminarily barred the Department of Defense from placing WUXI APPTEC (02359.HK) on the Chinese military company list, brokers expected short-term uncertainties to be removed.

YUE YUEN IND (00551.HK) announced that net consolidated operating revenue for July (equivalent to total sales less sales discounts and sales returns) was approximately USD603 million, down 9.7% YoY. Net consolidated operating revenue for the first seven months was approximately USD4.577 billion, down 3.2% YoY.

Alibaba Cloud plans to raise the global capacity of its modular data centers by more than two times. The company has shortened the delivery lead time for large AIDC data centers to 100 days, leading the global market. While substantially shortening construction lead times, Alibaba Cloud has also reduced overall data center construction costs by more than 10%.

GREENLAND HK (00337.HK) announced that contracted sales for 7M26 amounted to approximately RMB5.094 billion, up 46.7% YoY. Total contracted GFA sold was approximately 626,942 square meters.

CK ASSET (01113.HK)’s 21 BORRETT ROAD project at Mid-Levels recorded consecutive transactions, with two units sold today (10th), cashing in more than HKD288 million in total. Among them, Unit 09, 10/F, 21 BORRETT ROAD Phase 2, with a saleable area of 2,137 square feet, was sold by tender for more than HKD140 million, with a saleable-area price of HKD65,800 per square foot. In addition, Unit 07, 8/F, 21 BORRETT ROAD Phase 1, with a saleable area of 2,316 square feet, was sold for nearly HKD148 million, with a saleable-area price of more than HKD63,700 per square foot. CK ASSET said the entire project has accumulated nearly HKD2.5 billion in cash proceeds over the past nearly two months, reflecting unabated demand for ultra-luxury homes priced above HKD100 million.

BYD COMPANY (01211.HK) announced that orders for its compact BEV, RACCO, breached 1,000 units within just two weeks of launch in Japan, making it the fastest-order-growing newly launched model by BYD COMPANY in the Japanese market. The company targets total orders of 10,000 units by the end of 2026. RACCO was launched in Japan on July 28. As of August 9, orders reached 1,002 units.

BABA-W (09988.HK) founder Jack Ma appeared in Gansu and Xinjiang, mainly to inspect the development of desert agriculture and water resource utilization in northwestern China, Chinese media reported that, according to photos provided by netizens. In Yutian County, Xinjiang, Ma primarily visited projects related to the development of modern agriculture on desertified land, and exchanged views with local personnel on water-saving drip irrigation, saline-alkali land improvement, intelligent technologies and biotechnology measures. During the trip, Ma also reviewed the implementation results of Ant Forest in northwestern China. In recent years, Ma’s activities in China mainly focused on agricultural visits, and he also traveled to Spain and the Netherlands for inspections, report disclosed.

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Monday closings in EUROPE and US
DAX 0.02%, CAC 0.13%, FTSE -0.35%
European markets opened flat but the FTSE drifted lower for most of the day but saw a slight uptick into the close. The CAC initially drifted lower but worked better from mid morning and traded around flat for the rest of the day. The DAX initially worked better but reversed late morning and traded around flat in the afternoon.. Uncertainty over the ‘deal’ for opening the Straits of Hormuz pre-occupying investors.

The Eurozone’s Sentix Investor Confidence Index for August returned to positive territory, rising to 0.9 from the previous reading of negative 3.1, outperforming market expectations of only improving to negative 0.5. The data measures the Eurozone economic outlook over the next six months. The survey covered about 2,800 investors and analysts.

DOW -0.11%, NDX -0.32%, S&P -0.06%, Russel 2K -0.56%
DOW opened lower but worked better in choppy trading but after a couple of hours drifted lower but ticked up into the close. NASDAQ drifted lower in choppy trading. S&P opened lower but worked better in choppy trading but reversed in the afternoon to trade in a tight range in the red.

Iran has said it is closing in on a deal with Oman to reopen the Strait of Hormuz, but Tehran has continued to resist direct negotiations with the U.S until several conditions are met. Trump still insists that the US controls the Straits whilst admitting the Iranians could still cause ’trouble’ and saying that they should pay retribution for years of terrorism. Oil prices rose.

Intel -4% after the chipmaker announced a common stock offering of $15 billion pre market; saying that it plans to use the money from the offering for general corporate purposes; which could include capital expenditures and working capital. As its customers “continue to signal a strong and sustainable demand environment” as a result of the artificial intelligence boom, Intel said the offering is intended to provide more support to the company as it pursues future growth opportunities. Other tech stocks also traded lower.

Nvidia -2.9% despite announced a partnership with a group of 6 investment firms for a $500B AI Infrastructure funding partnership. The group includes major private capital and financial firms like Apollo Global Management, Blackstone, BlackRock’s Global Infrastructure Partners, Brookfield Asset Management, Goldman Sachs, and KKR

Berkshire Hathaway after stronger operating results and a pickup in capital deployment.

SpaceX 4.23% rebounded to above its $135 IPO price, after the space company’s latest earnings reaffirmed analysts’ confidence in the stock.

MarineMax 46% a boat and yacht retailer after agreeing to be sold to Blackstone Infrastructure’s Safe Harbor Marinas for $53 a share in cash, or $1.5 billion. The deal’s expected to close by the end of 2026.

U.S. imports of containerized goods in July hit the fourth-highest level for the month, as ​shippers rushed in goods ahead of unknown US. tariff changes, ‌supply chain technology provider Descartes Systems Group said on Monday. U.S. seaports handled 2.5 million 20-foot equivalent units (TEUs) in July, down 4.3% from the ​near-record result in July 2025. Through the first seven ​months of 2026, imports were down 0.9% year over ⁠year while remaining well above pre-COVID pandemic levels, Descartes said. In ​late July, 10% global Section 122 tariffs expired and were replaced by ​new tariffs of up to 12.5% on imports from 60 countries tied to allegations of forced labor Chinese-origin imports rose to 873,129 TEUs in July, the highest ​monthly volume in a year. China sends more goods via container ​to the U.S. than any other country, even after President Donald Trump has targeted ‌such ⁠products with tariffs.

Banks JPMorgan Chase 0.63%, Citigroup 0.16% Wells Fargo 0.31%, Amex -0.6%
Ecommerce Meta 0.48%, Apple -1.53%, Amazon 1.32%, Netflix 2.9%, Disney -1.65%, Zoom Comms 2.58%, Alphabet 0.67% and Microsoft 1.21%
Tech NXP Semi -2.62%, Nvidia -2.86%, Micron -1.89%, AMD -2.86%, Skyworks -2.59%, Intel -4.06%
Industrial/Discretionary Boeing -0.7%, Caterpillar -0.55%, Simon Property -1.06%, Kohl’s -1.4%, Gap 5.08%, United Airlines -4.49%, Carnival -4.28%, Wynn Resorts -0.04%
Healthcare Eli Lilly 3.9%, UntiedHealth 0.41%, Johnson & Johnson 0.99% Merck 1.82%
Auto Ford 0.14%, GM 0.43%, Tesla 0.7%
Energy Chevron 4.48%, Exxon Mobil 4.41%, ConocoPhillips 4.16%
Consumer Staples Campbell Soup -2.73% General Mills 1%, JM Smucker -1.74%
Buffet’s Top Five Retirement Stocks Coca Cola -0.21%, Apple -1.53%, Johnson & Johnson 0.99%, Proctor & Gamble 0.45%, Berkshire 1.46%

DAILY US CLOSING DATA
USD stronger, Bitcoin -1.88% at $63,922.27 VIX 3.76% at 15.46
US Bonds T10 up 4 bpts to 4.705%, T2 up more than 3 bpts at 4.241% and T30 up more than 3 bpts at 4.241%
OIL Brent 5% at $87.72, WTI 5% at $82.13
Spot Gold 0.4% to a seven week high, Spot Silver 2.3%, Copper o.23% Platinum -0.1%, Palladium 0.2%.

A deal over the Straits of Hormuz currently excludes the US and Trump has indicated he is prepared to wait until Iran is economically forced to deal with the US. I think that could be a long wait. I also think it unlikely that Trump will accept the terms that Iran is calling for the US agreed too. Oil is moving higher in early trades.

Tech likely to be a major beneficiary today with news that SK Hynix announces a share buyback and a $38.1B investment in two new fabs for AI memory.

Chinese inflation & PPI data out Sunday was weaker than expected, with PPI reflecting weak domestic demand still along with fading energy costs as China cut its oil imports. But the detail shows prices of production materials continued to rise, albeit at a milder rate due to further increases in the cost of mining, raw materials and processing. Consumer goods prices remained weak, as prices fell further for food, clothing and daily-use goods while durable goods prices picked up. All that said I do not expect Beijing to look to stimulate the economy. They remain unconcerned about the property crisis and continue to direct investments into Tech and AI.

US inflation and PPI data the focus for many this week. The rate futures market has now priced in just a 43.9% chance of Fed tightening in September vs ⁠57% before the jobs report. The probability that the Fed ⁠will hold rates steady next month rose to 60.4% versus ⁠43.2% just before the data release. That could change after this week’s data.

But if the FOMC stays on hold and inflation data picks up then it would be faced with hiking rates just ahead of the mid-term elections; something I am sure Trump would not want to see!

Individual investors are suddenly more optimistic, but still below the historic average, AAII says. More mom and pop investors are optimistic about the outlook for stocks over the coming six months, but the number is still below the historic average for the third time in four weeks, according to the latest weekly poll by the American Association of Individual Investors.

Bulls rose to 37% from 31%, against an historic average of 37.5%. The percentage of those describing themselves as bearish fell to 38% from 42.2% last week, above the historic average of 31.5% for a sixth straight month (26 weeks). Investors who are neutral dropped to 25% from 26.9%, the 22nd time in 23 weeks that such balanced views were below their historic average of 31.0%.

Main Street investors aren’t clamoring for lower interest rates, according to a special question AAII asked this week. More than half, or 55.1%, said last week’s move by the Federal Reserve to keep overnight lending rates where they are was the right move. Almost a third, or 30.6%, said the Fed should have raised interest rates. More people were unsure or had no opinion, 8.7%, than thought rates should have been cut, only 5.6%.

Earnings this week include; Cisco Systems focusing on enterprise networking and AI-driven infrastructure demand. Applied Materials providing key insights into semiconductor equipment spending. Super Micro Computer highlighting server and AI hardware momentum. CoreWeave Delivering cloud infrastructure updates. AST SpaceMobile on space-based cellular broadband progress. Rocket Lab USA (RKLB): insight into launch and space systems. Plug Power insight into clean energy sector activity. Others include Simon Property, Barrick Mining, Hims & Hers Health, USA Rare Earth, Embraer, Smithfield Foods, Cava, Janus Group, Birkenstock,

In Europe a focus on Energy related names as European gas storage levels are at there lowest at this time for 20 years, with warmer weather impacting both demand and impacting supply as higher temperatures impact air cooling and waste water emissions and for nuclear low water levels; so earnings from ION, RWE, and vestas will be watched closely. Also from Aviva, InterContinental Hotels Group, 10.Genuit Group, Bellway, International Workplace Group, Balfour Beatty, Savills TUI and others.

In Asia TSMC sales numbers, Tencent and Tencent Music, Tencent, PLDT, JD com, Melco and others.

Monday TME-SW (01698.HK), FIT HON TENG (06088.HK), HUTCHTEL HK (00215.HK), RUSAL (00486.HK), 51WORLD (06651.HK), CIDI (03881.HK), FIRE ROCK (01909.HK)
Tuesday Lumentum Holdings Inc. (LITE.US), Super Micro Computer, Inc. (SMCI.US), CoreWeave, Inc. (CRWV.US) ; WH GROUP (00288.HK), TINGYI (00322.HK), HKELECTRIC-SS (02638.HK), WHARF HOLDINGS (00004.HK), ASIAINFO TECH (01675.HK), CEB WATER (01857.HK), CHINA LIT (00772.HK), CHINA TOWER (00788.HK), CKLIFE SCIENCES (00775.HK) HUI XIAN REIT (87001.HK), IMPRO PRECISION (01286.HK), KINGDEE INT’L (00268.HK), MMG (01208.HK)
Wednesday Coherent Corp. (COHR.US), Nebius Group N.V. (NBIS.US), Cisco Systems, Inc. (CSCO.US) ; TENCENT (00700.HK), POWER ASSETS (00006.HK), GALAXY ENT (00027.HK), CKI HOLDINGS (01038.HK), BLOKS (00325.HK), CEB GREENTECH (01257.HK), CHANGHONG JH (03991.HK), DMALL (02586.HK), GDS-SW (09698.HK), NEXTEER (01316.HK), POU SHENG INT’L (03813.HK), WERIDE-W (00800.HK), YUE YUEN IND (00551.HK), YUEXIU REIT (00405.HK)
Thursday Applied Materials, Inc. (AMAT.US), Coach parent Tapestry, Maersk, Hapag-Lloyd; CKH HOLDINGS (00001.HK), MTR CORPORATION (00066.HK), CHINA MOBILE (00941.HK), SMIC (00981.HK), LENOVO GROUP (00992.HK), CK ASSET (01113.HK), JD LOGISTICS (02618.HK), JD HEALTH (06618.HK), JD-SW (09618.HK), JD INDUSTRIALS (07618.HK), CHINA GOLD INTL (02099.HK), CITIC TELECOM (01883.HK), CR ASIA (00831.HK), HUA HONG GRACE (01347.HK), HYSAN DEV (00014.HK), IGG (00799.HK), LANGHAM-SS (01270.HK), LIU CHONG HING (00194.HK), MARKETINGFORCE (02556.HK), ONEWO (02602.HK), SAMSONITE (01910.HK), SF REIT (02191.HK), SIICENVIRONMENT (00807.HK), WL DELICIOUS (09985.HK)
Friday SANDS CHINA LTD (01928.HK), BAY AREA DEV (00737.HK), FUDANZHANG JIANG (01349.HK), MIRAMAR HOTEL (00071.HK), SINOPEC SEG (02386.HK), SOUTHGOBI (01878.HK), XIAOCAIYUAN (00999.HK), ZIJIN GOLD INTL (02259.HK)

Housekeeping
This Monday morning I will be on RTHK’s Money Talk with host Magha Chaddah and portfolio manager Shuyan Feng as tke other guest.
If there is a topic you would like discussed next week; then let them know or drop me a message, or if you just want to listen to the programme,
click the link https://www.rthk.hk/radio/radio3/programme/money_tall

Thursday afternoon I was on RTHK’s the Close with host Nitin Dialdas and the other guest was Steve Brice, Global CIO at Standard Chartered Bank, we discussed expats returning to HK and what is means for the SAR. Also whether offering a zero percent tax on hedge fund profits makes HK attractive. We looked at India selling government shares to boost finances and whether that was enough.
If there is a topic you would like discussed next week please message me or contact them via WhatsApp +852 6899 8518 or via the link below, which can also be used to listen to the programme.
click the link https://www.rthk.hk/radio/radio3/programme/the_close

Latest thoughts from Market Thinker - challenging the narrative. DRAMatic Price Moves Another STAR rising in the east. Takes a look at CXMT the fourth largest DRAM maker that saw a 466% jump on its market debut. Its IPO was oversubscribed by 570x for the institutional portion and 244x for the retail side. For context, at an initial price of $1.28, that means Chinese retail had to lodge $1.2tn with the exchange.

He contrasts it with SpaceX which paid insiders and left nothing for those that bought the IPO. He also highlights other differences and suggests that investors should be looking closer at Chinese tech markets.

Market opening indications and data due
New Zealand - No Data Scheduled
NZX futures opened higher and tested 13,840 in early trades and then consolidated before breaking higher to test 13,860. Currently up 30 pts 0.2% at 13,855

On Friday the NZX opened lower and traded sideways in a tight range but ticked lower at the end to close; 134 points, or 1.0%, to close at 13,824. That was up 0.9% overall for the week.
Laggards were Auckland International Airport -2.5%, A2 Milk -1.6%, Fisher & Paykel -1.4%, Westpac Bank Corp -1.6%, Mainfreight -1%, ANZ Group -1%
Leaders were Tourism Holdings 2.1%, Vulcan Steel 2.6%, Winton Land 2.3%, Serko (SKO) 2.% T&G Global 2.3%

Australia - No Data Scheduled
ASX futures indicate the market to open up 33pts 0.36% at 9,233. Reporting season ramps up this week, with Commonwealth Bank among companies set to release results this week. RBA expected to remain on hold at its meeting tomorrow, some expect it will be on hold for the rest of the year too.

Earnings The CAR Group Limited (ASX: CAR) the auto listings company releases its FY 2026 results.
On Friday the ASX 200 opened lower but worked better in the morning and then traded around flat for the rest of the day; to close -8 pts -0.09% at 9,263.6. That was up 3.2% for the week. Laggards were healthcare, tech, and financials that offset minor gains in non-energy minerals. Traders locked in gains after the index hit back-to-back record highs earlier in the week. Weaker US stock futures and geopolitical tensions regarding oil and shipping lanes in the Strait of Hormuz weighed on sentiment.

Japan
Nikkei Futures up 650pts 0.99% at 66,310
Chicago Nikkei Futures -60pts -0.09% at 66,285
Yen 157.78 close on Friday; 157.93 in early trading Monday

On Friday the Nikkei sold down in the couple of hours of trading but then reversed and worked better for the rest of the day to close up 0.12% 76.55 pts at 65,606.71 Seeing continued booking of profits in AI and semiconductors, uncertainty over oil prices and general caution ahead of the US jobs data and the weekend. Yen intervention concerns remain.
Data due 10 minutes before the open
BoJ Summary of Opinions
Current Account Jun vs ¥3968B May (F/cast is ¥3430B)
Bank Lending Jul YoY vs 5.7% Jun (F/cast is 5.5%)
Due Lunchtime
Eco Watchers Survey
Current Jul vs 44 Jun (F/cast is 44.2)
Outlook Jul vs 45.7 Jun (F/cast is 46)

S Korea
Kospi Futures indicate opening 8.8pts 0.89% at 987.45

The Kospi Friday opened 1.09% higher but sold down for the first 90 minutes but then bounced and traded sideways in a tight range for the rest of the day to close -37.61 pts, or 0.6%, to close at 6,258.77, after dropping as low as 6,158.73.
Trade volume was light at 297.18 million shares worth 24.3 trillion won ($17.1 billion), with winners outnumbering losers 552 to 321. The index plunged 4.58 percent in the previous session, dragged down mainly by losses in technology stocks.
Foreign investors sold a net 858.07 billion won worth of stocks, while institutions bought a net 578.99 billion won and retail investors purchased 266.98 billion won.
Uncertainty surrounding the Straits of Hormuz is expected to keep oil prices elevated, adding to volatility in a market already unsettled by concerns over the artificial intelligence trade, analysts said. In Seoul, large-cap stocks were mixed. The Korean won was quoted at 1,417.70 won against the US dollar as of 3:30 pm. Friday, up 6.4 won from the close of stock trading the day before.
Data due 90 minutes after the open
3-Year KTB Auction vs 3.765% prior

Taiwan
Taiex Futures indicate market opening up 736pts 1.66% at 45,033

On Friday the Taiex opened higher but tended lower for most of the day but ticked higher at the end to close 170.79 pts, or 0.38%, at 44,225.91 after moving between 43,941.56 and 44,827.13. Turnover totaled NT$819.20 billion (US$25.43 billion) vs NT$940.39 billion (US$29.20 billion) Thursday; with signs of consolidation mode after a recent wild swing amid concerns over massive spending on AI infrastructure. TSMC 0.21% at the close but other semiconductor heavyweights largely fell into negative territory. The tech sector struggled, investors parked their funds in select old economy stocks, with raw material firms. The financial sector, which rose 0.99 percent on rotational buying.
According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$40.72 billion in shares on the market Friday.
Out after Market Friday
Balance of Trade Jul $17.2B vs $12.2B Jun (F/cast is $14.5B)
Exports Jul 32.9% vs 40.3% Jun (Consensus is 40.7%)
Imports Jul 37.4% vs 51.8% Jun (Consensus is 48.4%)

China - No Data Scheduled
Golden Dragon Index closed up 50.5pts 0.77% at 6,620.75
FTSE A50 futures up 34pts 0.23% at 15,079
MSCI A50 futures up 7.4pts 0.26% at 2,804.8

On Friday the A shares opened higher and trended higher, the SSE closed at the day high, The CSI 300 had more of a roller coaster day. Markets hit three week highs driven by better then expected July export expansion data and solid global demand for AI-related technology.
The Shanghai Composite climbed 1.02% 40 pts) to close at 3,940
The Shenzhen Component advanced 1.42% to close at 14,311
CSI 300 Index -0.93% at 4,694.44
ChiNext Index (Growth Board) 1.35% at 3,563.12
STAR Composite Index (Sci-Tech Innovation) 3.35% at 2,019.44
Leaders were spearheaded by advanced technology and medical fields. Pharmaceuticals and healthcare, co-packaged optics, and semiconductor chip manufacturing logged the highest inflows. High-tech semiconductor exports roughly doubled YoY, amplifying tech stock dominance.
Laggards Traditional digital services and gaming under pressure. The sharpest losses were concentrated in digital currency applications, cross-border payment systems, software development, and online gaming.
The PBOC conducted RMB1 billion of seven-day reverse repo operations at an unchanged interest rate of 1.4%, while RMB134 billion of reverse repos matured, resulting in a net liquidity withdrawal of RMB133 billion in a single day.
USD/CHN -0.00968 pt -0.14% @6.7385 on FridaySpot USD/CNY hiked 14 bps to close at 6.7501 today (7th). As of 4:48 pm, USD/CNY in the night session dropped 40 bps. USD/CNH added 17 bps to 6.7465, 36 bps above USD/CNY.
Data out after market Friday
Foreign Exchange Reserves Jul $3.419T vs $3.416T Jun (Consensus is $3.42T)
Data out Sunday
Inflation Rate Jul 0.5% YoY vs 1% Jun (F/cast was 0.9%)
Inflation Rate Jul -0.1% MoM vs -0.3% Jun (F/cast was 0.3%)
PPI Jul 3.5% YoY vs 4.1% Jun (F/cast was 4.3%)
Worth noting that food prices in China continue to fall. PPI saw the steepest fall in 4 years.

Hong Kong - No Data Scheduled
ADR’s closed up 231pts 0.89% at 25,899 with only Bank of China HK and CK Hutch in the red.
Hang Seng Futures indicate the market opening up 127pts 0.49% at 25,790
Turnover Friday HK$259.686B vs HK$255.227B Thursday
Short Selling Friday 16% Thursday

On Friday the HSI opened lower but worked better thanks to better than expected China trade data and closed at the day high up 137 pts, or 0.5%, at 25,668.03
Hang Seng Tech Index 0.8% to 4,858 pts. Drivers were Technology & Electronics along with Healthcare & CROs.
The HSCEI ended at 8,531, up 32 points or 0.39%.
Data out after the market Friday
Foreign Exchange Reserves Jul $447.8B vs $445.9B Jun (F/cast is $446B)

Macau - No Data Scheduled

Singapore - Data out after the market Friday
Foreign Exchange Reserves Jul S$549.3B vs S$551.3B Jun

Malaysia - No Data Scheduled
Indonesia - No Data Scheduled
Philippines - No Data Scheduled

Thailand - Data Scheduled
Could get Consumer Confidence Jul vs 50.7 Jun (F/cast is 51.1)

Vietnam - No Data Scheduled
Vietnamese President To Lam continues his run of diplomatic outreach since becoming general secretary of the Communist party in 2024 with visits to Australia and New Zealand. Multiple bilateral agreements are expected to be signed with both countries.

Cambodia - No Data Scheduled
Myanmar - No Data Scheduled

India - No Data Scheduled
Data out after market Friday
Foreign Exchange Reserves 31 Jul $692.87B vs $682.35B prior

India’s largest carmaker, Maruti Suzuki India (MRTI.NS) expects the domestic passenger vehicle market to grow to 6.1 million-6.3 ​million units by fiscal year 2030-31, driven by a ‌revival in demand for small cars and a stronger sport utility vehicle segment, Chairman R.C. Bhargava said. Maruti is reassessing its five-year growth targets as ​it expects the small-car segment to expand significantly faster ​than in the past five years, the company said ⁠in a statement on Sunday, accompanying its 2025/26 annual report.

Work to build Google’s planned Indian data center hub is in full swing, with a hillside above the site stripped to red earth and terraced into steps, but mounting opposition from environmentalists is creating hurdles for the US tech giant’s US$15 billion project. The southern state of Andhra Pradesh, governed by an ally of Indian Prime Minister Narendra Modi who has hailed the project as historic and transformational, has denied allegations that the project was fast-tracked without weighing risks to water supplies and wildlife. However, the growing opposition could become an early test for Google’s biggest-ever investment in India, which is facing several legal challenges over its impact on water supplies and proximity to a wildlife sanctuary that is home to leopards and pangolins.

Europe
Eurozone - No Data Scheduled
Germany - No Data Scheduled
France - 12-Month, 3-Month and 6-Month BFT Auctions, New Car Registrations
United Kingdom - No Data Scheduled

United States
Futures opened Dow -105pts -0.19% S&P -0.13% NDX 0.04%
Data Scheduled: 3-Month and 6- Month Bill Auction

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HEADLINES & NEWS
NEW ZEALAND & AUSTRALIA
Technology billionaire Mike Cannon-Brookes’ net worth soared on Friday morning, after Atlassian posted its first quarterly operating profit in more than two years and its shares surged.

VietJet to offer international flights from Western Sydney. The budget airline will fly to Ho Chi Minh City and has also applied to run thousands of domestic flights a year from Sydney Kingsford Smith Airport.

Pentagon ploughs $560 million into ‘world-first’ Australian mining project. Nearly all scandium; a critical mineral used in fighter jets, comes from China, Russia and Ukraine. Now the US and its weapons contractor intend to get it from Australia.

JAPAN
Japan’s Ministry of Finance released data on its foreign exchange market interventions in 2Q, showing that it intervened in the foreign exchange market three times during the Golden Week holiday period in spring to curb the yen’s decline. Among them, Japanese authorities bought yen on April 30 with a record single-day amount of JPY6.28 trillion (about USD39.6 billion). This was followed by additional yen purchases of JPY780 billion and JPY4.68 trillion on May 4 and May 6 respectively, bringing the total intervention amount to JPY11.74 trillion (about USD74 billion). The US and Japan earlier confirmed coordinated yen-buying intervention last Fri (Jul 31), and warned that they stand ready to take action again without hesitation. Market participants are now closely watching any exchange rate movements after the release of US employment data later today (Aug 7). However, after the joint action by the US and Japan, the yen gradually weakened again toward the 160 level. USD/JPY is now at 158.28, while every JPY100 is trading at HKD4.93.

Typhoon Dolphin lashed Japan’s ​southern Okinawa prefecture on Saturday, injuring six people and cutting power to more than 50,000 buildings, while China shut ports ‌and halted ferries ahead of the storm’s expected arrival on its east coast. Five elderly people, three of whom fell due to strong winds, suffered non-life-threatening injuries in Okinawa while another person was injured in Kagoshima prefecture, authorities said. Nearly 39,000 buildings were without power in Kagoshima while just over 12,000 were affected in Okinawa. Domestic airlines, ANA (9202.T) ​and Japan Airlines (9201.T) cancelled flights to and from Okinawa.

There is a different kind of warning sign scattered across Japan: the ubiquitous recruitment notices in shops, train stations, hotels and even government-run leprosy sanatoriums. “Japan has become a ‘Help wanted’ society,” the country is no longer simply aging but becoming absent, as births, workers and successors disappear. Labor scarcity is already forcing employers to offer higher wages, provide greater flexibility and lower barriers to entry, while encouraging investment in automation. That may yet lift productivity, but the speed of Japan’s demographic decline makes history an uncertain guide. “Japan’s help wanted signs tell us the innovation race to beat demographic decline is underway and urgent. Tomorrow there will be more signs. And fewer people to read them.”

There is a Nikkei editorial argues that Takaichi’s plan to cut the consumption tax on food from 8% to 1% is a politically expedient response to rising prices, but it threatens social security funding and fiscal credibility. It calls the proposal “nothing but the abandonment of responsibility that could jeopardize the future of national life,” and argues that targeted cash payments would offer more effective relief.

Kirin Holdings, a Japanese beer and beverages firm, climbed 4% on Friday after it agreed to acquire Canadian supplements maker Jamieson Wellness.

SOUTH KOREA
Rep. Kim Min-seok is leading by a narrow margin in the ruling Democratic Party leadership race, indicating that the final outcome is likely to hinge on Seoul and the Jeolla provinces. After the first three of six regional rounds of voting among eligible party members, the former prime minister had 76,844 votes, or 45.4 percent of the total. Former party chair Rep. Jung Chung-rae was next with 75,380 votes, just 0.86 percentage point behind. Six-term lawmaker Rep. Song Young-gil was third with 16,955 votes. In the latest round of voting, announced Saturday and spanning Jeju and Incheon, Kim received 22,537 of 47,198 total votes. Jung got 19,862, while Song took 4,799. Incheon was the first of the three districts in the Greater Seoul area to cast ballots in the leadership race, despite holding a relatively small portion of the party’s eligible members. Kim’s victory in the city is considered to have added momentum to his bid for the top party post.

Prices of agricultural goods in South Korea have spiked as the country grapples with a severe heat wave, industry data showed Sunday. The retail price of 100 grams of spinach vaulted 152.3 percent as of Friday, up 152.3 percent from the same day a month earlier, according to the data from the Korea Agro-Fisheries & Food Trade Corp.

BYD the world’s largest electric vehicle giant has officially entered the global humanoid robotics race, expected to leverage its fully integrated battery-to-software supply chain to drive down production costs. The move escalates pressure on early movers such as Hyundai Motor Group, which would need to slash manufacturing costs after commercialization to hold onto its lead.BYD’s robotics playbook is straightforward: establish a foothold with retail and service humanoid robots, then scale rapidly into industrial robotics across global markets.In contrast, Hyundai Motor Group faces structural hurdles. Although Hyundai aims to mass-produce its flagship Atlas humanoid robot for factory deployment by 2028, union pushback in South Korea threatens domestic validation — leaving the US as its primary testbed and sales market, shielded by Washington’s ban on new Chinese humanoid robots.

At Korean convenience stores, the liquor aisle’s most valuable real estate is changing hands. Eye-level shelves once dominated by 500-milliliter beer cans and green soju bottles are increasingly filled with colorful ready-to-drink cocktails and bottles of lower-alcohol flavored soju, as Koreans drink less and seek lighter options. “These days, more customers buy RTD (ready-to-drink) products and flavored soju with lower alcohol content,” a convenience store owner in Seoul said. Liquor shipments totaled 3.15 million kiloliters in 2024, down 17.3% from a decade earlier, according to Statistics Korea. Average monthly household spending on alcoholic beverages fell 9% YoY to 13,000 won ($9.20) in the first quarter, the steepest decline since quarterly tracking began in 2019. The shift accelerated during and after the COVID-19 pandemic, as corporate after-work drinking declined and demographic changes combined with “healthy pleasure” and “sober curious” trends. Korea’s major liquor companies — HiteJinro, Lotte Chilsung Beverage and Oriental Brewery — are responding with lower-alcohol drinks, premixed cocktails and a stronger export push.

Korea Investment Holdings, Hanwha Life Insurance and Heungkuk Life Insurance submitted final bids for KDB Life Insurance on Friday, giving fresh momentum to Korea Development Bank’s seventh attempt to sell the insurer. The three companies submitted their final offers by the 3 p.m. deadline, according to financial industry sources.

Posco Holdings, the country’s leading steelmaker, said Friday that it plans to sell a combined 2.5 trillion won ($1.76 billion) worth of shares in two of its affiliates. In a regulatory filing, Posco Holdings said it plans to divest 2 trillion won worth of shares in Posco International and 500 billion won in POSCO DX. The share sell-offs will be made on Sept. 7, according to the filing. The disposal of shares in the affiliates is aimed at securing investment funds and boosting corporate value, POSCO Holdings said. After the share divesture, Posco Holdings will hold a 50 percent stake each in Posco International and POSCO DX.

Coway on Friday reported sales of 1.44 trillion won ($1.02 billion) and operating profit of 253.2 billion won in the second quarter, setting a new record for half-year earnings on the back of strong demand for its premium home appliance lineup, accelerating rental account growth and solid performances across its overseas markets. For the first half of 2026, the Korean home appliance maker’s revenue increased 13.9 percent from the same period last year to 2.77 trillion won, while operating profit climbed 11.1 percent to 504.1 billion won. According to the company, its domestic revenue reached 786.8 billion won in the second quarter, up 7.7 percent on-year, supported by steady sales of its flagship ice water purifiers and Berex-branded sleep and wellness products, including beds and massage chairs.

SK hynix said Friday it will invest about 54 trillion won ($38.1 billion) to build new semiconductor fabs in Yongin and Cheongju, accelerating its capacity expansion as artificial intelligence drives demand for memory chips. The chipmaker’s board approved 35.2 trillion won for Y2, its second fab at the Yongin Semiconductor Cluster in Gyeonggi Province, and 19.1 trillion won for M17, a new NAND flash production facility in Cheongju, North Chungcheong Province.

Kakao said Friday it has reached a final wage agreement with its labor union, bringing an end to a dispute that led to the company’s first strikes since its founding. The agreement, approved in a vote by union members, calls for a 6.3 percent increase in the company’s overall salary budget and a special payment of 3 million won ($2,115) to employees. “We will faithfully implement the agreement reached through the negotiations,” a Kakao official said. “We will continue working together to create a workplace where employees can focus on their jobs while supporting the company’s sustainable growth.”

The Korea Exchange will urgently convene officials overseeing exchange-traded funds and exchange-traded notes from major asset managers and securities firms next week to reassess demand for after-market trading, after the exchange and financial regulators put the application process on hold amid continued market volatility. According to financial industry sources Friday, the KRX will gather major asset managers and securities firms on Monday to discuss plans for operating the after-market. The meeting is aimed at determining whether asset managers have actually finalized their decisions not to participate. The KRX also plans to use the meeting to reassess changes in demand and gather industry feedback on the launch plan.

TAIWAN
The government has resumed the deliberation of the much-delayed Longtan Science Park expansion project in Taoyuan, which could pave the way for the TSMC to build five new fabrication plants to produce advanced chips there. The project, proposed by the Hsinchu Science Park Administration, planned to expand the science park in Longtan District by about 158.59 hectares, with 80.66 hectares designated for businesses in the park, according to information disclosed at a public hearing in July 2023. The administration had planned to allow TSMC to build its fabs for 2-nanometer or smaller chips at the science park this year, but residents opposed the idea, as 88 percent of the land to be expropriated is privately owned. Some even formed a self-help group and protested at the Presidential Office and the Executive Yuan.

Taiwan’s overseas exposure hit a record high of more than NT$31 trillion (US$960.11 billion) in Q2, Financial Supervisory Commission (FSC) data released yesterday showed. Exposure refers to the combined value of net loans, net investments, and interbank deposits and loans. The FSC has published domestic and overseas exposure statistics on a quarterly basis since the second quarter of 2015. The figures cover subsidiaries of financial holding companies, including banks, insurers, securities firms, futures firms, investment trust and consulting firms, and leasing companies. Among the top 10 countries in terms of exposure, Japan recorded the largest annual increase at 45.9%, followed by Australia at 29.8% and the US at 16.7%, the data showed. Net loans stood at NT$6.83 trillion as of the end of the second quarter, while net investments totaled NT$22.82 trillion, FSC data showed. Interbank deposits and loans reached NT$1.83 trillion, the data showed.

The Cabinet is to approve next year’s budget on Aug. 20, with defense spending topping NT$1.1 trillion (US$34.07 billion) and NT$240 billion earmarked for a special budget, sources said Saturday. Next year’s central government revenue is expected to be NT$3.8 trillion, up 35.7 percent from this year’s budget, while spending would exceed NT$3.6 trillion, a 20 percent increase, sources said, adding that both figures would set new records.The government would not need to borrow next year, including for debt repayments, marking a rare balance between revenue and spending, they said.

Solomon Technology is expanding its artificial intelligence (AI)-powered systems for humanoid robots, with chairman Johnny Chen saying that the company aims to address one of the biggest hurdles to wider adoption — machine perception. Rather than manufacturing humanoid robots, Solomon develops AI-powered 3D vision modules and machine vision software that enable robots to perceive, understand and interact with their surroundings. The company is also applying the technology to drones, autonomous mobile robots (AMRs) and industrial inspection systems. In an interview, Chen cited an intelligent drone inspection system for solar farms in southern Taiwan as one of Solomon’s latest commercial applications. Drones equipped with the company’s 3D machine vision and AI software can automatically detect obstructions on solar panels that reduce power generation, he said.

Amid optimism over long-term AI development, the Ministry of Finance (MOF) has forecast that the current momentum seen in Taiwan’s exports will continue into the second half of this year, with the total value expected to surpass US$850 billion in 2026. On Friday, the ministry released July trade data showing Taiwan’s outbound sales rose 32.9% YoY to US$75.30 billion, the 33rd consecutive month of YoY growth. The July exports were the third-highest ever, trailing US$80.18 billion in March and US$78.48 billion in May. In the first seven months of this year, the country’s exports rose 44.7 % YOY to US$491.95 billion. MOF Department of Statistics Director Beatrice Tsai told reporters that despite worries over an AI bubble, which had spooked global stock markets, Taiwanese suppliers stayed upbeat about their business outlook, with contract chipmaker TSMC raising sales growth guidance and upgrading its capital expenditure budget for 2026 to meet robust AI demand.

State-owned oil supplier CPC Corp., Taiwan, announced Saturday that it will leave domestic retail gasoline and diesel prices unchanged next week. Under the decision, retail prices will remain at NT$30.5 (US$0.94), NT$32.0 and NT$34.0 per liter for 92, 95 and 98-octane unleaded gasoline, respectively, from midnight Monday through Aug. 16, CPC said in a statement. The retail price of premium diesel will also remain at NT$29.3 per liter during the same period, CPC said. It marks the second consecutive week that CPC has kept domestic fuel prices unchanged. CPC said its floating pricing mechanism, based on a weighted average of 70 percent Dubai crude and 30 percent Brent crude, showed that the average international crude oil price fell from US$83.99 per barrel last week to US$82.20 this week after the United States canceled plans to strike Iran.

CHINA
In China, where typhoon Dolphin is expected to make landfall between late Sunday and early Monday, authorities have designated Dolphin ​as an orange-category typhoon; the second-highest level. Worried about the risk of flooding and landslides, authorities also raised the emergency response level for Dolphin by one ​notch to level III, the second-lowest level. The typhoon is most likely to make landfall between Zhoushan city in Zhejiang province and Fuding city in Fujian province and is expected to have winds of 38-45 metres per second (85-101 mph) near its centre, according to China’s National Meteorological Center.

Apple has been testing ​memory chips from China’s CXMT (688825.SS) across ‌product lines including iPhones and MacBooks, to mitigate a component shortage fueled by ​the AI boom, the Wall ​Street Journal reported on Sunday. Apple held ⁠early talks with CXMT, which ​is China’s largest chipmaker by market ​value, about supplying components with the goal of using them in some devices sold ​in China, the report said, ​citing people familiar with the matter. Laptop makers HP and ​Acer (2353.TW) have started using CXMT memory chips in devices sold outside the US ⁠to ​ease supply shortages, the ​newspaper said.

Germany’s trade deficit with China widened ‌in the first half of 2026, even as the Asian powerhouse remained its top trade partner, preliminary data from state-run agency Germany Trade & Invest (GTAI) showed on Sunday. German exports to China fell over 12% YoY to just under €37 billion ​between January and June, the data showed, as Chinese firms cut reliance on European imports, ​making China only the ninth-biggest market for German goods.

China’s gold reserves stood at 76.08 million ounces at the end of July, up by 640,000 ounces from 75.44 million ounces at the end of June, marking the 21st consecutive month of increases in gold holdings, data from the People’s Bank of China showed.

Mainland China’s crude oil imports descended 24% YoY in July, narrowing from the 41% decline in June and notching a three-month high, data compiled by Wind Information based on China customs data showed. However, as the strait shipping route closes again and mainland China’s demand remains feeble, analysts expected the recovery in imports may be temporary. Julian Evans-Pritchard, Head of China Economics at Capital Economics, said the uptick in China’s crude oil imports mainly benefited from the brief reopening of the Strait of Hormuz at the end of 2Q26, but believed the current recovery may already be starting to fade. As the strait closes again, recent oil prices have rebounded, the Head said. China’s crude oil imports in August were predicted to stagnate or even decline to some extent, as refiners are more inclined to use inventories rather than increase imports.

There is a crisis inside China’s military, where President Xi Jinping has promoted two new generals even as a sweeping purge leaves most of the country’s top command positions without confirmed occupants. “In an ordinary year, two promotions would be routine,” he writes. “This year they carry far more weight.” Xi has to rebuild the high command before the People’s Liberation Army marks its centenary on Aug. 1, 2027. But the networks that once produced senior officers have themselves been dismantled, leaving Xi caught between the need to move quickly and the danger of elevating more officials who could later fall under suspicion. “In this environment, any large batch of promotions is a large batch of risk.” The likely result is a slow, tightly controlled process in which personal loyalty to Xi outweighs almost everything else. Yet the numbers are unforgiving: 21 vacancies, a depleted pool of full generals and no obvious candidates for several seats on the Central Military Commission. There are “too many blanks, too few generals, and not much time.”

The Cyberspace Administration of China released the “Regulations on Personal Information Protection for Large-Scale Personal Information Processors (Draft for Comments)”, stating that large-scale personal information processors should adopt measures such as encryption, de-identification, access control and anonymization to safeguard the security of processed personal information. Large-scale personal information processors may apply national online identity authentication public services, while the use of data labeling and identification technologies and personal information protection certification is encouraged to enhance the level of personal information protection. In addition, large-scale personal information processors handling personal information should follow the principles of legality, legitimacy, necessity and good faith, comply with laws and administrative regulations, and respect social ethics and moral standards. Large-scale personal information processors collecting personal information should adhere to the principle of minimum necessity, limited to what is required for providing products or services, and must not excessively collect personal information. When formulating and disclosing personal information processing rules, large-scale personal information processors should use clear and understandable language and provide truthful, accurate and complete itemized explanations.

Income from Hong Kong insurance policies purchased by Mainland Chinese tax residents has been put under in the taxable scope, report said. According to the relevant provisions of the Individual Income Tax Law, Chinese tax residents are required to fulfill tax obligations on global income, and offshore insurance income also falls within the scope of taxable income, Chinese media cited an official from the relevant department of the China State Taxation Administration (STA) as saying, adding this is not a new policy, nor is it specifically targeting the Hong Kong insurance market, and there is no need for overinterpretation. The official said that income obtained by resident individuals from offshore sources, including insurance income, should be subject to individual income tax in accordance with the law. This is an internationally accepted practice and has been a fundamental principle upheld since the implementation of China’s Individual Income Tax Law. The official pointed out that China taxes residents’ offshore income equally in accordance with the law. Whether it is offshore insurance income or other investment income, and regardless of which country or region the income comes from, tax declarations and payments are required. Standardizing the tax administration of residents’ offshore income will help prevent cross-border tax avoidance, safeguard national tax interests, and promote social fairness.

HONG KONG
IPO
NASN Tech(02261.HK), which listed on Friday 7 August, opened at $16.9, up 62.2% from the listing price of $10.42. Peaking/ bottoming at $19.8/16.6, the stock closed at $17.1, up 64.1% from the listing price of $10.42, on volume of 13.43 million shares and turnover of $230.85 million. Excluding handling fee, the book gain was $668 per board lot size of 100 shares.

Earnings
SUNLIGHT REIT (00435.HK) announced its interim results for the six months ended June 2026. Revenue fell 2.2% YoY to HKD382 million. Loss narrowed to HKD124 million from a loss of HKD172 million in the same period last year. LPS was HKD0.07, compared with LPS of HKD0.10 in the same period last year. Distributable income for 1H26 decreased 2.7% YoY to HKD164 million. An interim distribution of HKD0.088 was declared, compared with HKD0.091 in the same period last year. Looking ahead, around 14.0% and 22.3% of the leasable area of SUNLIGHT REIT’s office and retail property portfolios respectively will be due for lease renewal in 2H26. Given current market conditions, improving the overall occupancy rate of the property portfolio will be key to mitigating negative rental reversion upon lease renewals.

Hangzhou DIAGENS-B (02526.HK) announced interim results for the six months ended end-Jun 2026. Revenue rose 21.0% YoY to RMB108.7 million. Loss widened to RMB55.88 million from a loss of RMB1.34 million in the corresponding period last year. LPS was RMB0.66.

Warning / Alerts
XXF (02473.HK) expected net profit for the six months ended 30 June 2026 to range between RMB16.5 million and RMB18 million, compared with RMB22.5 million in the same period last year.

SHOUGANG RES (00639.HK) predicted consolidated profit for the six months ended 30 June 2026 to range from approximately HKD550 million to HKD600 million, representing a YoY increase of approximately 36-49%.

FEIYU (01022.HK) issued a profit warning, expecting to swing from profit to loss for the six months ended 30 June 2026, with an estimated net loss after tax ranging from approximately RMB5 million to RMB15 million, compared with a net profit after tax of approximately RMB56.5 million in the same period last year. The expected deterioration was mainly due to increased operating investment in June 2026 for the group’s game “One Step Two Steps” to launch its second anniversary operation campaign. Related expenses were recognized during the period, while revenue generated from new and returning users is expected to be gradually realized over their lifecycle in subsequent periods. The timing gap between investment and revenue realization adversely affected profitability performance in 1H26.

DOWELL SERVICE (02352.HK) issued a profit warning, expecting net profit for the six months ended 30 June 2026 to range between RMB7 million and RMB10 million, representing a YoY decline of about 61% to 73% from approximately RMB25.8 million in the same period last year. The decline was mainly due to the group’s focus on a high-quality development path and continued optimization of its business structure, which led to a temporary decline in revenue scale. Meanwhile, newly expanded projects remain in the ramp-up stage and have yet to generate scaled revenue and gross profit contributions, resulting in a decrease in gross profit during the period. In addition, a one-off gain recorded last year led to a decrease in other gains during the period.

HOME CONTROL (01747.HK) issued a profit warning, expecting interim revenue and net profit for the period ended 30 June 2026 to decline by approximately 20% and approximately 58% YoY, respectively, compared with revenue of approximately USD60 million and net profit of approximately USD5 million in the corresponding period of 2025.

Buybacks None announcecd

HSI Short Selling Friday 15% vs 16% Thursday
Top shorts MTRC (66) 55%, Xinyi Glass (868) 41%,

NTESS (9999) 39%, BYD Electronics (285) 38%, Henderson Land (12) 37%, Galaxy Ent (27) 37%, Wuxi Apptec (2359) 36%, Bud APAC (1876) 35%, Sands China (1928) 35%, Chow Tai Fook (1929) 34%,

Sinopharm (1099) 28%, CK Asset (1113) 28%, Power Assets (6) 27%, Li Auto (2015) 27%, Mengniu Dairy (2319) 26%, Sinopec (386) 26%, JD Health (6618) 26%, New Oriental (9901) 26%, CKI (1038) 25%, ZTO Express (2057) 25%, Geely Auto (175) 25%, Meituan (3690) 25%, CATL (3750) 25%, BYD (1211) 25%.

WATCH
“PANO HARBOUR” in Kai Tak, jointly developed by China Resources Land (Overseas) and POLY PROPERTY (00119.HK) Friday (7th) opened a brand-new four-bedroom furnished unit for media viewing. The unit is Flat A, 28/F, Tower 2, with a saleable area of 1,909 square feet. It features a four-bedroom dual-suite layout with a private lift lobby and is located at the front row of the project, commanding an unobstructed Victoria Harbour fireworks sea view. The designer adopted the theme of “Timeless Craft”, blending traditional craftsmanship and materials with classical and modern aesthetics to complement the unit’s panoramic 180-degree Victoria Harbour sea view, creating an elegant and distinctive residence.

HUANENG POWER (00902.HK) announced that it recently completed the issuance of the 10th tranche of medium-term notes for 2026 (special bonds for energy supply assurance). The issuance size was RMB2.5 billion, with a term of 2+N years and an issuance interest rate of 1.67%.

CHINA RES GAS (01193.HK) announced that its wholly owned subsidiary, China Resources Gas Investment (China) Group, completed the issuance of the third tranche of medium-term notes in China Friday (7th). The aggregate principal amount of the third tranche of medium-term notes issued was RMB2.5 billion, of which RMB1.5 billion carried a three-year term with a coupon rate of 1.57% per annum, while the remaining RMB1 billion carried a five-year term with a coupon rate of 1.7% per annum. The proceeds will be used to refinance bank loans previously repaid using certain internal funds of China Resources Gas Investment (China) Group.

Following recent reports by Meta, OpenAI and Anthropic on AI models breaking out of testing environments, Reuters reported that Moonshot AI’s flagship AI model Kimi K3 “escaped” a cybersecurity testing environment developed by the UK’s AI Security Institute, arousing concerns over cybersecurity risks posed by AI. Research firm Frontier Security said AI models are typically operated in isolated sandboxes during cybersecurity testing to prevent access to external information and to assess their ability to solve problems independently. The firm said Kimi K3 bypassed the sandbox and gained access to information outside the testing environment. If one high-reasoning-capability model discovered such a shortcut, other models with similar access privileges would likely be able to do the same. As Kimi K3 is a publicly available model, it could potentially be exploited by malicious actors, resulting in greater potential risks, the firm said.

POWERLONG (01238.HK) announced that contracted sales for Jul 2026 amounted to approximately RMB550 million, down 5.5% YoY, while contracted sales GFA was approximately 54,100 square meters, down about 5.1% YoY. For the first seven months of 2026 ended end-Jul, the Group’s cumulative contracted sales totaled approximately RMB3.97 billion, while total contracted sales GFA was approximately 386,300 square meters, representing YoY decreases of about 7.8% and an increase of about 3.4%, respectively.

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Friday closings in EUROPE and US
DAX 0.69%, CAC 0.17%, FTSE 0.31%
Markets opened slightly higher, and worked better through the morning; FTSE trended lower in the afternoon on weak US jobs data. DAX dipped into the close. The CAC traded in a tight range all day but dipped into the close.

Better-than-expected German industrial production and export data helped sentiment along with a strong rebound in tech and AI-related stocks

Leaders were healthcare stocks and technology companies. On the downside, both travel & leisure stocks and autos and parts names were the laggards.

Eutelsat -4.6%, Europe’s challenger to Elon Musk’s Starlink, posted better-than-expected revenue figures on Friday but is still operating at a loss.

DOW 0.28%, NDX 1.3%, S&P 0.62% a new high, Russel 2K 1.1%
Markets opened higher; Dow & S&P opened slightly higher and traded in a tight range just above flat all day. NDX opened higher and traded in a tight range too but elevated.

The S&P 500 closed above 7,700 for the first time ever earlier this week was 3.6% WoW . The Nasdaq 5.2% WoW, thanks to a bounce-back in chip stocks. Cloudflare 5% after it issued a solid FY and current-quarter outlook. Shares of Atlassian +35% after the company’s Q4 adjusted earnings and revenue surpassed expectations and issued upbeat guidance.

Non Farm payrolls was -23k vs 20k Jun revised missing the 79k forecast whilst unemployment dropped to 4.1%. Ave hourly earnings only rose 0.1% vs 0.3% F/cast. Participation 61.4% represents an exodus of nearly 1.4 million people.

A majority of fed funds futures traders now expect that the central bank will hold its benchmark lending rate at the current 3.50% to 3.75% at the next policy meeting in September.

Airbnb 17% after it posted a beat on the top and bottom lines.

SpaceX 12% to end its first week in the green in awhile; up almost 19% week to date due to growing investor optimism toward SpaceX’s fundamentals. The unlock during the week does not seem to have impacted the share price, or suggests that many had used other mechanisms to forward sell their shares.

Under Armour -4.5% after lowering revenue guidance for the year ending next March, citing softer demand, especially in North America and the Asia-Pacific.

Banks JPMorgan Chase 0.34%, Citigroup 0.88% Wells Fargo 0.18%, Amex -0.49%
Ecommerce Meta 0.37%, Apple 0.29%, Amazon 0.82%, Netflix 0.61%, Disney 0.22%, Zoom Comms 3.16%, Alphabet -0.88% and Microsoft 0.03%
Tech NXP Semi 3.42%, Nvidia 2.27%, Micron -0.44%, AMD -1.21%, Skyworks 5.66%, Intel 1.84%
Industrial/Discretionary Boeing 0.96%, Caterpillar -1.72%, Simon Property 0.49%, Kohl’s 4.61%, Gap -0.24%, United Airlines 0.34%, Carnival 1.22%, Wynn Resorts 1.02%
Healthcare Eli Lilly -0.52%, UntiedHealth 0.77%, Johnson & Johnson 0.88% Merck 0.16%
Auto Ford 1.38%, GM 0.74%, Tesla 2.83%
Energy Chevron -1.41%, Exxon Mobil -1.16%, ConocoPhillips 0.95%
Consumer Staples Campbell Soup 2.17% General Mills 2.27%, JM Smucker 1.14%
Buffet’s Top Five Retirement Stocks Coca Cola 0.23%, Apple 0.29%, Johnson & Johnson 0.88%, Proctor & Gamble -0.8%, Berkshire -0.54%

DAILY US CLOSING DATA
USD weak after weak jobs data give Fed to delay rate hikes. Bitcoin -0.15% at $64,899.53 Monday 7:30am HK Time; VIX -1.65% at 14.9
US Bonds T10 down 3 bpts to 4.639%, T2 down 5 bpts at 4.193% and T30 down 2 bpts at 5.192%
OIL Friday clsoe Brent 1% at $83.55, WTI 1% at $78.18
Spot Gold 2.3% the largest weekly gain since 19 January. Spot silver 3%, Copper -1.76% Platinum 1.2%, Palladium 0.8%.

That is adding to volatility in a market already unsettled by concerns over the artificial intelligence trade, analysts said.

Nonfarm ‌payrolls fell by 23,000 jobs last month after a downwardly revised 20,000 increase in June, the forecast was for payrolls rising 80,000 last month. That now means that the Fed has less pressure to raise interest rates at its next meeting; with energy prices coming down, all portend a weaker dollar and stronger gold prices.

The rate futures market has now priced in just a 43.9% chance of Fed tightening in September vs ⁠57% before the jobs report. The probability that the Fed ⁠will hold rates steady next month rose to 60.4% versus ⁠43.2% just before the data release.

But if the FOMC stays on hold and inflation data picks up then it would be faced with hiking rates just ahead of the mid-term elections; something I am sure Trump would not want to see!

Individual investors are suddenly more optimistic, but still below the historic average, AAII says. More mom and pop investors are optimistic about the outlook for stocks over the coming six months, but the number is still below the historic average for the third time in four weeks, according to the latest weekly poll by the American Association of Individual Investors.

Bulls rose to 37% from 31%, against an historic average of 37.5%. The percentage of those describing themselves as bearish fell to 38% from 42.2% last week, above the historic average of 31.5% for a sixth straight month (26 weeks). Investors who are neutral dropped to 25% from 26.9%, the 22nd time in 23 weeks that such balanced views were below their historic average of 31.0%.

Main Street investors aren’t clamoring for lower interest rates, according to a special question AAII asked this week. More than half, or 55.1%, said last week’s move by the Federal Reserve to keep overnight lending rates where they are was the right move. Almost a third, or 30.6%, said the Fed should have raised interest rates. More people were unsure or had no opinion, 8.7%, than thought rates should have been cut, only 5.6%.

Earnings this week include; Cisco Systems focusing on enterprise networking and AI-driven infrastructure demand. Applied Materials providing key insights into semiconductor equipment spending. Super Micro Computer highlighting server and AI hardware momentum. CoreWeave Delivering cloud infrastructure updates. AST SpaceMobile on space-based cellular broadband progress. Rocket Lab USA (RKLB): insight into launch and space systems. Plug Power insight into clean energy sector activity. Others include Simon Property, Barrick Mining, Hims & Hers Health, USA Rare Earth, Embraer, Smithfield Foods, Cava, Janus Group, Birkenstock,

In Europe a focus on Energy related names as European gas storage levels are at there lowest at this time for 20 years, with warmer weather impacting both demand and impacting supply as higher temperatures impact air cooling and waste water emissions and for nuclear low water levels; so earnings from ION, RWE, and vestas will be watched closely. Also from Aviva, InterContinental Hotels Group, 10.Genuit Group, Bellway, International Workplace Group, Balfour Beatty, Savills TUI and others.

In Asia TSMC sales numbers, Tencent and Tencent Music, Tencent, PLDT, JD com, Melco and others.

Monday TME-SW (01698.HK), FIT HON TENG (06088.HK), HUTCHTEL HK (00215.HK), RUSAL (00486.HK), 51WORLD (06651.HK), CIDI (03881.HK), FIRE ROCK (01909.HK)

Tuesday Lumentum Holdings Inc. (LITE.US), Super Micro Computer, Inc. (SMCI.US), CoreWeave, Inc. (CRWV.US) ; WH GROUP (00288.HK), TINGYI (00322.HK), HKELECTRIC-SS (02638.HK), WHARF HOLDINGS (00004.HK), ASIAINFO TECH (01675.HK), CEB WATER (01857.HK), CHINA LIT (00772.HK), CHINA TOWER (00788.HK), CKLIFE SCIENCES (00775.HK) HUI XIAN REIT (87001.HK), IMPRO PRECISION (01286.HK), KINGDEE INT’L (00268.HK), MMG (01208.HK)

Wednesday Coherent Corp. (COHR.US), Nebius Group N.V. (NBIS.US), Cisco Systems, Inc. (CSCO.US) ; TENCENT (00700.HK), POWER ASSETS (00006.HK), GALAXY ENT (00027.HK), CKI HOLDINGS (01038.HK), BLOKS (00325.HK), CEB GREENTECH (01257.HK), CHANGHONG JH (03991.HK), DMALL (02586.HK), GDS-SW (09698.HK), NEXTEER (01316.HK), POU SHENG INT’L (03813.HK), WERIDE-W (00800.HK), YUE YUEN IND (00551.HK), YUEXIU REIT (00405.HK)

Thursday Applied Materials, Inc. (AMAT.US), Coach parent Tapestry, Maersk, Hapag-Lloyd; CKH HOLDINGS (00001.HK), MTR CORPORATION (00066.HK), CHINA MOBILE (00941.HK), SMIC (00981.HK), LENOVO GROUP (00992.HK), CK ASSET (01113.HK), JD LOGISTICS (02618.HK), JD HEALTH (06618.HK), JD-SW (09618.HK), JD INDUSTRIALS (07618.HK), CHINA GOLD INTL (02099.HK), CITIC TELECOM (01883.HK), CR ASIA (00831.HK), HUA HONG GRACE (01347.HK), HYSAN DEV (00014.HK), IGG (00799.HK), LANGHAM-SS (01270.HK), LIU CHONG HING (00194.HK), MARKETINGFORCE (02556.HK), ONEWO (02602.HK), SAMSONITE (01910.HK), SF REIT (02191.HK), SIICENVIRONMENT (00807.HK), WL DELICIOUS (09985.HK)

Friday SANDS CHINA LTD (01928.HK), BAY AREA DEV (00737.HK), FUDANZHANG JIANG (01349.HK), MIRAMAR HOTEL (00071.HK), SINOPEC SEG (02386.HK), SOUTHGOBI (01878.HK), XIAOCAIYUAN (00999.HK), ZIJIN GOLD INTL (02259.HK)

Housekeeping
This Monday morning I will be on RTHK’s Money Talk with host Magha Chaddah and portfolio manager Shuyan Feng as tke other guest.
If there is a topic you would like discussed next week; then let them know or drop me a message, or if you just want to listen to the programme,
click the link https://www.rthk.hk/radio/radio3/programme/money_tall

Thursday afternoon I was on RTHK’s the Close with host Nitin Dialdas and the other guest was Steve Brice, Global CIO at Standard Chartered Bank, we discussed expats returning to HK and what is means for the SAR. Also whether offering a zero percent tax on hedge fund profits makes HK attractive. We looked at India selling government shares to boost finances and whether that was enough.
If there is a topic you would like discussed next week please message me or contact them via WhatsApp +852 6899 8518 or via the link below, which can also be used to listen to the programme.

click the link https://www.rthk.hk/radio/radio3/programme/the_close

Latest thoughts from Market Thinker - challenging the narrative. DRAMatic Price Moves Another STAR rising in the east. Takes a look at CXMT the fourth largest DRAM maker that saw a 466% jump on its market debut. Its IPO was oversubscribed by 570x for the institutional portion and 244x for the retail side. For context, at an initial price of $1.28, that means Chinese retail had to lodge $1.2tn with the exchange.

He contrasts it with SpaceX which paid insiders and left nothing for those that bought the IPO. He also highlights other differences and suggests that investors should be looking closer at Chinese tech markets.

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Market opening indications and data due

New Zealand - No Data Scheduled
NZX futures indicate -134pts -0.96% at 13,824.13 at the close on Friday

On Friday the NZX opened lower and traded sideways in a tight range but ticked lower at the end to close; 134 points, or 1.0%, to close at 13,824. That was up 0.9% overall for the week.
Laggards were Auckland International Airport -2.5%, A2 Milk -1.6%, Fisher & Paykel -1.4%, Westpac Bank Corp -1.6%, Mainfreight -1%, ANZ Group -1%
Leaders were Tourism Holdings 2.1%, Vulcan Steel 2.6%, Winton Land 2.3%, Serko SKO) 2.% T&G Global 2.3%

Australia - No Data Scheduled
ASX futures indicate the market to open up 33pts 0.36% at 9,233

On Friday the ASX 200 opened lower but worked better in the morning and then traded around flat for the rest of the day; to close -8 pts -0.09% at 9,263.6. That was up 3.2% for the week. Laggards were healthcare, tech, and financials that offset minor gains in non-energy minerals. Traders locked in gains after the index hit back-to-back record highs earlier in the week. Weaker US stock futures and geopolitical tensions regarding oil and shipping lanes in the Strait of Hormuz weighed on sentiment.

Japan
Nikkei Futures up 685pts 1.04% at 66,345
Yen 157.78

On Friday the Nikkei sold down in the couple of hours of trading but then reversed and worked better for the rest of the day to close up 0.12% 76.55 pts at 65,606.71 Seeing continued booking of profits in AI and semiconductors, uncertainty over oil prices and general caution ahead of the US jobs data and the weekend. Yen intervention concerns remain.
Data due 10 minutes before the open
BoJ Summary of Opinions
Current Account Jun vs ¥3968B May (F/cast is ¥3430B)
Bank Lending Jul YoY vs 5.7% Jun (F/cast is 5.5%)
Due Lunchtime
Eco Watchers Survey
Current Jul vs 44 Jun (F/cast is 44.2)
Outlook Jul vs 45.7 Jun (F/cast is 46)

S Korea
Kospi Futures indicate opening -11.7pts -0.24% at 4,769.38

The Kospi Friday opened 1.09% higher but sold down for the first 90 minutes but then bounced and traded sideways in a tight range for the rest of the day to close -37.61 pts, or 0.6%, to close at 6,258.77, after dropping as low as 6,158.73.
Trade volume was light at 297.18 million shares worth 24.3 trillion won ($17.1 billion), with winners outnumbering losers 552 to 321. The index plunged 4.58 percent in the previous session, dragged down mainly by losses in technology stocks.
Foreign investors sold a net 858.07 billion won worth of stocks, while institutions bought a net 578.99 billion won and retail investors purchased 266.98 billion won.
Uncertainty surrounding the Straits of Hormuz is expected to keep oil prices elevated, adding to volatility in a market already unsettled by concerns over the artificial intelligence trade, analysts said. In Seoul, large-cap stocks were mixed. The Korean won was quoted at 1,417.70 won against the US dollar as of 3:30 pm. Friday, up 6.4 won from the close of stock trading the day before.
Data due 90 minutes after the open
3-Year KTB Auction vs 3.765% prior

Taiwan
Taiex Futures indicate market opening up 736pts 1.66% at 45,033

On Friday the Taiex opened higher but tended lower for most of the day but ticked higher at the end to close 170.79 pts, or 0.38%, at 44,225.91 after moving between 43,941.56 and 44,827.13. Turnover totaled NT$819.20 billion (US$25.43 billion) vs NT$940.39 billion (US$29.20 billion) Thursday; with signs of consolidation mode after a recent wild swing amid concerns over massive spending on AI infrastructure. TSMC 0.21% at the close but other semiconductor heavyweights largely fell into negative territory. The tech sector struggled, investors parked their funds in select old economy stocks, with raw material firms. The financial sector, which rose 0.99 percent on rotational buying.
According to the Taiwan Stock Exchange, foreign institutional investors sold a net NT$40.72 billion in shares on the market Friday.
Out after Market Friday
Balance of Trade Jul $17.2B vs $12.2B Jun (F/cast is $14.5B)
Exports Jul 32.9% vs 40.3% Jun (Consensus is 40.7%)
Imports Jul 37.4% vs 51.8% Jun (Consensus is 48.4%)

China - No Data Scheduled
Golden Dragon Index closed up 50.5pts 0.77% at 6,620.75
FTSE A50 futures up 34pts 0.23% at 15,079
MSCI A50 futures up 7.4pts 0.26% at 2,804.8

On Friday the A shares opened higher and trended higher, the SSE closed at the day high, The CSI 300 had more of a roller coaster day. Markets hit three week highs driven by better then expected July export expansion data and solid global demand for AI-related technology.
The Shanghai Composite climbed 1.02% 40 pts) to close at 3,940
The Shenzhen Component advanced 1.42% to close at 14,311
CSI 300 Index -0.93% at 4,694.44
ChiNext Index (Growth Board) 1.35% at 3,563.12
STAR Composite Index (Sci-Tech Innovation) 3.35% at 2,019.44
Leaders were spearheaded by advanced technology and medical fields. Pharmaceuticals and healthcare, co-packaged optics, and semiconductor chip manufacturing logged the highest inflows. High-tech semiconductor exports roughly doubled YoY, amplifying tech stock dominance.
Laggards Traditional digital services and gaming under pressure. The sharpest losses were concentrated in digital currency applications, cross-border payment systems, software development, and online gaming.
The PBOC conducted RMB1 billion of seven-day reverse repo operations at an unchanged interest rate of 1.4%, while RMB134 billion of reverse repos matured, resulting in a net liquidity withdrawal of RMB133 billion in a single day.
USD/CHN -0.00968 pt -0.14% @6.7385 on Friday
Spot USD/CNY hiked 14 bps to close at 6.7501 today (7th). As of 4:48 pm, USD/CNY in the night session dropped 40 bps. USD/CNH added 17 bps to 6.7465, 36 bps above USD/CNY.
Data out after market Friday
Foreign Exchange Reserves Jul $3.419T vs $3.416T Jun (Consensus is $3.42T)
Data out Sunday
Inflation Rate Jul 0.5% YoY vs 1% Jun (F/cast was 0.9%)
Inflation Rate Jul -0.1% MoM vs -0.3% Jun (F/cast was 0.3%)
PPI Jul 3.5% YoY vs 4.1% Jun (F/cast was 4.3%)
Worth noting that food prices in China continue to fall. PPI saw the steepest fall in 4 years.

Hong Kong - No Data Scheduled
ADR’s closed up 231pts 0.89% at 25,899 with only Bank of China HK and CK Hutch in the red.
Hang Seng Futures indicate the market opening up 127pts 0.49% at 25,790
Turnover Friday HK$259.686B vs HK$255.227B Thursday
Short Selling Friday 16% Thursday

On Friday the HSI opened lower but worked better thanks to better than expected China trade data and closed at the day high up 137 pts, or 0.5%, at 25,668.03
Hang Seng Tech Index 0.8% to 4,858 pts. Drivers were Technology & Electronics along with Healthcare & CROs.
The HSCEI ended at 8,531, up 32 points or 0.39%.
Data out after the market Friday
Foreign Exchange Reserves Jul $447.8B vs $445.9B Jun (F/cast is $446B)

Macau - No Data Scheduled

Singapore - Data out after the market Friday
Foreign Exchange Reserves Jul S$549.3B vs S$551.3B Jun

Malaysia - No Data Scheduled
Indonesia - No Data Scheduled
Philippines - No Data Scheduled

Thailand - No Data Scheduled
Could get Consumer Confidence Jul vs 50.7 Jun (F/cast is 51.1)

Vietnam - No Data Scheduled
Cambodia - No Data Scheduled
Myanmar - No Data Scheduled

India - Data out after market Friday
Foreign Exchange Reserves 31 Jul $692.87B vs $682.35B prior

Work to build Google’s planned Indian data center hub is in full swing, with a hillside above the site stripped to red earth and terraced into steps, but mounting opposition from environmentalists is creating hurdles for the US tech giant’s US$15 billion project. The southern state of Andhra Pradesh, governed by an ally of Indian Prime Minister Narendra Modi who has hailed the project as historic and transformational, has denied allegations that the project was fast-tracked without weighing risks to water supplies and wildlife. However, the growing opposition could become an early test for Google’s biggest-ever investment in India, which is facing several legal challenges over its impact on water supplies and proximity to a wildlife sanctuary that is home to leopards and pangolins.

Europe
Eurozone - No Data Scheduled
Germany - No Data Scheduled
France - 12-Month, 3-Month and 6-Month BFT Auctions, New Car Registrations
United Kingdom - No Data Scheduled

United States
Data Scheduled: 3-Month and 6- Month Bill Auction

HEADLINES & NEWS
JAPAN
Japan’s Ministry of Finance released data on its foreign exchange market interventions in 2Q, showing that it intervened in the foreign exchange market three times during the Golden Week holiday period in spring to curb the yen’s decline. Among them, Japanese authorities bought yen on April 30 with a record single-day amount of JPY6.28 trillion (about USD39.6 billion). This was followed by additional yen purchases of JPY780 billion and JPY4.68 trillion on May 4 and May 6 respectively, bringing the total intervention amount to JPY11.74 trillion (about USD74 billion). The US and Japan earlier confirmed coordinated yen-buying intervention last Fri (Jul 31), and warned that they stand ready to take action again without hesitation. Market participants are now closely watching any exchange rate movements after the release of US employment data later today (Aug 7). However, after the joint action by the US and Japan, the yen gradually weakened again toward the 160 level. USD/JPY is now at 158.28, while every JPY100 is trading at HKD4.93.There is a different kind of warning sign scattered across Japan: the ubiquitous recruitment notices in shops, train stations, hotels and even government-run leprosy sanatoriums. “Japan has become a ‘Help wanted’ society,” the country is no longer simply aging but becoming absent, as births, workers and successors disappear. Labor scarcity is already forcing employers to offer higher wages, provide greater flexibility and lower barriers to entry, while encouraging investment in automation. That may yet lift productivity, but the speed of Japan’s demographic decline makes history an uncertain guide. “Japan’s help wanted signs tell us the innovation race to beat demographic decline is underway and urgent. Tomorrow there will be more signs. And fewer people to read them.”

There is a Nikkei editorial argues that Takaichi’s plan to cut the consumption tax on food from 8% to 1% is a politically expedient response to rising prices, but it threatens social security funding and fiscal credibility. It calls the proposal “nothing but the abandonment of responsibility that could jeopardize the future of national life,” and argues that targeted cash payments would offer more effective relief.

Kirin Holdings, a Japanese beer and beverages firm, climbed 4% on Friday after it agreed to acquire Canadian supplements maker Jamieson Wellness.

SOUTH KOREA
After a week of record-breaking heat, South Korea entered the weekend with little respite from extreme weather. Temperatures have eased slightly overall, but sweltering heat persists across much of the rest of the country, while torrential rain batters parts of the ease. All severe heat wave warnings, the highest level in the country’s three-tier alert system, have been downgraded. Heat wave warnings and advisories remain in effect across most of the country, however, with daytime highs hovering around 35 C. Temperatures are expected to ease further Sunday, with Seoul forecast to reach around 33 C, 1 to 2 degrees lower than Saturday.

At Korean convenience stores, the liquor aisle’s most valuable real estate is changing hands. Eye-level shelves once dominated by 500-milliliter beer cans and green soju bottles are increasingly filled with colorful ready-to-drink cocktails and bottles of lower-alcohol flavored soju, as Koreans drink less and seek lighter options. “These days, more customers buy RTD (ready-to-drink) products and flavored soju with lower alcohol content,” a convenience store owner in Seoul said. Liquor shipments totaled 3.15 million kiloliters in 2024, down 17.3% from a decade earlier, according to Statistics Korea. Average monthly household spending on alcoholic beverages fell 9% YoY to 13,000 won ($9.20) in the first quarter, the steepest decline since quarterly tracking began in 2019. The shift accelerated during and after the COVID-19 pandemic, as corporate after-work drinking declined and demographic changes combined with “healthy pleasure” and “sober curious” trends. Korea’s major liquor companies — HiteJinro, Lotte Chilsung Beverage and Oriental Brewery — are responding with lower-alcohol drinks, premixed cocktails and a stronger export push.

Korea Investment Holdings, Hanwha Life Insurance and Heungkuk Life Insurance submitted final bids for KDB Life Insurance on Friday, giving fresh momentum to Korea Development Bank’s seventh attempt to sell the insurer. The three companies submitted their final offers by the 3 p.m. deadline, according to financial industry sources.

Posco Holdings, the country’s leading steelmaker, said Friday that it plans to sell a combined 2.5 trillion won ($1.76 billion) worth of shares in two of its affiliates. In a regulatory filing, Posco Holdings said it plans to divest 2 trillion won worth of shares in Posco International and 500 billion won in POSCO DX. The share sell-offs will be made on Sept. 7, according to the filing. The disposal of shares in the affiliates is aimed at securing investment funds and boosting corporate value, POSCO Holdings said. After the share divesture, Posco Holdings will hold a 50 percent stake each in Posco International and POSCO DX.

Coway on Friday reported sales of 1.44 trillion won ($1.02 billion) and operating profit of 253.2 billion won in the second quarter, setting a new record for half-year earnings on the back of strong demand for its premium home appliance lineup, accelerating rental account growth and solid performances across its overseas markets. For the first half of 2026, the Korean home appliance maker’s revenue increased 13.9 percent from the same period last year to 2.77 trillion won, while operating profit climbed 11.1 percent to 504.1 billion won. According to the company, its domestic revenue reached 786.8 billion won in the second quarter, up 7.7 percent on-year, supported by steady sales of its flagship ice water purifiers and Berex-branded sleep and wellness products, including beds and massage chairs.

SK hynix said Friday it will invest about 54 trillion won ($38.1 billion) to build new semiconductor fabs in Yongin and Cheongju, accelerating its capacity expansion as artificial intelligence drives demand for memory chips. The chipmaker’s board approved 35.2 trillion won for Y2, its second fab at the Yongin Semiconductor Cluster in Gyeonggi Province, and 19.1 trillion won for M17, a new NAND flash production facility in Cheongju, North Chungcheong Province.

Kakao said Friday it has reached a final wage agreement with its labor union, bringing an end to a dispute that led to the company’s first strikes since its founding. The agreement, approved in a vote by union members, calls for a 6.3 percent increase in the company’s overall salary budget and a special payment of 3 million won ($2,115) to employees. “We will faithfully implement the agreement reached through the negotiations,” a Kakao official said. “We will continue working together to create a workplace where employees can focus on their jobs while supporting the company’s sustainable growth.”

The Korea Exchange will urgently convene officials overseeing exchange-traded funds and exchange-traded notes from major asset managers and securities firms next week to reassess demand for after-market trading, after the exchange and financial regulators put the application process on hold amid continued market volatility. According to financial industry sources Friday, the KRX will gather major asset managers and securities firms on Monday to discuss plans for operating the after-market. The meeting is aimed at determining whether asset managers have actually finalized their decisions not to participate. The KRX also plans to use the meeting to reassess changes in demand and gather industry feedback on the launch plan.

TAIWAN
President Lai Ching-te on Saturday boarded a domestically developed missile boat as he inspected a coastal defense exercise simulating efforts to repel an incursion by Chinese warships. Lai boarded a Kuang Hua VI-class missile boat armed with Hsiung Feng II anti-ship missiles at Tsoying Naval Base in Kaohsiung and delivered remarks over the vessel’s public address system. He called on Navy and Coast Guard personnel participating in the drill to respond proactively to a range of scenarios and strengthen their combat readiness and coordination to safeguard the country’s sovereignty and the safety of its people.

The Cabinet is to approve next year’s budget on Aug. 20, with defense spending topping NT$1.1 trillion (US$34.07 billion) and NT$240 billion earmarked for a special budget, sources said Saturday. Next year’s central government revenue is expected to be NT$3.8 trillion, up 35.7 percent from this year’s budget, while spending would exceed NT$3.6 trillion, a 20 percent increase, sources said, adding that both figures would set new records.The government would not need to borrow next year, including for debt repayments, marking a rare balance between revenue and spending, they said.

Typhoon Dolphin’s outer bands swept across northern Taiwan Saturday, toppling trees and collapsing scaffolding in Taipei and New Taipei, with a woman slightly injured by a fallen fence at a construction site, local authorities said.

Amid optimism over long-term AI development, the Ministry of Finance (MOF) has forecast that the current momentum seen in Taiwan’s exports will continue into the second half of this year, with the total value expected to surpass US$850 billion in 2026. On Friday, the ministry released July trade data showing Taiwan’s outbound sales rose 32.9% YoY to US$75.30 billion, the 33rd consecutive month of YoY growth. The July exports were the third-highest ever, trailing US$80.18 billion in March and US$78.48 billion in May. In the first seven months of this year, the country’s exports rose 44.7 % YOY to US$491.95 billion. MOF Department of Statistics Director Beatrice Tsai told reporters that despite worries over an AI bubble, which had spooked global stock markets, Taiwanese suppliers stayed upbeat about their business outlook, with contract chipmaker TSMC raising sales growth guidance and upgrading its capital expenditure budget for 2026 to meet robust AI demand.

State-owned oil supplier CPC Corp., Taiwan, announced Saturday that it will leave domestic retail gasoline and diesel prices unchanged next week. Under the decision, retail prices will remain at NT$30.5 (US$0.94), NT$32.0 and NT$34.0 per liter for 92, 95 and 98-octane unleaded gasoline, respectively, from midnight Monday through Aug. 16, CPC said in a statement. The retail price of premium diesel will also remain at NT$29.3 per liter during the same period, CPC said. It marks the second consecutive week that CPC has kept domestic fuel prices unchanged. CPC said its floating pricing mechanism, based on a weighted average of 70 percent Dubai crude and 30 percent Brent crude, showed that the average international crude oil price fell from US$83.99 per barrel last week to US$82.20 this week after the United States canceled plans to strike Iran.

Exports surged 32.9% YoY last month, fueled by booming demand for artificial intelligence infrastructure (AI) and high-performance computing, extending the export growth streak to 33 consecutive months, the Ministry of Finance said yesterday. Exports totaled US$75.3 billion, the third-highest monthly level on record, although the increase fell short of the ministry’s earlier forecast of 34 to 39%. “Global economic resilience has proved stronger than expected despite Middle East uncertainties, as the manufacturing sector remains in expansion,” Department of Statistics Director-General Beatrice Tsai told a news conference in Taipei.

With less than six weeks remaining before the launch of Apple’s iPhone 18 series and foldable iPhone Ultra, TSMC hit snags while producing Apple’s A20 Pro chips, independent technology journalist Tim Culpan said. An acute shortage of DRAM memory has prevented completed processor wafers from being packaged, heaping tremendous pressure on Apple’s supply chain. Apple has mainly relied on Micron Tech for DRAM chip supply, while also sourcing from SK Hynix and Samsung. Apple and its assemblers are reportedly scrambling to secure sufficient DRAM chips in order to avoid severe supply pressure during the launch of the iPhone 18 series.

CHINA
China’s gold reserves stood at 76.08 million ounces at the end of July, up by 640,000 ounces from 75.44 million ounces at the end of June, marking the 21st consecutive month of increases in gold holdings, data from the People’s Bank of China showed.

Mainland China’s crude oil imports descended 24% YoY in July, narrowing from the 41% decline in June and notching a three-month high, data compiled by Wind Information based on China customs data showed. However, as the strait shipping route closes again and mainland China’s demand remains feeble, analysts expected the recovery in imports may be temporary. Julian Evans-Pritchard, Head of China Economics at Capital Economics, said the uptick in China’s crude oil imports mainly benefited from the brief reopening of the Strait of Hormuz at the end of 2Q26, but believed the current recovery may already be starting to fade. As the strait closes again, recent oil prices have rebounded, the Head said. China’s crude oil imports in August were predicted to stagnate or even decline to some extent, as refiners are more inclined to use inventories rather than increase imports.

There is a crisis inside China’s military, where President Xi Jinping has promoted two new generals even as a sweeping purge leaves most of the country’s top command positions without confirmed occupants. “In an ordinary year, two promotions would be routine,” he writes. “This year they carry far more weight.” Xi has to rebuild the high command before the People’s Liberation Army marks its centenary on Aug. 1, 2027. But the networks that once produced senior officers have themselves been dismantled, leaving Xi caught between the need to move quickly and the danger of elevating more officials who could later fall under suspicion. “In this environment, any large batch of promotions is a large batch of risk.” The likely result is a slow, tightly controlled process in which personal loyalty to Xi outweighs almost everything else. Yet the numbers are unforgiving: 21 vacancies, a depleted pool of full generals and no obvious candidates for several seats on the Central Military Commission. There are “too many blanks, too few generals, and not much time.”

The Cyberspace Administration of China released the “Regulations on Personal Information Protection for Large-Scale Personal Information Processors (Draft for Comments)”, stating that large-scale personal information processors should adopt measures such as encryption, de-identification, access control and anonymization to safeguard the security of processed personal information. Large-scale personal information processors may apply national online identity authentication public services, while the use of data labeling and identification technologies and personal information protection certification is encouraged to enhance the level of personal information protection. In addition, large-scale personal information processors handling personal information should follow the principles of legality, legitimacy, necessity and good faith, comply with laws and administrative regulations, and respect social ethics and moral standards. Large-scale personal information processors collecting personal information should adhere to the principle of minimum necessity, limited to what is required for providing products or services, and must not excessively collect personal information. When formulating and disclosing personal information processing rules, large-scale personal information processors should use clear and understandable language and provide truthful, accurate and complete itemized explanations.

Income from Hong Kong insurance policies purchased by Mainland Chinese tax residents has been put under in the taxable scope, report said. According to the relevant provisions of the Individual Income Tax Law, Chinese tax residents are required to fulfill tax obligations on global income, and offshore insurance income also falls within the scope of taxable income, Chinese media cited an official from the relevant department of the China State Taxation Administration (STA) as saying, adding this is not a new policy, nor is it specifically targeting the Hong Kong insurance market, and there is no need for overinterpretation. The official said that income obtained by resident individuals from offshore sources, including insurance income, should be subject to individual income tax in accordance with the law. This is an internationally accepted practice and has been a fundamental principle upheld since the implementation of China’s Individual Income Tax Law. The official pointed out that China taxes residents’ offshore income equally in accordance with the law. Whether it is offshore insurance income or other investment income, and regardless of which country or region the income comes from, tax declarations and payments are required. Standardizing the tax administration of residents’ offshore income will help prevent cross-border tax avoidance, safeguard national tax interests, and promote social fairness.

HONG KONG
IPO
NASN Tech(02261.HK), which listed on 7 August, opened at $16.9, up 62.2% from the listing price of $10.42. Peaking/ bottoming at $19.8/16.6, the stock closed at $17.1, up 64.1% from the listing price of $10.42, on volume of 13.43 million shares and turnover of $230.85 million. Excluding handling fee, the book gain was $668 per board lot size of 100 shares.

Earnings
SUNLIGHT REIT (00435.HK) announced its interim results for the six months ended June 2026. Revenue fell 2.2% YoY to HKD382 million. Loss narrowed to HKD124 million from a loss of HKD172 million in the same period last year. LPS was HKD0.07, compared with LPS of HKD0.10 in the same period last year. Distributable income for 1H26 decreased 2.7% YoY to HKD164 million. An interim distribution of HKD0.088 was declared, compared with HKD0.091 in the same period last year. Looking ahead, around 14.0% and 22.3% of the leasable area of SUNLIGHT REIT’s office and retail property portfolios respectively will be due for lease renewal in 2H26. Given current market conditions, improving the overall occupancy rate of the property portfolio will be key to mitigating negative rental reversion upon lease renewals.

Hangzhou DIAGENS-B (02526.HK) announced interim results for the six months ended end-Jun 2026. Revenue rose 21.0% YoY to RMB108.7 million. Loss widened to RMB55.88 million from a loss of RMB1.34 million in the corresponding period last year. LPS was RMB0.66.

Warning / Alerts
XXF (02473.HK) expected net profit for the six months ended 30 June 2026 to range between RMB16.5 million and RMB18 million, compared with RMB22.5 million in the same period last year.

SHOUGANG RES (00639.HK) predicted consolidated profit for the six months ended 30 June 2026 to range from approximately HKD550 million to HKD600 million, representing a YoY increase of approximately 36-49%.

FEIYU (01022.HK) issued a profit warning, expecting to swing from profit to loss for the six months ended 30 June 2026, with an estimated net loss after tax ranging from approximately RMB5 million to RMB15 million, compared with a net profit after tax of approximately RMB56.5 million in the same period last year. The expected deterioration was mainly due to increased operating investment in June 2026 for the group’s game “One Step Two Steps” to launch its second anniversary operation campaign. Related expenses were recognized during the period, while revenue generated from new and returning users is expected to be gradually realized over their lifecycle in subsequent periods. The timing gap between investment and revenue realization adversely affected profitability performance in 1H26.

DOWELL SERVICE (02352.HK) issued a profit warning, expecting net profit for the six months ended 30 June 2026 to range between RMB7 million and RMB10 million, representing a YoY decline of about 61% to 73% from approximately RMB25.8 million in the same period last year. The decline was mainly due to the group’s focus on a high-quality development path and continued optimization of its business structure, which led to a temporary decline in revenue scale. Meanwhile, newly expanded projects remain in the ramp-up stage and have yet to generate scaled revenue and gross profit contributions, resulting in a decrease in gross profit during the period. In addition, a one-off gain recorded last year led to a decrease in other gains during the period.

HOME CONTROL (01747.HK) issued a profit warning, expecting interim revenue and net profit for the period ended 30 June 2026 to decline by approximately 20% and approximately 58% YoY, respectively, compared with revenue of approximately USD60 million and net profit of approximately USD5 million in the corresponding period of 2025.

Buybacks - None announcecd

HSI Short Selling Friday 15% vs 16% Thursday
Top shorts MTRC (66) 55%, Xinyi Glass (868) 41%,

NTESS (9999) 39%, BYD Electronics (285) 38%, Henderson Land (12) 37%, Galaxy Ent (27) 37%, Wuxi Apptec (2359) 36%, Bud APAC (1876) 35%, Sands China (1928) 35%, Chow Tai Fook (1929) 34%,

Sinopharm (1099) 28%, CK Asset (1113) 28%, Power Assets (6) 27%, Li Auto (2015) 27%, Mengniu Dairy (2319) 26%, Sinopec (386) 26%, JD Health (6618) 26%, New Oriental (9901) 26%, CKI (1038) 25%, ZTO Express (2057) 25%, Geely Auto (175) 25%, Meituan (3690) 25%, CATL (3750) 25%, BYD (1211) 25%.

WATCH
“PANO HARBOUR” in Kai Tak, jointly developed by China Resources Land (Overseas) and POLY PROPERTY (00119.HK) Friday (7th) opened a brand-new four-bedroom furnished unit for media viewing. The unit is Flat A, 28/F, Tower 2, with a saleable area of 1,909 square feet. It features a four-bedroom dual-suite layout with a private lift lobby and is located at the front row of the project, commanding an unobstructed Victoria Harbour fireworks sea view. The designer adopted the theme of “Timeless Craft”, blending traditional craftsmanship and materials with classical and modern aesthetics to complement the unit’s panoramic 180-degree Victoria Harbour sea view, creating an elegant and distinctive residence.

HUANENG POWER (00902.HK) announced that it recently completed the issuance of the 10th tranche of medium-term notes for 2026 (special bonds for energy supply assurance). The issuance size was RMB2.5 billion, with a term of 2+N years and an issuance interest rate of 1.67%.

CHINA RES GAS (01193.HK) announced that its wholly owned subsidiary, China Resources Gas Investment (China) Group, completed the issuance of the third tranche of medium-term notes in China Friday (7th). The aggregate principal amount of the third tranche of medium-term notes issued was RMB2.5 billion, of which RMB1.5 billion carried a three-year term with a coupon rate of 1.57% per annum, while the remaining RMB1 billion carried a five-year term with a coupon rate of 1.7% per annum. The proceeds will be used to refinance bank loans previously repaid using certain internal funds of China Resources Gas Investment (China) Group.

Following recent reports by Meta, OpenAI and Anthropic on AI models breaking out of testing environments, Reuters reported that Moonshot AI’s flagship AI model Kimi K3 “escaped” a cybersecurity testing environment developed by the UK’s AI Security Institute, arousing concerns over cybersecurity risks posed by AI. Research firm Frontier Security said AI models are typically operated in isolated sandboxes during cybersecurity testing to prevent access to external information and to assess their ability to solve problems independently. The firm said Kimi K3 bypassed the sandbox and gained access to information outside the testing environment. If one high-reasoning-capability model discovered such a shortcut, other models with similar access privileges would likely be able to do the same. As Kimi K3 is a publicly available model, it could potentially be exploited by malicious actors, resulting in greater potential risks, the firm said.

POWERLONG (01238.HK) announced that contracted sales for Jul 2026 amounted to approximately RMB550 million, down 5.5% YoY, while contracted sales GFA was approximately 54,100 square meters, down about 5.1% YoY. For the first seven months of 2026 ended end-Jul, the Group’s cumulative contracted sales totaled approximately RMB3.97 billion, while total contracted sales GFA was approximately 386,300 square meters, representing YoY decreases of about 7.8% and an increase of about 3.4%, respectively.

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Friday closings in EUROPE and US
DAX 0.69%, CAC 0.17%, FTSE 0.31%
Markets opened slightly higher, and worked better through the morning; FTSE trended lower in the afternoon on weak US jobs data. DAX dipped into the close. The CAC traded in a tight range all day but dipped into the close.

Better-than-expected German industrial production and export data helped sentiment along with a strong rebound in tech and AI-related stocks

Leaders were healthcare stocks and technology companies. On the downside, both travel & leisure stocks and autos and parts names were the laggards.

Eutelsat -4.6%, Europe’s challenger to Elon Musk’s Starlink, posted better-than-expected revenue figures on Friday but is still operating at a loss.

DOW 0.28%, NDX 1.3%, S&P 0.62% a new high, Russel 2K 1.1%
Markets opened higher; Dow & S&P opened slightly higher and traded in a tight range just above flat all day. NDX opened higher and traded in a tight range too but elevated.

The S&P 500 closed above 7,700 for the first time ever earlier this week was 3.6% WoW. The Nasdaq 5.2% WoW, thanks to a bounce-back in chip stocks. Cloudflare 5% after it issued a solid FY and current-quarter outlook. Shares of Atlassian +35% after the company’s Q4 adjusted earnings and revenue surpassed expectations and issued upbeat guidance.

Non Farm payrolls was -23k vs 20k Jun revised missing the 79k forecast whilst unemployment dropped to 4.1%. Ave hourly earnings only rose 0.1% vs 0.3% F/cast. Participation 61.4% represents an exodus of nearly 1.4 million people.

A majority of fed funds futures traders now expect that the central bank will hold its benchmark lending rate at the current 3.50% to 3.75% at the next policy meeting in September.

Airbnb 17% after it posted a beat on the top and bottom lines.

SpaceX 12% to end its first week in the green in awhile; up almost 19% week to date due to growing investor optimism toward SpaceX’s fundamentals. The unlock during the week does not seem to have impacted the share price, or suggests that many had used other mechanisms to forward sell their shares.

Under Armour -4.5% after lowering revenue guidance for the year ending next March, citing softer demand, especially in North America and the Asia-Pacific.

Banks JPMorgan Chase 0.34%, Citigroup 0.88% Wells Fargo 0.18%, Amex -0.49%
Ecommerce Meta 0.37%, Apple 0.29%, Amazon 0.82%, Netflix 0.61%, Disney 0.22%, Zoom Comms 3.16%, Alphabet -0.88% and Microsoft 0.03%
Tech NXP Semi 3.42%, Nvidia 2.27%, Micron -0.44%, AMD -1.21%, Skyworks 5.66%, Intel 1.84%
Industrial/Discretionary Boeing 0.96%, Caterpillar -1.72%, Simon Property 0.49%, Kohl’s 4.61%, Gap -0.24%, United Airlines 0.34%, Carnival 1.22%, Wynn Resorts 1.02%
Healthcare Eli Lilly -0.52%, UntiedHealth 0.77%, Johnson & Johnson 0.88% Merck 0.16%
Auto Ford 1.38%, GM 0.74%, Tesla 2.83%
Energy Chevron -1.41%, Exxon Mobil -1.16%, ConocoPhillips 0.95%
Consumer Staples Campbell Soup 2.17% General Mills 2.27%, JM Smucker 1.14%
Buffet’s Top Five Retirement Stocks Coca Cola 0.23%, Apple 0.29%, Johnson & Johnson 0.88%, Proctor & Gamble -0.8%, Berkshire -0.54%

DAILY US CLOSING DATA
USD weak after weak jobs data give Fed to delay rate hikes. Bitcoin -0.42% at $64,727.54 Sunday lunchtime; VIX -1.65% at 14.9
US Bonds T10 down 3 bpts to 4.639%, T2 down 5 bpts at 4.193% and T30 down 2 bpts at 5.192%
OIL Brent 1% at $83.55, WTI 1% at $78.18
Spot Gold 2.3% the largest weekly gain since 19 January. Spot silver 3%, Copper -1.76% Platinum 1.2%, Palladium 0.8%.