Asia Market Quick Take – 23 October, 2026

Asia Market Quick Take – 23 October, 2026 

Key points:  

• Macro: US initial jobless claims fall. Japan's CPI rises. 
• Equities: Nasdaq down 2.6% as chipmakers fall. 
• FX: Yen strengthens on safe-haven demand with USDJPY near 156 
• Commodities: Silver posted its lowest close in almost a year falling below $55 
• Fixed income: Treasuries’ best day in 2+ years; 10Y yield below 5% 

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Disclaimer: Past performance does not indicate future performance.  

 Macro:  

• US initial jobless claims fell by 6,000 to 194,000 in the week ended October 17, below expectations and the lowest since mid-July, signalling labour market resilience. Continuing claims rose by 25,000 to 1.728 million in the week ended October 10.
• Japan’s annual inflation rose to 2.1% in September 2026 from 1.9%, the highest since December 2025. Core inflation (excluding fresh food) also hit 2.1%, just above the BoJ’s 2% target, while monthly consumer prices were flat.
• Australia’s services PMI fell to 47.8 in October 2026 from 51.9 in September, signaling contraction. New business growth slowed on weaker demand, higher borrowing costs, and inflation, while employment and both input and output prices rose; sentiment stayed positive.
• Houthi attacks on Saudi oil infrastructure and possible renewed US strikes on Iran have raised Middle East supply risks, though Persian Gulf crude exports remain near prewar levels. Ukraine has also intensified attacks on Russian refineries amid a US–Russia diesel supply deal.

Equities:  

• US — Wall Street sold off sharply on Thursday as a tech rout and surging oil prices drove investors into bonds. S&P 500 fell 1.2% and the Nasdaq Composite dropped 2.6%, its worst session since June, as chipmakers plunged nearly 7% (SOX index -6%+). The Dow Jones was broadly flat. Meta fell 7% despite a Q3 beat, as its massive $825b AI capex plans alarmed investors as its credit default swaps touched a new high. Tesla dropped ~2% after cutting spending plans. Nvidia, Amazon, and Alphabet fell 3–4%. After hours, Newmont rose ~1.6% on a Q3 earnings beat, while Comfort Systems fell ~5.6% on a gross profit miss and CFO departure. SpaceX is reportedly in talks to secure 80,000 US cell sites, pressuring telecom stocks in after-hours trade.
• EU — European equities declined on Thursday, tracking the global risk-off mood. The Stoxx 600 fell 1.0%, its worst session since Oct. 1. The DAX dropped 1.1%, the FTSE 100 fell 0.3% to 10,725, and the OMX Stockholm fell 2.5%. Key movers: ASML fell 5.0% (largest drag on Stoxx 600), Siemens Energy dropped 8.6%, Nokia fell 9.7%, and AT&S plunged 18.6%. Mining stocks led sector losses, with Boliden -5.2% and Anglo American -5.0%. Hermès slumped after Asia-Pacific sales disappointed. Moncler rose ~2.8% on a Q3 revenue beat. The CAC 40 has fallen more than 3% over the past month amid French political turmoil.
• Asia — Asian equities extended losses on Friday morning, tracking Thursday's Wall Street selloff. The MSCI Asia Pacific Index slipped ~0.3%, hovering near levels last seen in July. The Kospi fell sharply, down ~3.6%, on course for a fourth consecutive weekly loss, with Samsung Electronics and SK Hynix both dropping more than 2% as chip sentiment deteriorated. The Nikkei 225 declined ~0.6% in early trade, with the Topix off ~0.8%, though defensive names Kao (+3%), Secom (+2.7%), and Sekisui House (+2.6%) bucked the trend. The Hang Seng was under pressure as the CSI 300 entered a bear market on Thursday, having lost $2.4 trillion since its May peak. Taiwan's stock exchange was closed Friday due to a typhoon. The STI was broadly flat. Australia's ASX 200 fell 0.4%, with Zip plunging ~50% after disclosing a $7.2 million US fraud event. Asian investment-grade dollar bond spreads widened to their highest since July 2025.

Earnings this week: 

• Friday: American Express, Schlumberger 

FX: 

• USDJPY fell to ~156.25, down ~0.33% on the day, with the yen hovering near its strongest level in almost a month after surging Thursday as global equities sold off. Traders are eyeing a move toward the 155 handle as macro risk-off flows continue.
• EURUSD traded at ~1.1223, up modestly (+0.06%), but the euro remains under pressure from deepening French fiscal stress, with the OAT-Bund spread at multi-year wides and equity ETF outflows accelerating.
•  The Singapore dollar is gaining traction as a carry trade funding currency, with the MAS having kept policy settings unchanged in a surprise move, reinforcing limited appreciation expectations.
• AUDUSD fell to ~0.7013, down ~0.10%, as the global risk-off environment and weaker commodity sentiment weighed on the currency.
• USDCAD has been on a six-session losing streak, down ~1.6% over that run — the largest such decline since late January.

Commodities: 

• Brent crude settled near $113/bbl on Thursday, up 4% on the day and its highest close since early May, as Houthi attacks on Saudi Arabia's Shaybah oil field and Dammam airport stoked supply disruption fears. WTI closed above $99/bbl. Brent is on course for a third consecutive weekly gain, up ~3% this week. Sky-high tanker rates are reportedly cutting US crude exports to Asia by ~50% for November delivery.
• Gold spot closed 2.8% lower at ~$4,025/oz and edged lower to ~$4,017/oz on Friday, as elevated bond yields and a stronger dollar partially offset safe-haven inflows. Gold has slumped more than 20% since an earlier peak, per Newmont's earnings commentary.
• Silver fell 5.8% and closed at its lowest level in almost a year on Thursday, pressured by the broader risk-off move and declining industrial demand sentiment tied to AI spending concerns and slowing global growth fears.

Fixed income:  

• Treasuries surged in their strongest rally since at least 2024, driven by a confluence of AI stock jitters, French bond stress, and Middle East tensions. The 10-year yield fell ~15–17bps to close at ~4.96%, breaking back below 5% for the first time in about a month. The 2-year fell ~15bps to ~4.66%, and the 30-year dropped ~10–13bps to ~5.29%. The 5s30s spread steepened to ~51bps from ~46bps. Yields are continuing to drift lower in early Asian trade on Friday.
• French 10-year yields hit 5%, with the OAT-Bund spread widening to ~177bps, a multi-year high, as political turmoil deepened following cost-of-living riots and fiscal concerns. German Bunds also rallied, with 10-year yields falling ~7bps to ~3.35%, as haven demand spilled over from Treasuries.
• A $26 billion 5-year TIPS auction drew the highest yield since October 2023 at 2.367%, though the broad Treasury rally into the bidding deadline trimmed yields. Breakeven inflation rates fell as investors shifted focus to growth risks over inflation, and December Fed funds contracts ceased to fully price in another rate hike for 2026.

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