Asia Market Quick Take – 7 August, 2026

Key points:

• Macro: Trump imposes 15%% tariff on polysilicon products
• Equities: OCBC and UOB reported earnings that beat expectations on wealth fees
• FX: short: USDJPY rose 0.5% to 158.50, breaking above 200-day moving average
• Commodities: Copper neared a record; Brent climbed to ~$83
• Fixed income: UST yield rose; Alphabet’s 10-tranche bond sale

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Disclaimer: Past performance does not indicate future performance.

Macro:

• The Trump administration imposed price floors and a 15% tariff on polysilicon products, used in semiconductors and solar panels, under Section 232 of the Trade Expansion Act, aiming to shield US polysilicon producers from rising Chinese competition in the chip supply chain.
• Tensions in the Strait of Hormuz have unsettled markets and clouded plans to fully reopen the route. Iran says it struck “hostile targets” after explosions near Qeshm Island. A draft Iran‑Oman deal would bar US and Israeli ships, require compensation from “hostile” states, and impose cargo-based penalties, with full reopening conditioned on lifting the US maritime blockade.
• Japan’s household spending fell 3.3% yoy in June 2026, the seventh straight and steepest decline, defying expectations for a 1.0% rise. Weakness was broad-based, led by food, clothing, and transport, while housing and recreation edged up. Month-on-month, spending slumped 6.4%, the first fall since March and the sharpest since January 2021.
• US initial jobless claims rose by 1,000 to 199,000 in the last week of July, below the 202,000 forecast and near a 57-year low. Continuing claims increased by 24,000 to 1.801 million, remaining low and signaling a strong labor market. Federal employee claims ticked up by 32 to 450.
• US nonfarm unit labor costs rose 1.3% in Q2 2026, matching Q1 but below the 2.1% forecast, as compensation increased 2.7% and productivity 1.4%. Manufacturing unit labor costs were flat, with 1.9% gains in both pay and productivity. Year-on-year, nonfarm costs rose 1.4% and manufacturing 3.5%.
• Euro Area retail sales fell 0.3% m/m in June 2026, reversing most of May’s 0.4% gain and missing expectations for a 0.1% rise. Food and non‑food sales declined, while auto fuel rebounded. Sales dropped in Germany and France but rose in Italy, Spain, and the Netherlands. Year-on-year, sales grew 0.7%, the weakest increase since July 2024.

Equities: 

• US — S&P 500 fell 0.2% to 7,709.96 on Thursday for a second consecutive session of losses, pulling further from its all-time closing high set on Tuesday. Dow Jones dropped nearly 500 points (~0.9%) to 53,875, while the Nasdaq 100 declined 0.4%. Fiserv slumped after slashing its full-year profit outlook. Hertz surged 29% on earnings day. Memory names Sandisk and Western Digital sank on weak results. In after-hours trading, Airbnb rose ~8% after boosting its annual revenue forecast, while Atlassian surged on a 28% revenue beat. AppLovin sank ~18% after a weaker-than-expected EBITDA outlook.
• EU — European markets were in a holding pattern ahead of the US payrolls report, with geopolitical risk from the Middle East and rate-hike concerns keeping sentiment cautious. Flutter fell 4.2% in premarket trading earlier in the week after cutting its US revenue guidance for the full year. The MSCI World Index shed 0.2% on Thursday. Equity-index futures pointed to modest declines across the region heading into Friday.
• Asia — Asian equity markets are set to edge lower on Friday following the overnight deterioration in US sentiment. Equity-index futures pointed to modest declines in Japan, Hong Kong and Australia, while South Korea contracts edged higher. On Thursday, the STI gained 1.0% to 5,638.99, led by DFI Retail Group (+3.7%), with Mapletree Pan-Asia Commercial Trust the worst performer (-3.0%). The Kospi 200 futures closed up 1.5% at 995.4. In Hong Kong, Wharf Real Estate surged as much as 32% — its biggest intraday gain on record — after 1H revenue beat estimates. The MSCI China Index fell 1.2% on Thursday. OCBC reported Q2 profit rises 22% to S$2.2b vs S$1.91b consensus driven by wealth management fees, and declared interim dividend of $0.47 vs $0.41 last year. UOB also reported that Q2 profit rose 10% to S$1.48b driven by wealth fees, beating est of S$1.45b, declaring dividend of S$0.88.