Asia Market Quick Take – January 15, 2026

Key points:

• Macro: US PPI rises 0.2%, matching expectations
• Equities:  Chipmakers underperform on more China restrictions; Banks fall
• FX: Yen strengthens as Japan warns against excessive currency movements
• Commodities: Oil fell for the first time in six sessions; gold and silver hit record highs
• Fixed income: Treasuries rallied as gilt yields hit one-year lows

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Disclaimer: Past performance does not indicate future performance.

Macro: 

• U.S. producer prices rose 0.2% in November, matching forecasts. Goods prices jumped 0.9% due to higher energy costs. Excluding food and energy, prices rose 0.2%. Core PPI was unchanged, below a predicted 0.2% rise. Annually, producer inflation hit 3.0%, above the forecasted 2.7%, with core inflation also at 3.0%.
• Trump stated that Greenland is vital for U.S. national security and NATO, citing the "Golden Dome." Denmark and Greenland's foreign ministers met with JD Vance, while Germany plans to send soldiers to Greenland, as confirmed by multiple sources.
• Trump imposed a 25% tariff on certain AI chips, including Nvidia’s H200 and AMD’s MI325X, for national security reasons. The action aims to boost U.S. semiconductor production and reduce reliance on foreign suppliers, addressing economic and security risks.
• U.S. retail sales increased by 0.6% in November, the highest since July, exceeding the 0.4% forecast and rebounding from October's 0.1% decline. The growth was driven by auto sales recovery and holiday shopping, with notable gains in sporting goods, miscellaneous stores, gasoline, building supplies, and autos. Sales for GDP calculation, excluding specific categories, rose 0.4%.
• U.S. existing home sales rose 5.1% in December to 4.35 million, the highest in nearly three years, exceeding expectations. Inventory dropped 18.1% to 1,180,000, equal to 3.3 months' supply. The median price rose 0.4% to $405,400. NAR's Lawrence Yun noted improvements in the fourth quarter, with better mortgage rates and slower price growth across all regions.

Equities:

• US - U.S. stocks fell for the second consecutive session on Wednesday, retracting from record highs as investors assessed early earnings, mixed economic data, and rising geopolitical risks. The S&P 500 declined around 0.5%, with the Nasdaq leading losses at 1%, and the Dow dropping approximately 42 points, pressured by technology and financial sectors. Concerns over Chinese restrictions on U.S. chipmakers impacted Broadcom (-4.1%), Nvidia (-1.5%), and Micron (-1.4%). Financial stocks continued their decline as Wells Fargo fell 4.5% due to weaker revenue; Bank of America (-3.8%) and Citigroup (-3.3%) dropped amid Trump's proposed credit card interest rate cap. Macro data offered little reprieve, as restrained wholesale inflation and robust retail sales supported expectations for stable Fed rates.
• EU - European equities extended gains on Wednesday, with the STOXX 50 climbing 0.5% to a record high of 6,060 points, and the STOXX 600 advancing 0.3% to a peak of 612. Utility stocks drove the rally, as RWE surged over 3% following UK offshore wind auction success. Healthcare stocks also performed well; Orion soared 12% on an optimistic 2026 revenue forecast, and AstraZeneca rose 2% with its acquisition of Modella AI. Investors were buoyed by strong Chinese trade data, while focus shifted to a potential US Supreme Court decision on Trump's tariffs. Luxury stocks drew attention as Kering and LVMH were named unsecured creditors in Saks Global's bankruptcy filing.
• HK - Hang Seng rose 0.6%, closing at 26,999 on Wednesday, marking a fourth straight session of gains fueled by consumer and tech stock strength. Positive sentiment was supported by China's record 2025 trade surplus, with December exports exceeding USD 100 billion to non-U.S. markets amid tariff concerns. Gains were limited by China equity declines following unexpected margin tightening by Chinese exchanges.Alibaba Health surged 17.4% after announcing a partnership with a Beijing-based pharmaceutical company focused on innovative pediatric drugs.Leading gainers included Alibaba Health Intl. (+17.4%), Nongfu Spring (+5.7%), Kuaishou Tech (+3.9%), Laopu Gold (+3.2%), and Galaxy Entertainment (+2.6%).

Earnings this week:

• Thursday: First Horizon, TSMC, Morgan Stanley, Goldman Sachs, BlackRock
•  Friday: No notable earnings

FX:

• USD slipped as the yen surged after Japanese officials renewed warnings against excessive currency moves, making it the G10’s top performer. USDJPY fell 0.4% to 158.59 after earlier touching 159.45, with Finance Minister Satsuki Katayama saying authorities “won’t rule out any means” to counter speculative swings.
• The Danish krone firmed after Denmark agreed to form a high‑level working group with the US and Greenland: EURDKK fell to 7.4710, while USDDKK briefly erased losses before weakening again. EURUSD was little changed near 1.1645. 
• GBPUSD rose 0.1% to 1.3435 as the BOE’s Taylor cited “substantial trade divergence” lowering UK inflation and signalled rates may return to neutral sooner. 
• AUDUSD edged up less than 0.1% to 0.6685.

Commodities:

• Oil declined for the first time in six sessions after President Trump said he’d been assured Iran would stop killing protesters, with WTI below $61 and Brent under $67 as his remarks tempered expectations of a US military response and reduced perceived risks to Iranian output and key shipping lanes.
• Gold and silver eased after record highs as investors piled into commodities, with spot gold near $4,610 and silver down as much as 2.2%, amid a broad metals rally—fuelled by frenzied buying in China and a wider rotation—also sending copper and tin to peaks on Wednesday.

Fixed income:

• Treasuries rose on steeper gilt gains and haven demand, with bonds outperforming swaps after Fed Governor Stephen Miran’s deregulation comments pushed long-end spreads to multi‑year highs; the rally extended as gilts firmed into the London close on a weaker UK growth outlook and strong demand at a £4.5bn 2035 auction, with US long‑end swap spreads the widest since early 2023 and corporate hedging flows evident as seven issuers raised $12.65bn led by JPMorgan’s $6bn three‑part deal.

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