Asia Market Quick Take – 01 September 2026

Asia Market Quick Take – 1 Sep, 2026 

Key points:  

• Macro: US-Iran resume hostilities. Bessent tells BoJ to raise rates. 
• Equities: Dow fell 0.7% as AMZN -2.5% on ad lawsuit; Nvidia to invest $3.5 in MediaTek 
• FX: Softening USD extends August decline; Yen stays near 160 despite BOJ speculation 
• Commodities: Crude up on Hormuz fears; gold down on rate repricing 
• Fixed income: US 10y yield hits 19-month high, >4.75% 

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Disclaimer: Past performance does not indicate future performance.  

 Macro: 

• Renewed US-Iran clashes are heightening energy supply risks as US forces hit Iranian launchers and Trump threatens Kharg Island. Oil still transits the Strait of Hormuz despite a supertanker fire from naval mines, while Russian refinery strikes are tightening global refining capacity and lifting fuel margins.
• US Treasury Secretary Bessent reportedly told BOJ Governor Ueda and Finance Minister Katayama at the G20 in North Carolina that Japan’s next move should be a rate hike, adding he expects a stronger yen following BOJ and government action.
• UK shop price inflation rose to 1.5% in August 2026 from 0.9% in July, the highest since February 2024, driven by higher energy and input costs. Food prices climbed 2.8% and non-food 0.9%, while UK CPI was 2.9% in July, with the BoE expecting a 3.2% peak later in the year.
• Germany’s annual inflation rose to 2.9% in August 2026, a four-month high but just below the 3.0% forecast, driven by energy inflation jumping to 10.5%, while food inflation slowed to 0.1% and core inflation held at 2.4%.
• The Dallas Fed’s Texas manufacturing index rose to 11.6 in August 2026 from 1.3 in July, its highest since January 2025, with stronger production, new orders, shipments, and capacity use. Price pressures stayed high, uncertainty remained elevated, but firms turned more optimistic about the next six months.
• Australia’s Melbourne Institute inflation gauge rose 0.5% in August 2026, down from 1.0% in July, suggesting easing but still elevated price pressures. Annual inflation slowed to 3.5% in July, above the RBA’s 2–3% target, and the bank expects a gradual return to target by late 2027 amid ongoing global and domestic risks.
• Japan’s retail sales rose 4% year-on-year in July 2026, beating the 3% forecast and up from 0.6% in June, led by a 16.2% jump in motor vehicle sales and broad rebounds across most categories. Month-on-month, sales climbed 2.4% after a 3.9% fall in June.

Equities:  

• US — The S&P 500 fell 0.3% to 7,686 on Monday, its second consecutive decline, as Middle East tensions and rising oil prices weighed on sentiment. The Dow shed 0.7% to 53,186, while the Nasdaq 100 edged up 0.1%. Nine of 11 S&P sectors closed lower, led by communication services and utilities. Amazon was the largest drag on the S&P 500, falling 2.5% after the FTC filed a lawsuit over ad pricing, while Edison International collapsed 23.1%. Nvidia will invest $3.5b in Taiwan’s MediaTek to deepen collaboration in the custom AI chips space. In after-hours trade, GameStop rose 2.85% after preliminary Q2 net sales of $780–800m beat the $757m consensus.
• EU — European equities slid on Monday, with the Stoxx 600 falling 0.6% to 651 and the Euro Stoxx 50 dropping 1.0% to 6,420, as rising oil prices on the US-Iran flare-up weighed on sentiment. Trading volumes were approximately 40% below normal with London closed for a bank holiday. ASML fell 2.9%, leading the Stoxx 600 lower. Siemens Energy dropped 5.0% and was the DAX's biggest decliner, with the index falling 1.2% to 26,258. The SMI fell 0.8%, led lower by Holcim (-2.7%) and Roche (-1.6%). Oil majors TotalEnergies, Shell and Eni were among the few gainers.
• Asia — The Kospi initially plunged as much as 3.6% before erasing all losses to close up 0.5% at 6,820, aided by pension fund buying of approximately 120 billion won in tech names over a 20-minute window. Samsung Electronics and SK Hynix both recovered from losses exceeding 4% to close little changed. The MSCI Asia Pacific Index ended little changed after falling more than 1% at the open. China's CSI 300 rose 0.3%. In Hong Kong, PSBC surged 8.8% after first-half net interest income met estimates. Biren Technology jumped as much as 17% after reporting a narrower first-half loss and a sharp jump in revenue. Asian equity futures are pointing lower on Tuesday, with higher crude above $86 and elevated Treasury yields the key headwinds, though overnight SOX gains should cushion declines in memory-heavy markets. Shein raised HK$13.6b ($1.7b) in its Hong Kong IPO, selling about 280m shares at HK$48.56 and valuing it just over $26b—below H&M’s ~$30b. In gray-market trading, shares fell up to 17% to HK$40.04 by late Monday and it starts trading today.

Earnings this week:

• Tuesday: SHEIN (IPO), Nio, Sino Land, Palo Alto Networks, Medtronic
• Wednesday: Broadcom, Snowflake
• Thursday: Ciena

FX: 

• USD starts the Asia session softer, extending August’s decline, with the Dollar Index down 0.39% on the month and 0.19% on the final day, as markets weigh higher oil on Iran tensions, hawkish Warsh-driven Fed hike odds, and potential yen-supportive BOJ/MOF action.
• AUD and NZD outperform in the Asia session. AUDUSD is described as flat amid the oil spike and hawkish Fed bets keeping traders cautious.
• EUR gained 0.76% against the USD in August — its second consecutive monthly gain — and rose 0.27% on Aug 31 alone, snapping a three-session losing streak. It sits 3.53% below its 52-week high of 1.2042.
• USDJPY is marginally softer at 159.73 despite a strong Japan consumption print, which the yen failed to benefit from. Bessent reportedly held talks with BOJ Governor Ueda and Finance Minister Katayama, with reports suggesting Bessent expects Japan to take action to boost the yen and signalling a BOJ rate-hike chance.
• USD lost 1.21% vs. CAD in August — its largest two-month decline since January 2026 — and fell 0.37% on Aug 31.
• Both NOK and SEK firmer, consistent with the broader USD softness and elevated oil prices supporting NOK.

Commodities: 

• WTI crude rose 2.8% on Monday to settle near $86 a barrel — its biggest single-session gain in three weeks — after US forces struck an island in the Strait of Hormuz and Iran retaliated against the UAE and Jordan. WTI extended gains above $86.30 in early Asian trading on Tuesday. Brent settled near $90 on Monday. The renewed fighting has revived fears of prolonged disruptions to energy flows through the strait.
• Gold steadied around $4,445 an ounce after falling more than 3.5% over the prior two sessions. The metal is caught between safe-haven demand from Middle East tensions and headwinds from rising Fed rate-hike expectations, which have boosted real yields and pressured bullion.

Fixed income:  

• The 10-year Treasury yield topped 4.75% on Monday for the first time since January 2025, driven by rising oil prices amplifying inflation concerns and cementing bets on a September Fed rate hike. The 30-year yield rose to 5.248%, extending a four-day run higher. The long end led the selloff, steepening the yield curve after Friday's sharp flattening post-Warsh.
• JPMorgan's rates strategists unwound their 2s10s steepener recommendation at a 7.6bp loss following Warsh's "somewhat more hawkish than expected" Jackson Hole address. The bank had previously flagged that Warsh's speech added to his credibility on the inflation fight, making the steepener untenable in the near term.
• JGB futures are expected to fall as elevated oil prices and Bessent's call for BOJ rate hikes weigh on sentiment. The 10-year JGB auction will be closely watched for its read-across to global bond markets.

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