Asia Market Quick Take – 13 May, 2026

Key points:

• Macro: Both US headline and Core inflation rise YoY
• Equities: Kospi tumbled 5.3% intraday before paring losses to close lower by 2.3%
• FX: Pound most bearish in five weeks amid doubts over Starmer’s future
• Commodities: Copper surges past $14,000 a tonne; WTI crude tops $100 a barrel
• Fixed income: Gilts lead the bond selloff; US Treasuries fall across the curve

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Disclaimer: Past performance does not indicate future performance.

Macro:

• US inflation rose to 3.8% YoY in Apr 2026 (vs 3.3%, above 3.7% forecast), driven by the oil shock. Energy surged 17.9%, led by gasoline (+28.4%) and fuel oil (+54.3%). Shelter (3.3%) and food (2.3%) also firmed. On a monthly basis, CPI increased 0.6% (down from 0.9% in March). Core inflation rose to 2.8% YoY (vs 2.6%, above forecast), with 0.4% MoM growth. Real wages declined for the first time in three years, while the US is issuing over $35.5bn in tariff refunds after a court ruled the policy unlawful.
• US is issuing over $35.5bn in tariff refunds after a court ruled the policy unlawful.
• Japan’s current account surplus rose to a record JPY 4,681.5 billion in March 2026 from JPY 3,625.3 billion a year earlier, beating expectations. The goods surplus increased to JPY 830.5 billion as export growth of 11.7% outpaced imports at 10.0%, and the primary income surplus also widened. The secondary income deficit narrowed, while the services deficit widened sharply to JPY 257.8 billion.
• The US recorded a $215 billion budget surplus in April 2026, down from $258.4 billion a year earlier and below expectations. Spending rose to $622.3 billion, led by Social Security, interest payments, Medicare, and defense, while receipts fell to $837.3 billion, mainly from income taxes. The fiscal year deficit has reached $954 billion so far.

Equities: 

• US - US stocks pared losses late in the session, with the S&P 500 down 0.2%, the Dow flat, and the Nasdaq off 0.7%. A hotter April CPI heightened concerns that rising energy costs could weigh on earnings and reduce the likelihood of Fed rate cuts this year despite a strong labour market. Mega-cap tech was mixed—Alphabet, Amazon, Microsoft and Tesla fell over 1%, while Nvidia and Apple edged up. Chip stocks also declined, with Broadcom and AMD down around 2% amid policy concerns, and Hims & Hers slumped 15% after missing Q1 expectations. Sea Ltd. jumped 13% to a two‑month high after a profit beat, with net income up 6% to $428m and revenue up 47% to $7.1bn, boosting confidence in its strategy even as it prioritises growth over margins and targets ~25% e‑commerce GMV growth by 2026.
• EU - European stocks fell around 1%, with the Stoxx 600 hitting a one-week low amid a broad risk-off move driven by hotter US inflation. Tech and retail led declines, while UK stocks lagged on political uncertainty, with banks dropping over 3% and Vodafone sharply lower. Major indices also fell (DAX ~-1.6%, Euro Stoxx 50 ~-1.5%, CAC -0.95%), while Munich Re led losses; defensive sectors like food, beverages and healthcare outperformed.
• Asia - Asian markets look set for a weaker open after Wall Street losses, with futures pointing lower in Sydney and Tokyo and flat in Hong Kong. South Korea led declines, with the Kospi down 2.3% after earlier sharp losses, while chip stocks weighed on the MSCI Asia Pacific Index (-0.8%). Most regional markets fell, though Japan’s Nikkei rose, even as futures signal slight downside ahead. JD.com ADRs rose as much as 3.4% after a Q1 beat on JD Retail strength and narrower food‑delivery losses, even as net income fell 53% to 5.1bn yuan.

Earnings this week:

• Wednesday: Alibaba, Tencent, Cisco, SoftBank Group
• Thursday: Applied materials, Honda