Asia Market Quick Take – 20 April, 2026

Asia Market Quick Take – 20 April, 2026

Key points:

• Macro: US seizes Iran vessel; Iran reclaims control of Straits of Hormuz
• Equities: US futures -0.9% after notching new highs as Iran says SoH remains closed
• FX:USD strengthened on the renewed Iran tension; AUD and NZD fell
• Commodities:Oil prices recover losses as WTI crude surges 7.5% above $90
• Fixed income: Treasury yields rebound, reversing Friday’s drop

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Disclaimer: Past performance does not indicate future performance.

Macro:

• US forces seized an Iranian-flagged cargo vessel in the Gulf of Oman after it ignored orders while leaving Hormuz, while Iran targeted ships and claimed control of the strait, citing US violations of a ceasefire. Hopes for peace have faded despite renewed talks, and the prolonged conflict has triggered a major energy shock, stoking inflation risks and fears of a global slowdown.
• Fed’s Waller said policymakers understand inflation risks and may hold rates if war-driven inflation coincides with weaker jobs. Fed’s Daly said spending remains solid, but the outlook hinges on how long oil prices and the conflict persist.

Equities:

• US: The S&P 500 closed at a fresh record on Friday, gaining 1.2% as the index jumped more than 3% for the third consecutive week. The Nasdaq Composite rose 1.3% while the Dow Jones Industrial Average climbed 1.8%. Big Tech stocks powered the rally, with the Magnificent Seven technology giants up 20% since the March 30 bottom, reversing a 17% decline. However, US stock futures fell 0.8% to 0.9% in Sunday evening trading as renewed Iran tensions and the Strait of Hormuz standoff sapped risk sentiment.Eli Lilly is in advanced talks to acquireKelonia Therapeutics for more than $2 billion, according to people familiar with the matter. QXO agreed to acquire insulation products company TopBuild for $17 billion. Meta plans its first wave of 8,000 layoffs on May 20.
• EU: European stocks advanced for a fourth straight week on growing optimism that the Middle East conflict may be nearing an end. The Stoxx Europe 600 Index gained 1.6% on Friday with most sectors rising, led by travel and leisure shares as airline stocks rallied. Energy shares dropped the most in a year, dragged down by Shell and BP as oil prices plunged. The DAX rose 2.3% to 24,702.24 in Frankfurt, the FTSE 100 climbed 0.7% to 10,667.63 in London, and the Swiss Market Index gained 1.9% in Zurich. ASML, Infineon, and Rolls-Royce were among the top performers across European markets.
• Asia: Asian markets opened mixed as renewed Middle East tensions overshadowed last week's strong rally. The Nikkei Stock Average opened 0.6% higher at 58,821.16, led by auto stocks with Honda Motor up 2.6% and Mitsubishi Heavy Industries 3.3% higher as investorsmaintained hopes for possible US-Iran peace talks. South Korea's Kospi opened 0.4% higher at 6,213.92 despite the won sliding as much as 1.5% on oil price jumps. China's ChiNext Index rose 6.7% last week to the highest since 2015, dominated by technology and new-energy names. Orient Securities plans to acquire a 100% stake in Shanghai Securities through a combination of A-share issuance and cash payment, creating a firm with around $86 billion in assets. However, futures markets pointed to a bumpy start as the continued Strait of Hormuz standoff revived uncertainty that Wall Street had been eager to look past.

Earnings this week:

• Tuesday - General Electric, 3M, United Health
• Wednesday - AT&T, Boeing, China Mobile, IBM, Tesla, Lam Research, Vertiv, GE Vernova, Boeing, Texas Instruments
• Thursday- Lockheed Martin, American Express, Intel
• Friday - Procter & Gamble 
• Sunday- Verizon

FX:

• USD strengthened broadly, with the Bloomberg Dollar Spot Index rising 0.2% as investors sought safe havens amid renewed Iran tensions, paring last week's 0.5% decline. 
• AUD fell 0.5% to 0.7140 after climbing 1.6% last week, while the NZDalso declined as the US seizure of an Iranian vessel and Tehran's reimposition of restrictions on the Strait of Hormuz sapped risk sentiment. 
• JPY weakened 0.2% to 158.92 against dollar after being the best-performing G10 currency on Friday, with near-term resistance around 160 continuing to hold. 

Commodities:

• Oil prices surged with West Texas Intermediate crude jumping 7.5% to $90.17 per barrel and Brent crude climbing 6.5% to $96.27 per barrel as Iran accused the United States of breaking the ceasefire and the Strait of Hormuz remained effectively shut to commercial shipping.
• Gold fell to near $4,780 an ounce in early trading, wiping out much of last week's 1.7% gain, as renewed fears of energy-supply disruptions stoked inflation concerns.
• Silver dropped 1.6% in early Asian trade amid renewed inflation concerns spurred by rebounding oil prices stemming from signs of re-escalating Middle East tensions.

Fixed income:

• Treasury yields reversed Friday’s decline rising 2 to 3 basis points across the curve as oil prices climbed on renewed Iran tensions, with the 2-year note yield adding 3 basis points to 3.74% and the 10-year yield advancing 3 basis points to 4.28%.
•  The balance of risks points to a steeper yield curve as traders brace for potential near-term interest rate cuts and a shrinking balance sheet under a Federal Reserve led by Kevin Warsh, whose confirmation hearing is scheduled for April 21.
• Japanese government bonds are expected to rise as Middle East tensions escalate, though gains are likely to be limited due to persistently high oil prices, with JGB futures edging higher in early Tokyo trade.

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