Asia Market Quick Take – 27 March, 2026

Key points:

• Macro: Trump extends deadline by 10 days; Iran allows 10 tankers through
• Equities: Nasdaq 100 fell 2.3% on higher oil, inflation risks. Lumentum falls 11.4%
• FX: Geopolitical tensions boost USD strength; AUDUSD drops to 0.6876
• Commodities: Spot gold fell below $4,400 while oil extends gains
• Fixed income: Treasury yields rise as US 2-year nears 4%

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Disclaimer: Past performance does not indicate future performance.

Macro:

• Trump extended the deadline for striking Iran by 10 days amid talks. Iran allowed 10 tankers through Hormuz and rejected the US plan, proposing its own terms, including control over Hormuz.
• US initial jobless claims rose by 5,000 to 210,000 in mid-March, meeting expectations but below last year's average. Continuing claims fell by 32,000 to 1,819,000, below expectations, tying the lowest since May 2024. This contrasts with February's weak jobs report. Federal employee claims fell by 59 to 584.
• Global GDP growth is forecast at 2.9% in 2026 and 3.0% in 2027, driven by tech investment and easing tariffs, despite Middle East conflict uncertainty. Inflation for G20 economies is revised to 4.0% in 2026, moderating to 2.7% in 2027. US growth will slow from 2.0% to 1.7%, with inflation peaking at 4.2%. China's growth will ease to 4.4% and 4.3%. The Eurozone will grow 0.8%, recovering to 1.2%, while Japan's growth remains at 0.9%.
• Governor Stephen Miran stated that reducing the financial system's liquidity demand could enable the central bank to significantly reduce its balance sheet and ease monetary policy.

Equities: 

• US - S&P 500 slid 1.7%, the Nasdaq 100 dropped 2.3%, and the Dow fell 1% after President Trump warned Iran to “get serious” amid rising regional risks. Brent crude jumped 5% above USD 108 a barrel following reports of Iranian strikes on energy infrastructure, pushing Treasury yields higher. Technology and semiconductor stocks led losses, while energy producers advanced alongside oil. Nvidia fell 4.2% while Lumentum Holdings dropped 11.4%. In after hours, futures bounced higher after Trump extended deadline for Iran to reach deal by 10 days.
• EU - European equities retreated on Thursday, ending a three-day rally as uncertainty over Middle East peace efforts dented sentiment. The STOXX 50 fell 0.8% and the STOXX 600 slipped 0.7% amid mixed signals from Washington and Tehran, with the US citing progress on a peace proposal while Iran denied direct talks. Rising oil prices added to inflation worries. Technology and industrial stocks led losses, while H&M slumped nearly 6% on weak sales. In contrast, NEXT jumped almost 7% on strong results.
• Asia - On Thursday, Asian markets broadly declined as geopolitical uncertainty over US-Iran ceasefire talks and rising oil prices weighed on investor sentiment. Kospi fell 3.2%, negatively impacted by Samsung and SK Hynix due to concerns about Google's new technology affecting memory demand. Hang Seng dropped 1.9%, led by losses in Alibaba and Meituan, while Kuaishou Technology plunged 15%. Nikkei 225 decreased 1.0%. On Friday, Asian markets opened lower, extending losses due to uncertainty over US-Iran ceasefire talks. Kospi dropped 3.8% to 5,252.83, affected by declines in Samsung and SK Hynix. Nikkei 225 fell 1.4%, and ASX 200 decreased 0.6%.

Earnings this week:

• Friday - Carnival Corporation, The Metals Company, Super League, AutoPlus, Ping an, BYD