JGB yields jump at the start of 2026

Asia market update: Positivity prevails amid limited signs of Venezuela-related escalation or contagion, thus far; JGB yields jump at the start of 2026; UN Security Council Meeting in focus.

General trend and developments

- US President Trump reiterates 'no need' for second attack on Venezuela; looking more at getting Venezuela fixed than election right now.

- US President Trump said: Oil is flowing at 'low' level in Venezuela; needs 'big' investments by oil companies in Venezuela.

- US President Trump: Affirms plan to visit China in Apr; Reiterates good relationship with China President Xi.

- On Sunday, China’s Foreign Ministry called “on the U.S. to ensure the personal safety of President Nicolás Maduro and his wife, release them at once, stop toppling the government of Venezuela, and resolve issues through dialogue and negotiation.”

- AI-chip rally from Friday continues; Additional gains seen for Samsung and Baidu.
[MiniMax] IPO is expected to price at the top of the expected pricing range [Reminder from Jul 16th 2025: BABA: DeepSeek rival ‘MiniMax' reportedly could raise HK$ 4B-5B in IPO – press].

- Oil prices edge lower; Chinese energy stocks also hit with the focus on Venezuela.

- Japan 10-year JGB yield rises by 5bps to 2.12% [highest level since 1999].

- Notes/Observations on the desk: Positive sentiment seen for risk assets; Momentum continues for precious metals.

-The UN Security Council is due to hold an emergency meeting on Venezuela later on Mon [Jan 5th] at 15:00 GMT.

Headlines/economic data

Australia/New Zealand

- ASX 200 opens +0.1%.

Australia Treasurer Chalmers: 'Up to the US' to establish the legality of the Caracas [Venezuela] raid [**Note: China is Australia's largest trading partner].

China/Hong Kong

- Hang Seng opens flat.

- Shanghai Composite opens +0.5%.

- Alibaba [BABA]: Said to be launching service aimed at helping restaurants use AI to showcase their interiors - US financial press.

- Insilico Medicine [3696.HK] announces $888M Multi-Year Collaboration with Servier for Drug Discovery and Development in Oncology (**Reminder Dec 30th 2025: Insilico [backed by Eli Lilly] said to target areas other than pharmaceuticals with new AI models – Nikkei .

- China Dec RATINGDOG PMI services: 52.0 V 52.0E (34th month of expansion).

- China NAFMII [interbank bond market regulator]: Orders improved record keeping for bond transactions; to increase penalty for bond trading record violations.

- China: Issues plan to promote Green consumption.

- Goldman Sachs sees China 2026 real GDP growth at 4.8% - US financial press.

- China PBOC sets Yuan reference rate: 7.0230 v 7.0288 prior [from Dec 31st].

- China PBOC Open Market Operation (OMO): Injects CNY13.5B in 7-day reverse repos; Net Drain CNY468.8B.

Japan

-Nikkei 225 opens +1.3% at 51,010.

- BOJ Gov Ueda: Reiterates to raise rates if economic outlook is realized [no comments seen on Venezuela] - comments at conference in Tokyo.

-Honda [7267.JP]: Said to extend production suspension in China by 2 weeks, cites continuing shortages at Nexperia; seeking to resume production at 3 jv factories with Guangzhou Auto on Jan 19th - Nikkei.

-Japan Finance Minister Katayama: Japan is at a critical stage in shifting to a growth-driven economy from one 'mired' by deflation.

South Korea

-Kospi opens +1.8% at 4,385.

-Samsung Electronics [005930.KR]: Co-CEO: Notes mobile devices with AI features powered by Google Gemini to hit 800M units this year; to double mobiles powered by Gemini in 2026 - Press; Says the surge in memory chip prices will have inevitable impact on smartphone prices [inline with press reports].

-Kia Motor [000270.KR]: Guides 2026 vehicle sales 3.35M units - Press.

-South Korea President Lee said to call for cooperation with China in multiple areas including beauty products, food, music and movies - Yonhap [**Reminder Jan 2nd: South Korea Pres Lee: Seek cooperation with China on AI and high tech; Sticking to 'One-China' stance on Taiwan (ahead of meeting with China Pres Xi on Jan 5th)].

- North Korea test fired ballistic missile, landed in the sea after flying about 900km [Jan 3rd].

-South Korea Finance Min: To make efforts to resolve demand-supply imbalance in FX market.

- South Korea Finance Ministry sells KRW2.8T v KRW2.8T indicated in 2-year Bonds: Avg Yield: 2.84% v 2.93% prior [from Dec 2nd 2025].

Other Asia

- Declines in India government bonds said to be attributed to state borrowing plan which was above expectations - Press.

- Largan Precision [3008.TW]: Plans to collaborate with Taiwan Semi in the area of CPO - Taiwan press.

-Thailand Central Bank (BOT) releases minutes from Dec policy meeting: Reiterates the MPC to closely monitor economic and financial risks; assessed monetary policy could be more accommodative.

North America

- Pres. Trump: The United States of America has successfully carried out a large scale strike against Venezuela; pres maduro and his wife...captured and flown away of Venezuela - post on Truth Social [from Jan 3rd].

- (CO) US President Trump: Colombia is 'very sick' as the country is being run by a 'sick man', he will not be 'doing it very long'; Operation Colombia sounds good to me.

- (MX) US President Trump: have to do something with Mexico.

- American Airlines [AAL]: Has added ~2.0K seats for Caribbean operations [follows the weekend events in Venezuela and the reopening of closed airspace by the US FAA].

- Delta [DAL]: Says has added 2.6K seats across the Caribbean network for Jan 5th [follows the lifting of airspace restrictions].

- Chevron [CVX]: Former co. executive said to seek $2.0B for oil projects in Venezuela - FT.

- (US) President Trump is expected to brief certain lawmakers later on Mon about Venezuela.

Europe

-(DK) US President Trump commented on Greenland: Reiterates Greenland is necessary for national security - Press.