Big Tech earnings in focus – IBM, Tesla, Hynix all weak after results

Asia market update: Big Tech earnings in focus; IBM, Tesla, Hynix all weak after results; Mini-flash crash during Asia session put down to kinetic activity rumors in Iran.

General trend and developments

- Nikkei and Kospi jumped out the gate from the open, both hitting fresh record highs, taking cues from a positive US session. The Nikkei 225 hit >60,000 for the first time.

- However, a brief, unexplained flash crash that impacted all risk assets occured shortly after 8pm ET, although losses were pared fairly quickly, Crude oil spiked nearly $5/bbl in just 7 minutes at the same time as risk assets fell. Some suggested a brief rumor of kinetic activity in Iran, but nothing came of it. Silver fell -2% all the way back to yesterday’s lows, with Gold not much better.
-This was then followed by a slow grind down in equity prices such that Nikkei and Kospi along with US equity FUTs and other Asia bourses all turned negative.

- Middle East situation continues to take a back seat to market movements, as most US earnings keep beating street estimates, allowing the market to keep looking past Iran for now. Texas Instruments +11% after-hours on strong results and guidance. Tesla was more mixed, initially shot up ~4% on Q1 earnings release after-hours but finished -0.3% below regular trading, as the Co missed on Revenues as core auto business continues to struggle for growth but beat on profit with better margins. Capex will be $5B above prior guidance.

- Little news out of the Middle East during Asia session. Reportedly US Armed Services Committee briefing suggested it could take up to 6 months to clear Strait or Hormuz from mines.

- South Korea’s first quarter Q1 GDP came in a big handle more than expected.

- Chip memory maker Hynix also saw shares rise initially, but then fell -2% as guidance failed to clear the extremely high bar the company set during 2025. Affirmed FY26 Capex to increase significantly y/y.

- Australia PMI Manufacturing for March moved back into expansion while Japan Mar Manufacturing PMI saw front-loading of factory output amid Mid East supply concerns to nearly 55, highest in 12 years. However, Services PMI fell in Japan, although remained expansionary.

- OIS chances of a BOJ hike next Tuesday (28th April) fell to just 4.5% (v 8.5% day before).

Continued asian impact builds from Mid-East impact

- Aussie gold miner Resolute Mining in Australia warned of a potential for increase in AISC due to rising fuel prices, which could impact operational costs in the coming quarters. Copper miner Sandfire also warned of pressures as Middle East conflict raises supply chain risk.

- Overnight, Japan said to import 1M barrels of crude oil from Mexico. Comes as Iran war said to have triggered production cuts at Japan naphtha crackers and shortages of PGME/PGMEA solvents essential for photoresist, BARC, and other semiconductor patterning materials.

- Meanwhile, China to curb “unreasonable growth” of energy consumption, pushing for replacement of fossil fuel energy.

Other news

- Indonesia Central Bank (BI) left its rates unchanged, as expected, for a 7th straight pause in the current easing cycle. Comes as the Rupiah again hit fresh record lows. Statement said that domestic fundamentals are strong enough to weather impact from Mid-East war.

- China’s DeepSeek AI modeling company potentially doubles valuation over just a couple of weeks ago to $20B as Tencent and Alibaba said to be in talks to invest .

- Global PMIs day.

- US equity FUTs -0.5% during Asia trading.

Looking ahead (Asian-weighted focus, using Asian time zone)

- Thu Apr 23rd Global S&P/HCOB PMIs Day, PH Rate Decision, TW Mar Industrial Production; HK Mar CPI.

- Fri Apr 24th, JP Mar CPI, UK Mar Retail Sales, (Fri night CA Feb Retail Sales).

Holidays in Asia this week

- No holidays in Asia this week.

Headlines/economic data

Australia/New Zealand

- (AU) ASX 200 opens -0.4% at 8,805.

- (AU) Australia Apr Preliminary PMI Manufacturing: 51.0 v 49.8 prior (moves back into expansion).

- (NZ) New Zealand Fin Min Willis: Treasury forecasts inflation may hit 7.4% in FY25/26 in worst case scenario (refers to Mid East crisis and oil prices and flows).

- (NZ) RBNZ: New Zealand Mar Credit Card Spending M/M: +0.7%; Y/Y: +2.1%.

- (NZ) NZ Labour Leader Hipkins: Labour Opposition supports free-trade agreement with India.

China/Hong Kong

- (CN) Shanghai Composite opens +0.1% at 4,111; (HK) Hang Seng opens -0.2% at 26,099.

- (CN) China said to urge debt relief for nations impacted by Mid East crisis (update).

- (CN) China President Xi has urged the application of the Yiwu city model for local growth, noted the growth of the commodities industry in Yiwu - Xinhua.

- (CN) China Def Min Dong Jun to visit Russia, Kyrgystan, Apr 23-28, 2026 - China media.

- (CN) China Academy of Sciences said to have achieved a ‘major’ breakthrough in key technology for black phosphorus fast-charging batteries – Chinese press.

- (CN) China spy agency said to urge strict vetting of foreign chips [further details not disclosed] – US financial press [update].

- (CN) China Mar Swift Global Payments (CNY): 3.1% v 2.7% prior.

- (CN) China industry associations should play a stronger role in curbing involution-style competition – Economic Daily front-page commentary.

- (CN) China PBOC sets the yuan mid-point at 6.8650 v 6.8635 prior.

- (CN) China PBOC Open Market Operation (OMO): injects CNY500M in 7-day Reverse Repos; Net CNY0B v injects CNY6B prior.

Japan

- (JP) Nikkei 225 opens +0.3% at 59,759.

- (JP) Reportedly Iran war triggering production cuts at Japan naphtha crackers and shortages of PGME/PGMEA solvents essential for photoresist, BARC, and other semiconductor patterning materials - press.

- (JP) Japan Apr Preliminary PMI Manufacturing: 54.9 v 51.6 prior (4th month of expansion).

- (JP) Nikkei 225 hits 60K for first time.

- (JP) Japan, Saudi leaders hold phone call - Japan press.

- (JP) Japan said to 'push' EU to revise homemade EV incentives - Japan press.

- (JP) Japan releases weekly flows data [period ended Apr 17th]: Foreign buying of Japan equities: +¥2.4T v +¥3.9T prior; Japan buying of foreign bonds: -¥12.8B v +¥698.2B prior.

- (JP) Japan Fin Min Katayama: True that we recommended to halt Makino Milling Machine tender offer - Parliamentary comments.

- (JP) In Mar Japan's central Tokyo used condo prices have fallen for a 2nd straight month - US financial press.

Korea

- (KR) Kospi opens +1.1% at 6,489.

- (KR) South Korea Q1 Advance GDP Q/Q: 1.7% v 0.9%e; Y/Y: 3.6% v 2.6%e.

- (KR) South Korea Apr Consumer Confidence: 99.2 v 107.0 prior.

- (KR) South Korea Vice Min discusses cooperation with Oman on LNG supply chain and helium - Statement- (KR) South Korea and Vietnam agree on expanded cooperation

in energy and supply chains - Japanese press.

- (KR) Bank of Korea (BOK), Finance Ministry to strengthen 'harmonious policy' coordination - Finance Ministry statement.

- (KR) South Korea bond market saw foreigners buy net KRW8.5T since WGBI inclusion - Yonhap.

- (KR) Six paper manufacturers in South Korea said to have been fined KRW338.3B for price fixing by the local FTC; companies mentioned Hansol Paper Co. - Yonhap.

Other Asia

- (ID) Indonesia Chief Econ Min Hartato: Q1 GDP growth seen >5.5%.

- (ID) Indonesia Central Bank (BI) Dep Gov: Rupiah currency depreciation is caused by rising global uncertainty, reiterates that regional peers are also under pressure.

- (ID) Indonesia Mar M2 Money Supply Y/Y: 9.7% v 8.7% prior.

- (ID) Indonesia prices ¥172.1B in multi-tranche Samurai bonds.

- (TH) Thailand Exchange President Kongsiri: International fund inflows are stable.

- (MY) Malaysia King: Will choose a new anti-graft chief.

North America

- (US) Pres Trump: Iran talks possible as soon as Friday - NYP citing text message.

- (US) DOE Crude: +1.9M v -1Me; Gasoline: -4.6M v -1.5Me; Distillate: -3.4M v -1.5ME; US exports at another record high (2nd week in a row).

- (US) President Trump faces May 1st ‘deadline’ on how to continue the war; the article comments on how the War Powers Act could pressure Trump to end the Iran war - NYT [update].

- (US) White House NEC Dir Hassett: Highly confident the Senate will do what is right on Fed Chair nominee Warsh.

- (US) White House: Pres. Trump plans to attend healthcare event tomorrow 3pm (23rd April, 2026).

- (US) US Attorney Jeanine Pirro: Fed investigation continues, appealing decision of Judge Boasberg.

- (US) US Trump Admin reportedly plans to reclassify marijuana soon - Axios.

- (CA) Canada PM Carney: Review of USMCA treaty will 'take some time'.

- (MX) Mexico Feb Gold Production: 5.9K kg v 5.6K kg prior.

- (PE) Peru's Econ Ministry: Carried out an initial transfer of $462M for the acquisition of F-16 aircraft.

- (AR) Argentina halts plan to privatize LNG imports - La Nacion.

- (CO) Colombia Cen Banker Acosta: Control of Colombia inflation is central bank's mandate.

- (BO) Bolivia appoints Marcelo Blanco as new minister of Energy and Hydrocarbons, amid global energy crisis - financial press.

Europe

- (EU) Euro Zone Apr Advance Consumer Confidence: -20.6 v -17.2e.

- (EU) ECB’s Lane (Ireland, chief economist): Length of war will determine shock to EU economy.

- (EU) ECB's Simkus (Lithuania): Should not raise rates at the upcoming April meeting but cannot rule out one later this year.

- (EU) ECB's Stournaras (Greece): ECB should wait on policy; We are between the baseline and adverse scenarios on energy prices.

- (EU) Euro Zone Mar EU27 New Car Registrations: 12.5% v 1.4% prior.

- (TR) Turkey Central Bank (CBRT) leaves one-week auction rate unchanged at 37..00%; As expected.

- (DE) German Buindesbank Monthly Report: Economy grew at modest pace in Q1 but headwinds are intensifying.

- (AR) Argentina Mar UTDT Leading Indicator: 0.8% v 1.2% prior.

- (UK) Daily Baltic Dry Bulk Index +1.3% at 2,675 (14th straight rise).

Middle East

- (IR) Reportedly Iran has no plans to negotiate with US on Fri - Iranian press.

- (IR) White House confirms Trump ceasefire extension is for 3 to 5 days - Fox News (confirms overnight report from Axios).

- (IR) White House Press Sec Leavitt: 3 to 5 day ceasefire timeline is not true, Trump will dictate the timeline; Has not set a firm deadline for Iran's proposal; Reiterates demand that Iran turn over enriched uranium; Waiting to hear back from Iranians: Trump wants a 'unified response'.

- (IR) US CENTCOM comments on Strait of Hormuz blockade: 31 vessels have been directed to turn around from the blockade.

- (IR) Iran Parliament Speaker Ghalibaf: A complete ceasefire only makes sense if it is not violated by the US blockade and taking the global economy hostage.

- (IR) Iran Foreign Min Spokesperson: Armed forces are fully alert and ready for a decisive response - Iran State TV IRIB.

- (IR) Reportedly Armed Services Committee briefing suggested it could take up to 6 months to clear Strait or Hormuz from mines - Washington Post.

- (IR) Iran Foreign Minister told the South Korea envoy [that] 'aggressors' are responsible for all fallout from war - Yonhap.

- (IR) USS aircraft carrier Bush expected to arrive in the Middle East in 3-5 days - Fox.

- (LB) Lebanon President: Looking to extend ceasefire agreement with Israel.

- (LB) Lebanon PM: Israel's targeting of journalists and obstruction of relief efforts constitute war crimes.

- (PK) Pakistan said to be seeking LNG from spot market for first time in 2 years - financial press.

Levels as of 01:20 ET

Nikkei 225 -1.0%; ASX 200 -0.8%; Hang Seng -1.1%; Shanghai Composite -0.6%; Kospi +0.1%.

Equity S&P500 Futures -0.5%; Nasdaq100 -0.5%; DAX +1.1%; FTSE100 -0.5%.

EUR 1.1714-1.1692; JPY 159.69-159.30; AUD 0.7167-0.7137; NZD 0.5913-0.5877.

Gold -0.7% at $4,707/oz; BTC -0.1% at $77,960, Crude Oil +1.4% at $94.28/bbl; Copper -1.5% at $6.0430/lbs.