Himino echoed hawkish Ueda comments, BOK signaled more hikes, but at a slower pace

Asia Market Update: CB speak and NVDA earnings have thus far set the tone for Thurs; Himino echoed hawkish Ueda comments; BOK signaled more hikes, but at a slower pace; BSP expected to tighten; Jackson Hole schedule is due at Fri’s Tokyo open, Tokyo CPI and BYD earnings also in focus [Aug 28th].

General trend and developments

-Equity markets trade mixed in Asia as investors assess Nvidia’s guidance vs cautious margin comments. Iran and Jackson Hole might, also, drive volatility. Equity markets initially reacted positively after the close, with Nasdaq futures re-opening +1.0% at 29,690 (vs. 29,396 prior) and S&P 500 futures +0.6% at 7,751 (vs. 7,705 prior), as Nvidia delivered a strong beat with Q2 EPS of $2.22 and revenue of $96.2 billion (vs. $2.09Be and $91.9Be respectively)—declaring that “AI has reached inflection point”, stating that Vera Rubin platform has entered full production. Four hours after the NVDA figures, reports emerged that NVIDIA is in discussions to acquire Hugging Face for >$13B, which also held discussions with Microsoft, following OpenAI’s release of a new report acknowledging that Hugging Face could have acted faster to prevent the hack.

-Nasdaq FUTs have since trimmed gains, as of the time of writing.

-IRGC officials stated that Iran and Oman have agreed on a revenue-sharing arrangement for Hormuz transit fees, with Iran insisting the Strait of Hormuz will remain closed unless the United States accepts its conditions. The next key milestone remains a formal Iran-Oman announcement specifying route coordinates, fee levels, payment mechanisms, and security guarantees, though no public deadline has been confirmed.

-BOJ Dep Gov Himino appeared to acknowledge the near-term OIS rate hike expectations, setting up possible hawkish comments from Tamura later this week at Jackson Hole. As the Jackson Hole Economic Symposium approaches on Thursday, August 27th, 2026—with the guest list due later tonight at 20:00pm ET—traders remain focused on the final U.S. macroeconomic readings for insights from Fed Chair Kevin Warsh. The key U.S macroeconomic readings included the July PCE price index as the Fed’s preferred inflation gauge, rose +0.2% month-over-month (vs. +0.1% expected) and +3.7% year-over-year (vs. +3.6% expected) [the core readings were in line with expectations], while the Q2 GDP price index was revised higher to +6.4% (vs. +6.2% advance estimate) and core PCE to +3.6% quarter-over-quarter (vs. +3.4% advance estimate).

-Bank of Korea had a gift for the doves and hawks [dovish dissenter at rate decision, 6 members now project 2 additional 25bps rate hikes] The central bank is also expected to slow rate hikes after going ‘back-to-back’.

-Mixed Australian data: Q2 CAPEX unexpectedly contracted on the slowdown in data center spending. June’s fall in investment was the result of a 53.0 per cent drop in spending on information media and telecommunications equipment, after record investment in server racks and processing equipment for data centers saw an increase of 199.6 per cent last quarter, according to ABS. In Jul, Australia’s household spending was better than expected, possibly supported by the uptick in monthly inflation. Recall, hotter than expected July inflation data was released on Wed. In nominal terms, household spending was 7% higher y/y [highest annual growth since June 2023].

-US equity FUTs +0.4% to +0.7% during Asia trading.

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

- Fri Aug 28th: JP Aug Tokyo CPI & Core CPI, JP July Unemployment Rate, PH July Trade Balance, TH July Industrial Production, EU Aug Consumer Confidence, (Fri night, CA Q2 GDP, US Jackson Hole Symposium Fed Governor Warsh Speaks).

Holidays in Asia this week

- None seen for Fri.

Headlines/economic data

Australia/New Zealand

-(AU) ASX 200 opens -0.1% at 9,114.

-(AU) AUSTRALIA Q2 PRIVATE CAPITAL EXPENDITURE (CAPEX): -3.6% V 0.8%E.

-(AU) Australia July Household Spending M/M: 1.1% v 0.3%e; Y/Y: 7.0% v 5.7%e.

-(AU) NAB now expects the RBA to increase rates by +25bps to 4.6% in September, 2026.

-(AU) APRA and ASIC warn frontier AI awareness must turn to action - update.

-(AU) Australia Foreign Min Wong: [On Nepal floods] Missing part of separate tour groups; At least 34 Australians among those missing.

-(NZ) New Zealand RBNZ: Sold net NZ$253M in July vs. Bought net NZ$572M in June.

-(NZ) New Zealand sells total NZ$475M vs. NZ$475M indicated in 2030 inflation-linked, 2031, 2034 and 2041 bonds.

China/Hong Kong

-(CN) Shanghai Composite opens flat at 3,912; (HK) Hang Seng opens +0.5% at 25,775.

-(CN) China July Industrial Profits Y/Y: 11.2% v 15.1% prior.

-(CN) China's Foreign Minister Wang Yi met with US Ambassador to China in Beijing, China - Xinhua.

-(CN) China PBOC sets the yuan mid-point at 6.7840 v 6.7829 prior.

-(CN) China PBOC Open Market Operation (OMO): Sells CNY504B in 1-day Overnight Reverse Repos.

-(CN) China PBOC Open Market Operation (OMO): Sells CNY103B in 7-day Reverse Repos; Net injects CNY607B v injects CNY240B prior.

Japan

-(JP) Nikkei 225 opens +0.7% at 66,704.

-(JP) Bank of Japan (BoJ) Deputy Governor Himino: Important to stabilize price trend around 2%; Believe BoJ should continue to raise the policy interest rate and adjust the degree of monetary accommodation in accordance with developments in economic activity, prices, and financial conditions - “Japan’s Economy and Monetary Policy” in Saitama, Japan.

-(JP) BOJ Deputy Gov Himino: Won't comment on market expectations on BoJ rate hike moves; Need to pay more attention to upside price risks - Q&A for “Japan’s Economy and Monetary Policy” in Saitama, Japan.

-(JP) BOJ Outright Bond Purchase Operation for 3~5 Years; 10~25 Years and inflation-indexed bonds; (Inline with planned amounts for Q3, 2026).

-(JP) Bank of Japan (BOJ) Results related to today's outright bond buying operations:

-(JP) Japan releases weekly flows data [period ended Aug 21st]: Foreign buying of Japan equities: -¥764.1B v +¥622.4B prior; Japan buying of foreign bonds: -¥1.98T v +¥1.14T prior.

Korea

-(KR) Kospi opens +2.8% at 6,996.

-(KR) BANK OF KOREA (BOK) RAISES REPO RATE BY 25BPS TO 3.00%; AS EXPECTED; 10 of 21 dots are at 3.25%, 5 dots are at 3.00%; 6 dots are at 3.5%; today's rate decision was not unanimous as 1 member voted for a hold.

-(KR) Bank of Korea (BOK) Gov Shin: Dissenter to Thursday's rate decision has 'tactical' differences in views on economy; Financial vulnerability index rising sharply since 2024; BOK's vulnerability index shows financial stability risks are growing; Higher borrowing costs leads to lower financial risk index; Gradual rate increases expected - Post rate-decision press conference.

-(KR) South Korea to launch Nuri space rocket on October 7th, 2026 - Yonhap.

-(KR) US and South Korea are working to resolve differences related to the terms of previously disclosed investment agreement; South Korea is seeking to finalize the first project under the agreement during Sept. - South Korea press.

Other Asia

-(TH) THAILAND CENTRAL BANK (BOT) LEAVES BENCHMARK INTEREST RATE UNCHANGED AT 1.00%; AS EXPECTED [EU market close].

-(TH) Bank of Thailand (BOT) appoints 4 monetary policy committee members - Press.

-(TH) Thailand July ISIC Manufacturing Production Index Y/Y: +0.5% v -1.0%e.

-(TH) Thailand July Customs Trade Balance: -$3.6B v -$5.3Be.

-(TH) Thailand to double renewable power capacity to 60% in 25 years.

-(IN) India and China consider new investment framework to facilitate business-to-business exchanges and Chinese investments - Economic Times.

-(PH) Philippines Central Bank Gov Remolona: We worry a lot about inflation; Recent data on inflation somewhat encouraging; constrained to speak about monetary policy decision until decision announced later in the day.

-(MY) Malaysia PM Anwar considers national polls in H2, following state losses - Press.

North America

-(US) JULY PCE PRICE INDEX M/M: 0.2% V 0.1%E; Y/Y: 3.7% V 3.6%E [US market close].

-(US) Q2 PRELIMINARY GDP PRICE INDEX: 6.4% V 6.2% ADVANCE; CORE PCE PRICE INDEX Q/Q: 3.6% V 3.4% ADVANCE [US market close].

-(US) Q2 PRELIMINARY GDP ANNUALIZED Q/Q: 1.5% V 1.5% ADVANCE; PERSONAL CONSUMPTION: 3.4% V 3.2% ADVANCE [US market close].

-(US) JULY PERSONAL INCOME: 0.4% V 0.2%E; PERSONAL SPENDING: 0.2% V 0.1%E [US market close].

-(US) JULY PRELIMINARY DURABLE GOODS ORDERS: 1.1% V 0.5%E; DURABLES (EX-TRANSPORTATION): 0.4% V 0.6%E [US market close].

-(US) Pres Trump: Something 'may come out of' CIA Dir Ratcliffe visit to Russia; Do not think Iran leader (Ayatollah) is dead, think he was 'seriously wounded' - press citing interview [US market close].

-(US) Dallas July Trimmed Mean PCE (m/m) +2.2% v +1.4% prior [US market close].

-(US) Atlanta Fed GDP Now: Raises Q3 GDP estimate from 4.0% to 4.6% [US market close].

-(US) DOE CRUDE: +0.1M V +0.5ME; GASOLINE: -2.5M V -0.5ME; DISTILLATE: -2.2M V -1.5ME [US market close].

-(US) TREASURY $70B 5-YEAR NOTE AUCTION DRAWS 4.393% V 4.408% PRIOR, BTC 2.37 V 2.28 PRIOR AND 2.38 OVER THE LAST 12 AUCTIONS [US market close].

-(US) NVDA Reports Q2 $2.22 v $2.09e, Rev $96.2B v $91.9Be; Vera Rubin now in full production; 'AI has reached inflection point' [US market close].

-(US) NVDA Follow Up: Reportedly co. in discussions to purchase Hugging Face for over $13B - Insider.

-(US) CRM Reports Q2 $5.90 v $3.27e, Rev $11.3B v $11.3Be; Notes 'incredible' demand for AI and data products [US market close].

-(US) CRWD Reports Q2 $0.31 v $0.29e, Rev $1.47B v $1.44Be; Raises FY guidance [US market close].

-(US) OKTA Reports Q2 $1.05 v $0.96e, Rev $805M v $792Me; Raises outlook [US market close].

-(US) META Court filing confirms Meta to pay maximum $18.0B to 52 attorneys generals as part of settlement in 'addiction feature' trial about social media harm for teenagers; To pay back over 10 years [EU market close].

-(US) HPQ After patent licensing agreement with Huawei, HP notes neither company is a supplier to the other, and HP is no incorporating any Huawei tech or components into its products - press.

-(US) US Trade Representative Greer: Canada took issue with implementation of proposed deal; Have settled with China on key issues - Fox News Interview.

-(US) White House releases proclamation on beef affordability; Confirms will be effective for 90 days, starting Sept 1st, expanding quota by 100K tons of beef per month.

-(US) Follow up: US Fed's Cook (voter): Denies wrongdoing, vows to fight Trump's effort to oust her - press.

-(US) US investigating Apex Logistics over AI chip smuggling towards China.

-(CA) US Trade Rep Greer: US did not add any new demands at the end of the negotiations with Canada; We're not going to take further retaliation from Canada; Wanted mutual protection against things like steel and aluminum in trade talks with Canada - CBC interview.

-(CO) Colombia Deputy Finance Minister: Colombia fiscal outlook is worse than expected.

Europe

-(EU) EU States revive plan to use frozen Russian assets for Ukraine - FT.

-(UR) Reportedly Russia Pres Putin plans to escalate the Ukraine conflict with increased missile attacks; Notes talks to the end the war are 'fruitless' - press [EU market close].

-(UK) Trade body: UK Jul auto manufacturing declined; cited weaker exports and factory shutdowns - Press [update.

-(FI) Finland Aug Consumer Confidence: -3.0 v -5.3 prior.

-(FI) Finland July House Price Index M/M: -0.3% v -0.7% prior; Y/Y: -3.4% v -4.0% prior.

-(HU) Hungary Aug Business Confidence: -9.1 v -5.3 prior.

Middle East

-(IR) IRGC: IRAN, OMAN AGREED ON SHARE OF HORMUZ REVENUES; HORMUZ STRAIT WILL NOT BE OPENED IF US DOES NOT ACCEPT OUR CONDITIONS - PRESS [**Note: It suggests negotiations have moved beyond route safety toward monetizing transit-related services, but it does not by itself guarantee full reopening or normal tanker traffic] [EU market close].

-(IR) Reportedly Iran and Oman officials are still working on details of agreement for Strait of Hormuz traffic - press [US market close].

-(IR) Shipping traffic at key Gulf waterways remains 'subdued' - Press [update].

-(IR) UKMTO: Incident reported on August 25th, 2026; Tanker hit by unknown projectile causing fire; All crew reported safe and accounted for and there has been no report on environmental impact.

-(IL) Israel considers expelling British official from post-war Gaza HQs - FT [citing "multiple" people familiar with the matter].

Levels as of 01:20 ET

Nikkei 225 -0.3%; ASX 200 -1.0%; Hang Seng -0.3%; Shanghai Composite +0.8%; Kospi +1.2%.

Equity S&P500 Futures +0.4%; Nasdaq100 +0.7%; DAX +0.1%; FTSE100 -0.5%.

EUR 1.1660-1.1648; JPY 159.40-159.12; AUD 0.7186-0.7166; NZD 0.5955-0.5940.

Gold +0.5% at $4,619/oz; BTC -0.5% at $78,664; WTI Crude Oil -0.6% at $81.74/bbl; Copper +0.1% at $6.6090/lbs.