Asian Macro Initial Thoughts, Australia & India Re-Open. Currencies, Tariffs and Earnings on the Agenda as Gold & Silver Rally.
•January 26, 2026
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Why It Matters
Understanding these macro shifts is crucial for investors navigating heightened geopolitical risk, currency volatility, and policy uncertainty that can reshape asset allocations across Asia and beyond. The episode’s timely analysis of trade deals, tariff threats, and earnings trends equips listeners to anticipate market reactions and adjust strategies in a rapidly evolving global environment.
Asian Macro Initial Thoughts, Australia & India re-open. Currencies, tariffs and earnings on the agenda as Gold & Silver rally.
Overview
S Korea sees its tariffs being increased again because Trump says they are not enacting the ‘deal’ fast enough; will hurt autos, Pharma and lumber revert back to 25%, it is a threat at this stage, as S Korea says it has not received official notice. But it is not surprising that Trump would announce on social media rather than via official channels. This as the Supreme Court has yet to give its decision on whether these tariffs are legal. It is worrying that it is taking the court so long. Watch currencies, Yen obviously (there is a 40 year auction tomorrow) but worth noting Malaysian ringgit and Singapore dollar hitting multi year highs.
Trump is also signalling a slight change in policy on immigration as the public backlash grows both at the shootings and the administrations defence of ICE agents which is clearly at variance to the video evidence from multiple angles plus questions over why ICE agents are not wearing body cams?
US Phama stocks weak, as Trump is proposing raising payments to private medicare plans to 0.09% in 2027 vs 5% in 2026. Stocks weak in the aftermarket United Health -9.6% and it was already -1.3% in normal trading.
Worth noting that according to JP Morgan emerging markets are expected to have another good year after last year’s rally, but rising geopolitical risks make the asset class especially attractive.
FOMC starts its two day meeting and there is speculation that Trump will announced his Fed Chair candidate as the FOMC press conference takes place. Trump is also under pressure due to the recent ICE killings of US citizens and he is
sending Tom Homan, his border czar, to manage the operations.
President Xi’s renewed purge of senior generals, could be about corruption but I increasingly believe that much of it is due to paranoia and more worryingly it shows how Xi is following in the footsteps of Mao.
Earnings around 90 S&P 500 companies are set to report this week. So far 76% of the companies that have reported beat forecasts, per FactSet. But be careful as Bank of America reported, that as earnings continue to trickle in, the results have been good — but not as great as last quarter.
During the second week of earnings season last week, 18% of S&P 500 companies reported results. Some 70% of them beat on earnings-per-share expectations. That’s better than the week two average of 64%, but below last quarter’s 79%. The revenue beat rate was 67%, also weaker than last quarter’s 79% but above the week two average of 60%.
Tuesday American Airlines Q4/FY, Boeing Q4, Brown & Brown Q4, Cranswick Q3 trading statement, Dr Martens Q3 trading update, Energean January trading and operating update, Evoke FY post-close trading update, F5 Q1, General Motors Q4/FY, Kimberly-Clark Q4, Logitech Q3, LVMH FY, Mitie Q3 trading update, NextEra Energy Q4/FY, Northrop Grumman Q4, Nucor Q4, Paragon Banking Q1 trading update, Qorvo Q3, Roper Technologies Q4, RTX Q4, Sage Q1 trading update, Sandvik Q4, Seagate Technology Q2, SThree FY, Synchrony Financial Q4, Sysco Q2, Texas Instruments Q4/FY, Union Pacific Q4, UnitedHealth Q4/FY, UPS Q4
Wednesday. Amphenol Q4, Ampol Q4 trading update, ASML Q4/FY, AT&T Q4, Corning Q4, Danaher Q4, Fresnillo Q4 production report, General Dynamics Q4, GE Vernova Q4, Grupo Financiero Banorte Q4, Hargreaves Services HY, IBM Q4, KPN Q4/FY, Lennox Q4, Levi Strauss Q4, Marston’s Q1 trading update, Meta Q4/FY, Microsoft Q2, Packaging Corp of America Q4, PayPoint Q3 trading update, Pets at Home Q3 trading update, PPG Industries Q4, ServiceNow Q4, Starbucks Q1, Tesla Q4, Textron Q4
Thursday ABB Q4/FY, Antofagasta Q4 production report, AO Smith Q4, Apple Q1, Blackstone Q4/FY, Caterpillar Q4/FY, Comcast Q4, Crest Nicholson FY, Deutsche Bank FY, Dow Q4, easyJet Q1, Fevertree Drinks FY pre-close trading update, Fujitsu Q3, Glencore FY production report, Henry Boot trading update, Hilton Food Group trading update, Hitachi Q3, H&M FY, Honeywell Q4, Hyundai Q4, ING Groep Q4, International Paper Q4/FY, Lloyds Banking Group FY, Lockheed Martin Q4/FY, Luceco FY trading update, Marsh & McLennan Q4, Mastercard Q4/FY, Nasdaq Q4, Nokia Q4/FY, Norfolk Southern Q4, Rank HY, ResMed Q2, Roche FY, Royal Caribbean Q4, Saga trading update, Samsung Electronics Q4, Sandisk Q2, Sanofi Q4/FY, SAP Q4/FY, Sherwin-Williams Q4/FY, Southwest Airlines Q4, St James’s Place FY new business announcement, STMicroelectronics Q4/FY, Stryker Q4/FY, Telia FY, United Rentals Q4/FY, Valero Energy Q4, Visa Q1, Waste Management Q4, Wizz Air Q3
Friday Airtel Africa 9M/Q3, American Express Q4, Aon Q4, Canadian National Railway Q4/FY, Chevron Q4, Church & Dwight FY, Colgate-Palmolive Q4/FY, Eastman Chemical Q4/FY, Electrolux FY, ExxonMobil Q4, Franklin Resources Q1, Hartford Insurance Q4, Imperial Oil Q4, James Halstead HY trading update, Nomura Q3, Verizon Communications Q4
**Housekeeping
Monday morning I was on RTHK’s Money Talk with host Nitin Dialdas and other guest Ben Luk, Senior Multi-Asset Strategist at State Street Markets;** discussing Trumps latest actions, the outlook for US markets, India and Japan
If there is anything you’d like discussed on the show next week, then click the link below and let them know. Equally if you just want to listen to the programme, click the link. https://www.rthk.hk/radio/radio3/programme/money_talk
Thursday afternoon I was on RTHK’s The Close with host Nitin Dialdas and Kelvin Wong of Oanda, we discussed Trump disruption of the rules based system and implications for China, and what that means for the rest of the world and touched on S Korea’s Artificial Intelligence Act which came into force on Thursday.
**If there is any topic you want discussed this week please message me or them via the link, which can also be used to listen to the programme
https://www.rthk.hk/radio/radio3/programme/the_close**
For excellent independent research ERI-C.com Provides the best selection of Independent Research, Showcase Events, Introductions & Marketplace, Reports, blogs, trials, podcasts and more https://www.eri-c.com/
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Mark Tinker has launched a new Substack ‘This is not Investment Advice’ he looks at various topics. The latest one is titled ‘Middle Power Play’ the Globalists are re-grouping. Notes how Canadian PM Carney has outlined a third way as the old order has now gone. Saying that ‘Middle Power countries to realign to express “Value Based Realism”, with rhetoric about the ‘not just the strength of our values but the value of our strength’ and talk of buyers clubs for strategic power in purchase of key minerals is a blueprint for a new Globalist infrastructure.’ That is happening as Trump continues to undermine the old order. You can find the post on Market Thinker on Substack
Market opening indications and data due
**New Zealand
**NZX opened had a choppy open, but then sold down to test 13,420 level before rebounding to 13,450 level. Currently -15pts -0.11% at 13,445.7
**Data Scheduled late morning
**1 year Bill Auction vs 2.675%
3-month Bill Auction vs 2.397%
6-month Bill Auction vs 2.4438%
Credit Card Spending Dec YoY vs 4.7% Nov
**Australia - Market re-opens
**ASX 200 opened up 65.81pts 0.74% at 8,925.9 after futures closed up 61pts 0.7%. Watch miners like BHP and Rio Tinto which rallied Monday in London, other miners also +VE but energy names weak.
**Data Scheduled 90 minutes after the open
**Business Confidence Dec vs 1 Nov (F/cast is 2)
**Japan - No Data Scheduled
**Nikkei Futures indicated -260pts -0.53% at 52,580. Watch Tourist plays as Beijing warns citizens, falsely stating that there was ‘a surge in crimes targeting Chinese citizens” and earthquakes, - seems Trump is not the only one who spreads fake news. Yen strength the main focus for investors in the short term.
Chicago Nikkei Futures -40pts -0.08% at 52,645
Singapore Futures -405pts 0.76% at 52,555.00
Yen 154.19 at the US close. With speculation that the BoJ in conjunction with the Fed may intervene to support the Yen. Opening 154.18 in early trades.
**S Korea
**Kospi futures indicate market to open lower -46.77 pts -1.3% at 3,541.66 but expect more downside as Trump threatens tariffs will be raised to 25% due to Korean government inaction. Auto & Pharma stocks in the red pre-market
The Kospi closed 40.48pts lower on Monday -0.81% at 4,949.59 after three days of gains. The Korean won sharply gained against the US dollar. Trade volume was moderate at 438 million shares worth 22.5 trillion won ($15.6 billion), with winners far outpacing losers 502 to 391.
Institutions sold 158.4 billion and foreigners sold 1.54 trillion won while retail bought a net 1.71 billion won. Caution ahead of Samsung and SK Hynix earnings.
The tech laden Kosdaq, surged past the 1,000-point mark Monday, after spending four years below the level. The sharp rally even triggered a temporary trading halt designed to curb excessive volatility.
The local currency was quoted at 1,440.6 won against the greenback at 3:30 pm.Monday, up 25.2 won from the previous session.
**Data out pre market
**Business Confidence Jan 73 vs 70 Dec (F/cast was 71)
**After the open
**20-year KTB Auction vs 3.365%
**Taiwan - No Data Scheduled
**Futures indicating market opening higher up 138pts 0.43% at 32,288
On Monday the Taiex closed up 103.01 points, or 0.32%, at 32,064.52, after moving between 31,989.86 and 32,196.75. Turnover totaled NT$724.61 billion (US$23.08 billion) vs NT$794.43 billion (US$25.19 billion) Friday.
Raw material suppliers attracted bargain hunting as they had been left behind by tech stocks. Tech saw some rotation with TSMC faced a minor correction but laggards such as MediaTek steamed ahead.
**China
**Market to open lower after Golden Dragon Index closed -49pts -0.63% at 7,828.96
FTSE A50 futures indicating up 50.8tps 0.34% at 14,877.96
MSCI A50 futures indicating up 8pts 0.3% at 2,662.8
USD/CHN opening up 0.0001 pt unchanged at 6.9489
Spot USD/CNY lifted 70 bps to close at 6.9572 Monday (26th). As of 4:37 pm, USD/CNY in the night session gained 73 bps. USD/CNH lost 57 bps to 6.9529, 43 bps above USD/CNY.
**Data Due on the open
**Industrial Profits (YTD) Dec YoY vs 0.1% Nov (F/cast is 0.3%)
**Hong Kong - No Data Scheduled but Asian Financial Forum continues and Goldman Sachs Global Macro Conference starts.
**HSI to open higher ADR’s closed up 138pts 0.51% at 26,903 but ADR’s mixed in the red ICBC, Bank of China (HK), Bank of China, CK Hutch, Xiaomi and Meituan.
Hang Seng Futures up 135pts 0.5% at 26,883. Watch Zijin Gold which said it would buy Allied Gold, a Canadian rival with big operations in Africa, for around $4bn.
Turnover Monday HK$261.7B vs HK$240.872B Friday
Short Selling Monday 18.8% vs16.5% Friday
**Data due after market
**Balance of Trade Dec vs HK$-48.5B Nov (F/cast is HK$-35B)
Exports Dec vs 18.8% Nov
Imports Dec vs 18.1% Nov
Macau - No Data Scheduled
**Singapore - Data Scheduled for lunchtime
**MAS 12-week Bill Auction vs 1.35% prior
MAS 4-week Bill Auction vs 1.3% prior
Malaysia - No Data Scheduled
**Philippines - Data Scheduled
**Balance of Trade Dec vs $-3.514B Nov (F/cast is $-4.3B))
Exports Dec vs 21.3% Nov
Imports Dec vs -2% Nov
**Indonesia - No Data Scheduled
Thailand - No Data Scheduled
Cambodia - No Data Scheduled
Vietnam - No Data Scheduled
Myanmar - No Data Scheduled**
**India - Market re-opens - Data Scheduled
**RBI Market Borrowing Auctions
India and the European Union have concluded negotiations on a long-coveted trade deal that will be announced on today, the South Asian nation’s trade secretary said on Monday, an accord both sides hailed as historic as they contend with strained U.S. ties. The deal paves the way for free trade of goods between the bloc of 27 European nations and India, which together make up a quarter of the world’s gross domestic product and a market of 2 billion consumers.
**Europe
Eurozone -** No Data Scheduled
Germany - Bundesbank Balz Speech, 2-Year Schatz Auction
France - Consumer Confidence
United Kingdom - BRC Shop Price Inflation out Jan vs 0.7% Dec (F/cast is 0.8%), Treasury Gold 2033 Auction
**United States
Futures** DOW -162pts -0.3% (healthcare under pressure), S&P unch NDX 0.1%
**After Market
**Trump is proposing raising payments to private medicare plans to 0.09% in 2027 vs 5% in 2026. -VE Pharma names United Health -9.6% and it was already -1.3% in normal trading.
Data Scheduled: 2-Year Note Auction, ADP Employment Change Weekly, Redbook, Case-Shiller Home Price, House Price Index, CB Consumer Confidence, Richmond Manufacturing Index, Shipments Index and Service Revenues Index, Dallas Fed Services Index and Dallas Fed Service Revenues Index, 5-Year Note Auction, Money Supply, API Crude Oil Stock Change
**HEADLINES & NEWS
NEW ZEALAND & AUSTRALIA
Australia is nearing an insurance crisis. And it’s only getting worse.** Many face an impossible choice – protect the home they love in case the worst happens, or go underinsured as a result of ever-increasing premium costs.
Rupert Murdoch launches his new California newspaper His media empire is looking to shake up the media landscape in California with a new tabloid offering.
**JAPAN
Bank of Japan money market data on Monday indicated that a spike in the yen rate against the dollar on Friday was not likely the product of official Japanese intervention.** The central bank’s projection for Tuesday’s money market conditions indicated a 630 billion yen ($4.09 billion) net outflow of funds. That exceeded brokerage forecasts of between plus 100 billion yen to minus 300 billion yen, although still below levels seen during actual bouts of intervention. “The size of the projected treasury-related flows and the net change in current account balances are well below the multi-trillion-yen magnitudes typically associated with decisive intervention once settlement effects appear,” said Shoki Omori, chief desk strategist at Mizuho Securities. “This suggests that the recent sharp moves in the yen were driven mainly by position adjustments, liquidity conditions, and heightened sensitivity to official signalling, rather than by actual reserve deployment,” he added.
Tokyo Electric Power (9501.T) plans to cut about 3.1 trillion yen ($20 billion) in costs over 10 years through restructuring, while seeking alliances to advance reforms and capture demand from data centres, it said on Monday. The government has approved the utility’s revised business plan, which includes raising about 200 billion yen over the next three years by selling assets. The operator of the Fukushima Daiichi nuclear power plant that suffered one of the world’s worst nuclear disasters in 2011, faces mounting costs for decommissioning, the clean-up operation and compensation. It continues to rely on government funding to cover disaster-related costs. We will soon solicit proposals for alliances to carry out bold reforms that achieve both our responsibility to Fukushima and economic growth,” President Tomoaki Kobayakawa told a press conference, adding Tepco would seek partners capable of growing with it. Tepco has yet to achieve any major collaborations since it established JERA, its fuel and thermal power joint venture with Chubu Electric Power (9502.T) in 2015. With rising electricity demand from data centres in Tokyo, however, the utility aims to provide power supply rapidly and capture digital demand by collaborating with firms focused on securing suitable sites, manufacturers and construction companies. The 3.1 trillion yen cost-cutting target comprises 1.4 trillion yen in personnel expenses, 1.3 trillion yen in equipment and 0.4 trillion in power supply. Assets that could be sold include equity stakes and real estate. The Nikkei newspaper reported Tepco could sell shares in electrical equipment company Kandenko (1942.T), opens new tab, in which it holds a 46% stake. Kobayakawa declined to comment on specific assets. Tepco also forecast a net loss of 641 billion yen for the year ending in March, compared with a year-earlier profit of 161.2 billion yen, citing a one-off loss related to the Fukushima disaster.
**SOUTH KOREA
Trump said on Monday he was increasing tariffs on South Korean imports into the US related to autos, lumber and pharmaceuticals to 25 percent while accusing the ally’s legislature of “not living up” to its trade deal with Washington.** “South Korea’s Legislature is not living up to its Deal with the United States,” Trump wrote on social media. “Because the Korean Legislature hasn’t enacted our Historic Trade Agreement, which is their prerogative, I am hereby increasing South Korean TARIFFS on Autos, Lumber, Pharma, and all other Reciprocal TARIFFS, from 15% to 25%.” South Korea’s presidential Blue House did not have an immediate comment. South Korea had been working to implement a deal announced with Washington in November that was going to lower US tariffs against its exports. More recently, South Korea has engaged with Washington to explain Seoul’s probe of U.S.-based e-commerce company Coupang, stemming from a mass data leak.
South Korea’s state pension fund said Monday it will increase its allocation to domestic equities this year from 14.4 percent to 14.9 percent, citing shifts in market conditions at home and overseas. The decision was made at a meeting of the National Pension Service fund management committee, which was convened to review the fund’s overall investment strategy, including its exposure to local stocks, and to discuss measures to cope with volatility in the foreign exchange market. NPS officials said the committee opted to revise the target portfolio originally set for this year after considering foreign exchange market conditions, as well as the rising burden of securing foreign currency amid the continued expansion of the fund’s assets. Under the revised plan, the target allocation to overseas equities will be reduced from the previously planned 38.9 percent to 37.2 percent, while the allocation to domestic bonds will be increased from 23.7 percent to 24.9 percent. The NPS said the changes were made after a comprehensive review of their potential impact on fund returns and consistency with its broader investment strategy.
LG Innotek posted a 31 percent year-on-year jump in fourth-quarter operating profit to 324.7 billion won ($226 million), fueled by strong demand from its largest customer —widely understood to be Apple — and favorable foreign exchange rates. However, full-year profit declined 5.8 percent to 665 billion won. Q4 sales rose 14.8 percent to 7.61 trillion won, its highest on record. The gains were led by shipments of high-value camera modules and Radio Frequency System-in-Package components, which are integrated modules that consolidate wireless communication chips for mobile devices. These were supplied across the iPhone 17 lineup, which saw stronger-than-expected demand in key markets like China. Annual revenue reached 21.9 trillion won, up 3.3 percent, but profitability was weighed down by one-off year-end costs, including performance-based bonuses linked to the late-year sales surge. LG Innotek’s Optical Solutions division, responsible for camera modules, contributed 87 percent of fourth-quarter revenue. However, the margin upside is increasingly being driven by the Package Solutions division, which manufactures advanced semiconductor substrates such as RF-SiP and Flip Chip-Chip Scale Package, which are key enablers for compact, high-performance mobile and artificial intelligence hardware. Sales in this unit jumped 27.6 percent on-year, and the company expects continued full-capacity operation into 2026.
Samsung Electronics could begin mass production of its next-generation HBM4 memory chips as early as next month, with initial shipments expected to go to major customers such as Nvidia and AMD, according to industry sources on Monday. The move could mark a turning point for Samsung in the high-bandwidth memory market for artificial intelligence, where it has lagged behind smaller rival SK hynix in recent years. Industry observers say Samsung’s effort to narrow the gap hinges on a bold decision to adopt a sixth-generation 10-nanometer (1c) DRAM process — an industry first — despite weak early yields. The company also applied a more advanced 4-nanometer foundry process to the logic die, which functions as the control unit of the memory stack. According to the sources, Samsung recently passed final qualification tests conducted by Nvidia and AMD and is now preparing to start mass production next month. The HBM4 chips are expected to be used in next-generation AI accelerators slated for release in the second half of this year, including Nvidia’s Rubin platform and AMD’s MI450. The development comes as leading AI chip customers have reportedly revised their qualification benchmarks, raising speed requirements while easing thermal limits — effectively prioritizing raw performance over operating temperature margins.
**TAIWAN
The Taiwan Institute of Economic Research (TIER) on Monday raised its forecast for Taiwan’s gross domestic product growth in 2026 to 4.05 percent,** citing demand for AI and a recovery in private consumption. TIER, one of the leading think tanks in Taiwan, raised the country’s GDP growth forecast by 1.45 percentage points from its previous estimate in November. Gordon Sun, director of TIER’s Economic Forecasting Center, told reporters that the upgrade largely reflects an improvement in private consumption supported by wealth effects created by the booming stock market and an increase in car sales. TIER has forecast that private consumption will grow 2.50 percent, up from the previous estimate of 2.00 percent. Strong global demand for AI applications is expected to lead to Taiwanese tech firms investing more to cater to foreign buyers. In addition, the cut in U.S. tariffs from 20 percent to 15 percent without stacking them on existing most-favored-nation rates is likely to help old economy industries.
The central bank has adopted dynamic adjustments in its portfolio management of Taiwan’s foreign exchange reserves to reduce possible risks from fluctuations in US Treasury bonds, central bank Governor Yang Chin-long said yesterday. Yang made the statement at a meeting of the legislature’s Finance Committee in response to questions about reports that Danish pension operator AkademikerPension was planning to sell US$100 million of US Treasuries amid unease over US President Donald Trump’s push for control of Greenland. Amid increasing efforts by several countries to decouple from the US, US Treasuries have encountered growing volatility, lawmakers said, expressing concern about the stability of Taiwan’s foreign exchange reserves. As Taiwan is the 10th-largest holder of US Treasury bonds, Chinese Nationalist Party (KMT) Legislator Wang Hung-wei asked whether the central bank would cut its position in US government bonds or adjust its foreign exchange reserves portfolio to reduce risk. Yang said the central bank would seek to lower risks in foreign exchange reserves by cutting or adjusting US Treasury bond positions. “That goes without saying,” he said.
The impact of the US’ “reciprocal” tariffs on Taiwan’s exports, industrial output and employment has largely eased after the levy was lowered from 20 percent to 15 percent, giving Taiwanese manufacturers a competitive advantage, Deputy Minister of Economic Affairs Ho Chin-tsang said yesterday. The lower tariffs, not stacked on existing duties, would lift Taiwanese exports to the US by 0.04 to 0.08 percent, reversing an earlier projected decline of 5.75 to 7.5 percent, according to an analysis conducted a government-affiliated think tank, Ho said at a meeting of the legislature’s Economics Committee. The adjustment is expected to reverse the impact on industrial output, turning an estimated annual decline of 1.3 to 1.4 percent into a modest increase of between 0.01 and 0.02 percent, he said. In terms of overall economic growth, the effect on Taiwan’s GDP is projected to shift from a contraction of between 0.3 and 0.78 percent to a slight increase of about 0.01 percent, Ho said. The new rate is expected to reverse the impact on industrial employment, turning an estimated loss of 36,000 jobs into a net increase of 206 to 329 positions, he said. Under the new tariff framework, Taiwan is equal with Japan and South Korea, representing a relative gain for Taiwanese manufacturers, as it reduces the burden of having higher tariffs than the two countries, Ho said.
MediaTek Inc shares Monday notched their best two-day rally on record, as investors flock to the Taiwanese chip designer on excitement over its tie-up with Google. The Taipei-listed stock jumped 8.59 percent, capping a two-session surge of 19 percent and closing at a fresh all-time high of NT$1,770. That extended a two-month rally on growing awareness of MediaTek’s work on Google’s tensor processing units (TPUs), which are chips used in artificial intelligence (AI) applications.
**CHINA
According to a report by Xinhua News Agency, there has been a recent increase in criminal activities targeting Chinese citizens in Japan,** while several regions have experienced consecutive earthquakes that caused injuries and prompted the Japanese government to issue warnings about potential aftershocks. The report mentioned that China’s Ministry of Foreign Affairs (MOFA) and Chinese embassies and consulates in Japan advised Chinese citizens to avoid traveling to Japan in the near future. As for Chinese citizens who are already in Japan, they should closely monitor local security conditions and warnings regarding earthquakes and secondary disasters. It seems the Trump administration is not alone in spreading fake news.
The Mainland Chinese heavy truck technology company DeepWay pooled approximately RMB1.2 billion in the latest financing round, Bloomberg reported. Investors included the ABC Impact, supported by Temasek, Lenovo Capital and Incubator Group (LCIG), Puhua Capital, and battery manufacturer SUNWODA (300207.SZ). DeepWay, established in 2020, primarily develops auxiliary driving technology and freight solutions for heavy electric trucks. Early investors included BIDU-SW (09888.HK). The company had submitted a listing application to the Hong Kong Stock Exchange last November.
The Tianjin Housing Provident Fund Center has issued new management measures for personal housing provident fund loans, including an increase in the loan ceilings. The loan limits for first and second home purchases will be raised from RMB1 million and RMB500,000 to RMB1.2 million and RMB1 million, respectively. For families with two or more minor children, the loan limits for first and second home purchases will further increase to RMB1.44 million and RMB1.2 million, respectively. The new measures will take effect from February 1. Loans accepted before this date will still be processed under the original policy.
FT reprots ‘China plans to hire the largest number of tax officials in more than a decade this year, as Beijing steps up taxation reform and tries to strengthen enforcement amid a widening budget deficit. Making China more fiscally sustainable is a big challenge for President Xi Jinping’s government, which is increasing spending to boost weak consumption at a time when a property slump and crackdowns on fee collection have left many local authorities desperately short of cash.’ Highlights a further problem for the economy
Texas will bar its employees from using Alibaba, Temu and TP-Link hardware and software, the governor said in a statement on Monday, saying his state made the decision to protect the “privacy of Texans” from the Chinese government. The list, opens new tab also includes online fashion retailer Shein and battery maker CATL, according to the statement from Texas Governor Greg Abbott. This is the latest action from a state government official to ban employees from using technology created by Chinese-owned companies in the name of security.
Sinochem said on Monday it had put forward a “structured solution” to end a governance spat with the tyremaker’s Italian investor Camfin. The announcement was made as the government assesses options to limit Sinochem’s (600500.SS), opens new tab influence over Pirelli (PIRC.MI), opens new tab, or even turn it into a passive shareholder, in a bid to facilitate the tyremaker’s U.S. expansion. Beijing-controlled Sinochem is Pirelli’s largest shareholder with a 34.1% stake while Camfin, the vehicle of Italian businessman Marco Tronchetti Provera, holds a 25.3% stake, with plans to increase it to up to 29.9%. Sinochem said in a statement on Monday it had submitted a “structured, well-founded proposal based on standard and widely used corporate tools in line with best international practice, with the objective of addressing both Pirelli’s governance framework and the concerns relating to U.S. regulatory requirements if any.” Camfin and Pirelli itself complain that having a Chinese company as its main shareholder poses a hurdle to the group’s U.S. expansion, as Washington tightens restrictions on Chinese technology in the automotive sector. The Chinese investor said it hoped its proposal would be “neutrally assessed with genuine cooperative spirit by other involved parties,” without providing details of its solution.
The number of low-value ecommerce parcels entering the European Union increased to 5.8 billion in 2025, a 26% rise from the previous year, the European Commission said on Monday as the bloc plans to impose fees on the cheap products currently imported duty-free. The EU’s “de minimis” customs duty exemption for parcels valued at less than 150 euros ($174) has helped fuel rapid growth at online shopping platforms such as Temu and Shein, which send packages from China direct to consumers. EU lawmaker Dirk Gotink, chief negotiator on the new customs legislation, said imports of low-value packages were growing “at an unsustainable rate”. “It underlines the urgent need to frontload the European handling fee to July this year and to finalise the customs reform within the next months,” Gotink said in a statement. The EU plans to impose a 3 euro fee on low-value parcels starting on July 1, as a temporary measure before a final agreement is reached to scrap the duty exemption.
**HONG KONG
Delist
HSBC HOLDINGS (00005.HK) and HANG SENG BANK (00011.HK) issued a joint announcement stating that the privatization plan of HANG SENG BANK was sanctioned without modification by the High Court at the court hearing held on 23 January 2026.** The Capital Reduction was also confirmed by the High Court on the same day at the same hearing. An office copy of the Order, together with the Minute and the Return were registered by the Registrar of Companies in Hong Kong on 26 January 2026. Pursuant to the approval of the Hong Kong Stock Exchange, the listing of Hang Seng Bank Shares on the Hong Kong Stock Exchange will be withdrawn at 4:00 p.m. on 27 January 2026 (tomorrow).
**Government
Hong Kong’s Social Welfare Department (SWD) announced that, in accordance with the established mechanism,** the Government has outlined a proposal to adjust the standard payment rates under the Comprehensive Social Security Assistance (CSSA) Scheme and the rates of allowances under the Social Security Allowance (SSA) Scheme (namely Old Age Allowance, Old Age Living Allowance and Disability Allowance), up by 2.2%, effective from February 1, 2026. The Government will consult the Finance Committee (FC) of the Legislative Council on the proposed adjustment as early as possible. If approved by the FC, the adjusted rates will take retrospective effect from February 1, 2026. In addition, the Government has planned to adjust the maximum rent allowance under the CSSA Scheme in accordance with the relevant mechanism, with the adjustment retrospectively effective from February 1, 2026.
Buybacks - None announced
HSI Short Selling Monday 18.8% vs 16.5% Friday
Top shorts Chow Tai Fook (1929) 53%, China Overseas (688) 51%, MTRC (66) 49%, Wuxi Apptec (2359) 49%, Bank of China (HK) (2388) 47%, Hengan (1044) 46%, Lenovo (992) 45%, SHKP (16) 41%, Petrochina (857) 41%, CM Bank (3968) 39%, Ping An (2318) 39%, Wharf REIC (1997) 38%, Techtroncis (669) 38%, Hansoh Pharma (3692) 36%, Sinopec (386) 36%, Li Auto (2015) 35%, Sunny Optical (2382) 34%, ICBC (1398) 34%, BYD (1211) 34%, Henderson Land (12) 33%, Hang Lung Ppty (101) 32%, JD Logistics (2618) 32%, Nongfu Spring (9633) 31%, Bud APAC (1876) 31%, Bank of China (3988) 31%, Geely Auto (175) 31%, Power Assets 96) 31%, Haidilao (6862) 30%, POP Mart (9992) 30%, Meituan (3690) 29%, Kuaishou (1024) 29%, Li Ning (2331) 28%, CCB (939) 28%, Bidu (9888) 28%, ZTO Express (2057) 28%, JD-SW (9618) 27%, China Res Power (836) 27%, Link REIT (823) 27%, CK Asset (1113) 27%, Sino Biopharm (1177) 27%, Mengniu Dairy (2319) 27%, New Oriental (9901) 26%, CLP (2) 25%, OOIL (316) 25%, CKI (1038) 25%.
**WATCH
The High Speed Rail (Hong Kong Section) (HSR), operated by MTR CORPORATION (00066.HK), expanded the number of direct-access destinations to 110 across 19 provinces and directly-administered municipalities nationwide, as announced by MTR CORPORATION.** HSR services connecting Hong Kong to 16 new destinations, including Nanjing, Wuxi, and Hefei, have officially commenced today (26th). Furthermore, the HSR is launching a series of time-limited offers, including “Buy-One-Get-One-Free” promotions. The newly added destinations span across the Eastern China, Chaoshan, Xiamen and Fuzhou regions. Notably, key Eastern China cities such as Nanjing, Wuxi and Hefei are now served en-route via a new Shanghai Hongqiao route. To mark the inaugural trip of the new line, MTR CORPORATION collaborated with travel agencies to organize a special inaugural tour. The inaugural trip received an enthusiastic response, with over 400 passengers including those of the tour joining.
GWMOTOR (02333.HK) announced that its 2025 employee stock ownership program has entered the substantive execution phase. Around 418,000 A-shares held in GWMOTOR’s repurchase-specific securities account were transferred to the employee stock ownership program account on January 23 via non-trading transfer at a transfer price of RMB21.83 per share. As of today, the employee stock ownership program account holds 418,000 GWMOTOR A-shares, making up around 0.005% of the carmaker’s total share capital.
From 15 to 23 January, PERENNIAL INT’L (00725.HK)’s wholly-owned subsidiary acquired on the open market a total of 80,000 BABA-W (09988.HK) shares, representing approx. 0.00042% of the total shares in issue of BABA-W, at a total consideration of approx. $13.472 million, representing an average price of approx. $168.4 per share, according to PERENNIAL INT’L’s announcement.
AIR CHINA (00753.HK), CHINA EAST AIR (00670.HK) and CHINA SOUTH AIR (01055.HK) announced that tickets issued before today (26th) for flights departing to, from, or transiting through Japan between March 29 and October 24, 2026, can be changed for free or refunded, according to Chinese media outlet yicai.com. The free change and refund policy initially applied only to flights scheduled before March 28.
At TENCENT (00700.HK)’s annual meeting held today (26th), TENCENT’s Chairman, Pony Ma, said that 2025 is a major year for AI, according to Chinese media. This year, industry competition is intense, with companies focusing not only on AI but also on community group purchase and food delivery. TENCENT maintained a steady approach, with AI being the only area where it has made relatively significant investments. Over the past year, Hunyuan conducted structural adjustments to attract high-end talent more effectively, Ma added.
**Monday closings in EUROPE & US
DAX 0.13%, CAC -0.15%, FTSE 0.05%
**Markets mixed FTSE opened slightly higher but eased to traded around flat through the day. CAC and DAX sold down initially and then worked better to trade around flat in the afternoon. German Ifo data missed forecasts, the Business Climate was unchanged MoM
Investors cautious ahead of earnings but also reacting to geopolitical issues; Canadian PM Carney said that his country has no intention of pursuing a free trade agreement with China, after Trump threatened to impose 100% tariffs on Ottawa if it signed a trade deal with China.
Danone -2.1% off lows, after it was forced to recall batches of its infant formula globally after traces of a toxin were recovered.
Ryanair 2.23% after it lifted its full-year fare growth forecast to more than 7%, above its 1-2 points target, as revenues climbed 9%.
Airbus -2% on growing geopolitical challenges. In a note seen by Reuters, CEO Guillaume Fauray said 2026 has been marked by an “unprecedented number of crises.” The pan-European aerospace group will report earnings next month.
**DOW 0.64%, NDX 0.43%, S&P 0.5%, Russel 2K -0.36%
**Futures had been in the red pre market but then opened higher, DOW worked slightly better through the day. S&P traded sideways in a tight range, NDX worked slightly better in the morning but eased in the PM. Gold & Silver rallied to new highs again. Durable Goods were better than expected.
Investors optimistic ahead of key earnings this week and the FOMC decision but watching the reaction in Washington to a second shooting by ICE of a US citizen and the potential for another administration shut down, after several Democratic senators said they would not approve a $1.2 trillion funding package if it includes an allotment for Homeland Security.
Booz Allen Hamilton -8.1% after the Treasury Department said it canceled all contracts with the company, whose employees leaked the tax records of President Donald Trump, and the billionaires Jeff Bezos and Elon Musk, to media outlets. The Treasury said it has 31 separate contracts with Booz Allen Hamilton, totaling $4.8 million in annual spending and $21 million in total obligations.
GameStop 4.4% after Michael Burry disclosed that he has been buying shares of one-time meme darling, driving up the video game retailer by almost 7% intraday, In a Substack post, Burry said he wasn’t counting on a short squeeze to “realize long-term value.”
USA Rare Earth 7.9% having opened up 15% after the Trump administration took a stake. The company will issue 16.1 million shares of common stock and 17.6 million warrants.
CoreWeave 5.7% but was 10% in premarket trading on Monday after Nvidia announced it has invested $2 billion in the artificial intelligence infrastructure provider.
Banks JPMorgan Chase 1.12%, Citigroup 1.08% Wells Fargo 1.25%, Amex 0.43%
Ecommerce Meta 2.06%, Apple 2.97%, Amazon -0.31%, Netflix -0.45%, Disney 0.3%, Zoom Comms 11.28%, Alphabet 1.57% and Microsoft 0.93%,
Tech NXP Semi -0.61%, Nvidia -0.64%, Micron -2.64%, AMD -3.22%, Skyworks 1.36%, Intel -5.76%
Industrial/Discretionary Boeing -1.46%, Caterpillar 1.48%, Simon Property 0.32%, Kohl’s 0.11%, Gap -1.59%, United Airlines 0.02%, Carnival 0.42%, Wynn Resorts 0.47%
Auto Ford -0.88%, GM -0.31%, Tesla -3.09%,
Energy Chevron 0.47%, Exxon Mobil -0.1%, ConocoPhillips 0.44%
Consumer Staples Campbell Soup 1.31% General Mills 0.16%, JM Smucker 1.14%
**DAILY US CLOSING DATA
USD** weaker Bitcoin 1.86% at 87,952.12 (Asia morning) VIX 0.37% at 16.15
US Bonds T10 down more than 2 bpts to 4.215%, T2 down less than 2 bpts at 3.592% and T30 fell more than 2 bpts at 4.806%.
OIL Brent -0.4%, WTI -0.7% as traders asses impact of US snowstorm
Spot Gold 2.4% to $5,102 per ounce Spot Silver 4.9% to $107.9 per ounce, Copper -0.71% Platinum -6.04%, Palladium -1.73%.
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