PETER’S ASIAN BUSINESS & FINANCE BRIEFING – Thursday 21 May 2026, 06:00 Hong Kong

Key Takeaways

• Xi and Putin urge ceasefire, marking 25th anniversary of their treaty
• Indonesia hikes rates 50 bps to 5.25% to defend rupiah amid volatility
• Nvidia adds $80 bn to buyback after 85% revenue jump to $81.6 bn
• Brent crude falls ~6% to $105 as three supertankers cross Hormuz
• Global bond yields ease after three‑day sell‑off, easing inflation pressure

Pulse Analysis

The Beijing summit between Xi Jinping and Vladimir Putin highlighted a deepening Sino‑Russian alliance at a time when the Iran‑Israel war threatens to expand. Both leaders framed the conflict as a test of a "law of the jungle" world, urging an immediate cease‑fire and signing more than 20 trade and technology agreements. Their joint call for stability aims to protect energy flows, especially as Russia seeks to lock in Chinese demand for gas via the Power of Siberia 2 pipeline, while China positions itself as a mediator in a volatile geopolitical landscape.

In Asia’s financial markets, Indonesia’s surprise 50‑basis‑point hike to 5.25% marks the first tightening since 2022, reflecting a decisive shift to protect the rupiah after record lows. The move, coupled with a $10 bn reserve drawdown, underscores the fragility of emerging‑market currencies amid Middle‑East volatility. Meanwhile, a three‑day bond sell‑off that pushed yields to multi‑year highs began to reverse, as investors digested signs that oil supplies might resume through the Strait of Hormuz, tempering inflationary pressures in the United States, Europe, and Japan.

Corporate earnings added another layer of optimism. Nvidia’s fiscal‑first‑quarter results showed an 85% revenue surge to $81.6 bn, driven by AI‑related demand, and the company expanded its share‑repurchase program by $80 bn, signaling confidence in future cash flow. At the same time, Brent crude slipped nearly 6% to around $105 per barrel after three super‑tankers—carrying roughly 6 mn barrels—successfully navigated the Hormuz corridor, suggesting a potential easing of the energy crunch. Together, these dynamics illustrate how geopolitical negotiations, monetary policy shifts, and tech‑sector strength are reshaping risk assessments and capital allocation across global markets.