Asian Stocks Edge Up Ahead of Fed Decision; A-Share Tech Front-Runs, Yields Top 5%

📊 Asian Markets Today

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1. Asian shares edge up ahead of Fed decision as oil slips

Source: Reuters

Asian stocks edged higher on Wednesday as a respite in the global bond selloff and a drop in oil prices steadied nerves ahead of a pivotal Federal Reserve decision later in the day. After a shaky start, MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.5%, snapping a four-day losing streak, with Korean and Taiwanese shares leading the way. The Nikkei 225 rose 0.3%, while S&P 500 e-mini futures were 0.2% higher.

The yield on the U.S. 10-year Treasury was flat at 4.9938% after attempting to retest the 5% mark, having broken through that threshold on Tuesday for the first time in three years. The Fed will announce its latest policy decision later in the day, followed by a news conference by Chair Kevin Warsh. JPMorgan analysts said the market consensus is for a 25-basis-point hike with little forward guidance, noting the meeting "could be a clearing event" to reset rate-hike expectations, but warned that "inaction risks institutional credibility." If no hike materialises and yields extend their rally on higher inflation expectations, the bank estimates the S&P 500 could move 1.25%-1.75% lower.

CME's FedWatch tool showed traders pricing an implied 93% probability of a 25-basis-point hike, compared with 61.2% a week earlier. Overnight on Wall Street, the S&P 500 fell 0.5%, its second straight decline, as the 10-year yield hit its highest since 2007. The U.S. dollar index edged down 0.1% to 99.601. Oil slipped in Asian trade, with Brent crude futures down 0.6% at $108.13 a barrel after rising 2.9% on Tuesday. Bitcoin was off 0.1% at $75,821.94, while ether slipped 0.2% to $2,402.12.

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2. A-share tech stocks "front-run" the Fed decision

Source: Sina Finance

Ahead of the Fed's September rate decision, due early on Sept 17 Beijing time, Chinese A-share tech stocks staged a rare "front-running" rally on Sept 16. The STAR 50 Index surged 4.14% to 1,616.19 points on heavy volume, with semiconductors and optical communications advancing together as wafer, equipment, analog-chip, advanced-packaging and foundry names all firmed and capital flowed back into optical chips and modules. Meanwhile banks, insurers and white goods retreated.

The timing was telling: turnover in the previous session was just 1.62 trillion yuan, and three of the five trading sessions since Sept 10 saw turnover below 1.7 trillion yuan. At 2 a.m. Beijing time on Sept 17 the Fed will unveil its decision; CME FedWatch put the odds of a 25-basis-point hike at 92.4%, which would be the first hike since July 2023. Some institutions argued the hike is already fully priced in, so once it lands the discount-rate pressure on tech valuations could ease at the margin. By the close, the semiconductor wafer index rose 7.56%, semiconductor equipment 5.34% and optical chips 5.23%, while optical communications, optical switches and wafer sectors all gained more than 4%.

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3. Nikkei rebounds 0.69%, snapping a three-day slide

Source: Kyodo News

Tokyo's Nikkei index rebounded on Sept 16 after three straight losing sessions, closing up 438.90 points, or 0.69%, at 63,923.00, Kyodo News reported, as bargain-hunting prevailed after the recent declines. The broader TOPIX rose 24.56 points, or 0.61%, to 4,061.72, with full-day volume of 1.76909 billion shares.

The Nikkei had fallen more than 1,700 points over the prior three sessions, prompting investors to buy beaten-down shares on Sept 16; some high-priced semiconductor names were sought and led gains, while a pause in the rise of long-term interest rates also helped. Dragged by an overnight drop on Wall Street, the index wavered around the previous close. With the U.S. Federal Open Market Committee (FOMC) about to release its decision, the market stayed cautious.

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4. Japan and Korea stocks rise, memory chips in focus

Source: Sohu Finance

On Sept 16, the Nikkei 225 rose 0.69% to 63,923.00 and Korea's KOSPI rose 1.37% to 6,717.97. Among individual names, Samsung Electronics gained 2.01% and SK Hynix 4.08%.

Sources said SK Hynix is in talks with Intel over a cooperation deal that could see memory chips produced on U.S. soil for the first time — one option being that SK Hynix leases part of Intel's Ohio plant, and another a joint venture with Intel and a large cloud provider. A source said the talks are exploratory and no decision has been made. South Korea's Deputy Prime Minister Kyunghoon Bae said on Wednesday that Korea must advance AI without hesitation or delay, and will soon share its next-stage independent AI foundation model plan.

Looking ahead, a BofA Securities report reiterated the view that AI is shifting from proving investment returns to addressing structural and physical constraints such as chips and power, with memory-chip shortages and price increases remaining a key growth lever. The bank raised its 2030 global semiconductor total addressable market (TAM) forecast to $3.2 trillion from $2.7 trillion, an 18% compound annual growth rate from 2026 to 2030.

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5. Bond yields and oil surge, yet investors stay in stocks

Source: Sina Finance

In recent weeks oil prices and bond yields have both surged, making for a wild ride, yet many investors remain committed as they await returns. On Tuesday the U.S. 10-year Treasury yield broke through the closely watched 5% mark, extending a global sovereign bond selloff, while oil held above $100 a barrel amid persistent supply shocks from the Iran war.

Despite the energy crisis, surging bond yields and repeated geopolitical swings, global stocks have been strong this year: the S&P 500 is up more than 10.8%, the tech-heavy Nasdaq Composite 11.8% and the Dow 8.4%; beyond the U.S., Korea's KOSPI, the Nikkei 225 and Europe's Stoxx 600 have also gained. BofA's latest global fund manager survey showed the "over-optimism" of the summer has faded, but investors remain broadly positive on growth and earnings. The survey of 170 investors managing $470 billion found 49% net overweight global equities in September; expectations for double-digit EPS growth over the next 12 months hit their highest since August 2021; 38% expect a global economic "boom" next year; and bond allocations fell to their lowest since May 2022. BlackRock Investment Institute said rising yields have not changed institutions' preference for risk assets, only "raised the bar" for returns.

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6. UK August CPI rises to 3.1%

Source: Sina Finance

Xinhua Finance, London, Sept 16 (Reporter Zhang Yadong) — After an upward move in July, UK inflation continued rising in August. Data from the Office for National Statistics on Sept 16 showed August CPI rose to 3.1% year-on-year from 2.9% in July.

Excluding energy and food, core inflation in August was unchanged from July at 2.6%, and services inflation was also unchanged at 3.4%. Since July, energy price rises triggered by the Middle East war have passed through to British households, with the energy price cap raised, but the data show the impact has not yet spread to more prices. As core and services inflation did not rise markedly in August, the market expects the Bank of England will not rush to hike rates.

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7. Big state banks clear out their village banks

Source: Sina Finance

Citing the 2026 interim reports of the six large state-owned banks, Caijing reported that many village banks once set up to fill gaps in county-level financial services are being merged into their parent banks via "village-to-branch" conversions, winding down their independent legal-person status. Agricultural Bank of China and Bank of Communications completed the clearing of their village banks in the first half, while ICBC has only one left.

Within the big-bank system, the remaining village banks are concentrated under Bank of China's Zhongyin Fullerton, which still has 134 village banks with 185 township sub-branches across 22 provinces. But it too has begun restructuring: in August 2026, Shanghai Pudong Zhongyin Fullerton Village Bank announced a business migration, with all business to be taken over by Bank of China's Shanghai branch upon regulatory approval. The consolidation does not weaken county-level services: as of end-June 2026, the six big banks' agriculture/county loan balances grew about 6%-11% from the start of the year.

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8. Chicecream returns at half price, relaunching from 6.9 yuan in Q4

Source: Sina Finance

Chicecream, once known for the "ice cream assassin" pricing controversy, has a new operator after bankruptcy liquidation. Its products are set to relaunch in the fourth quarter at suggested retail prices of 6.9 to 7.9 yuan a bar, roughly half the previous 14 to 16 yuan, according to the new operations team.

At the 28th China Ice Cream Industry Expo, the revived brand exhibited products that keep the signature tile shape but with materially adjusted pricing. The team said the revived Chicecream keeps its old recipes and flavors, with three flavors launching first, produced by contract manufacturers and set to hit shelves at scale in the fourth quarter. Considering market acceptance, it adjusted the suggested retail prices lower, while factory prices are not far from before.

Founded in 2018, Chicecream became a hit on the strength of its tile-shaped bars and premium positioning, surpassing 1 billion yuan in sales in 2021, but after repeated public controversies it ran into trouble. In July 2025 it entered bankruptcy review, with 186 million yuan in book assets and 782 million yuan in due debts; in May 2026 its 508 intangible assets sold for 21.1 million yuan. The new operator is Zhongxuegao Brand Management (Shanghai) Co., whose shareholders include Wang Yaqing and Changsha Hujia Food Technology Co.

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9. Hong Kong unveils its first five-year plan

Source: Yicai

Hong Kong SAR Chief Executive John Lee today (Sept 16) unveiled the "First Five-Year Plan for Economic and Social Development of the Hong Kong Special Administrative Region (2026-2030)" together with the "2026 Policy Address". Lee said the five-year plan is the blueprint for Hong Kong's development over the next five years, while the Policy Address is the annual report implementing it that sets out policy priorities based on Hong Kong's actual situation. The five-year plan's cover is blue, representing blue skies, openness, progress and steadiness; the Policy Address cover remains green, representing policy continuity, vitality and hope.

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10. Douyin handled over 45,000 violating financial-content items in Q3

Source: The Paper

Douyin said it is deepening governance of financial content. Since releasing its "Douyin Community Financial Industry Covenant (Trial)" in late 2025, the platform has been refining its governance strategy and improving its financial-content ecosystem. It found financial violations are highly concealed, varied and fast-evolving, concentrated in qualification issues, irregular marketing and overseas operations.

In response, the platform tightened its qualification standards, fully revoking 6,888 "financial planner" certifications, and advanced campaigns against cross-border irregular marketing, illegal stock and FX recommendations, and content that improperly chases traffic. In the third quarter of 2026, it handled more than 45,000 violating items and more than 1,000 violating accounts, and fully banned a batch of high-risk accounts that caused users financial losses.

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