Newsquawk Daily Asia-Pac Opening News - 16th October 2026

US stocks saw mixed price action on Thursday, but ultimately rebounded, which saw the S&P 500 eke modest gains, the Nasdaq 100 was slightly lower, while the Dow and Russell 2000 outperformed. Nonetheless, the tech sector remained pressured on recent selling in AI, chip and memory stocks following a 7.5% drop in the KOSPI overnight, although sentiment steadily improved after the opening bell, with equities gradually recovering throughout the session as technology stocks pared losses and most sectors closed in the green, led by Health Care, Materials and Financials. USD weakness continued as AI concerns lingered, pressuring both tech stocks and US yields despite a hot PPI report prompting upward revisions to September PCE expectations. Meanwhile, Retail Sales beat on the headline, albeit driven by sales at gasoline stations amid higher energy prices; claims were little changed W/W, and regional data was mixed (NY Fed beat, Philly missed). Looking ahead, highlights include South Korean Unemployment Rate, Singapore Non-Oil Exports, Speakers including BoE Governor Bailey, Fed Chair Warsh & BoC Governor Macklem, Supply from Australia. SNAPSHOT STOCKS S&P 500 +0.3% Nasdaq Comp. +0.1% DJIA +1.1% Russell 2000 +1.4% ES Dec'26 +0.2% RTY Dec'26 +1.4% NQ Dec'26 -0.4% YM Dec'26 +1.1% FX DXY -0.5% (102.00) EUR/USD +0.5% USD/JPY +0.6% GBP/USD +0.6% BONDS US T-Note Dec'26 +25.5 ticks 10yr Bund Dec'26 +65 ticks US 10yr Yield 5.06% German 10yr Yield 3.41% ENERGY & METALS WTI Nov'26 +2.6% Brent Dec'26 -0.4% Spot Gold +1.5% LME Copper -1.3% CRYPTO Bitcoin +0.8% Ethereum +1.5% As of 21:50BST/16:50EDT LOOKING AHEAD Highlights include South Korean Unemployment Rate, Singapore Non-Oil Exports, Speakers including BoE Governor Bailey, Fed Chair Warsh & BoC Governor Macklem, Supply from Australia. Click for the Newsquawk Week Ahead. IRAN CONFLICT Israeli PM Netanyahu spoke with US Secretary of State Rubio and security officials, saying that if Tehran does not come to its senses, military action is a realistic scenario. US issued fresh Iran-related sanctions. US CENTCOM rejected the IRGC's claim that it controls the Strait of Hormuz, saying the US and regional partners control the waterway and commercial vessels continue to transit despite what it described as unwarranted IRGC aggression. CENTCOM also denied the IRGC's claim that a Singapore-flagged container ship struck a naval mine, saying the civilian vessel M/V GFS Pride was hit by an IRGC projectile and sank while being towed to shore. It also denied Iranian claims that hundreds of US service members had been killed in Jordan. Iran's Army Commander said the Strait of Hormuz would remain closed until the rights of the Iranian people are respected, warning that any threats to Iran's infrastructure would trigger a response several times greater. He said Tehran had established an equation whereby threats to Iran's infrastructure would result in multiple-fold damage to the infrastructure and interests of its adversaries, the "criminal Zionist regime" and anyone cooperating with it. Iran has warned Hezbollah to prepare for war as Tehran expects US strikes soon, diplomats told the Jerusalem Post. Iranian senior diplomat said they are considering withdrawing from the NPT, while the Lebanese case is an integral part of any possible future agreement, according to Tasnim. Iran's PGSA blacklisted multiple vessels, bringing the total number of blacklisted ships to 120. Iranian Navy surveillance teams said they had identified a tanker on fire after it entered a restricted area in the eastern Strait of Hormuz, according to Fars. The Navy said the vessel had attempted to cross the restricted area in the Sea of Oman after switching off its tracking systems. It added that the Strait of Hormuz remained under the full control and supervision of the Iranian Navy and IRGC Navy. Another tanker was later reported to have caught fire east of the Strait of Hormuz, according to IRIB News. Vessels were reportedly targeted in the Strait of Hormuz, with explosions heard in the area, according to Sabereen. Saudi-led coalition said the Houthis had attempted to attack dozens of airports, oil facilities and ports in Saudi Arabia, adding that it had destroyed more than 120 weapons depots in Yemen's mountains, along with numerous launchers. Saudi-led coalition said it intercepted and destroyed a Houthi-launched drone heading towards Saudi Arabia's southern region. A coalition spokesperson separately said a drone had been intercepted and destroyed in Khamis Mushait, according to Al Jazeera. Arab sources reported that an explosion was heard in Sanaa, Yemen. Saudi Arabia issued a warning by the National Early Warning Platform in the Jazan Province to alert of a potential danger, while it was separately reported that several explosions were heard in Jeddah. Saudi Arabia has reportedly asked Oman to arrange a new round of negotiations between the Houthis and the Riyadh-backed Yemeni government, according to Al Akhbar, citing sources. The report said Sanaa had previously rejected the offer, insisting that Riyadh fulfil its obligations as a principal party to the conflict rather than act as a mediator. Saudi Arabia separately said the Houthis had rejected a request to meet in Oman in recent weeks, according to Tasnim, citing AFP. Yemen's Deputy Defence Minister said fighting was raging on all fronts and that the Houthi militia would be defeated, according to Cairo News. He said the Houthis had no plans for peace and that Iran's Revolutionary Guard had provided them with substantial resources. US TRADE US stocks saw mixed price action on Thursday, but ultimately rebounded, which saw the S&P 500 eke modest gains, the Nasdaq 100 was slightly lower, while the Dow and Russell 2000 outperformed. Nonetheless, the tech sector remained pressured on recent selling in AI, chip and memory stocks following a 7.5% drop in the KOSPI overnight, although sentiment steadily improved after the opening bell, with equities gradually recovering throughout the session as technology stocks pared losses and most sectors closed in the green, led by Health Care, Materials and Financials. SPX +0.34 at 7,745, NDX -0.05% at 29,936, DJI +1.08% at 51,178, RUT +1.37% at 2,767. Click here for a detailed summary. TARIFFS/TRADE Chinese state trader bought another 10–13 US soybean cargoes on Wednesday for shipment between December and March, according to sources. EU is reportedly assessing additional sectors for potential trade quotas on Chinese imports, Bloomberg TV reported. EU is also planning a trade instrument that could block China from the single market. EU plans a trade tool that may block China from the single market. UK Trade Minister Anas Sarwar indicated that the UK could be prepared to align with EU tariffs on Chinese electric vehicles, according to Politico. France and Germany were previously reported to be willing to include the UK in the EU's "Made in Europe" policy if London aligns with the bloc's China tariffs, according to the Financial Times, citing a draft. India's Trade Minister said negotiations with the US were progressing in the right direction, adding that the first phase had been finalised and was undergoing legal drafting. NOTABLE HEADLINES US Treasury's liquidity-support buyback for 20–30-year securities accepted USD 6bln of USD 40.84bln in offers, accepting 3 of the 42 eligible securities. Google (GOOG) Quantum AI publishes a breakthrough in quantum computing. DATA RECAP US PPI (Sep M/M) 1.3% vs. Exp. 0.5% (Prev. 0.5%) US PPI (Sep Y/Y) 6.3% vs. Exp. 5.3% (Prev. 5.6%) US Core PPI (Sep M/M) 0.7% vs. Exp. 0.3% (Prev. 0.2%) US Core PPI (Sep Y/Y) 5.0% vs. Exp. 4.4% (Prev. 4.8%) US Retail Sales (Sep M/M) 0.8% vs. Exp. 0.3% (Prev. 1.3%) US NY Empire State Manufacturing Index (Oct) 25.50 vs. Exp. 10.3 (Prev. 7.60) US Philadelphia Fed Manufacturing Index (Oct) 20.9 vs. Exp. 28.4 (Prev. 37.8) US Philly Fed Employment (Oct) 9.1 (Prev. 11.8) US Philly Fed Business Conditions (Oct) 33.0 (Prev. 52.9) US Philly Fed CAPEX Index (Oct) 34.90 (Prev. 37.10) US Philly Fed New Orders (Oct) 4.3 (Prev. 29.2) US Philly Fed Prices Paid (Oct) 43.20 (Prev. 48.60) US Initial Jobless Claims (Oct/10) 199.0K vs. Exp. 200K (Prev. 198.0K) US Continuing Jobless Claims (Oct/03) 1,710.0K vs. Exp. 1,710K (Prev. 1,714.0K) FX USD weakness continued as AI concerns lingered, pressuring both tech stocks and US yields despite a hot PPI report prompting upward revisions to September PCE expectations. Meanwhile, Retail Sales beat on the headline, albeit driven by sales at gasoline stations amid higher energy prices; claims were little changed W/W, and regional data was mixed (NY Fed beat, Philly missed). EUR strengthened against the buck after strengthening throughout the prior Asia-Pac session, while price action during European and US trade was choppy. GBP was one of the better performers ahead of the October budget. The Guardian reported that the UK Chancellor is set to raise taxes on banks, potentially reversing previous cuts to the bank surcharge, which could raise more than GBP 2bln a year. Furthermore, UK GDP was better than expected in August, rising 0.1% (exp. -0.1%), while there were comments from BoE officials as Greene reiterated that she sees risks of second-round effects as “pretty significant”, and Breeden questioned whether the energy shock is gone or just delayed. JPY was marginally firmer against the buck but off today's best levels with USD/JPY fluctuating through the 158.00 level. FIXED INCOME T-notes settled higher and yields continued to decline despite more hot inflation prints. Markets initially focused on the hotter PPI and stronger Retail Sales data, resulting in a brief spike in Treasury yields, although the dip in T-note futures was swiftly bought as technology stocks remained under pressure, particularly in the Nasdaq, potentially supporting haven demand and helping T-notes climb to fresh session highs. As the technology sector subsequently began to recover, T-notes came under renewed selling pressure, ultimately settling off their session highs. Despite another hotter-than-expected inflation print, money market pricing for an October Fed rate hike eased from Wednesday's levels, when markets assigned a roughly 50% probability of a 25bps increase. This has since fallen to around 30%. COMMODITIES Oil prices were mixed as WTI outperformed Brent, rising over USD 2/bbl, while Brent was slightly lower. US EIA crude oil stocks fell by 8.557mln barrels in the week ended October 9th, compared with an expected decline of 0.3mln barrels and a previous fall of 3.186mln barrels. The Strategic Petroleum Reserve was unchanged at 283mln barrels. US has reportedly told IEA member countries it is unhappy with the planned emergency oil release and suggested supplementing it with a further 100mln barrels. The IEA agreed to complete the outstanding release of 100mln barrels and is seeking to release 20mln barrels of diesel as soon as possible. The report that Washington was unhappy with the emergency release and had proposed an additional 100mln barrels was also reported separately. Syria's Oil Company's press office reported an explosion and fire on a major gas transmission line on the outskirts of Hasakah, according to Tasnim. The Japsa gas export pipeline in the Al-Arabidi area, around 60 kilometres from Shaddadi, was reportedly targeted in an attack. France's Foreign Ministry said it was beginning to implement operational agreements to help protect Saudi Arabia's oil infrastructure. GEOPOLITICAL RUSSIA-UKRAINE US EIA crude oil stocks fell by 8.557mln barrels in the week ended October 9th, compared with an expected decline of 0.3mln barrels and a previous fall of 3.186mln barrels. The Strategic Petroleum Reserve was unchanged at 283mln barrels. US has reportedly told IEA member countries it is unhappy with the planned emergency oil release and suggested supplementing it with a further 100mln barrels. The IEA agreed to complete the outstanding release of 100mln barrels and is seeking to release 20mln barrels of diesel as soon as possible. The report that Washington was unhappy with the emergency release and had proposed an additional 100mln barrels was also reported separately. Syria's Oil Company's press office reported an explosion and fire on a major gas transmission line on the outskirts of Hasakah, according to Tasnim. The Japsa gas export pipeline in the Al-Arabidi area, around 60 kilometres from Shaddadi, was reportedly targeted in an attack. France's Foreign Ministry said it was beginning to implement operational agreements to help protect Saudi Arabia's oil infrastructure. ASIA-PAC NOTABLE HEADLINES PBoC Governor reiterated that China would maintain a moderately loose monetary policy. Japanese Ministry of Finance official said recent stock market moves were not specifically discussed at G7 and G20 meetings. The official added that authorities were monitoring market movements closely but would not comment on every move in stocks, foreign exchange or bond markets. EU/UK NOTABLE HEADLINES UK Chancellor Healey said the budget would comply with fiscal rules, provide the UK with some breathing room and strengthen the economy's resilience. He declined to comment on tax policy ahead of the budget and said banks were very important to the UK. Separately, Healey is reportedly poised to raise taxes on banks in the October budget, according to The Guardian. BoE's Breeden said policymakers were assessing whether the energy shock had passed or had merely been delayed, adding that the loosening labour market should help prevent wage-price pressures similar to those seen in 2022. BoE's Greene said the risks of second-round effects were quite significant. German Chancellor Merz and French President Macron have agreed on far-reaching reforms to European automotive policy, according to Handelsblatt. ECB's Kazaks said there was no immediate need to change interest rates, although inflationary pressures remained strong in the near term. ECB officials are reportedly becoming impatient for President Lagarde to clarify her plans. DATA RECAP UK GDP (Aug M/M) 0.1% vs. Exp. -0.1% (Prev. 0.4%) UK GDP (Aug Y/Y) 2.1% vs. Exp. 1.7% (Prev. 1.8%) UK GDP 3-Month Average (Aug) 0.7% vs. Exp. 0.5% (Prev. 0.5%) UK Industrial Production (Aug Y/Y) 1.6% vs. Exp. 0.7% (Prev. 0.8%) European Industrial Production (Aug M/M) -0.5% vs. Exp. 0% (Prev. -0.3%) European Industrial Production (Aug Y/Y) -1.1% vs. Exp. -0.1% (Prev. -0.3%)