Newsquawk Daily Asia-Pac Opening News - 23rd October 2026

US stocks were pressured as weakness in AI-related names weighed, despite gains in the equal-weight gauge (RSP +0.7%), while earnings beats from Lam Research (LRCX -11.8%) and Meta (META -7.0%) were not well received, with the latter's limited FY27 guidance sparking concerns over Meta's spending, margins and funding, resulting in its 5yr CDS hitting a new all-time high. SpaceX (SPCX) fell 9.1%, reversing Wednesday's post-earnings gains, while Tesla (TSLA -3.0%) also retreated in the aftermath of its results. As such, Treasuries were underpinned amid a flight to quality and yields fell sharply once again, with both 7yr and 10yr yields plunging below 5.0% as the haven bid remained in full force. USD was lower on Thursday amid light currency-specific newsflow, as havens JPY and CHF outperformed given the risk-off tone. As for the Greenback, the geopolitical situation, as expected, remains in focus, and concerns over an escalation continue to increase after further Houthi attacks in the region. Once again, there was no tier-1 data out of the US, while Initial Jobless Claims continued to hover around the 200k mark, reflecting the low-hire, low-fire economy. Earnings remain in focus, and both Tesla and Meta saw losses after their reports, which weighed on wider risk and fuelled a further AI sell-off. Looking ahead, highlights include Australian Flash PMIs, Japanese Flash PMIs & National CPI, Supply from Australia. SNAPSHOT STOCKS S&P 500 -1.2% Nasdaq Comp. -2.6% DJIA Flat Russell 2000 +0.1% ES Dec'26 -1.2% RTY Dec'26 -0.1% NQ Dec'26 -3.0% YM Dec'26 +0.1% FX DXY -0.1% (101.62) EUR/USD -0.1% USD/JPY -0.8% GBP/USD Flat BONDS US T-Note Dec'26 +41 ticks 10yr Bund Dec'26 +92 ticks US 10yr Yield 4.95% German 10yr Yield 3.34% ENERGY & METALS WTI Dec'26 +2.0% Brent Dec'26 +3.9% Spot Gold -2.8% LME Copper -1.8% CRYPTO Bitcoin -3.1% Ethereum -3.2% As of 21:50BST/16:50EDT LOOKING AHEAD Highlights include Australian Flash PMIs, Japanese Flash PMIs & National CPI, Supply from Australia. IRAN CONFLICT US President Trump said Iran was attempting to drive up oil prices ahead of the US midterm elections, claiming Tehran was fabricating reports of attacks and mines. He added that more oil was passing through the Strait of Hormuz than before the conflict began. US Treasury Secretary Bessent said the Iranian regime's arrogance and belligerence continued to punish ordinary Iranians. Bessent also stated that Operation Economic Outcast is cutting off the regime's oil lifeline, denying it resources to fund terrorism, nuclear procurement and the lavish lifestyles of IRGC elites. US authorised offloading cargo involving some blocked vessels. US is authorising wind-down activities, limited safety and environmental transactions, and the offloading of cargo involving certain persons or vessels blocked on October 21, 2026. Washington will determine the timing of any further attacks on Iran, according to Al Hadath, citing sources who spoke to Israel Hayom. Furthermore, Israeli PM Netanyahu said Iran’s Mojtaba Khamenei had decided to complete development of the "nuclear bomb detonation system", adding that Iran was having difficulty controlling the system. Iranian Major General Rezaei said that if the conflict resumed, Tehran would have a broader plan, adding that enemy AI facilities were among its targets. Rezaei also said that Tehran was holding talks with Gulf states on a security structure that could prevent the region from becoming an arena of confrontation, according to Al Jazeera. Israeli PM Netanyahu said he would inform US President Trump of Israel's intended actions but would not ask for the green light to strike Iran, according to Al Arabiya. Israeli PM Netanyahu said 90% of the mission in Iran had been accomplished, according to Channel 7, adding that strikes on Iranian nuclear facilities would not be sufficient as long as the regime remained in power. Israeli military official told Channel 12 there was no reason to attack Iran before the elections, but said Israel would act if it detected preparations for an Iranian attack. IDF and US military have drawn up plans to resume joint strikes on Iran in the coming weeks, according to ABC. US source told Al Arabiya that the Florida meetings between Lebanon and Israel ended without a breakthrough. Saudi-led coalition said it destroyed a Houthi missile toward Najran. US TRADE US stocks were pressured as weakness in AI-related names weighed, despite gains in the equal-weight gauge (RSP +0.7%), while earnings beats from Lam Research (LRCX -11.8%) and Meta (META -7.0%) were not well received, with the latter's limited FY27 guidance sparking concerns over Meta's spending, margins and funding, resulting in its 5yr CDS hitting a new all-time high. SpaceX (SPCX) fell 9.1%, reversing Wednesday's post-earnings gains, while Tesla (TSLA -3.0%) also retreated in the aftermath of its results. As such, Treasuries were underpinned amid a flight to quality and yields fell sharply once again, with both 7yr and 10yr yields plunging below 5.0% as the haven bid remained in full force. SPX -1.21% at 7,663, NDX -2.90% at 28,959, DJI +0.02% at 52,867, RUT +0.11% at 2,784. Click here for a detailed summary. TARIFFS/TRADE US President Trump invoked Section 232 on wind turbine imports. Rumours are circulating that the US Treasury Department will propose a rule this week restricting US investment in China's biotechnology sector, according to Statnews, which posted on X. European Commission will discuss drug-pricing concerns raised by EU countries and pharmaceutical companies as they navigate pressure from the US, according to Politico. Canadian PM Carney launched a strategic partnership with Turkey, backed by a three-year action plan. This covers trade and investment, defence and security, energy, and people-to-people ties. Negotiators are due to meet in Ankara next month. Canadian PM Carney is expected to announce tariff support measures for the steel and automotive sectors. Canada's US trade negotiator Charette said don't expect to go back to tariff-free trade with the US. NOTABLE HEADLINES US President Trump signed EO on housing costs, aiming to cut mortgage insurance premiums. DATA RECAP US Kansas Fed Manufacturing Index (Oct): 16 (prev. 20). US Kansas Fed Composite Index (Oct): 11 (prev. 14). US Initial Jobless Claims (Oct/17): 194K (exp. 200K, prev. 200K). US Continuing Jobless Claims (Oct/10): 1,728K (exp. 1,720K, prev. 1,703K). FX USD was lower on Thursday amid light currency-specific newsflow, as havens JPY and CHF outperformed given the risk-off tone. As for the Greenback, the geopolitical situation, as expected, remains in focus, and concerns over an escalation continue to increase after further Houthi attacks in the region. Once again, there was no tier-1 data out of the US, while Initial Jobless Claims continued to hover around the 200k mark, reflecting the low-hire, low-fire economy. Earnings remain in focus, and both Tesla and Meta saw losses after their reports, which weighed on wider risk and fuelled a further AI sell-off. EUR saw slight losses, as concerns in France remain rife. MUFG writes that the sell-off in French government bonds could be extended by Moody's sovereign credit rating review, scheduled for Friday evening. Moody's currently rates France at Aa3, one notch above its S&P and Fitch ratings. GBP was ultimately flat on the day after two-way in GBP/USD through the 1.3400 level, while participants look ahead to UK Retail Sales and global PMI releases. JPY strengthened as havens outperformed amid the broad downbeat risk tone. Turkish TCMB Interest Rate Decision: 36% (exp. 36%, prev. 37%). FIXED INCOME T-notes settled higher after 7yr and 10yr yields plunged beneath 5% amid haven flow due to AI concerns. COMMODITIES Oil prices saw notable gains amid escalation concerns following renewed Houthi attacks on Saudi Arabia and a report that the IDF and US military have drawn up plans to resume joint strikes on Iran in the coming weeks. Russian Cabinet said gasoline and diesel production had increased, and that stocks were being built up, according to TASS. Deputy PM Novak noted positive developments in the Russian fuel market. GEOPOLITICAL RUSSIA-UKRAINE US President Trump called Elon Musk and asked him to lift Ukraine Starlink (SPCX) restrictions, according to WSJ. Ukrainian President Zelensky said Ukraine supported the US proposal for trilateral talks at the negotiator level as soon as possible, adding that Kyiv hoped a meeting could take place by early November, while discussions could cover peace and a possible leaders' summit. Ukrainian President Zelensky said Ukraine was ready for peace talks at the G20, but had not received an invitation, while Zelensky said a trilateral meeting was the minimum required, adding that Ukraine must be included in any meeting and that European participation would also be preferable. Furthermore, he said any agreement would require a referendum and that a freeze would be needed before further talks and US security guarantees, according to Fox News Russian President Putin said Russia is not prepared for war with Europe and that Russia is ready to resume tripartite talks, according to RIA. Russian envoy Dmitriev said Russian President Putin's call with US Special Envoy Witkoff was productive. Russia’s Kremlin said US envoy Witkoff briefed Russian President Putin on his talks in Oslo and new approaches, but that nothing of real use had emerged in the context of a peace settlement. It stated that Putin was ready in principle to resume trilateral peace talks in mid-November, with discussions also covering security guarantees for Russia and Ukraine after the conflict, while Witkoff indicated that Trump would be very satisfied with a decision discussed during the talks. Russia’s Kremlin said it would consider the US proposal, but added that its implementation depended largely on Ukraine. It also stated that a conversation between Putin and Trump would be both long and serious, while it warned that the situation would deteriorate if Ukraine failed to make the necessary decisions. Furthermore, it stated that a Putin-Trump-Xi meeting was possible, but no agenda had been set. ASIA-PAC NOTABLE HEADLINES China is seeking research and development and supply-chain cooperation with Airbus (AIR FP). EU/UK NOTABLE HEADLINES UK Chancellor Healey is to raise taxes on retiring entrepreneurs, according to The Telegraph. French President Macron said France would ban protests not organised by unions in the coming days. French government is reportedly considering a minimum-wage adjustment, according to Les Echos, citing sources. Labour Minister is due to meet unions to discuss purchasing power, with the minimum wage also on the agenda. ECB's Panetta said real wages had risen by around 50% in the US over 30 years, compared with a 20% increase in Germany and a rise of only a few percentage points in Italy, highlighting Europe's weaker growth dynamics.