Newsquawk Daily Asia-Pac Opening News - 14th October 2026

US stocks were mixed, with the Nasdaq 100 pressured again by weakness in memory names, highlighted by the memory ETF DRAM closing with losses in excess of 3%. The move follows a sharp decline in the Kospi overnight, following the recent concerns regarding competition from China. Overall, sectors were varied as Health underperformed and hit on poor JNJ results, while Energy sat atop of the pile. Furthermore, US Q3 earnings season got underway and has been a mixed bag so far, in which JPM, GS, WFC, JNJ, and C all saw losses, while the highlights on Wednesday include ASML, BAC, and MS. USD was weaker, weighed by lower US yields, with crude prices choppy, although diesel futures are back at YTD highs. The main update was via the NY Fed President Williams, who sees one more rate hike as appropriate in 2026, as he previously said, and doesn't see a need for a rate hike in 2027 at this time, citing an optimistic view on inflation returning to 2%, not seeing broad price pressure outside AI and energy, while the focus turns to the US CPI report on Wednesday. Looking ahead, highlights include Japanese Money Supply, Australian MI Leading Index, Singapore GDP, Chinese Inflation & Trade Data, MAS Policy Review, Comments from ECB's Lagarde, BoE's Breeden, Bailey & Pill, Supply from Australia & Japan. SNAPSHOT STOCKS S&P 500 Flat Nasdaq Comp. -0.2% DJIA -0.4% Russell 2000 -0.4% ES Dec'26 Flat RTY Dec'26 -0.4% NQ Dec'26 -0.4% YM Dec'26 -0.4% FX DXY -0.4% (102.20) EUR/USD +0.4% USD/JPY -0.2% GBP/USD +0.4% BONDS US T-Note Dec'26 +6 ticks 10yr Bund Dec'26 +10 ticks US 10yr Yield 5.21% German 10yr Yield 3.46% ENERGY & METALS WTI Nov'26 +1.1% Brent Dec'26 -0.5% Spot Gold -0.3% LME Copper -0.4% CRYPTO Bitcoin +1.9% Ethereum +2.6% As of 21:50BST/16:50EDT LOOKING AHEAD Highlights include Japanese Money Supply, Australian MI Leading Index, Singapore GDP, Chinese Inflation & Trade Data, MAS Policy Review, Comments from ECB's Lagarde, BoE's Breeden, Bailey & Pill, Supply from Australia & Japan. Click for the Newsquawk Week Ahead. IRAN CONFLICT US President Trump said he will make a decision on Iran very soon and that he spoke with the Saudi Crown Prince, while he responded "I might" when asked if he would ask Turkey to join the Yemen response. Trump also commented that Houthis are behaving very badly and somebody should explain to them that he is not running in the elections and had already won, but will be there after the elections and will never forget. US official told Al Jazeera that Washington is closely monitoring Iran's attacks on maritime shipping in the Strait of Hormuz, describing them as unjustified acts of aggression. The official stated the US had warned Iran against attacking its warships and would respond by striking Iranian ships in retaliation for an attack on a US vessel. Israeli PM Netanyahu spoke with US President Trump last week about renewing the war on Iran, according to reports. American officials were reportedly impressed that Netanyahu wanted to attack before the elections. Netanyahu discussed renewing the war with Iran with Trump several times, while Trump reportedly told him, "Well, you know what, Bibi, go ahead and get ready." However, Trump did not make a firm commitment, saying it could happen now, be too late or never happen. Israeli PM Netanyahu and US President Trump last week discussed the possibility of launching a major new operation against Iran before the Israeli and US elections, according to Axios citing officials. Netanyahu and Trump spoke about a potential joint US-Israeli operation that would hit military and nuclear targets, while Netanyahu was concerned about Israeli intelligence indicating Iran was taking troubling steps to reconstitute its nuclear program, although his call with Trump about the possible attack took place before Trump said he would not strike Iran ahead of the Midterms. Israeli Defence Minister said anyone who attacks Israel "before or after the elections" will have their hand cut off and will pay the price, according to Al Hadath. Iran's Foreign Ministry said Iran and Oman have reached an understanding on establishing a temporary shipping route, with implementation details now being followed up, according to Al Jazeera. It added that the Iranian-Omani understanding was separate from the reopening of the Strait of Hormuz. Iranian Deputy Foreign Minister Gharibabadi said the US is aware of Tehran's demands and that Iran would be ready to take the necessary steps to normalise relations if they are met. He warned that Washington's choice of a military scenario concerning Iran would have consequences beyond the region. Gharibabadi also said the agreement between Iran and Oman on shipping through the Strait of Hormuz could be registered with the UN's International Maritime Organization (IMO), according to RIA. Iran's Major General Rezaei said the Strait of Hormuz is not open and remains under Iran's control. He added that some smuggling operations were taking place along the southern coast under extremely costly and dangerous conditions. IRGC Navy Commander said Iranian forces were waiting for American ships to approach the entrance to the Strait of Hormuz so they could sink them, adding that they were counting down the days until this happened, according to Tasnim. Iran's Nadaja said a "violating oil tanker caught fire in the eastern Strait of Hormuz", according to IRIB. It said surveillance teams had identified a damaged tanker that caught fire after switching off its tracking systems and attempting to pass through a prohibited area. The Iranian Navy added that its deployment in the eastern Strait of Hormuz, the Arabian Sea and the Sea of Oman gave it full control over enemy activities and vessel movements under constant surveillance. UKMTO said it received a report of an incident within the Strait of Hormuz on October 13th in which a container ship was struck by an unknown projectile. Saudi Arabia's Cabinet said Yemen's Houthis would face consequences for repeated attacks on the Kingdom, adding that Saudi Arabia would not allow its security or freedom of navigation in the Red Sea and the Bab al-Mandab Strait to be threatened. Saudi Arabia reportedly targeted the Ras Issa area in Hodeidah, Yemen, with airstrikes, while Yemeni media also reported a Saudi artillery attack in the Shada border area, according to Fars, citing Al Jazeera field sources. Saudi-led coalition said it had attacked an oil facility in Sanaa used by the Houthis to support their attacks in Yemen. Saudi Civil Defence issued an alert over potential danger in the Eastern Province, while explosions were heard in Saudi Arabia, according to Mehr. Loud booms were heard in Dhahran, in the vicinity of Saudi Aramco HQ, according to reports. Houthi spokesperson said the Yemeni Armed Forces were warning all employees and civilians near Aramco oil facilities to evacuate and stay away, describing the facilities as legitimate targets for their forces. Yemeni Deputy Defence Minister said the battle with the Houthis was "open" on all fronts, according to Al Hadath. Airstrikes targeted oil storage facilities at the Ras Issa and Bajil ports in Hodeidah province, which is under Houthi control, according to Sky News Arabia. A separate airstrike also targeted oil depots in Houthi-controlled Dhamar province. Iraq's Commander-in-Chief ordered combat readiness to be raised to the highest levels, according to INA. France's Foreign Ministry said France was participating in efforts to protect navigation in the Red Sea and the Bab al-Mandab Strait, according to Al Arabiya. US TRADE US stocks were mixed, with the Nasdaq 100 pressured again by weakness in memory names, highlighted by the memory ETF DRAM closing with losses in excess of 3%. The move follows a sharp decline in the Kospi overnight, following the recent concerns regarding competition from China. Overall, sectors were varied as Health underperformed and hit on poor JNJ results, while Energy sat atop of the pile. Furthermore, US Q3 earnings season got underway and has been a mixed bag so far, in which JPM, GS, WFC, JNJ, and C all saw losses, while the highlights on Wednesday include ASML, BAC, and MS. SPX -0.01% at 7,806, NDX -0.31% at 30,569, DJI -0.35% at 51,671, RUT -0.39% at 2,784. Click here for a detailed summary. TARIFFS/TRADE US Treasury Secretary Bessent held a call with South Korea's Deputy Prime Minister, during which the two officials discussed shared economic priorities and opportunities to strengthen bilateral cooperation. Indian Foreign Minister Jaishankar said India-US trade talks were heading in the right direction and that a deal was being finalised. NOTABLE HEADLINES Fed's Waller (voter) said the US remains the dominant country in developing AI models and that AI could contribute to widening GDP per capita. He said a decline in AI investment would put downward pressure on prices, while hyperscalers were still planning to spend trillions of dollars over the next three years. Inflation expectations remained well anchored, and real yields reflected the impact of real growth. Waller added that higher yields could do some of the Fed's work in restraining demand. Fed's Williams (voter) said there was no need for a rate hike in 2027 at this time, adding that disinflationary forces remained in play. He said the economy was not overheating and that one more interest-rate hike this year was appropriate. Williams saw no evidence that the labour market was contributing to inflation and said broad price pressures were not evident outside AI and energy. Fed's Barkin (2027 voter) said 2% inflation was achievable, adding that it was not an unrealistic target. Fed's Goolsbee (2027 voter) said AI was an inflation problem and that inflation remained far too high, according to Semafor. He said the job market still looked very stable and that growth and consumer spending had been solid, but the US was falling short on the inflation side of the Fed's mandate. US National Economic Council Director Hassett expects the income effect to strengthen around the turn of the year, adding that the Fed would need to keep inflation under control without damaging the economy. He said an inflation slowdown could give the Fed a reason to hold rates. DATA RECAP US Existing Home Sales (Sep) 3.99M vs. Exp. 3.95M (Prev. 3.93M) US ADP Employment Change Weekly 24.75K (Prev. 23.75K) FX USD was weaker, weighed by lower US yields, with crude prices choppy, although diesel futures are back at YTD highs. The main update was via the NY Fed President Williams, who sees one more rate hike as appropriate in 2026, as he previously said, and doesn't see a need for a rate hike in 2027 at this time, citing an optimistic view on inflation returning to 2%, not seeing broad price pressure outside AI and energy, while the focus turns to the US CPI report on Wednesday. EUR benefited from the retreat in the dollar to test the 1.1200 level to the upside, while there were some comments from ECB officials, including Lane, who stated that the increase in long-term interest rates constitutes a material tightening and is relevant for the ECB in setting policy stance. GBP clawed back Monday's losses but with price action remaining within the 1.3200 handle, while comments from BoE Governor Bailey provided very little incrementally. JPY was modestly firmer but failed to match peers' gains against the USD, with a Bloomberg report sending mixed signals in which sources stated the BoJ is to lean against back-to-back hikes in October, but could adjust the 2% inflation target language to "approx. 2% from "approaching 2". FIXED INCOME T-notes settled higher and the Treasury curve flattened on Tuesday, with front-end yields little changed and long-end yields declined, seemingly benefiting from haven demand amid a technology-led equity sell-off, while there were also dovish comments from Fed’s Williams. COMMODITIES Oil prices were choppy and settled with mild gains as Middle East headlines were plentiful, and showed no signs of abating with a continued exchange of strikes between Saudi and Houthis. OPEC's October Monthly Oil Market Report trimmed its 2026 oil demand forecast, modestly raised its 2027 demand outlook and slightly increased supply forecasts. Global oil demand is forecast to grow by 0.2mln BPD Y/Y in 2026 (prev. 0.4mln BPD Y/Y), while demand growth in 2027 is projected at around 2.6mln BPD (prev. 2.4mln BPD Y/Y). In September, crude oil production by countries participating in the Declaration of Cooperation (DoC) increased by 0.9mln BPD M/M to average around 39.07mln BPD, compared with an average of 38.05mln BPD in June, according to available secondary sources. US Strategic Petroleum Reserve crude stocks were unchanged at 283mln bbls last week, their lowest level since October 1982. GEOPOLITICAL RUSSIA-UKRAINE US President Trump said he was working with Russia and Ukraine to end the war and believed both Ukrainian President Zelensky and Russian President Putin wanted it to end. Trump said Russia was releasing diesel to the world and that both Russia and Ukraine were "a little bit off". Asked whether Russia had broken the ceasefire, he said he would provide an update later. Russian President Putin held a phone call with UAE's President, during which they discussed the Middle East and the diesel deal with the US. Russian Deputy Foreign Minister Ryabkov said the next round of consultations between Russia and the US could take place before the end of the year, adding that there was no specific agreement on a trilateral meeting concerning Ukraine, according to Interfax. ASIA-PAC NOTABLE HEADLINES BoJ is reportedly set to push back against consecutive interest-rate hikes in October, according to Bloomberg, citing sources. The Bank could also adjust its wording on the 2% inflation target, changing the description from "approaching 2%" to "approximately 2%". Financial developments have been in line with expectations, although underlying prices continue to rise. December remains a possibility for a rate move, while caution is needed to avoid exceeding the 2% inflation target. EU/UK NOTABLE HEADLINES UK Chancellor Healey is reportedly rejecting calls to equalise capital gains tax and income tax rates, according to the Financial Times, citing sources. However, the Treasury could still decide to raise capital gains tax by a small amount. It is also working on CGT relief intended to encourage entrepreneurs who sell their businesses to reinvest in the UK. ECB's Lane said the increase in long-term interest rates constitutes a material tightening and is relevant for the ECB in setting policy stance, while he said the potential for AI to replace some workers may weaken their bargaining power and moderate wage growth. ECB's Elderson said Europe's heatwave may have imposed costs equivalent to the region's projected economic output for 2026, highlighting a potentially material macroeconomic risk.