Morning Wrap: Asian Stocks in the Green, Bitcoin Rallies 8% – Has Risk Appetite Returned? (20.08.2026)

Most Asian indices are trading in the green today. The Chinese Hang Seng is up 1.1%, while the Japanese Nikkei 225 has gained 1.3%. Meanwhile, the Korean KOSPI is trading significantly higher, up 5.9%.

📈 Equities

The primary catalyst for these gains can be attributed to yesterday's announcements by US Treasury Secretary Scott Bessent. His remarks led to a substantial decline in long-term bond yields (-1.8% or 9 bps in the case of the 30-year) and a notable (-0.9%) weakening of the US dollar. A portion of this capital has been redirected toward the equity markets, which has subsequently benefited Asian exchanges.

The KOSPI is further bolstered by a more than 12% rise in SK Hynix shares, following the company's announcement yesterday of a 40 trillion won (approximately $29 billion) share buyback plan. The firm intends to acquire and cancel up to 24 million shares by 19 November.

Regarding the Treasury Department's actions, the programme aims to:

• At least double the maximum threshold for individual buyback operations (from $2 billion to $4 billion);
• Focus on the long end of the curve, specifically the purchase of long-dated Treasury bonds (resulting in increased liquidity);
• Commence on 9 September and remain in effect until at least 4 November, when the Treasury Department will release new quarterly plans.