These reports are prepared by students for educational purposes only and do not constitute investment advice or a recommendation to buy or sell any securities.
Published by Henry LI Yan Heng
Written by Jackie LUI Ching Ho
The S&P 500 Energy Index (SPNY) was a significant driver of market sentiment this week, rising 1.92% despite severe volatility in underlying commodities. Crude oil WTI (OIL) hit an intraday high of $119.50 on Monday as geopolitical tensions continued, before falling below $90 by mid-week. This revision followed the G7's coordinated efforts to release emergency oil reserves as well as indications of a quick resolution to the crisis. Despite these price fluctuations, the sector served as a safe haven for capital flowing out of growth-oriented equities.
The consumer discretionary sector continued under pressure, with the S&P 500 Consumer Discretionary Index falling 1.85% as macroeconomic headwinds dampened the outlook for household spending. Sentiment was further dampened by the February jobs data, which reported a loss of 92,000 jobs against an estimate of 50,000 additions, raising the national unemployment rate to 4.4%. These labor market issues were exacerbated by a double-digit increase in diesel and fuel prices, which had a direct impact on the transportation and travel industries. Cruise operators saw their valuations fall by more than 4% as rising energy costs may damage operating profits, which may lead to investors’ concerns.
CF Industries (CF) CF Industries climbed 11.91% this week. As the main North American nitrogen producer, CF benefited from Middle Eastern supply interruptions and declining European ammonia production. While the company continues to face a $200 million EBITDA headwind due to the prolonged outage at its Yazoo City facility, investor interest is being fueled by a strategic shift towards sustainable energy. This was reinforced by management's confirmation that civil work of $4 billion joint venture will begin in Q2 2026, solidifying the company's transition from a traditional fertilizer producer to a key infrastructure provider in the emerging low- carbon hydrogen economy.
Oracle Corporation (ORCL) Oracle Corporation also reported a strong performance, with its fiscal Q3 2026 results exceeding market expectations. The company reported overall revenue of $17.2 billion, up 22% YoY, while GAAP EPS increased 24% to $1.27. As a result, its share price gain 9.18% the next day. Remaining Performance Obligations (RPO) rose 325% to $553 billion, due to enormous contracts for AI training capacity. Furthermore, Oracle disclosed that a substantial portion of the new RPO includes client prepayments. These effectively alleviated investor concerns about Oracle's large capital expenditure by demonstrating future revenue resilience and robust market demand for its cloud infrastructure.
Written by Joshua CHAN
European markets posted a second straight week of modest losses overall, with the DAX down 0.61%, CAC 40 down 1.03%, FTSE 100 down 0.23%, and the Euro Stoxx 50 Index ending flat amid surging energy prices due to instability in world supply that stoked inflation fears and higher bond yields. Banks extended recent declines on concerns over potential ECB rate hikes, squeezed margins, and macro headwinds – several major names dropped sharply mid-week. Industrials and select cyclicals also faced pressure from rising energy costs and supply risks, dragging names tied to manufacturing and heavy industry.
On the brighter side, utilities led sectoral gains as investors rotated toward defensive plays, while energy and basic materials showed selective resilience amid commodity swings. Technology held up relatively with AI-related segments, partly offsetting broader weaknesses. Healthcare remained mixed but stable. Sentiment stayed cautious heading into the weekend, with focus on recent Middle East conditions and their impacts on the world economy.
GSK plc (GSK.L) The British pharmaceutical major remained a notable name in market discussions, delivering steady performance amid healthcare sector stability and positive pipeline momentum. The stock benefited from defensive appeal in a volatile week, with investors eyeing its growth outlook and strategic positioning in key therapies where solid execution could drive further gains, even as broader inflation and geopolitical uncertainties linger.
TotalEnergies SE (TTE.PA) The French energy giant climbed this week as oil prices surged, boosting upstream margins and cash-flow visibility for the integrated major. The stock outperformed the broader market on the commodity tailwind and attractive dividend yield, standing out in a risk-off environment which is possibly a resilient play if geopolitical risks keep energy prices elevated.
Written by William ZHANG
This week, developments in China’s semiconductor and AI infrastructure sector were shaped by further progress in domestic chip manufacturing and continuing changes in external policy conditions. Reuters reported that Hua Hong Group had developed 7- nanometer manufacturing technology for AI-related chips, marking another step in China’s push for semiconductor self-sufficiency and potentially expanding domestic advanced-chip capacity beyond SMIC.
At the same time, export policy remained relevant, as recent U.S. rule changes shifted some advanced semiconductor export restrictions toward case-by-case review rather than blanket denial, suggesting that access conditions for high-end AI hardware may remain fluid even as China continues to invest in local alternatives. Together, these factors indicated that the sector remained sensitive both to domestic technological breakthroughs and to overseas policy developments affecting advanced computing supply chains.
Written by Arman Abilkassym
The cost of Malaysia’s subsidies for fuel at the pump is projected to rise by more than four times in the short term, the government has said. Global crude prices have surged, with Brent crude prices spiking by 63 per cent to a high of US$119 per barrel on Monday before settling to about US$100 per barrel later in the week. To cushion the blow on consumers and local businesses, Malaysia’s government on Friday said it would spend about 3.2 billion ringgit (US$812.8 million) a month to maintain the price of subsidised petrol and diesel in the short term.
Japan’s development agency, JICA, is providing technical support to Malaysia to help develop environmentally-friendly rare earth refining techniques. Japanese specialists in resource geology and environmental chemistry will work with Malaysian institutions to improve mineral processing practices while reducing the environmental footprint associated with rare earth extraction. The cooperation includes a training program in which approximately ten Malaysian mineral-processing specialists will travel to Japan to learn advanced refining methods and environmental management practices. The initiative marks the first time Japan has provided formal technical cooperation to Malaysia, specifically focused on rare earth industry development.
Kaga Electronics is establishing a circuit board assembly plant in Singapore. The new facility is expected to begin operations as early as spring and will support electronics manufacturing services (EMS) for customers seeking alternative production bases in Southeast Asia. Kaga Electronics provides EMS and semiconductor distribution services through manufacturing operations across China, Thailand, Malaysia, and Mexico. The new plant will focus on circuit board assembly, supporting customers across a range of electronics sectors while helping companies maintain supply continuity.
Written by Tiffany ZHANG Difei
Semiconductors and technology was the most volatile sector, experiencing a dramatic plunge and subsequent sharp recovery. The week began with a severe sell-off on Monday, March 9, as escalating Middle East activities and surging oil prices triggered broad market panic. The sector was the hardest hit, with semiconductor testing company Advantest (6857.JP) plunging 12.84% and chipmaking giant Tokyo Electron (8035.JP) dropping 8.83%. However, the sector staged a powerful rebound mid-week. On Wednesday, March 11, tech stocks led a broader market recovery, driven by strong earnings from Oracle Corp. which lifted sentiment for AI-related names. Advantest and SoftBank Group (9984.JP) were among the key beneficiaries of this bounce.
The banking and financial sector experienced a turbulent week, mirroring the broader market's volatility. On the initial day of the market crash (March 9), financial stocks were heavily sold off alongside the broader index. Major banks like Mitsubishi UFJ Financial Group (8306.JP) fell 7.29%, and Sumitomo Mitsui Financial Group (8316.JP) dropped 6.6% as investors fled risk assets amid fears of an economic slowdown. However, the sector showed resilience later in the week. On March 11, even as the Nikkei rallied, the banking and insurance sectors diverged, ending the day as two of the few decliners. This suggests that while the worst of the panic had subsided, uncertainty regarding the impact of geopolitical events on the economy continued to weigh on financials.
Written by Matthew Sze-to
Index: Figure (daily, weekly)
The Nifty IT index declined sharply, closing at 29,071.30, down ~1.72% this week and contributing to broader market weakness. The sector has faced pressure in recent weeks, with cumulative losses of around 3-11% in the short term amid geopolitical uncertainties, rising crude oil prices, and risk-off sentiment globally. This underperformance aligns with declines in broader benchmarks, as investors remain cautious over political instabilities and their impacts on energy costs and global growth. While the PMI data for February showed solid domestic demand supporting manufacturing and services expansion, the IT sector continues to tackle concerns arising from softer global client spending, competitive pressures, and limited visibility on large deal renewals or accelerations. Export-oriented growth in services remains a bright spot in PMI readings, but overall sector sentiment is tempered by macroeconomic uncertainties and potential delays in discretionary tech budgets.
Written by He Xu Doraa
During the week of March 9–13, 2026, the Hong Kong market experienced a notable divergence as revealed by the 1.2% drop of Hang Seng Index (HSI) to 25,465.60 at close. This decline was primarily fueled by escalating geopolitical tensions in the Middle East, sparking fears of global stagflation. The energy sector bore the brunt of this volatility, with heavyweights like Zijin Mining (02899.HK) plunging 4.7% weekly. Furthermore, the financial sector faced pressure from both rising 1-month HIBOR rates (reaching 2.8%) and regulatory concerns following news of an insider-trading probe, which saw firms like Guotai Junan International drop over 4%.
In contrast, the Hang Seng Tech Index (HSTECH) and China Enterprises Index (HSCEI) proved more resilient, posting gains of 0.62% and 0.5% respectively. This outperformance was driven by post-"Two Sessions" policy optimism from Beijing, providing a significant tailwind for large-cap tech names such as Alibaba, Tencent, and Xiaomi, which saw strong inflows early in the week. While global risk appetite soured toward the weekend, these "China-proxy" indices were anchored by stable domestic macro data, including a steady 3.9% unemployment rate and a moderate 1.1% inflation rate. The market also processed the latest Hang Seng Index rebalancing, which officially took effect on March 9, adding fresh constituents like Laopu Gold (06181.HK) to the mix.
Knowledge Atlas Technology (02513.HK) Knowledge Atlas Technology (02513.HK) experienced a landmark week characterized by the nationwide launch of its deployment plan and the introduction of its one-click localized AI installation tool for government and enterprise use. The company’s stock price witnessed fierce shock movements on March 10 and 11, specifically surging 20.3% on March 10 to a peak of HKD 697. This volatility was primarily driven by intense market speculation surrounding the company’s deployment plan and general optimism over AI agents. While the stock hit multi-day highs, it faced immediate resistance and warning signals: by March 11, despite underlying optimism, regulatory warnings from the Bloomberg report regarding Chinese government agencies being cautioned against installing the new tool began to introduce sharp intraday fluctuations and profit-taking.
Zijin Mining Group (02899.HK) During the week of March 9–13, 2026, Zijin Mining Group (02899.HK) faced a volatile period marked by a 3.68% sharp drop on March 13, ending at HKD 38.26 despite strong long-term upgrades from Goldman Sachs and Citi regarding 2026 copper and gold price forecasts. The stock’s decline was primarily triggered by a technical "Death Cross" and a broader 0.2% slip in the mineral category of domestic bulk commodities. While the company stayed aggressive by securing a RMB 390 million bid for tungsten and tin resources in Xinjiang, market sentiment was dampened by a sell-off in precious metals linked to Federal Reserve rate-cut delays and a localized dip in copper prices below the USD 12,000/ton threshold.
Pop Mart International Group Limited (09992.HK) Between March 9 and 13, 2026, Pop Mart (09992.HK) saw its stock rebound from HKD 200.00 to a high of HKD 214.80, driven by a massive retail hit: the new series sold out in under one minute on March 12. Market sentiment was further stirred by news of a legal settlement and potential collaboration with Bambu Lab over 3D-printed IP replicas. Investors are now positioning ahead of the March 25 annual results, eyeing high growth from the company's aggressive expansion into Mexico and Southeast Asia.
Published by Hannah Myat Su Mon
Written by Rachel HU Xinyue
Amid escalating tensions in the Middle East, commercial shipping through the Strait of Hormuz was significantly disrupted, contributing to a sharp rise in global oil prices last week. WTI crude futures increased 35.6% over the week, while Brent crude futures gained 27.88%. According to market data, the moves represented the largest weekly increases for U.S. crude and Brent crude since 1983 and 1991, respectively. U.S. oil stocks also moved higher, with Battalion Oil (BATL) rising 50%, U.S. Energy Corp. (USEG) advancing more than 15%, and Occidental Petroleum (OXY) gaining over 3%, while ConocoPhillips (COP) and Exxon Mobil (XOM) each added nearly 2%. The United States Oil Fund ETF (USO) rose more than 10%, bringing its weekly gain to nearly 30%.
Separately, Oracle and OpenAI reportedly halted plans to expand their AI data center project in Abilene, Texas, following stalled financing negotiations and changes in OpenAI’s demand outlook. In the aftermath, Meta Platforms is said to be considering leasing the expansion site, while Nvidia has reportedly played a facilitating role in discussions aimed at promoting the adoption of its chips for the project rather than those of Advanced Micro Devices. The developments coincided with declines in several AI infrastructure-related stocks. Oracle (ORCL) fell 1.11% to close at $152.96 on Friday, while CoreWeave (CRWV), Advanced Micro Devices (AMD), Nvidia (NVDA), and TSMC ADR (TSM) declined 3.89%, 3.51%, 3.01%, and 4.23%, respectively.
Venture Global (VG.US) rose more than 26% for the week after reporting strong annual financial results and announcing a long-term LNG supply agreement with commodities trader Trafigura. Under the agreement, the company will supply approximately 500,000 metric tons of U.S. LNG annually for five years starting in 2026. The company also noted that it maintains a significant inventory of available LNG cargoes and stated that it is positioned to help support supply availability in the global LNG market amid ongoing supply constraints.
Coinbase (COIN.US) rose nearly 17% for the week after announcing the launch of its stock-trading feature. Separately, following renewed political attention on banks' approach to digital-asset legislation and a high-profile meeting between company leadership and senior U.S. government officials, Coinbase has drawn renewed attention in Washington’s ongoing debate over cryptocurrency regulation.
Written by April WANG Chang
This week, industrial silicon prices rebounded from recent lows, supported mainly by rising production costs. From a fundamental perspective, some major producers resumed previously suspended capacity, resulting in a higher operating rate, although overall capacity utilization remained relatively low. The increase in electricity tariffs in Xinjiang and higher petroleum coke prices have pushed up production costs, which may weigh on producers’ willingness to expand output.
Demand conditions remained weak, with continued production cuts in both the polysilicon and organosilicon sectors. Overall, supply saw a modest recovery, while the supply-demand balance remained broadly stable. Looking ahead, rising electricity tariffs in Xinjiang and higher petroleum coke prices are expected to provide cost support for industrial silicon prices. Market participants generally expect the SI2605 contract to fluctuate within the RMB 8,400–8,900 per ton range in the near term.
Dajin Heavy Industry (002487.SZ) reported strong results for 2025, with net profit increasing 133% YoY to RMB 1.1bn, supported by continued expansion in overseas markets. International revenue from its core tower and pile business more than doubled during the year and accounted for 81% of total gross profit. Overseas margins improved sequentially to 34.0% in 2H25, reflecting the company’s increasing share of higher-value overseas delivery projects.
With a sizeable overseas order backlog and continued development in Europe’s offshore wind sector, the company may benefit from sustained demand in international markets linked to the ongoing expansion of offshore wind capacity.
Written by Ling GUO Yuling
Technology Sector (Platforms and Hardware): The technology sector broadly tracked the rebound of the Hang Seng Technology Index during the week. The index recorded a weekly gain of approximately 2–3%, outperforming the broader market. Market sentiment toward growth stocks appeared to improve modestly amid moderating expectations for external interest rates.
Market attention remained focused on platform companies with capabilities in cloud computing, software, and artificial intelligence infrastructure. Stocks associated with themes such as large-model training, data center expansion, and enterprise digitalization continued to see active trading. Some leading companies also saw indications of capital inflows following earlier periods of valuation compression.
Performance among hardware and semiconductor stocks remained more differentiated. Investors continued to monitor global end-demand conditions and the progress of inventory normalization, while also assessing developments related to exchange rate fluctuations and export control policies. Companies with higher cyclicality continued to attract more selective participation.
Overall, capital flows in the technology sector continued to be influenced by expectations around policy support, the pace of earnings recovery among platform companies, and the global AI capital expenditure cycle. In the near term, the sector may continue to exhibit relatively high volatility alongside more pronounced structural opportunities.
Macro & Policy Watch:
At the latest annual meeting, the central government set the mainland’s GDP growth target for 2026 at around 4.5%–5%. The range broadly aligns with market expectations and may provide a reference point for the regional growth outlook, with potential implications for Hong Kong’s export-oriented economy.
Locally, the Hong Kong government continues to project moderate economic expansion in 2026 and notes that inflation remains contained. Through fiscal budgets, infrastructure investment, and support measures for enterprises, authorities are expected to maintain counter-cyclical policy support for economic activity.
Externally, expectations around global interest rates reaching a peak, the potential easing path of major central banks, and ongoing uncertainties related to geopolitics and trade tensions remain key variables influencing risk appetite and capital flows in Hong Kong’s equity market. Investors continue to monitor policy signals and macroeconomic data releases in the coming months.
Tencent Holdings (0700.HK): Tencent’s share price has generally tracked the recent rebound of the technology sector. Supported by better-than-expected earnings in previous results and continued share buybacks, the stock has traded toward the upper end of its recent 12-month range. Relative to the broader market, it has continued to show a degree of relative resilience.
Market attention remains focused on the performance of the company’s domestic advertising, cloud services, and enterprise software businesses, as well as developments in monetization related to short-video and e-commerce activities. These factors are considered important in shaping expectations for the company’s long-term earnings quality and cash flow generation.
At the same time, Tencent’s investment in artificial intelligence infrastructure, the application of large models across its gaming, advertising, and social ecosystems, and its ongoing large-scale share buybacks continue to form part of the company’s capital allocation and shareholder return framework, which may provide support for investor sentiment toward the stock.
Written by Diana LIU Haolin
Defense and energy stocks outperformed during the week as geopolitical tensions in the Middle East increased. Market participants showed greater interest in companies that could benefit from higher defense spending and firmer energy prices. European defense contractors and oil majors saw notable inflows as markets considered the potential implications of prolonged geopolitical tensions and possible supply risks in global energy markets.
Travel-related companies and airlines were among the weaker-performing sectors. Higher oil prices contributed to rising operating cost pressures for airlines, while concerns about the economic outlook weighed on banks and other financial institutions.
European technology stocks traded in a mixed manner during the week. While structural demand related to semiconductors and AI infrastructure continues to attract attention, investor sentiment remained cautious amid global macro uncertainty and evolving interest rate expectations. Technology valuations continue to show sensitivity to interest-rate outlooks and global growth expectations.
Nexi (NEXI.MI): Shares of the Italian payments company declined around 22% on March 5 after the company announced a strategic restructuring plan aimed at simplifying its operating structure and improving margins. Management also guided for mid-single-digit revenue growth in 2026, which was below some market expectations for the European digital payments sector. The share price reaction reflected investor reassessment of growth prospects amid increasing competition and moderating transaction growth across the region.
Rentokil Initial (RTO.L): The UK-based pest control company rose about 10% during the week after reporting FY2025 results that exceeded market expectations. Performance was supported by strong demand in North America and improved operational efficiency following the integration of Terminix. The company reported revenue growth of approximately 5% YoY and reiterated its medium-term margin expansion targets, which contributed to a more positive market response to its post-acquisition integration progress.
Universal Music Group (UMG.AS): Shares of Universal Music Group declined roughly 8% during the week after the company reported earnings below market expectations and announced a delay to its planned U.S. listing. Management cited market volatility and equity market conditions as factors behind the decision to postpone the listing. The results also showed slower streaming revenue growth compared with previous quarters, which may influence near-term earnings expectations for the company.
Written by Vivien TAO Wei
Geopolitical tensions in the Middle East drove a sharp rotation in sector performance this week. Energy stocks emerged as the primary gainers, while financials and transportation sectors faced significant selling pressure. The Nikkei 225 declined by more than 10%, entering correction territory as investors moved to de-risk portfolios amid heightened volatility.
Energy names, particularly explorers and refiners such as Inpex and Japex, traded higher alongside rising crude prices due to concerns over potential disruptions in the Strait of Hormuz. Given that Japan sources more than 90% of its crude oil imports from the Middle East, the equity market remains highly sensitive to supply shocks. Market concerns intensified following reports that domestic refiners had requested the government to consider tapping into strategic petroleum reserves.
In contrast, banking stocks recorded their weakest performance since last April, with the TOPIX Banks Index falling 6.3%. The decline was driven by a combination of macro uncertainty following heightened geopolitical tensions in the Middle East and idiosyncratic credit concerns tied to a major lender’s exposure to a collapsed UK financial institution. While higher yields typically support bank margins, rising credit risk has become the dominant driver of sentiment.
Meanwhile, transportation and export-oriented firms remained under pressure from both rising fuel costs and yen volatility. Citi’s downgrade of Japanese equities to “underweight” highlights a recurring pattern in the market: Japanese stocks tend to underperform during periods of elevated oil prices. With Q4 GDP contracting at an annualized rate of 2.3%, investors are increasingly positioning for a potential stagflation scenario.
Sumitomo Mitsui Financial Group (SMFG): Shares fell 8.3%, marking the largest single-day decline in nearly a year. The sell-off followed reports that SMFG has £100 million exposure to Market Financial Solutions (MFS), a UK lender that recently collapsed amid fraud allegations. The news weighed on sentiment across the banking sector, with Mitsubishi UFJ Financial Group and Mizuho Financial Group also falling more than 5% as investors reassessed potential contagion risks.
Kao Corporation: Early gains were erased after activist fund Oasis Management, which holds a 6.6% stake, intensified its campaign against the company. Oasis has called for an extraordinary general meeting (EGM) to investigate supply chain risks linked to deforestation. The fund also raised governance concerns, arguing that the CEO’s compensation structure—tied partly to ESG performance—could create a potential conflict of interest, adding pressure to what has traditionally been viewed as a defensive domestic name.
Honda Motor: Honda is seeking to strengthen its domestic lineup by importing US-made Acura models and, for the first time, Chinese-manufactured electric vehicles. The move comes as the company’s auto segment struggles, reporting a ¥166.4 billion operating loss for the first nine months of the fiscal year. While Honda is leveraging simplified certification rules to mitigate trade pressures, the strategy underscores the firm’s increasing reliance on its motorcycle division to sustain profitability while navigating intensifying competition in the EV market.
Written by Adrian PING An
Figure (Daily, Monthly, Yearly)
Geopolitical Factors and Energy Pricing:
Global equity markets, including India, observed a rotation toward defensive assets following increased geopolitical tension in the Middle East and renewed tariff discussions. Brent crude prices surpassed $92 per barrel by the end of the week.
For India, which imports more than 80% of its oil consumption, this price level implies increased pressure on the current-account balance and raises the probability of higher imported inflation in the coming quarters.
India’s infrastructure and engineering sector continues to benefit from the country’s ongoing public investment cycle. The Union Budget 2026 reaffirmed the government’s focus on infrastructure development, announcing a record capital expenditure allocation of ₹12.2 trillion. Large-scale projects in transportation, logistics, and industrial corridors may contribute to longer-term demand for engineering and construction services.
In addition to infrastructure expansion, industrial policy has increasingly emphasized strengthening domestic manufacturing capabilities. Programs such as the ₹10,000 crore Biopharma Shakti initiative aim to expand biologics manufacturing capacity, while the India Semiconductor Mission 2.0 focuses on developing the domestic electronics and semiconductor supply chain. These initiatives are intended to support India’s manufacturing ecosystem and reduce reliance on imports in strategic industries.
Overall, the sector outlook remains supported by continued infrastructure investment as a key component of India’s economic growth strategy. Market participants expect engineering and infrastructure companies to continue seeing order inflows, supported by both public sector spending and private investment in manufacturing capacity.
Larsen & Toubro Ltd. has recently experienced increased share price volatility amid geopolitical developments affecting the Middle East. During the week, the stock declined to a one-month low as investors reassessed the company’s exposure to the region.
Approximately 33–35% of L&T’s order inflows originate from the Middle East, while around 37–40% of its order backlog is linked to projects in the region. As geopolitical tensions increased, some analysts noted that potential project delays or disruptions could affect near-term earnings performance. Estimates from Jefferies suggest that prolonged regional instability could reduce FY26 earnings per share by around 6–8% if project execution timelines are impacted.
Despite these uncertainties, Larsen & Toubro continues to be regarded as a major engineering and construction company in India. The firm also benefits from domestic infrastructure demand supported by government capital expenditure. Market consensus currently places the median price target near ₹4,500, suggesting that longer-term fundamentals continue to be viewed positively despite near-term geopolitical risks.
Written by Daisy DAI Yingxi
Following tighter U.S. trade restrictions on Southeast Asian solar imports and the enforcement of anti-dumping and countervailing duties (AD/CVD) on Cambodia, Malaysia, Thailand, and Vietnam, solar manufacturers with significant ASEAN exposure traded lower during the week. The developments occurred as U.S. domestic module capacity is projected to reach approximately 64GW by late 2025, supported by 45X tax credits that provide subsidies of around $0.07/W. In anticipation of the potential inclusion of Indonesia and Laos in the 2026 tariff list, alongside stricter Foreign Entity of Concern (FEOC) rules, shares of Chinese-backed manufacturers relying on Southeast Asian supply chains declined. Canadian Solar (CSIQ) fell 4.69%, JinkoSolar (JKS) dropped 4.84%, and Daqo New Energy (DQ) declined 2.57%. The broader Invesco Solar ETF (TAN) also retreated, falling 3.30% over the week.
Separately, KKR & Co. announced the acquisition of a majority stake in XCL Education, a Southeast Asian K-12 school operator, at a valuation of approximately $1.3 billion. The transaction involves KKR acquiring shares from long-term institutional investors including TPG Inc. and Temasek. The deal reflects continued private equity interest in the region’s education sector and follows KKR’s recent investments in education and services businesses across Asia.
Shares of ST Engineering (SGX: S63) moved higher during the week, outperforming many Straits Times Index (STI) constituents and rising more than 4% to S$10.84. The stock’s performance coincided with continued market attention on the company’s order backlog and earnings visibility.
Amid rising geopolitical tensions in the Middle East and increased global defense spending, companies with exposure to the defense and engineering sectors have attracted greater investor interest. In this context, ST Engineering has seen increased trading activity as some investors look for exposure to defense-related growth themes within the ASEAN market.
Published by Carrie CHAN
Written by Vicky HUANG Lihan
The tech sector finished the week on a weak note, continuing February’s pullback in high-growth names. Software stocks were hit hardest as investors reassessed the durability of AI-related revenue growth. With valuations still elevated, even solid earnings were not enough to prevent selling. Pressure spread across enterprise tech — including database, analytics, and cybersecurity companies — as higher bond yields and fading post-earnings momentum raised concerns about margins and corporate IT spending. Higher-than-expected inflation data late in the week added to the cautious mood, leading investors to lock in profits across major tech names.
Energy was one of the few bright spots. Oil prices moved higher on geopolitical tensions and supply concerns, supporting the sector. Stronger crude prices improve cash flow expectations for both large integrated oil companies and smaller producers. More broadly, energy is benefiting from rotation. In a market facing inflation uncertainty and slowing growth signals, investors are leaning toward sectors with tangible assets, steady cash flow, and dividend support.
Financial stocks underperformed as rising yields created uncertainty around net interest margins. At the same time, investors grew more cautious about credit exposure, particularly in areas tied to fintech and higher-risk lending. The sector’s weakness reflects a more selective market environment. Investors are demanding clearer earnings visibility and lower risk profiles, especially for banks with exposure to cyclical or higher-growth segments.
Duolingo (DUOL): Shares fell 25% after guiding 2026 bookings growth of only 10–12%, well below prior expectations, despite Q4 revenue rising 35% year over year to about $283M. The company also indicated adjusted EBITDA margins could ease toward 25% as it increases investment in AI and product development. The selloff reflects a clear shift in investor focus: market reaction suggests that historical growth rates are being weighed against near-term profitability metrics. With bookings slowing and margins set to compress, the market is demanding clearer near-term profitability and monetisation visibility rather than long-term user expansion alone.
NVIDIA (NVDA): Shares fell about 5% late last week despite reporting strong Q4 results that beat expectations for revenue, profits, and guidance, as broader market caution over inflation and profit-taking in high-valuation tech stocks weighed on sentiment. The pullback erased a significant portion of its 2026 gains, highlighting that investors are increasingly focused on near-term profit sustainability, valuation, and macroeconomic risks rather than earnings beats alone. As a key constituent in the sector, Nvidia's price action is often viewed as an indicator of broader sentiment toward growth stocks.
Written by Molly LIU Litong
Oil and Gas Equipment Services exhibited a strong positive performance, with a +8.17% increase. The primary catalyst for this significant increase is the significant injection of geopolitical risk premium into global oil prices, driven by escalating tensions in the Middle East. Market sentiment is dominated by heightened concerns over potential supply disruptions, particularly threats to key shipping channels, which have led to a repricing of energy-related assets. Concurrently, the sector is supported by ongoing policy commitments to national energy security and infrastructure development, which underpin long-term demand for equipment and services. This combination of immediate geopolitical risk and sustained policy support has driven substantial capital inflows and boosted investor confidence in the sector.
Dezhou United Petroleum Technology Corp. (301158.SZ) recorded a 20% increase in share price to close at 31.20. This significant rally was primarily driven by a geopolitical risk premium injected into oil prices and the broader energy sector. As market concerns grew over potential disruptions to global crude oil supply chains, companies like Dezhou United, which provides equipment and technology for oil and gas exploration and production, attracted capital inflows. Additionally, the company's business aligns with the long-term policy direction of ensuring national energy security, supporting the share price. A notable increase in trading volume further reflects the market's heightened interest in the sector amid a volatile macroeconomic environment.
Sichuan Discovery Dream Science & Technology (301213.SZ) also demonstrated strong momentum during the same period, advancing 20% to close at 90.10. As a provider focused on enterprise-level AI solutions, the company's approach of integrating knowledge graphs with large language models to enhance output reliability aligns with the current market focus on practical and deployable AI applications. Recent developments from associated firms such as Zhipu AI—including new models and AI agent releases—renewed market interest in innovation in the field. This sentiment spilled over to companies like Sichuan Discovery, which has a clear technological focus.
Written by Qiyuan SHI Charles & He Xu Doraa
During the week of February 23–27, 2026, the Hong Kong market exhibited a sharp divergence between traditional and growth sectors. The Hang Seng Index (HSI) managed a weekly decline of 0.63%, closing at 26,630.54, primarily bolstered by a late-week surge in the Property and Financial sectors. This rally was ignited by news on February 25 that Shanghai had eased homebuying restrictions, leading to gains of over 6% in leaders like Sun Hung Kai Properties. Despite a strong start on Monday, where the index briefly crossed the 27,000 mark, mid-week volatility caused by U.S. tech earnings and trade concerns capped the overall gains.
The technology sector continued to consolidate during what can be described as a period of limited macroeconomic data, where limited incremental macro signals and earnings catalysts constrained broad-based upside. While overall tech performance remained soft, AI-related and semiconductor-linked names continued to attract selective investor attention. Stocks such as MiniMax and other China-based AI and chip companies saw notable interest, includingcross-border participation from South Korean retail investors. However, despite this thematic focus, most large-cap technology companies have yet to demonstrate sufficiently strong earnings momentum to sustain a sector-wide rebound. As a result, valuation expectations remain under reassessment, and price movements have been more driven by sentiment and positioning rather than fundamental upgrades.
In contrast, energy stocks displayed relative resilience. Firm oil prices supported upstream producers, with PetroChina and CNOOC benefiting from gains in crude benchmarks. Recent geopolitical developments have contributed to increased uncertainty in global energy markets, leading to some repricing of supply risks. While strength in oil-linked equities provided selective support, it was not enough to offset broader market weakness. Overall, declining risk appetite remains a key driver of Hong Kong’s recent subdued performance, with investors balancing structural thematic opportunities against heightened external uncertainty.
Amid heightened macro uncertainty and softer risk appetite, Hong Kong equities traded with a weaker tone this week, as investors adopted a more cautious stance in the absence of strong policy or earnings catalysts. Major indices remained under pressure, reflecting subdued sentiment and ongoing valuation adjustments across growth-oriented sectors.
Sun Hung Kai Properties (00016.HK) emerged as the week's top performer among blue chips, surging 7.12% to close at HK$146.00 on February 27. This significant rally was catalyzed by the company’s robust interim results—reporting contracted sales of HK$17.4 billion—and was further ignited by the February 25 announcement that Shanghai had eased homebuying restrictions. This policy shift triggered a significant sector-wide rotation into "old economy" assets, leading JPMorgan to upgrade the stock to "Overweight" on February 23 as investors sought valuation opportunities amid broader market uncertainty.
Alibaba Group Holding (09988.HK) served as the primary barometer for the volatile tech sector, ending the week at an ADR-equivalent of HK$144.11. While the stock saw a 3.5% jump on Monday, it faced a sharp correction on Thursday amid global tech earnings jitters, which dragged the Hang Seng Tech Index down by nearly 2.9%. Despite this volatility, Alibaba remained a focal point for analysts due to its aggressive AI infrastructure expansion, specifically the launch of its self-developed Zhenwu 810E chip designed to support its cloud infrastructure independently and defend its dominant 35.8% cloud market share in China.
HSBC Holdings (00005.HK) demonstrated strong defensive resilience and capital appreciation, climbing from a Monday open of HK$135.00 to a Friday close of HK$147.30. The bank's performance was underpinned by a massive Q4 2025 earnings beat and a confirmed annual dividend payout of US$0.75, which pushed its total market valuation over US$300 billion for the first time in history. Following these results, analysts at BofA Securities and HSBC Research raised their 2026 earnings forecasts, concluding that the bank’s robust operating guidance makes it a cornerstone for high dividend investment strategies in the current interest rate environment.
Written by Lucy ZHOU Zihan
European stocks posted gains this week, with the pan-European Stoxx 600 rising approximately 1%. The UK's FTSE 100 was a standout, gaining 2.09% for the week. Market sentiment was shaped by two opposing forces: uncertainty over US tariff policies initially weighed on markets, but cooling German inflation strengthened expectations of ECB easing, while a significant volume of corporate share buybacks provided upward momentum. The Banking sector was a key market driver this week, with the Stoxx 600 Banks Index climbing 1%. The advance was fueled by rising expectations of an economic recovery in Europe and significant share buyback announcements from major lenders. Commitments from Deutsche Bank, Société Générale, and others to launch repurchase programs directly boosted investor confidence, signalling management's optimism regarding capital strength and future profitability.
The Healthcare sector showed strong performance, leading the market on several trading days. The sector's strength was underpinned by a series of positive announcements: Novartis received positive opinions from the European Medicines Agency (EMA) for two of its drugs and completed the acquisition of Avidity Biosciences; Sanofi and the Lilly/Incyte partnership also received favourable CHMP recommendations for key treatments. These developments reinforced market expectations for pharma companies' future growth and product pipelines.
The Technology & Semiconductor sector saw mixed performance but remained in focus. While concerns over AI investment and volatility in US tech stocks weighed on the sector at times, news of IonQ's quantum network deployment in Romania stimulated interest in related concepts. Furthermore, Barclays data highlighted robust buyback activity among tech firms, while sustained global demand for data centre chips continued to provide long-term support for European semiconductor equipment giants like ASML.
Novartis AG (NOVN.SW): Shares of the Swiss pharmaceutical giant rose 2.2% in Zurich this week. The gain was primarily driven by a double dose of positive regulatory news. Firstly, the EMA's CHMP issued positive opinions for two of the company's drugs: remibrutinib, an oral treatment for chronic spontaneous urticaria, and Acoziborole Winthrop for treating gambiense sleeping sickness in patients aged 12 and older. Secondly, the company announced the completion of its ~$12 billion acquisition of Avidity Biosciences, strengthening its pipeline. These positive regulatory steps, combined with strategic M&A activity, boosted investor confidence in Novartis's future growth prospects.
Johnson Matthey Plc (JMT2.F): Shares of the British speciality chemicals company fell 12% this week, making it the worst performer in European indices. The sharp decline was directly triggered by the company's announcement that it had agreed to reduce the sale price of its catalytic technologies business to Honeywell International by a quarter, from approximately £1.7 billion to £1.3 billion. This price cut, far exceeding market expectations, raised concerns among investors regarding the company's asset valuation and transaction execution capabilities. Although the company aims to focus on its core operations through this divestiture, the significant reduction in the sale price weighted heavily on market sentiment, leading to a sell-off in the stock.
Written by TAM Tsz Ching Cathy
This week’s tech sector in Japan showed mixed resilience amid broader market gains, with the Nikkei 225 closing up 0.16% at around 58,850 and the Topix rising 1.5% to 3,939, driven by rotation into AI infrastructure plays despite some profit-taking in hardware names. Technology stocks faced selective pressure as investors rotated out of certain chip testers and equipment makers like Advantest and Hoya, which declined amid broader sector weakness, while consumer and financial sectors provided offset support. A weaker yen continued to bolster export-heavy tech exporters, though analysts flagged valuation concerns near Nikkei 60,000 as profit-taking emerged.
At the same time, analysts remain constructive on Japanese tech's structural tailwinds, particularly in semiconductors and AI components, with ongoing demand for data center infrastructure and factory automation cited as key growth drivers into 2026. Rotation into AI-related beneficiaries has propelled solid February performance, extending into this week as overseas inflows persist under the Takaichi administration's pro-growth stance.
One notable thematic development is the sustained momentum in AI infrastructure and materials, where Japanese firms like Kioxia continue to attract flows for their role in memory chips and data center expansion, underscoring pockets of outperformance even as select tech subsectors correct.
IHI Corporation (7013.T): The company’s performance drew attention this week, outperforming amid market rotation as defence and aerospace demand supported gains, with the stock highlighted as a top performer in recent sessions despite broader large-cap challenges in some areas. The major industrial firm benefited from investor bets on geopolitical tensions and capex cycles, helping it buck declines seen in auto parts like Aisin amid yen fluctuations and macro rotation. This comes as broader Tokyo markets digested ongoing political stability post-LDP mandate and AI-themed flows, with IHI adding to the narrative of strength in high-tech industrials.
Written by Emilie POU
The Technology sector recorded a significant decline this week, driven by concerns regarding the impact of artificial intelligence on traditional business models. As of February 25, the Nifty IT index had fallen 21%, marking its largest monthly decline in nearly 23 years. The index's 10 constituents shed a combined $68.6 billion in market value. Market participants cited concerns that rapid advancements in AI and automation by U.S. firms could impact India's $300-billion IT services industry through compressed project timelines, pricing pressures on services, and reduced billable hours. Consequently, the Nifty 50 and Sensex benchmarks underperformed regional peers for the week.
Infosys (INFY.NSE): Amid the broader sector selloff, Infosys shares experienced volatility, opening the week at ₹1,352 before touching a low of ₹1,275 on Tuesday. However, the stock recovered some losses to close at ₹1,300 on Friday, February 27. This stabilisation coincided with the company’s February 24 announcement of a completed data modernisation program for CSX Corporation (NASDAQ: CSX). The project, utilising Infosys Topaz™ and Microsoft Fabric, consolidated CSX’s legacy systems into a unified cloud-native platform for the transportation and logistics sector. Management highlighted that the initiative is intended to improve decision-making and reduce operational costs through automated metadata governance and AI-driven analytics. While the stock finished the week lower, the announcement underscored the company's continued engagement in large-scale digital transformation projects despite broader market concerns regarding AI disruption.
Written by Mabel LOK
In the financial sector, two central banks in Southeast Asia cut their policy rates during the period. The Philippines’ central bank cut its policy rate by 25 basis points to 4.25%, as part of its easing cycle that began in August 2024 to support domestic economic growth. Thailand’s central bank also cut its interest rate by 25 basis points to 1%, a move that surprised the market, intended to foster economic recovery and control inflation.
In Singapore, STI surpassed the 5000 mark for the first time on February 12. As capital market ties deepen with China, ETF turnover and average daily value reached record levels, and ETF AUM has climbed sharply YoY . Singapore Exchange’s securities turnover rose 66% YoY in January 2026, while derivatives volume was the highest since March 2020. STI has been volatile around this level for the subsequent days. DBS Group Holdings (DBS), -1.50%, reported a 3% YoY decline in 2025 net profit despite record profit before tax, largely due to the implementation of the 15% global minimum tax.
Singapore Telecommunications Limited (Z74.SI) has secured an agreement on ST Telemedia for its global data centres at 5.2 billion USD with the investment firm KKR, which analysts describe as the biggest data centre deal in SEA. It has also established a new research centre with Nvidia to assist firms in scaling their AI use. The deals strengthen Singtel’s position in the AI ecosystem. Shares hit a record high of $5.12 following the announcement. The upward momentum consolidated with increased volatility, reflecting growing caution in investors.
Published by Joey LAI
Written by Tiffany ZHANG Difei
The semiconductors & Tech sector was the most dynamic sector. It led the historic rally on Feb 3, with stocks like Kioxia (+12.7%) and Advantest (+7%) surging. The sector faced pressure mid-week from a global tech sell-off but staged a recovery on Friday. Due to Historic One-Day Rally and "Takaichi Trade" Election Bets, the market priced in expectations that a victory of Prime Minister Sanae Takaichi in the Feb 8 snap election would mean continued fiscal support for strategic industries like chips.
On the other hand, the Financials sector demonstrated strong performances. Mizuho Financial (+5.8%) rose after strong earnings and a share buyback announcement. Market analysts suggested that despite volatility in Japanese Government Bonds (JGBs), major banks' large unrealized equity gains cushion them from potential losses.
Written by William ZHANG Jiahua
This week, developments in China’s semiconductor and AI infrastructure sector were shaped by both domestic funding activity and external supply conditions. Several China related chip designers advanced capital raising efforts in Hong Kong, with companies such as Montage Technology and Axera Semiconductor pursuing secondary listings or IPO processes to support research and development and business expansion.
At the same time, overseas supply constraints remained relevant, as regulatory conditions surrounding the export of advanced AI chips continued to influence acquisition and deployment timelines for large-scale AI computing in China. Together, these factors suggested the sector’s sensitivity to capital availability and global policy developments affecting high performance computing hardware.
Written by Doraa HE Xu
During the trading week of February 2–6, 2026, the Hong Kong market navigated a volatile landscape, the Hang Seng Index (HSI) closed at 26,559.95, a 1.21% decline. The primary catalyst for this downturn was a sharp retreat in the Technology Sector, as the Hang Seng TECH Index fell to 5,346.2 amid global skepticism regarding the immediate profitability of heavy AI capital expenditures. Despite this secondary market pressure, the IPO and Fundraising sector showed resilience; Hong Kong solidified its status as an AI hub by raising nearly US$4.9 billion for AI firms over the preceding two months, bolstered by the high-profile HK$10.68 billion debut of Muyuan Foods.
In the Property Sector, a distinct divergence emerged: secondary residential home prices hit a two-year peak, supported by the Centaline City Leading Index (CCL) rising to 147.23, while the commercial office market continued to struggle with vacancy rates exceeding 15%. This sector also saw a major regulatory update as the HKMA announced the expansion of the Payment Arrangements for Property Transactions (PAPT) to the secondary market, modernising mortgage settlements by eliminating physical cheques. Further supporting the Financial Services sector, the HKMA unveiled a new Fintech Promotion Blueprint focusing on Quantum Preparedness and Distributed Ledger Technology, while the government proposed expanding tax incentives for family offices to include gold-linked ETFs. Collectively, these developments reflect a market in transition, balancing macroeconomic tech headwinds against robust regulatory modernization and a strengthening residential real estate foundation.
Written by Matthew SZE-TO Chun Yin
The Nifty FMCG index rose 2.27% on Feb 6 and closed at 51882.75, reflecting a relative strong position compared with broader benchmarks during the week in the Indian Market. The movement was likely driven by rebounds in the stock exposed to cigarettes and staples, following price adjustments implemented in response to the recent Goods and Service Tax reforms. The Goods and Service Tax rate increased to 40% on tobacco products, which prompted swift pass-through to consumers in cigarette-linked segments. Looking closer at specific industry analysis, SBI’s data indicates that a moderately positive overall budget impact through strengthened rural and semi-urban consumption drivers. Major players in the FMCG industry also announced plans to increase advertising spends by 10-15% respectively through 2026, likely to capitalize on margin improvements and seasonal demand upticks. Despite regulations on tobacco, competition in staples and uneven rural wage growth persists as difficulties in the industry.
ITC Ltd. shares rose by 5% on Feb 6. This growth signified ITC’s increase following last month’s 4% decrease. This is likely related to their newest quarterly earnings reports. The report showed 7.1% YoY gross revenue growth, an interim dividend of 6.5 rupees per share and the confirmation of price hikes to offset tax increases. However, considering ITC’s performance compared to Sensex, ITC’s returns generally lag behind Sensex’s, which takes into the account of major key players in the Indian Markets. Nonetheless, the short-term momentum that ITC has accumulated in the past week has showed its unique performance as a notable rebound stock within the FMCG sector. This shows that ITC can outperform both its sector average and the broader Sensex index amid negative market environment, highlighting its resilience at least in the short term.
Written by Arman ABILKASSYM
Indonesia's stocks and currency skidded on Friday after Moody's lowered the country's credit rating outlook. The benchmark Jakarta Composite Index (.JKSE), lost 2.5% while the rupiah dropped as much as 0.37% to 16,888 per dollar, its lowest since Jan 22 and down 1% for the year. Moody's on Friday also cut its outlook for five of the country's biggest banks and seven companies, including Indonesia's biggest telecoms firm Telkom Indonesia (TLKM.JK), its cellular provider unit Telkomsel, instant-noodle maker Indofood CBP Sukses Makmur (ICBP.JK), and heavy equipment and mining company United Tractors (UNTR.JK). The outlook reduction also affected energy firm Pertamina, its upstream unit and miner MIND ID.
Thailand is positioning itself to host Southeast Asia’s first Disneyland, as the Government steps up efforts to attract a world-class theme park as part of its broader push to expand family-oriented entertainment and tourism. The proposed location for any Disneyland would be within the Eastern Economic Corridor (EEC), the threeprovince development zone east of Bangkok that showcases Thailand’s ambitions in high-tech manufacturing, sustainable development, and modern urban living. Further strengthening the area’s appeal, the Government is developing a national sports complex in the EEC, highlighted by a world-class football stadium with an 80,000-seat capacity intended for international sporting events, concerts, and large-scale entertainment. Disney currently operates theme parks in Tokyo, Hong Kong, and Shanghai.
Written by Jackie LUI Ching Ho
The software sector faced significant pressure this week, driven by rising concerns about the long-term viability of traditional "Software as a Service" (SaaS) business models in the face of generative AI breakthroughs. A basket of big US software equities witnessed a strong correction, with Thomson Reuters (TRI) down 20.39%, ServiceNow (NOW) down 13.9%, and Salesforce (CRM) down 9.86%. The recent advances in Anthropic’s AI agent software, automating contract evaluations and optimizing compliance operations, served as the key driver for this repricing. The market perceived this technological advancement as a direct challenge to the subscription pricing power of legacy workflow and legal software.
The financial sector demonstrated a positive rotation toward regional banking. The KBW Regional Banking Index (KRX) climbed 6.99% this week, outpacing large money center banks. The difference reflects a market trend toward smaller-cap value opportunities, which is supported by improved credit quality, a steeper yield curve, and increased loan demand.
Written by Joshua CHAN
Banks continued to outperform strongly, driving gains as the sector reached multiyear highs on robust earnings momentum, improved lending prospects, and supportive ECB policy signals. Financials benefited from recovery themes and positive corporate updates, with many names posting strong results and optimistic outlooks.
Healthcare showed mixed but positive momentum, boosted by select earnings beats and strategic moves like GSK's growth plans and AstraZeneca's listing shifts. Energy and utilities held steady or gained on commodity stability and transition investments, while consumer stocks and telecoms provided support through rallies. Tech faced some pressure from AI-related reassessments and software sector concerns (e.g., after recent AI advancements), leading to selective pullbacks, though semiconductors showed recovery signs. Industrials and cyclicals rotated positively amid broader optimism. Overall, sentiment strengthened on earnings strength, ECB accommodation, and shifts away from overextended areas, with caution around geopolitical factors, trade dynamics, and upcoming data. The week featured a strong close, reversing early dips and capping gains for key benchmarks.
Published by Henry LI Yan Heng
Written by Rachel HU Xinyue
1.Dow Jones Industrial Average: 48892.47 (-0.42%) over the past 5 days 2.S&P 500 Index: 6939.03 (+0.34%) over the past 5 days 3.NASDAQ Composite Index: 23461.82 (-0.17%) over the past 5 days 4.United States Durable Goods Orders: 5.3% in November, above market forecasts of 1.1% 5.United States Producer Price Inflation MoM: 0.5% in November, above market forecasts of 0.2% 6.United States Fed Funds Interest Rate: The Fed left the federal funds rate unchanged at the 3.5% - 3.75% target range in its January 2026 meeting 7.United States Adp Employment Change Weekly: +7.75K (-3.13%) 8.United States API Crude Oil Stock Change: 0.25 million barrels decrease
Precious metals faced heightened selling pressure, with weakness extending quickly to mining equities. Donald Trump signaled his intention to nominate Kevin Warsh as Chair of the Federal Reserve, a development that markets interpreted as potentially increasing the likelihood of continued balance-sheet reduction and a tighter system liquidity environment. At the same time, strength in the U.S. dollar reinforced these expectations by raising the opportunity cost of holding non-yielding assets, contributing to outflows from traditional safe-haven positions. Spot gold declined by nearly 13% intraday, while spot silver at one point fell by more than 35%, among the most pronounced intraday moves in decades. Mining equities weakened in parallel with the underlying metals: Newmont (NEM) -11.49%, Agnico Eagle Mines (AEM) -11.61%, Barrick Gold (GOLD) -12.03%, and VanEck Gold Miners ETF (GDX) -12.76%.
AI application software stocks declined following headlines related to Google’s Project Genie. The initiative was unveiled as a product concept that would enable users to create and interact with virtual worlds, leading investors to reassess competitive dynamics and potential demand shifts within interactive content and development ecosystems. Weakness was more pronounced among companies with direct exposure to user-generated content, real-time 3D creation tools, and game publishing, including Unity Software (U), Roblox (RBLX), and Take-Two Interactive (TTWO).
Microsoft (MSFT) fell 8.5% on the week despite a Q2 beat. The stock declined after the company reported better- than-expected Q2 EPS and revenue, as investors focused on decelerating Azure growth, a 66% jump in capex to $37.5bn, and disclosures that ~45% of its $625bn commercial order backlog is tied to OpenAI. Tesla (TSLA) rose more than 4%, following reports that SpaceX is exploring a potential merger with Tesla and considering deeper cooperation with xAI to build a broader technology “super ecosystem.”
Written by Molly LIU Litong
1.SSE Composite Index: 4117.95 (-0.44%) over the past 5 days 2.Shenzhen Component Index: 14205.89 (-0.78%) over the past 5 days 3.ChiNext Price Index: 3346.36 (-0.10%) over the past 5 days 4.CSI 300 Index: 4706.34 (-0.01%) over the past 5 days 5.Consumer Price Index (CPI) in December: +0.8% YoY 6.Producer Price Index (PPI) in December: -1.9% YoY 7.Industrial Production in December 2025: +5.2% YoY. 8.Gross Domestic Product (GDP): +5.2% YoY
Telecommunication Equipment showed a positive performance, posting 4.17% growth last week. The gain was fueled by ongoing policy support for China’s digital infrastructure upgrade, which has spurred demand for 5G network gear and related communication devices. Positive market sentiment around the sector’s long-term growth potential, paired with expectations of higher capital expenditure from telecom operators, supported buying activity. Industrial Metals underperformed the market, declining 8.22% last week. The decrease reflected concerns over slowing global industrial activity, particularly as weaker-than-expected manufacturing data from major economies dampened demand for industrial metals. In addition, profit-taking following recent price gains, combined with concerns over potential oversupply and a softer commodity price outlook, contributed to the sector’s sell-off.
SCANTECH (688583.SH), a Hangzhou-based provider of industrial-grade 3D visual digitization solutions specializing in high-precision scanning equipment for aerospace and automotive manufacturing, saw its shares rise 20% last week. The move followed several catalysts: the company’s strategic partnership with Tuozhu Technology on January 29 to develop and manufacture consumer-grade 3D scanners, indicating a key expansion into the consumer market; continued commercialization of its 6D pose tracking system in robotics and engineering machinery, with repeat orders suggesting improving market acceptance; the recent implementation of an equity incentive plan aligning core employee interests with long-term performance; and supportive policy signals related to “new quality productive forces,” alongside positive momentum across related industrial technology sectors such as telecom equipment.
Written by Ling GUO Yuling
1.Hang Seng Index: 27,785.98 (+3.44% week-on-week) 2.Hang Seng Tech Index: 5,561.91 (+2.73% week-on-week, using 5-day change as reference). 3.Hang Seng China Enterprises Index: 9,317.09 (−2.47% on 30 Jan 2026). 4.GDP: +3.8% (July - September 2025). 5.Unemployment Rate: 3.9% (July - September 2025). 6.Inflation Rate (CPI): 1.0% (latest published YoY inflation rate). 7.Retail Sales Value YoY: +5.9% (year-on-year, following the most recent annual growth rate). 8.Export Value YoY: +16.1% (year-on-year, following the latest available annual export growth rate).
Technology sector (platforms and hardware): Technology-related names generally tracked the Hang Seng Tech Index, which gained around 2–3% over the week, reflecting increased trading interest in growth-oriented equities and a partial reversal of prior underperformance. Within the sector, investors focused on companies with significant exposure to cloud computing, software, and artificial intelligence infrastructure, following a series of product upgrades, ecosystem enhancements, and partnership announcements from major internet platforms. Names linked to data center capacity, model training services, and enterprise digitalization attracted relatively higher turnover. At the same time, hardware and semiconductor stocks showed more differentiated performance as market participants assessed global demand indicators, inventory trends, currency movements, and developments in the export control environment. Overall, sector flows reflected the interaction between expectations for policy support, the earnings outlook for leading platforms, and risk appetite toward longer-duration growth assets.
Tencent Holdings (0700.HK): Tencent’s share price recorded a low- to mid-single-digit percentage increase over the week and is currently trading close to the upper band of its 12-month range, outperforming the broader Hong Kong market on a relative basis. The stock’s performance followed the company’s latest quarterly results, which showed double-digit year-on-year growth in revenue and net profit and modestly exceeded prevailing market forecasts, keeping attention on the sustainability of its earnings trajectory. The operating update highlighted a continued recovery in domestic advertising, improving momentum in cloud services and enterprise software, and further progress in monetizing video accounts, e-commerce-related traffic, and other value-added services within the ecosystem. Market participants also monitored developments in Tencent’s artificial intelligence infrastructure and large-model applications across gaming, advertising, and social platforms, as well as the scale and pace of ongoing share repurchase activity, viewing these factors as inputs into future assumptions on earnings quality, capital allocation, and free cash flow generation rather than as directions for investment action.
Written by Diana LIU Haolin
1.EURO STOXX 50 Index: 5,947.81 (-0.06%) over the past 5 days. 2.DAX (Germany): 24,538.81 (-1.45%) over the past 5 days. 3.CAC 40 (France): 8,126.53 (-0.20%) over the past 5 days. 4.FTSE 100 (London): 10,223.54 (+0.79%) over the past 5 days. 5.Eurozone GDP (Q4 2025 Preliminary): Expanded by 0.3% QoQ (vs. 0.2% expected) and 1.4% YoY in 2025 Q4. 6.IMF World Economic Outlook: Projecting global growth at 3.3% for 2026.
Defense & Aerospace: The defense sector continued to see capital inflows during the week, supported by the EU’s stated intention to increase investment in strategic regions, including Greenland. The development followed recent geopolitical discussions involving the United States and has focused market attention on infrastructure security and defense-related spending priorities. Technology: The technology sector experienced a mixed performance. While earnings releases from large-cap names such as SAP provided some support, broader sentiment remained cautious amid elevated valuation levels. Investors continued to monitor developments related to the upcoming U.S. Federal Reserve chair nomination, which is viewed as a potential factor influencing the interest rate outlook for growth-oriented equities. Basic Resources: Gold miners and related resource companies were in focus as gold prices moved above the USD 5,000/oz level, amid increased safe-haven demand. By contrast, the broader energy sector faced pressure during the period, reflecting volatility in oil prices.
ASML Holding (ASML.AS): The semiconductor equipment maker released its Q4 2025 and full-year results on Wednesday, January 28. ASML reported Q4 net sales of €9.7 billion with a gross margin of 52.2%, indicating sustained demand for its advanced lithography systems. The company posted basic EPS of €7.35 for the quarter. These results eased recent market concerns around a potential slowdown in semiconductor capital expenditure. SAP SE (SAP.DE): Europe’s largest software company reported Q4 and FY 2025 results on Thursday, January 29. While the company fell short of some analyst expectations on quarterly revenue, it reported an 8% increase in total revenue and an 11% rise in constant-currency terms for the full year. SAP also announced a new two-year share repurchase program of up to €10 billion, which supported the stock during the period. The company highlighted a 26% increase in cloud revenue, reflecting continued progress in its cloud transition. LVMH Moët Hennessy Louis Vuitton (MC.PA): The luxury group published its 2025 annual results on Monday, January 26. Management characterized performance as solid amid a challenging geopolitical environment. As a bellwether for the luxury sector, LVMH’s results were viewed as an indicator of relatively stable demand for high-end goods despite broader macroeconomic uncertainty and trade-related pressures.
Written by Vivien TAO Wei
1.Nikkei 225: 53373.74(+0.52%) 2.TOPIX: 1716.52(-0.20%) 3.Japan Unemployment Rate: 2.6% (January 2026) 4.Inflation Rate: 2.1% (January 2026) 5.GDP Annual Growth Rate: -1.8% (Q4 2025) 6.GDP Growth Annualized (Q3 2025): -2.3 7.Retail Sales YoY: -0.9% (January 2026)
Financial stocks came under pressure this week amid uncertainty ahead of the February 8 snap election. This was reflected in the government bond market, where the auction of 10-year government bonds on Tuesday attracted weaker-than-expected demand. Investors have focused on the possibility that if Sanae Takaichi’s party secures a strong mandate, it could result in higher government spending. Such fiscal expansion may place upward pressure on long-term borrowing costs, which contributed to underperformance in rate-sensitive sectors such as banking and insurance. In contrast, the energy sector showed relative resilience, supported by strategic announcements from key industry participants. Japan’s largest refiner, Eneos Holdings, announced plans to expand its oil derivatives trading team in Singapore and other global hubs, indicating efforts to strengthen its international trading presence. Meanwhile, utility company JERA signed a 27-year LNG supply agreement with Qatar, a long-term arrangement that market participants view as supporting supply stability and mitigating price volatility.
Nomura Holdings stood out after regaining its position as Japan’s top M&A advisor in 2025. The firm worked on deals totaling a record ¥18.6 trillion, exceeding volumes reported by competitors such as Goldman Sachs. The performance reflected Nomura’s stronger positioning in an active M&A environment associated with corporate restructuring and governance-related initiatives and supported its share price performance during a period of broader market uncertainty. Mitsubishi UFJ Financial Group (MUFG) also remained in focus following developments in its partnership with Morgan Stanley. The Japan CEO of Morgan Stanley highlighted plans to expand its securities franchise in Japan through the collaboration with MUFG. The development drew attention to competitive dynamics within Japan’s financial sector recovery and reinforced MUFG’s role as a strategic partner for international financial institutions seeking to expand in the Japanese market.
Written by Adrian PING An
NIFTY 50: 24,825.45 (-1.96%, -5.71%, +6.27%) SENSEX 30: 82,269.78 (-0.36%, -4.07%, +6.59%) Macroeconomic Performance: Economic Survey 2025-26 (released on 30/01/2026)
Budget 2026: Impact on Pharma, EMS, and Infrastructure On February 1, 2026, the Union Budget 2026–27 was presented, outlining measures aimed at supporting manufacturing through higher capital allocations. In the pharmaceutical sector, the government announced the 10,000 crore BioPharma Shakti initiative. Following the announcement, shares of Sun Pharma and Biocon rose by around 3.8%, as market participants assessed implications for biologics-related revenue visibility. In the EMS and semiconductor segment, funding for the Electronics Components Manufacturing Scheme was doubled to 40,000 crore, while semiconductor-related spending was increased to 8,000 crore. The budget also included a reduction in import duties on mobile components from 20% to 15%, which improved cost dynamics for companies such as Dixon Technologies. Infrastructure continued to feature prominently, with public capital expenditure raised to 12.2 lakh crore for FY27. Announced initiatives included seven new high-speed rail corridors (including Mumbai–Pune and Delhi–Varanasi) and the operationalization of 20 additional National Waterways. The budget also proposed a 10,000 crore SME₹ Growth Fund to support MSME expansion, alongside plans for new mega textile parks.
Hindustan Copper Ltd (HINDCOPPER) Hindustan Copper, India’s sole vertically integrated copper producer, experienced notable price volatility, closing at 555.10 on February 1 after a 19% correction following a 40% rally in January 2026. Despite the near-term pullback, the company retains a leading position, with access to approximately 45% of India’s copper ore reserves, estimated at 755.32 million tonnes. The Union Budget 2026 included measures relevant to the sector, including an exemption of basic customs duty on capital goods for processing critical minerals, which supports Hindustan Copper’s plan to expand mining capacity to 12.2 MTPA by FY31 (implying a projected CAGR of around 29%). From a financial perspective, the company maintains a low leverage profile, with a consolidated debt-to-equity ratio of 0.05 as of late 2025 and finance costs of 0.44 crore in Q2 FY26. In its latest quarterly results, Hindustan Copper reported an 83% year-on-year increase in net profit to 186 crore, alongside a 39% increase in revenue to 718 crore. While the stock is currently trading at a higher valuation multiple, with a P/E ratio of around 115x, its EBITDA margin of 39.3% and near debt-free balance sheet are viewed as factors contributing to earnings stability within a cyclical commodities environment.
Written by Daisy DAI Yingxi
1.Straits Times Index (STI): 4,892.27 2.Jakarta Composite Index (JCI): 7,888.23 3.FTSE Bursa Malaysia KLCI (FBM KLCI): 1,740.88 4.SET Index: 1,315.31 5.PSE Composite Index (PSEi): 6,297.08 6.VN-Index: 1,805.43
Consumer Staples: Sector attention turned to regional expansion following strategic partnership headlines involving Eastroc Beverage. Eastroc Beverage entered into a strategic cooperation agreement with Sanlin Group to jointly establish the Indonesia Dongpeng Vitamin Functional Beverage Company. The development marks a further step in Eastroc Beverage’s expansion in Indonesia and has increased market focus on competitive dynamics within the regional functional beverage segment as part of the company’s broader internationalization efforts. Industrial & Technology: Companies in the industrial and technology sectors highlighted footprint expansion and ecosystem-related initiatives. Southco is expanding its presence in Southeast Asia through the opening of a new facility in Chon Buri, Thailand. Separately, Yuxin Technology highlighted technology sharing and “value co-creation” with local partners at the 2026 LION X VENTURES Summit, with a focus on collaboration within the Southeast Asian fintech ecosystem. Indonesia / MSCI: MSCI stated this week that if Indonesia does not make sufficient progress on transparency by May, it will reassess the country’s market accessibility status. Such a reassessment could result in a reduction in index weightings for Indonesian constituents in the MSCI Emerging Markets Index, or potentially a reclassification to frontier-market status. The announcement led market participants to revisit governance-related considerations, including enforcement of corporate governance standards, market transparency, asset ownership disclosure, and free-float levels.
Shares of Grab Holdings (GRAB) saw renewed trading interest this week, following a steep pullback of around 30% since September, after BofA Securities upgraded the stock to a “Buy” rating with a price target of $6.30. The move followed improving metrics in the company’s core mobility and delivery segments, alongside a net cash position of over $5 billion, which has drawn attention to balance sheet strength. At the same time, sentiment remained mixed. Bernstein recently lowered its price target to $5.80, citing near-term margin pressure related to new growth initiatives. While the company trades at a PEG ratio of 0.84, its elevated P/E multiple of around 302x and reduced net income estimates for 2025–2026 have kept focus on execution risks as Grab continues to expand into on-demand grocery, artificial intelligence, and fintech.
Published by Louise Danielle Sugiarto
Written by Vicky HUANG Lihan
U.S. equity markets showed mixed performance this week, driven by sector divergence. Energy stocks gained, supported by short-term production disruptions; despite a 3.6 million barrel rise in U.S. crude inventories, winter storms temporarily reduced output, tightening regional supply. Integrated producers and midstream infrastructure companies led the sector, with several constituents gaining 2–4%. Regional electricity prices briefly exceeded $200/MWh, reflecting seasonal demand pressures.
Industrials also performed well, supported by machinery orders and infrastructure investment. Heavy-equipment maker Caterpillar (CAT) traded near multi-week highs, underpinned by order backlogs in construction and energy-related equipment. Broader industrial ETFs rose approximately 2–3%, indicating inflows into pro-cyclical sectors.
Conversely, financials and real estate underperformed. Banks declined modestly amid mixed economic signals and interest rate uncertainty, while REITs remained range-bound as investors assessed future loan demand against macro forecasts. Overall market breadth was subdued ahead of upcoming economic data and earnings reports.
Written by April WANG
Developments this week highlighted trends in the global AI chip and technology sector. OpenAI reported annualized revenue exceeding $20 billion in 2025, increasing from $6 billion in 2024. This growth was supported by a threefold expansion in computing power infrastructure. The company also announced plans to launch its first hardware device in the second half of 2025, speculated to be a screenless wearable, signaling an expansion into consumer hardware.
Separately, Shandong Port Group released a port-specific AI chip, the "Shan Gang Zhi Xin · Xing Yu SA5200". Designed to address bandwidth and image-quality issues in remote crane operations and vessel navigation, the chip integrates multi-sensor fusion and a high-performance heterogeneous processing core. It features a full-stack domestic algorithm compliant with national standards, aimed at improving energy efficiency for smart port operations.
Written by LEONG Si Ian
The technology sector showed bullish performance in the previous week, with Hang Seng TECH Index closing at 5,798.01 on 23/1/2026, a +0.62% increase. Small fluctuations in HSI, HSTECH, and HSCEI indicated relatively stable investors’ risk appetite. With human capital and supporting policies, investors are optimistic about Hong Kong’s technology and innovation sector.
The IPO market of Hong Kong reclaimed the top position worldwide in terms of funds raised in 2025, with an amount of HKD285.8 billion. Combined with trends of reducing interest rates worldwide, it is expected that this robust performance will continue in 2026, hitting over HKD300 billion.
Written by LIU Haolin Diana
Despite the general decline in EU equities, the defence sector outperformed this week, driven by renewed geopolitical instability and specific trade rhetoric from the U.S. administration. Following President Trump's announcement of potential 10% tariffs on several European nations in connection with a dispute over Greenland, investors rotated into defence stocks, viewing them as a hedge against geopolitical friction. Swedish manufacturer Saab (SAAB-B) rose over 4.1% early in the week, while peers including Rheinmetall (RHM) and Leonardo (LDO) posted gains exceeding 2%. The sector's resilience highlights the market's continued focus on the "defence supercycle," with security spending remaining a government priority regardless of broader trade headwinds.
The telecommunications equipment sector saw improved sentiment, anchored by Ericsson’s earnings report released on Friday. While the broader technology sector remained cautious ahead of upcoming earnings from major firms such as SAP and ASML next week, the telecom infrastructure sub-sector strengthened. Investors focused on the monetisation of 5G and AI-ready network infrastructure, which drove organic sales growth for key players despite a "flattish" Radio Access Network (RAN) market. This performance alleviated concerns regarding a prolonged slowdown in global network spending, suggesting that enterprise modernisation and mission-critical networks continue to drive demand.
The technology sector remained a key focus, showing resilience despite broader market volatility. The STOXX Europe 600 Technology index (SX8P) gained over 1% on Friday, January 23, helping to pare earlier weekly losses.
European financials underperformed the broader market, facing a "risk-off" environment early in the week following tariff threats from the U.S., which raised concerns regarding economic growth and loan demand. Major banks, including Santander, BNP Paribas, and Deutsche Bank, declined as investors assessed the potential impact of trade friction on the Eurozone economy.
Written by TAM Tsz Ching Cathy
The Japanese technology sector was influenced this week by market volatility, currency fluctuations, and shifting sentiment regarding valuations. Technology stocks faced pressure as the Nikkei declined 1.4% from recent highs, driven by renewed yen strength and speculation regarding currency intervention. A stronger yen typically weighs on the earnings outlook for the export-heavy technology sector and raises costs for foreign investors. Export-oriented constituents led the decline; Toyota Motor fell 3.9%, Sony Group dropped 2.2%, and Fast Retailing lost 1.8%. Financial and technology shares also retreated, with Sumitomo Mitsui down 2.4% and SoftBank Group falling 4.2%.
Despite recent weakness, some analysts maintain a constructive view on long-term prospects tied to factory automation and semiconductor cycles. A recent Bernstein analysis highlighted Japanese technology companies positioned to benefit from expanding demand for automation and chip-related investment over the medium term.
Thematic focus on AI infrastructure and components remains evident. Domestic memory chip maker Kioxia has been noted for recent stock appreciation, attributed to its strategic shift toward AI-driven data centre demand. This suggests pockets of strength within the sector despite broader macroeconomic headwinds.
Written by Emilie POU
The Media and Entertainment (M&E) sector remained a primary market driver this week, with a specific focus on the Animation, Visual Effects, Gaming, Comics, and Extended Reality (AVGC-XR) sub-sector. Valuation projections for AVGC-XR estimate growth from approximately $1.3 billion in 2023 to around $2.2 billion by 2026. This trajectory is attributed to India’s competitive cost structure, skilled workforce, and growing global demand for quality content. Government initiatives focusing on innovation and skill development aim to position India as a global hub for these services, potentially increasing the sector's economic contribution.
Digital media remains a key component of the M&E framework, accounting for approximately 32% of sector revenues as of January 2026. The expansion of Over-The-Top (OTT) platforms and digital advertising has influenced market trends, with Hindi and regional-language content seeing significant engagement. Additionally, technological advancements and improved user interfaces have supported broader consumption. Forecasters anticipate that digital media will continue to hold a dominant market share and drive revenue growth, reshaping the traditional M&E landscape.
Written by Mabel LOK
Following the ASEAN energy meeting in Bohol, the regional energy sector recorded gains. The Philippines’ mining and oil sector rose 5.21% for the week, led by constituents such as Shell Pilipinas Corporation and Nickel Asia Corporation. Vietnam’s energy sector gained 2.0%, with Vietnam National Petroleum Group rising 5%, following a broader sector increase of approximately 40% throughout 2025. Thailand’s energy sector advanced 2.4%, supported by a 2.3% rise in PTT Public Company Limited. Overall, the sector demonstrated resilience amid fluctuating oil prices and regional policy discussions.
In the industrial sector, Malaysia and Vietnam maintained high rankings within Asian manufacturing indices. In Vietnam, Kinh Bac City Development Holding Corp. saw its stock price rise 8.52% over the past month after commencing construction on a VND 11.5 trillion Industrial Park project. However, broader sector performance was mixed to flat for the week. Singapore’s industrial sector declined 0.8% following a significant rise the previous year, while Indonesia’s sector dropped 1.9%.
Published by Sean Ren Xu Xiang
Written by Jackie LUI Ching Ho
The technology sector experienced a significant rise, primarily due to bullish optimism in the semiconductor industry. Taiwan Semiconductor Manufacturing (TSMC) reported record quarterly results and announced a $52-$56 billion spending plan for 2026, boosting confidence in technology sector. As a result, US-listed chip equipment manufacturers such as KLA and Applied Materials saw their share prices rise, with investors anticipating a minimum of 25% increase in orders. Similarly, AI chip makers such as Nvidia and AMD profited from increasing trust in long-term supply chain capacity and end-market demand.
In the financials sector, a strong start to the Q4 results season sparked a broad-based rise led by big investment banks. Goldman Sachs and Morgan Stanley both experienced a rise of more than 4% in stock prices, boosting the Dow Jones Industrial Average as it recovered from recent lows. Goldman's strategic shift away from retail consumer banking and toward its historic strengths in global banking and markets has elicited strong investor reaction. Market players appear to be more confident that capital markets have reached a cyclical trough.
Nvidia (NVDA) Nvidia remains the major proxy for the AI investment topic. Following the TSMC statement on January 15, Nvidia's shares increased by about 2.1% as the market saw TSMC's growth ambitions as a direct indicator of future Nvidia chip sales. However, investors are currently focused on possible concerns such as tighter export limits or indicators that major customers such as OpenAI or Microsoft may shorten their investment cycles. Because the stock is so widely held by institutional investors, it remains volatile in response to changes in the AI spending narrative.
Goldman Sachs (GS) Goldman Sachs presented the most significant banking industry update this week. The company announced Q4 net earnings of $4.62 billion, resulting in Earnings Per Share (EPS) of $14.01, much higher than the average expectation of $11.70. The report's most notable element was the performance of the stocks trading desk, which generated a record $4.31 billion in revenue. Furthermore, a 25% increase in investment banking fees supported the view that the industry is entering a new dealmaking cycle.
Written by Joshua CHAN
European markets kicked off 2026 with robust momentum, hitting multiple record highs early in the month, driven by optimism around economic growth, falling interest rates from prior cycles, and increased defense spending amid geopolitical tensions. Tech and defense sectors led the change in the first weeks, with AI-related chip demand boosting names in semiconductors and equipment. Healthcare gained traction mid-month on positive earnings outlooks and M&A activity, such as AstraZeneca’s deals and strong forecasts from peers like Orion. Chemicals and utilities also saw lifts from corporate wins and auction successes.
However, the week saw some consolidation and mixed performance, with pullbacks in tech (e.g., weighing on DAX) due to profit-taking and pressures in the retail sector stemming from inflation and shifts in consumer spending. Overall sentiment remains positive with foreign inflows, ECB accommodation expectations, and rotation into cyclicals, though geopolitical risks (Venezuela developments, trade uncertainties) and upcoming earnings add caution. The pan-European STOXX 600 briefly crossed the 600 mark earlier, reflecting broad strength despite Friday’s hawkish tones trimming some gains.
ASML Holding NV (ASML.AS): Dutch semiconductor equipment giant surged notably this month (e.g., +5% - 7% moves in early sessions), crossing major market cap milestones on AI chip demand tailwinds from TSMC’s record earnings. Shares hit records amid upgraded targets and strong sector momentum - a key play if AI infrastructure spending accelerates, though valuation risks linger in any slowdown.
Infineon Technologies AG (IFX.DE): The German chipmaker has demonstrated mixed performance recently, benefiting initially from its exposure to AI and data centers. However, the mid-January sessions exerted pressure, contributing to softness in the DAX. While long-term supply chain and demand dynamics remain supportive, short-term volatility is observed due to broader tech rotation and profit-taking.
Written by William ZHANG Jiahua
China’s equity market saw mixed performance over the week, with Shenzhen and ChiNext higher while Shanghai and CSI 300 lower, suggesting continued flows preferring higher growth/tech companies. A notable overhang into next week is new exchange measures to cool leverage: Shanghai, Shenzhen, and Beijing exchange announced higher margin requirements for new borrowings (effective Jan 19), which could reduce short term risk taking in an overheated market.
On the macro side, inflation signals improved with December CPI accelerated to +0.8% y/y while PPI reduced to -1.9% y/y. This supports the view that domestic demand is stabilizing but not booming, especially with producer prices still negative, keeping expectations steady for continued policy support to boost confidence.
Yonyou Network Technology Co., Ltd. (600588 SH) Yonyou shares jumped about 20.19% over the week (Jan 9 close to Jan 15 close), driven initially by guidance pointing to a smaller full year loss, which helped lift short term earnings expectations. Buying momentum then accelerated as the stock gained traction with speculation, eventually triggering a risk alert following abnormal price movements. The sharp move is a reminder of how quickly sentiment can swing in software and “AI application” names when capital flows into higher beta, policy favored themes.
Baic Bluepark New Energy Technology Co., Ltd. (600733 SH) Baic Bluepark’s share price slightly dropped by 0.47% over the week, reflecting a more restrained market response despite improving operating data. On the fundamentals side, momentum remained strong, with vehicle sales up 84.1% year-on-year in 2025. The gap between solid sales growth and unchanged stock performance shows persistent competitive pressure and margin concerns in China’s EV/NEV market, even as overall volumes continue to expand.
Written by Arman ABILKASSYM
Thailand’s real estate market faces its worst slump since the 1997 crisis, with over 400,000 unsold condos. The International Monetary Fund (IMF) forecasts that Thailand's economy will grow by 1.6% in 2026, reflecting the deep structural issues still present in the economy. The Thai Stock Exchange’s real estate and construction index has dropped more than 42% from its peak in early 2023, though it has slightly recovered following interest rate cuts. Stocks that have seen sharp declines include WHA Corporation, Land and Houses, and Sansiri. However, in Bangkok, real estate in locations connected to public transport systems, near hospitals and educational institutions, and within business districts is still performing relatively well. While certain segments and areas of the real estate market still show promise, the overall market remains sluggish, with properties continuing to be difficult to sell.
Written by Adrian Ping An
Technology Services is currently the second-largest sector in the Indian equity market, trailing only Financials in terms of market capitalization. The sector commands an aggregate market cap of approximately INR 43.09 trillion, with an indicated dividend yield of around 1.76%. On the latest trading day, the sector advanced +1.74%, with trading volume of about 9.88 million shares, spanning 4 industries and 179 listed stocks. Over the past week, Technology Services has risen 1.82%, making it the third-best-performing sector in the market, behind only Miscellaneous and Non-Energy Minerals. Within the sector, Data Processing Services has been the strongest sub-segment, posting a weekly gain of 4.43%.
Looking ahead, India’s technology services industry is widely expected to enter a recovery phase in 2026, supported by a rebound in enterprise IT spending and a structural shift toward AI- and cloud-led engagements. According to Gartner, total IT spending in India is projected to grow by approximately 10.6% to around USD 176 billion in 2026, marking an acceleration from the more subdued growth seen in recent years. This expansion reflects not only higher overall budgets, but also a reallocation of spending toward next-generation technologies such as artificial intelligence, cloud infrastructure, and digital modernization initiatives.
The company boasts a Return on Equity (ROE) of 26.1% and a Return on Capital Employed (ROCE) of 37.2%, indicating superior profitability within its specialized niche. While its current Price-to-Earnings (P/E) ratio of approximately 48x suggests a premium valuation, this is justified by a strong Net Profit Margin of 30.74% and a robust order book.
Written by Tiffany Zhang Difei
Japan’s market saw high volatility this week amid political, monetary policy and geopolitical headwinds. A key development was Prime Minister Sanae Takaichi’s confirmed plan to dissolve the House of Representatives on January 23 for early elections, seeking to consolidate power (73% approval rating) and end the "twisted Diet" deadlock. This sparked a "Takaichi Rally," pushing the Nikkei 225 to a historic 54,341 on January 14 (nearly 8% YTD gain). However, enthusiasm was tempered by fiscal sustainability concerns, as Takaichi’s administration proposes a $135 billion stimulus package, stoking deficit fears and weakening yen confidence.
Japan’s food retail sector exhibited mixed and range-bound performance over the previous week, underperforming the broader Nikkei 225 index amid ongoing inflationary pressures. Although consumer sentiment rose to 16%, consumers remain hesitant to spend extra money. The sector initially benefited from the market's "Takaichi Rally" but failed to sustain upward momentum. Investors remain cautious about margin compression due to soaring raw material and logistics costs, which are further complicated by the yen’s depreciation and the prospect of price increases for 15,000 food products in 2026.
Written by He Xu Doraa
The Hang Seng Tech Index showed a strong performance, opening at 5,737.43 points on January 12th and closing at 5,822.18 points on January 16th, a cumulative weekly increase of 2.37%. The Hang Seng China Enterprises Index opened at 9,116.01 points on January 12th and closed at 9,220.81 points on January 16th, rising 1.9% cumulatively over the week. Market trading was active, with a total weekly turnover of approximately HKD 1.51 trillion.
The upward movement was primarily ignited by the main investment themes in technology, such as artificial intelligence. A Citi China equity strategist pointed out that declining U.S. dollar interest rates directly benefit the Hong Kong dollar, and they are bullish on the Hong Kong stock market. Bank of Singapore believes that against the backdrop of the U.S. Federal Reserve cutting interest rates and a weakening U.S. dollar, the Hong Kong stock market is expected to reach a higher level.
Published by Hannah Myat Su Mon
Written by Rachel HU Xinyue
The technology sector showed a mixed performance with strength in hardware, stable trends in software, and increased activity in emerging technologies. Market attention continued to shift toward AI infrastructure, with investors increasingly focusing on physical bottlenecks such as 1.6T optical modules and HBM4 memory, rather than GPU upgrades alone. Ahead of the expected large-scale deployment of the GB300 platform, Nvidia (NVDA) traded near recent highs and rose approximately 3.2% over the week. Its optical interconnect partners and memory suppliers, including Micron Technology (MU), also outperformed, amid a backdrop of market expectations for tight supply conditions.
Energy efficiency became a more prominent theme within AI-related investments. During CES, Intel (INTC) drew attention for the power efficiency performance of its Panther Lake processors, with shares posting a weekly rebound of 10.8% amid volatile trading. This coincided with growing market interest in technologies aimed at reducing data center power consumption.
Quantum computing also saw heightened attention during the week. Developments included QuantWare’s announcement of plans to mass-produce large-scale quantum processors by 2026 and IonQ’s demonstration of integration with GPU-based supercomputing systems. Related stocks, such as Rigetti Computing (RGTI), experienced significant volatility early in the week. While the sector remains in a high-investment phase, increased investor participation contributed to higher volatility across quantum computing-related names.
The Nuclear Power, Uranium, and Electrical Equipment themes gained attraction. Sentiment was boosted by reports that Meta Platforms agreed to purchase nuclear-generated electricity from companies such as Oklo and Vistrato power artificial intelligence data centers. Shares of Oklo (OKLO) and Vistra (VST) surged sharply, with OKLO up 17.88% over the past week and VST up a cumulative 2.1%., lifting the broader sector. Peers including NuScale Power (SMR) also advanced 9.21%, alongside uranium producers such as Centrus Energy (LEU), up 12.36%, and Cameco (CCJ), which gained 7.28%.
Shares of SanDisk Corp (SNDK) surged 12% on Friday to a fresh record high, lifting related storage names including Micron Technology (MU), Seagate Technology (STX), and Western Digital (WDC). The rally followed a Nomura research note indicating that demand for high-capacity 3D NAND used in enterprise SSDs remains robust; analysts suggested that prices for SanDisk’s relevant products this quarter could rise by more than 100% quarter-on-quarter. Unverified market reports suggested that SNDK has asked customers to prepay in full to secure 1-3 years of supply, pointing to tighter AI-related storage demand and helping propel the stock higher.
Shares of Revolution Medicines (RVMD) repeatedly hit record highs, rising 51.46% over the week and lifting its market capitalization above $20 billion. The surge was driven by reports that Merck (MRK) is in acquisition talks with Revolution, with a potential deal price said to be $28-32 billion. If completed, this would mark the largest M&A transaction in the targeted oncology space in at least two years. Market attention was further supported by Revolution’s pipeline progress, as the company is running early-stage clinical trials of novel targeted therapies for pancreatic cancer and non-small cell lung cancer.
Written by Molly LIU Litong
AI-related sectors in the A-share market advanced this week. The AI Marketing Index rose 12.03% to close at 1,863.43, while the AI Healthcare Concept Index gained 9.31% to finish at 967.45, both outperforming the broader market. Within the sector, stocks focused on AI application and commercialization led the gains. Easy Click Worldwide Network Technology closed at RMB 52.69 after hitting the daily limit-up of 20% on Friday. The move was accompanied by a sharp increase in trading volume and capital inflows, a pattern often viewed as indicative of heightened short-term trading activity in thematic stocks.
The short video segment also posted solid gains over the five-day trading period. The Short Video Index increased 8.50% to 1,078.21, and the Xiaohongshu Concept Index advanced 8.24% to 1,723.96, amid growing market attention on content platforms and traffic-driven business models. Sector momentum increased toward the week's end, characterized by rising turnover and technical breakouts, which are commonly associated with active participation from short-term funds.
Leascend Technology (300051.SZ) advanced 20.06% this week, triggering the daily limit-up, amid a broader market rotation into the “AI + power infrastructure” theme. The company focuses on the development and application of high-efficiency heterojunction (HJT) solar cell technology, a business positioned to potentially benefit from power and clean energy infrastructure upgrades related to AI growth. The share price increase coincided with rising market expectations for electricity demand driven by global AI data center expansion, following reports that Meta and other tech giants had secured long-term nuclear power supply agreements.
Guangdong Tloong Technology Group (300063.SZ) rose 20.02% this week, also hitting the daily limit-up, as trading activity concentrated on AI- and digital-economy-related themes. The stock experienced strong short-term momentum alongside increased trading volume, a move that occurred during a period of heightened market interest in technology services and application-oriented companies.
Written by Ling GUO Yuling
Financial sector (banks and insurance): This week, financial stocks outperformed the broader market. The Hang Seng Index fell to around 26,100–26,200 points by January 9th, with its weekly gain shrinking. However, some leading financial stocks demonstrated resilience, with select bank and insurance stocks increasing between 1% and 3% during trading, which, given their heavy weight, contributed to index stability.
The performance in financial stocks has been accompanied by the following market observations: first, expectations for a stable interest rate environment have reduced concerns regarding net interest margin pressure; second, the interim results of several banks have been stable, with a further improvement in the non-performing loan ratio. For the mainland insurance industry, premium income for the first 11 months of 2025 grew by approximately 7.6% year-on-year, with life insurance premiums increasing by around 9%, which offered fundamental support for listed insurance stocks in Hong Kong.
Tencent Holdings (0700.HK) outperformed this week. Amid fluctuations and consolidation in the Hong Kong market, the company's share price moved in contrast to the broader trend. It rose approximately 4-5% over the week and closed near HK$611.0 on Friday (January 9th), approaching the upper end of its range over the past year.
Contributing factors identified by the market include the company's recent quarterly revenue and net profit, which achieved double-digit year-on-year growth and exceeded market expectations. Its domestic advertising business sustained a recovery, and the synergy between gaming and local services traffic resources showed signs of strengthening; concurrently, growth in cloud services and enterprise software rebounded. Market expectations for the application of its AI infrastructure and large models in areas such as advertising, game operations, and the Video Accounts ecosystem appear to have risen.
Since Q4 2025, several international investment banks have raised their target prices for Tencent, predominantly assigning "Buy" or "Add" ratings. Their view is that the company's ongoing share buybacks, expanding game pipeline, accelerating monetization of Video Accounts and e-commerce, along with sustained investments in artificial intelligence, are likely to support steady profit and free cash flow growth into 2026.
Written by Lucy ZHOU Zihan
European stocks advanced this week, with the Stoxx Europe 600 gaining 1%. The market was supported by global cues, including dovish expectations for U.S. rates following mixed jobs data and news of a major potential merger in the mining sector.
The Technology sector led the gains, surging 3.5% to an 18-month high. The catalyst was an upbeat revenue forecast from TSMC, which pointed to sustained robust demand for data center and AI chips. This benefited key European semiconductor capital equipment firms like ASML, underscoring the region’s critical, albeit niche, role in the global AI infrastructure supply chain. The strength suggests investors are allocating capital to the foundational hardware layer of the AI megatrend, beyond software and applications.
The Basic Resources/Mining sector experienced significant volatility driven by major corporate action. Shares of Glencore rallied approximately 10% following confirmed merger talks with Rio Tinto, whose shares declined about 3%. The market’s reaction priced in the potential creation of a dominant player in copper, a metal viewed as essential for the energy transition and AI-related power infrastructure. This move highlights how capital is chasing consolidation in sectors expected to supply the physical inputs for long-term technological and industrial shifts, despite execution and regulatory risks.
The Aerospace & Defense sector rose over 2.5%. Against a backdrop of escalating geopolitical tensions, including developments in Venezuela, the sector drew sustained investor interest as a strategic hedge. Companies like Thales and Leonardo outperformed, demonstrating the market’s pricing of heightened geopolitical risk premiums and expectations for sustained government defense spending.
Fresenius Medical Care AG (FME.F): The German healthcare company's shares rose 1.15%. The key driver was its announcement to accelerate a €1 billion share buyback program, commencing the second tranche of €415 million. This move indicates management's confidence in its sustained business momentum and strong cash flow generation, addressing shareholder value through capital return.
Banco Santander, S.A. (SAN.MC): The Spanish bank's shares added 0.4%. The positive movement followed the completion of its sale of a 49% stake in Santander Bank Polska to Erste Group for €7 billion in cash. This strategic divestiture strengthens Santander's capital position, allowing for potential reinvestment or shareholder returns, a move that appeared to meet market expectations.
Written by Vivien TAO Wei
Japanese equities rose over the week, despite domestic economic data continuing to soften. GDP contracted in Q4 and retail sales remained weak, amid persistent pressure on household demand. At the same time, the labor market stayed tight, and inflation remained above target, keeping expectations intact that the Bank of Japan will continue to normalize policy gradually.
China–Japan relations became an increasingly important driver of sector performance. China’s latest restrictions on the export of dual-use items drew market attention to Japan’s dependence on Chinese rare earth supplies, which are critical for the automotive, electronics, machinery, and defense industries. As a result, downstream sectors with high China exposure lagged, particularly autos and capital goods, where investors priced in higher costs and potential supply disruptions. In contrast, rare earth-related and upstream materials sectors outperformed. Companies involved in rare earth processing, recycling and alternative sourcing advanced amid expectations of tighter supply and higher prices, as Japanese manufacturers looked to reduce reliance on China.
Developments in the bond market also weighed on overall sentiment. Reduced BOJ bond purchases and a sharp rise in net government issuance pushed yields higher, weighing on rate-sensitive domestic sectors. Exporters, however, continued to be supported by a weaker yen.
Foreign inflows remained a key support for the market, as overseas investors continued to view Japan as a relative safe haven amid global trade uncertainty. Still, with indices near record highs and domestic growth under pressure, capital rotation led to more uneven sector performance.
Rare earth-related stocks were among the top performers during the week. Firms exposed to rare earth materials, recovery technologies and non-Chinese supply chains advanced amid expectations of stronger demand and improved pricing power.
By contrast, automakers and heavy industrial names lagged. Stocks with significant exposure to China-focused supply chains came under pressure, as investors assessed the potential for export controls to raise costs and disrupt production.
Foreign investors continued to favor large-cap companies with global exposure and clearer earnings visibility, while domestically oriented names faced challenges amid weak consumption and rising yields. Market participants noted that foreign buying may slow or become more selective if valuations remain elevated.
Written by Matthew SZE-TO Chun Yin
Weekly Key Data: Figure (daily, weekly)
Writing in a conclusive manner, India’s banking industry has seen growth in 2025. Nifty 50, India’s stock market performance tracker, has seen a +10% growth in 2025, with public sector banks and private banks contributing to this growth. (+29% and +15% respectively)
Bank stocks benefited from an earnings recovery and a less accommodative monetary policy stance from the Reserve Bank of India. Additionally, private sector banks gained support from the government’s consolidation project, with the aim of merging the current 12 banks into 4 major government-backed institutions. The expectation is that these larger entities will be better positioned to fund India’s infrastructure projects, supporting the broader national goal of achieving developed economy status by 2047.
Analyst assessments of Q3 FY25 data point to positive trends in credit growth, easing margin pressure, and stable asset quality. These factors are projected to support further improvement in Q4 and enhance profitability into 2026. A key positive signal has been the sustained loan growth. Reserve Bank of India data shows banking system advances growing close to 12% year-on-year and 4.5% quarter-on-quarter as of mid-December, driven primarily by lending to small businesses alongside an acceleration in services sector credit. Overall, the sector is expected to maintain its sequential growth momentum.
Bank of India has been a standout performer in India’s stock market in 2026. The stock has outperformed sector peers, reaching Rs. 152.5, and has been on a consistent upward trajectory. The same conclusion is made when comparing the one-year performance of Bank of India with the Sensex 30, a profile of the 30 largest and most actively traded stocks on the Indian Market. Bank of India boasts a 42.84% return compared to the average 8.10% of the Sensex 30. The key ratios also reflect a strong performance entering the upcoming financial year. Bank of India’s NPA ratio is 2.54%, which is the lowest in the PSB sector, highlighting their disciplined credit practices and effective risk management. The ROA ratio also stands at 0.9%, reflecting efficient utilization of their assets to generate profits. Market trends and key metrics reflect that Bank of India has a high potential to grow beyond current valuations. If it continues to perform well under the favorable circumstances in India’s banking industry, it is likely Bank of India will be a top performing stock in 2026 as well.
Written by Daisy DAI Yingxi
The technology sector remained a key driver this week, tracking the global AI rally and supported by positive export sentiment. Inari Amertron (INRI) was the top gainer, surging 5.68% over the past five days to recover from its December lows, marking a strong technical rebound. Regional peers followed suit, with Vietnam’s FPT Corp (FPT) advancing 4.27% amid growing optimism over its AI-cloud contracts, while Singapore’s Venture Corp (VMS) rose 2.94%, indicating sustained institutional interest in the electronics manufacturing space.
Financial heavyweights displayed resilience, supported by positive cross-border payment volumes during the holiday season. Malayan Banking Berhad (Maybank) outperformed its regional peers, climbing 3.79% for the week as investors welcomed its dividend outlook. In contrast, DBS Group (DBS) posted more modest gains, rising approximately 0.95% (based on ADR data), consolidating near its recent highs. Meanwhile, in the startup space, Hyderabad-based finance operations platform Blue Copa raised US$7.5 million in Series A funding led by Singapore’s Analog Partners, signalling continued venture capital interest in ASEAN fintech solutions.
In the Infrastructure & Utilities sector, while the "ASEAN Power Grid" theme remains a long-term driver, traditional plays like YTL Power (+1.81%) and Keppel Ltd (+0.19%) saw only measured gains amidst consolidation. However, companies focused on growth themes outperformed. Sunway Construction (+7.08%) rallied on continued optimism surrounding its hyperscale data center order book, outpacing broader utility peers.
Shares of Sea Limited (SE) advanced 3.3% this week, finding fresh support after Maybank upgraded the stock to a "Buy" rating. The bullish call highlights growing confidence in the company’s strategic investments into its Shopee e-commerce platform and SeaMoney financial services, which aim to strengthen its competitive position across Southeast Asia. However, the rally comes with a note of caution; the stock currently carries a Zacks Rank #5 (Strong Sell), reflecting broader analyst concerns over a recent trend of downward earnings estimate revisions. This divergence in sentiment suggests that while the long-term competitive outlook is maintained, investors should be mindful of potential short-term volatility and valuation risks as the next earnings season approaches.
VinFast Auto (VFS) (+1.48%) shares remained in focus this week as the company balanced aggressive regional expansion against ongoing financial concerns. The Vietnamese EV maker officially inaugurated its new manufacturing plant in Indonesia, a strategic hub initially set to produce 50,000 vehicles annually with a roadmap to scale capacity to 350,000. The move builds on strong operational momentum, driven by robust domestic demand. Despite these growth milestones, the stock remains under pressure; market sentiment is currently weighed down by analyst scrutiny regarding VinFast's current valuation levels and rapid cash burn, leaving investors cautious about the capital intensity required to sustain its global ambitions.
Published by Nicholas FEDLIM
Written by Vicky HUANG Lihan
U.S. equities came under pressure this week, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite declining roughly 1.8%, 2.0%, and 2.5%, respectively, while the VIX surged to recent highs, signalling rising market caution. Sector performance diverged notably: Technology remained the primary drag, as concerns about AI-related valuations and leverage risks tempered the impact of strong earnings, with even major software names selling off despite beating expectations.
In contrast, discount retailers outperformed, highlighted by Ross Stores’ 8% gain, as signs of value-oriented spending supported performance. Homebuilding and real estate–related sectors showed resilience, supported by growing expectations of potential Federal Reserve rate cuts, helping names such as D.R. Horton and Lennar stabilize. Healthcare was among the few bright spots, with its sector index leading gains for the month, while Technology ranked as the weakest performer.
Alphabet (GOOG.US) rose this week as accelerating AI rollouts pushed its market cap to the world’s third largest, briefly challenging peer Microsoft at the top of the global rankings. The launches of Gemini 3 and Nano Banana Pro (Gemini 3 Pro Image) reinforced its competitive positioning, while filings indicated an increased stake of USD 4.9 billion, coinciding with improved sentiment. The stock closed at USD 299.66, up 4.90% over the past five days, nearing the top of its 52-week range (USD 142.66–306.89). GOOG is up 52.12% YTD and 71.34% YoY.
Written by April WANG
This week, China's industrial silicon market saw intensified futures volatility, with the SI2601 contract slightly correcting by -0.67% to close at 8,960 yuan/ton. Wednesday's sharp surge, driven by new energy metals, was reversed on Thursday and Friday due to weak fundamentals. Supply edged down as Southwest China continued furnace shutdowns ahead of the dry season, with national operating furnaces dropping 5 units week-on-week to 262 (32.91% operating rate, per Bai Chuan Ying Fu as of Nov 20), and more maintenance plans are pending.
Demand remained weak overall: polysilicon and silicone sectors faced production cuts amid anti-involution efforts to curb redundant competition, while aluminium alloy maintained rigid demand, and October exports softened. Production costs rose on higher electricity prices in the Southwest, keeping profit under pressure. In summary, the market is in a weak supply-demand balance with sentiment-driven fluctuations, and the SI2601 contract is expected to trade between 8,800-9,400 yuan/ton, and participants remain cautious.
Zhejiang CF Moto Power Co., Ltd. (603129.SH): The stock price increased 8.05% over the last trading week. Zhejiang CF MOTO POWER Co., Ltd. is a leader in the electric motorcycle industry in mainland China. With sound financial health, its stock price has increased by 105.05% over the past year. While some analysts view the company’s prospects favourably, views vary and depend on market conditions.
Written by Lok Yin Justin CHUNG
During the week, both JPMorgan and UBS expressed constructive views on the Hong Kong financial sector. Improved revenue visibility is identified as steady deposit growth and stable HIBOR supporting net interest income. Banks’ digital‑asset strategies were also described as divergent, with Standard Chartered (2888.HK) having a relatively comprehensive footprint in stablecoins and the broader crypto ecosystem. Three longer‑term drivers were identified: rising offshore capital‑market activity as Mainland enterprises expand overseas; incremental return of foreign investors to China from prior underweights, with MSCI Hong Kong and MSCI China still trading at an estimated 24%–32% discount to MSCI ACWI; and ongoing wealth accumulation supporting growth in Hong Kong’s asset and wealth management AUM.
Xiaomi (1810.HK) shares fell below HKD 40 on 19 November 2025, touching an intraday low of HKD 38.22 (down over 3%) and more than 30% below the June peak, despite stronger-than-expected Q3 results released the prior evening.
Q3 revenue was RMB 113.12 billion (+22.3% YoY), above the RMB 112.5 billion consensus. Adjusted net profit rose 80.9% YoY to RMB 11.31 billion, a record high. Group gross margin increased to 22.9% from 20.4% in Q3 2024. By segment, Smartphone × AIoT revenue reached RMB 84.1 billion; smartphone revenue was RMB 46.0 billion with shipments continuing to grow YoY. IoT and lifestyle products revenue was RMB 27.6 billion (+5.6% YoY). Internet services revenue was RMB 9.4 billion (+10.8% YoY), with overseas internet revenue at RMB 3.3 billion (34.9% share, record high). Innovative businesses, including smart EVs and AI, generated RMB 29.0 billion in revenue, with smart EV revenue at RMB 28.3 billion; the segment reported its first quarterly operating profit (RMB 0.7 billion).
Despite the strong print, shares remained under pressure amid debates over the safety concerns of its auto products. The company may also be subject to multiple performance risks, including stronger-than-expected smartphone competition, rising memory costs, slower IoT progress, and intense EV industry competition.
Written by Lucy ZHOU Zihan
European stocks experienced a decline this week, with the Stoxx Europe 600 falling 0.9%. The sell-off was primarily led by the technology sector, which declined 2.2% amid a global tech rout fueled by valuation concerns and hawkish signals from the U.S. Federal Reserve.
Despite broad market weakness, the services sector showed remarkable resilience. The eurozone's services PMI rose to an 18-month high of 53.1, supporting the composite PMI at 52.4. This contrasted sharply with manufacturing, which fell into contraction at 49.7, reflecting weak demand and declining new orders.
Regional disparities were evident. Germany's composite PMI fell to 52.1, a notable setback as manufacturing deepened its contraction. France, however, saw stabilization with its PMI rebounding to 50.8, driven by stronger services activity. The divergence points to an uneven economic recovery within the eurozone.
Germany's banking heavyweight faced headwinds, slipping 1.49% as its asset manager DWS exited Asia Pacific private credit, prompting market concerns about regional challenges. The 0.49% dip in DWS shares reflected investor concerns, although the bank's ambitious 2028 targets include a 5% revenue growth to €37 billion and a higher dividend payout ratio of 60%. The plan banks on strict cost control and operational efficiency, but the recent dip shows investor patience is needed for this long-term transformation to pay off.
The German engineering giant was fluctuating this week. There were two important events. Its Smart Infrastructure division sealed a global partnership with Delta to deliver prefab energy solutions for AI data centers, aimed at addressing rising demand. The company also raised its gas turbine expansion plans, targeting 30GW annually by 2028. The order backlog has surged over 60% this year, while production is being booked through 2028. These may suggest a supportive demand environment, though execution remains a key risk.
Written by TAM Tsz Ching, Cathy
Japan’s PMI Composite Output Index rose to 52.0 in recent weeks, which is the joint-highest in 15 months. This reflects steady growth in the services sector and a stabilizing manufacturing sector. Manufacturing contraction eased, and expectations for new product launches and business development strengthened business confidence to its highest in nearly a year.
Markets expect the Bank of Japan could raise interest rates at an upcoming meeting amid concerns about yen weakness and cost pressures. Meanwhile, the Japanese government approved a ¥21.3 trillion stimulus package, which increased concerns over fiscal sustainability as the yen reached multi-year lows and government bond yields hit post-2008 highs. This was one of the largest stimulus packages since the pandemic period.
SoftBank Group Corp. shares fell more than 10% as traders grew wary about aggressive valuations across AI and tech, and global volatility led to outflows from risk assets. The primary trigger has been the growing market anxiety over aggressive valuations in the AI sector. SoftBank's value is heavily tied to Arm Holdings, a chip design company whose stock had soared on the AI boom. As traders began questioning the sustainability of relatively high valuations, Arm's shares faced pressure, potentially eroding the core asset underpinning SoftBank's portfolio value.
Advantest and Tokyo Electron also fell by 12% and 7% respectively, due to concerns related to AI-driven tech correction. JAC (Japanese Advisory Committee) Recruitment announced a ¥1 billion share buyback and an upgrade in its earnings forecast, with an annual growth outlook of 19.9%. This is above market averages, driving a rise in its dividend to ¥36 per share.
Written by Emilie POU
Weekly Key Data: Figure (daily, weekly)
Having focused on the banking and technology sectors in the past two weeks, we can also examine another fast-growing industry of the Indian market this week - Media and Entertainment. The major driver in this market has been the AVGC-XR Sector, which is the “Animation, Visual Effects, Gaming, Comics, and Extended Reality” sector. Another key driver was digital media, the largest segment in the industry, contributing 32% of the sector's revenues in recent estimates.
Potential growth drivers
Zomato has rapidly appreciated its stock over the past year. The company is one among the most popular food delivery companies in India. In recent months, Zomato experienced an 8.07% drop in its stock value due to market instability. Despite a monthly decline, shares remain higher year-on-year, seeing a 16.64% increase over the past year. The 52-week high is ₹304.70, and the 52-week low is ₹146.30. Analyst ratings diverge, with price targets at around ₹300.
Investments in Quick Commerce have driven its growth. Zomato's efforts to scale up its quick-commerce business (Blinkit) have increased operational expenses, impacting profits in the short term. However, some analysts believe this will lead to future profitability as stores mature. Shares rose following the Union Budget 2025 announcement, which included income tax relief that some analysts expect could support consumption. The company has also looked into expansion and innovation. Market news hints at Zomato currently looking into profitability issues, operational expansion challenges and regulatory obstacles. Expectations for innovation and business expansion may become primary factors driving its market value.
Written by Mable LOK
For the financial sector, Singapore announced a collaboration between SGX and Nasdaq to facilitate dual listings, potentially improving access to U.S. capital for Asian growth companies valued at over S$2 million.
As for the tourism sector, tourism businesses in Thailand have reported profit growth despite a 35% reduction in Chinese visitors. Companies reporting improved profitability include Thai Airways and Minor International PCL, supported by cost controls and stronger European demand.
VinFast Auto Ltd (VFS) has reported a negative gross profit margin and net loss of 24 trillion dong in its Q3 report, resulting in a drop of 12% in share price despite its growth in sales. Contributing factors included U.S. tariff headwinds, continued R&D investment, and new loan facilities totalling $250 million.
Published by Carrie CHAN
Written by Jackie LUI Ching Ho
Retailers such as Walmart and Target increased holiday discounts and meal donation campaigns ahead of Thanksgiving, indicating an increased focus on value propositions to capture price-sensitive demand. At the same time, elevated inflation, higher tariffs, and less food assistance continued to undermine confidence and discretionary budgets, raising the possibility of a weaker Black Friday season.
Sustained worldwide investment in LNG export capacity and significant resource projects in oil, gas, nuclear, and renewables is changing the medium-term supply dynamics for major US producers. The United States Department of Energy announced around USD 355 million in additional financing to enhance American production of essential materials used in the energy, transportation, and defence supply chains, supporting energy development.
Walmart announced that John Furner is the successor to Doug McMillon, indicating leadership continuity as the company navigates a softening demand environment and rising price pressures. On November 14, the firm also introduced its 2025 Black Friday Deals Event, which featured aggressive discounts and expanded product lines to defend market share during a highly promotional holiday season. Management continues to prioritize value, convenience, and omnichannel performance while preparing for anticipated tariff adjustments and evolving customer buying patterns.
Investors showed growing interest in Alphabet when Berkshire Hathaway disclosed a new investment of almost 18 million shares (about USD 5 billion), which is considered as one of Warren Buffett's final significant allocations before retiring as CEO. The announcement helped the company climb by about 2% in after-hours trading on November 14, adding to a solid year-to-date performance fueled by AI-related product momentum and a more favourable antitrust environment.
Written by William ZHANG Jiahua
The power/electric equipment sector in China continues to attract strong interest. With the rise of AI/data center build-out and expected 8% growth in power demand by 2028, analysts such as UBS see significant potential and upside for suppliers of grid and data center power equipment.
Chemical & raw materials chains are showing positive momentum. Although broad industrial PPI remains in deflation, some chemical segments are seeing price hikes (e.g. lithium hexafluorophosphate for batteries) and policy focus on higher margin speciality chemicals.
Market sentiment overall is improving, where foreign investors are again entering the Chinese equity market, domestic tech and advanced manufacturing themes are gaining traction, yet macro growth remains uneven, with weak consumption and property headwinds.
Winnovation Culturaltainment Development Ltd (000620 SZ): The stock rose around +10.13% over the trading week, leading the Shenzhen Stock Exchange. The company operates cultural tourism, hotel and real estate businesses in China. Despite the strong weekly gain, underlying fundamentals remain weak, where the company reported a net income of negative 533 million yuan in 2024.
Shannon Semiconductor Technology Co., Ltd. (300475 SZ): The stock declined notably this week by around -9.5%. It is a Chinese semiconductor and electronics components company with exposure to cloud, IoT and memory markets. The latest cash flow shows a negative operating cash flow of -CNY 47.65 million, suggesting cash generation is weak despite strong revenue growth of CNY 24,271 million (up 115% from last year). The sharp weekly drop likely reflects market concern that strong revenue growth is not yet translating into robust profitability.
Written by He Xu Doraa
Hong Kong equities posted a mixed but ultimately positive weekly performance, with the Hang Seng Index advancing 1.26% to close at 26,572.46. However, the week was marked by significant volatility and a sharp divergence between the broader market and the technology sector. The Healthcare and IT sectors witnessed notable inflows, with turnover increasing 28.15% and 16.63% respectively. In contrast, traditional sectors such as Energy and Consumer Discretionary experienced significant outflows. The index rallied to a weekly high of 27,188.81 on Thursday, bolstered by easing short-term liquidity pressures, as evidenced by the one-week HIBOR falling 8.66 basis points to 2.6447%. This rally was abruptly reversed on Friday, with the index shedding 1.85% in a single session. The sell-off was primarily triggered by a sharp downturn in US tech stocks, which reignited global concerns over tighter liquidity and higher-for-longer interest rate expectations, prompting investors to lock in profits. The Hang Seng Tech Index was a notable underperformer, ending the week down 0.42% at 5,812.80. Major constituent stocks faced substantial selling pressure, with Baidu (09888.HK) and JD.com, Inc. (09618.HK) falling approximately 7% and 6%, respectively. At the same time, Alibaba (09988.HK) declined 4%. This highlights the sector's continued sensitivity to global monetary policy shifts and investor risk appetite.
Similarly, the Hang Seng China Enterprises Index retreated from its weekly high, finishing with a modest decline of 0.48% to 9397.96. The index demonstrated resilience within a valuation repair channel but ultimately succumbed to the broader pullback driven by Federal Reserve policy uncertainty and global market volatility. Despite uncertainty, the Hong Kong economy maintained a smooth performance in general. The inflation rate remained stable at about 109.1, and the unemployment rate was at its low point at 3.9%, indicating low inflation and a resilient economy.
Alibaba (09988.HK) Alibaba’s stock price saw a notable pullback this week, closing at 154.9hkd on November 14th with a significant weekly decline of 9.5%. On the closing day, the short volume ratio reached 17.22%, much higher than the market average of 14.88%, indicating heightened bearish sentiment. The release of financial statements and the development of the AI product Qian Wen might be short-term catalysts, while the Fed’s rate cut in December may have a potential impact on its shares.
Ascletis Pharma-B(01672.HK)： Ascletis Pharma-B surged over 45% this week and closed at 13.74 HKD on November 14th, driven by market attention towards the R&D progress and commercial potential of its core product pipeline, like HCV and NASH drugs.
Written by Joshua CHAN
Financials and banks were the best movers this week, surging on US shutdown relief and rate cut hopes – think CAC and IBEX banks popping 3-4%, with better loan vibes and lower rate tailwinds keeping the party going.
Healthcare kept the momentum, with pharma giants like Merck up on earnings beats and M&A whispers; the sector grabbed +1.3% amid solid drug sales, even as tech took a breather from AI hype.
For market sentiment, there are solid weekly wins (best since Sept for STOXX), but Friday’s hawkish Fed talk trimmed gains – industrials dipped 1.8% on profit-taking, and energy lagged with oil swings. Overall, foreign inflows and ECB optimism rule, though watch US tariffs for curveballs.
Infineon Technologies AG (IFX.DE): German chip wizard soared +6.9% this week, stealing the DAX spotlight. They’re big in AI data center semis, and bumping up full-year sales guidance on booming demand had investors cheering. Revenue’s cooking with 7% organic growth eyed, but supply chain snags linger – strong play if AI keeps rolling.
Siemens Energy AG (ENR1.DE): The German energy company had a tough ride, tumbling -9.4% after earnings. The energy tech firm’s medium-term sales hike didn’t wow, with next year’s profit outlook missing the mark amid wind turbine woes. Q3 ops earnings beat a bit, but cash burn and project delays spooked the market – revenue up yoy, yet profitability’s the headache.
Written by Tiffany ZHANG Difei
Japan’s new economic stimulus package catalyzed strategic shifts in the retail and tech sectors. In cosmetics, major players like Shiseido accelerated organizational overhauls to boost global competitiveness. This coincided with the government’s rollout of a ¥14 trillion plan featuring consumption vouchers and industrial funds, all designed to stimulate domestic consumer spending. Simultaneously, the tech sector faced a sharp reversal. After months of AI-fueled rallies, investors engaged in profit-taking, triggered by storage chip giant Kioxia's 23% plunge following a significant profit drop. This sell-off dragged down peers like Advantest and Tokyo Electron, as wary investors rotated capital into more stable, earnings-backed industries. These dual trends highlighted a market carefully balancing optimism from government support against growing concerns over stretched valuations in the high-flying tech sector.
Shiseido Group (TOKYO: 4911) fell 4.2% on November 11 after Q3 2025 results and a 2030 strategic overhaul (announced Nov 10). Jan-Sept net sales dropped 4% YoY to ¥693.8 billion, with a ¥63.4 billion non-recurring charge; the firm will narrow its focus to high-growth skincare/sunscreen, ramp up AI investment, and restructure executives in 2026, lowering its full-year 2025 outlook to a ¥52 billion net loss. Rakuten Group (TOKYO: 4755) rose 2.3% on November 13 following an November 11 AI partnership with HP Japan. Starting H1 2026, Rakuten’s on-device AI platform will integrate into HP’s Japanese PCs, offering secure local tools (summarization, translation) and links to its 1.9 billion-member ecosystem—marking its first offline-online AI deployment.
Written by Matthew SZE-TO Chun Yin
Weekly Key Data: Figure (daily, weekly) NIFTY 50: 25910.05 (+0.12%, +1.45%) SENSEX 30: 84562.78 (+0.100%, 1.32%) PMI Composite: 60.4 (-0.6pct) (October Statistics) PMI Manufacturing: 59.2 (+1.5pct) (October Statistics) PMI Services: 58.9 (-2.0pct) (October Statistics)
Indian Technological Sector is a rapidly growing industry, with projections suggesting that the industry could reach an evaluation of $350 billion by 2026. This growth is driven mainly by rising digital adoption across the country, continuous government support, and increasing investments.
This growth can be attributed to the rising AI industry. India’s export of IT services remained the largest contributor, accounting for over 65% of total IT exports from the nation. This is a rising industry as well. IT spending in India has continued to grow by 11.1% in 2024 to reach 138.6 billion US dollars. The Indian software product industry is also projected to reach 100 billion USD by 2025 as the industry aims to expand globally. To support the technological growth, India’s system infrastructure software market is also rapidly rising. Performance reviews forecast that the market is to reach 20.8 billion US dollars by 20240, growing at a compound annual growth rate of 9.2%.
To further support the ecosystem, the government has partnered with Paytm. The company will provide mentorship, infrastructure support, market access and funding opportunities to startups. The stock price of Paytm also supports this (One97 Communications Ltd). The stock price of the company, since their partnership with the government in February, has grown by over 52.63%. This invertedly highlights the growth/growth potential of India’s growing financial industry.
For this week, I’ll be extending from the industry news on technology and analysing the stock of Reliance Industries. Their current stock price is at 1518.20 INR with 0.48% growth today. The more interesting statistic would be their growth in the last month, reaching 8.57%, making it one of the fastest-growing companies in India’s technological sector. This can be attributed to Reliance Industries’ plans to set up a 1-gigawatt AI data center in India’s Andhra Pradesh. This was a major step in the investment of India’s technological industry, and we can estimate continuous growth in Reliance’s stocks in the near future.
Written by Arman ABILKASSYM
In the AI sector, CIMB Investment Bank Bhd (CIMB Securities) maintained a BUY call on Malaysian Pacific Industries Bhd with a raised target price of RM41, citing strong growth prospects from AI-related semiconductor demand. Infineon’s FY26F AI power revenue target was lifted to €1.5 billion from €1.0 billion. It is expected to lift AI-related revenue contribution from 8–9% in FY6/25 to around 15% by FY6/27F.
In the technology sector, Prime Minister Pham Minh Chinh has announced an unprecedented commitment of $3.8 billion from the 2026 budget for national innovation and technology initiatives. Vietnam’s digital industry continues to thrive. According to the Ministry of Science and Technology, the ICT sector recorded over $165 billion in revenue during the first 10 months of 2025, a 52.4% increase year-on-year. Exports of digital products hit $142 billion, up 27%. It indicates that the Vietnamese digital and technology sectors are growing rapidly, and the government intends to continue this.
BDO Unibank, Inc. showed a stunning fall of 10.53% for the past week, making it the lowest price for the bank's stocks since March 2023. The BDO is the biggest bank in the Philippines. The company is paying stable dividends and showed better-than-expected revenue in July 2025 (the last time revenue was recorded). The company is showing growth in Net income and Assets, but the price for stocks is fluctuating from 119 to 165.
Published by Ashley LEE
Written by Rachel HU Xinyue
Tech stocks weakened broadly over the week, exerting significant downward pressure on the Nasdaq as the sector’s combined market capitalization declined by over USD 1 trillion. The “Magnificent 7” collectively fell by 3.21%. Specifically, NVIDIA (NVDA) plunged 7.08%, Tesla (TSLA) slid 5.92%, Meta Platforms (META) dropped 4.11%, and Microsoft (MSFT) retreated 4.05%. Meanwhile, Alphabet Class A (GOOGL) edged down 0.84%, Apple (AAPL) eased 0.70%, and Amazon (AMZN) inched up 0.08%, marking the only weekly advance among the group.
Rare-earth-related equities advanced broadly over the week. Following the release of its latest earnings report on November 6, MP Materials Corp. (MP)—the largest rare-earth producer in the United States—rose 12.8%, leading to a sustained late-session rally across the sector. American Resources Corp. (AREC) gained more than 11%, while USA Rare Earth Inc. (USAR) appreciated 9.73%, further reinforcing overall market strength within the rare-earth segment.
Coherent (COHR.US) advanced 17.09% over the week, buoyed by strong earnings performance. The laser and optical components manufacturer released its fiscal Q1 2025 results on November 5, reporting revenue of USD 1.58 billion, up 17% year-on-year, and earnings per share of USD 1.16, both exceeding market expectations and underscoring the company’s robust operational momentum. This marks the fourth consecutive quarter in which Coherent has outperformed consensus earnings estimates, highlighting its consistent execution and sustained profitability.
Kenvue (KVUE.US) advanced 17.47% over the week following merger news. Global personal care giant Kimberly-Clark (KMB.US) announced plans to acquire all outstanding common shares of Kenvue in a transaction valued at USD 48.7 billion. Upon completion, the combined entity is projected to generate approximately USD 32 billion in annual net revenue and USD 7 billion in adjusted EBITDA for fiscal 2025, becoming the world’s second-largest health and personal care products company, behind only Procter & Gamble (PG.US).
Written by Molly LIU Litong
The mainland market fluctuated repeatedly this week. The Shanghai Composite Index reclaimed the 4,000-point mark on Thursday but was affected by the sharp decline in overseas stock markets. The three major indices pulled back collectively on Friday, with the Shanghai Composite Index falling below 4,000 points again. Weekly turnover edged down slightly but remained above 10 trillion yuan.
In terms of market highlights, the power equipment sector stood out as the sole outperformer, with main capital inflows exceeding 66.7 billion yuan for the week. The two main drivers creating opportunities for power equipment are the global energy transition and the rapid growth of AI computing power. Specifically, SPIC Industry-Finance Holdings (000958.SZ) rose 2.81%, Sichuan New Energy Power (000155.SZ) appreciated 2.76% and China Southern Power Grid Energy Storage (600995.SH) gained 2.58%.
The chemical industry chain has also maintained a continuous upward trend recently, as Basic Chemicals recorded over 30.9 billion yuan in net inflows and the LIST0041 Chemicals index increased by 2.69%. The chemical industry's stock performance is influenced by shifting global demand, government policies such as subsidies and capacity expansion, and a strategic focus on higher-margin speciality chemicals.
Wingtech Technology (600745.SZ) ranked first. Driven by positive news in the late trading session on Friday, its stock soared straight to the daily limit, and the positive sentiment continued to gain momentum over the weekend.
Do-Fluoride New Materials (002407.SZ) came in second. Boosted by the price hike of lithium hexafluorophosphate, price-increase themes have become the core of the current market, as phosphorus chemicals, fluorine chemicals, various chemical sectors, and resource price hikes have surged in turn.
TBEA (600089.SH) took the third spot. As a leading enterprise in power grid equipment, its stock price hit an all-time high, with a sharp surge and a wave of daily limits on Wednesday, triggered by news of AI-related power shortages.
Written by Ling GUO Yuling
Hong Kong equities experienced a consolidative week, with the Hang Seng Index slipping 0.92% as global monetary policy uncertainties dampened investor sentiment. Performance across sectors was mixed, with the Technology sector underperforming, while Consumer and Tourism-related stocks showed resilience, supported by solid macroeconomic fundamentals.
The market's cautious tone contrasted with the strong performance of the underlying economy. The sustained "higher-for-longer" interest rate environment from the US Federal Reserve continued to pressure growth-sensitive tech stocks. However, this was offset by a series of strong Q3 2025 economic data, which painted a picture of vigorous economic expansion.
The Hong Kong economy grew 3.8% year-on-year in the third quarter, driven by a dual engine of external trade and domestic demand. Goods exports surged 16.1% year-on-year, fueled by strong global demand for electronics and smooth regional trade flows. Service exports also expanded significantly, bolstered by a steady recovery in tourism and active cross-border financial activities amid rising global markets. On the domestic front, private consumption expenditure increased further, reflected in a steady 5.9% growth in retail sales. Overall investment expenditure accelerated, supported by economic growth and a stabilizing residential property market.
SMIC：41.125 at 02/07/2025 and 77.264 at 30/09/2025 SMIC emerged as the standout performer in Q3 2025, with its share price surging approximately 87.9% from July to September. Two key factors drove this sharp rise:
Strong Macroeconomic Support Hong Kong’s September exports jumped 16.1% year-on-year, led by electronics demand, signalling a strong recovery in semiconductor orders, particularly from Mainland China. As a leading domestic foundry, SMIC benefited directly, with expectations of rising capacity utilization.
Key Technological Breakthrough SMIC reportedly achieved improved yield rates in its second-generation 7nm process and began mass production for a leading domestic AI chip designer. This breakthrough reinforced confidence in China’s progress in semiconductor self-sufficiency.
In summary, SMIC’s surge was driven by macroeconomic recovery and technological advancements, making it a bellwether for China’s semiconductor revival.
Written by Diana LIU Haolin
In general, European corporate earnings for the third quarter have surprised to the upside, with final data suggesting growth of 4.3%, significantly exceeding initial forecasts of 0.4%. This has provided some support to equities, though performance is mixed.
The pullback in the technology sector was the main driver of the market's negative performance. The STOXX Europe 600 Technology index (SX8P) was one of the worst-performing sectors for the week. It plummeted 2.07% on Friday (Nov 7) alone, cementing its weekly loss as investors took profits. Investor sentiment was dampened by concerns around elevated valuations in the technology sector, especially given the global tech/AI-valuations debate.
The industrials and basic resources sectors underperformed, with resource-heavy stocks hit by weaker commodity prices and a risk-off mood.
ITV plc (ITV.L): ITV shares surged nearly 20% on Friday, leading the STOXX 600. It follows reports late on Thursday revealing Comcast-owned Sky was holding talks with ITV over a possible deal of £1.6 billion to buy the public service broadcaster’s media and entertainment arm, which includes its terrestrial TV channels, streaming service ITVX and ITV’s 40% stake in ITN news.
International Consolidated Airlines Group S.A. (IAG.L): IAG was among the weakest performers, plunging 6.9% after reporting a drop in net profit and flat revenue. It is the latest airline group to signal a slowdown in the lucrative transatlantic market as travel from Europe to the U.S. has softened, with some analysts citing policy-related uncertainty affecting transatlantic travel.
Major Names: Performance was mixed. ASML Holding (+0.3%), LVMH (+0.3%), SAP (+0.8%), Hermès (+1.5%), and Siemens (+0.6%) recorded gains, while L’Oréal slipped 0.2%.
Written by Vivien TAO Wei
Japanese equities extended gains into the month of October and the start of November, powered by the global AI boom and finalization of the US-Japan trade agreement. For the month, the Nikkei 225 index surged 4.55% while the TOPIX index advanced 2.88%. Market performance showed a clear divergence, with Precision Instruments and Electronics leading the gains, while Retail Trade and Electric Power & Gas sectors fell.
The sustained enthusiasm for AI and the newly concluded US-Japan trade deal benefited the market, but stretched valuations raised concerns about an AI bubble, as some fund managers warned. The deal countered these concerns to some extent as it included Japanese commitments to invest in key sectors of the US economy - a plus to the earnings outlook for exporters and technology firms.
The persistent weakness of the yen was a core theme, boosting exporters but weighing on domestic demand. This contrasted sharply with the performance differential between globally oriented manufacturers and domestically-focused consumer stocks. Authorities' warnings over excessive currency volatility added another layer of caution to the market sentiment.
SoftBank Group Corp. saw active investor interest after being named a key implementer of Japan's $550 billion U.S. investment pledge under the new trade deal and securing a $15 billion bridge loan for AI investments. NTT Inc. also attracted attention following its record $17.7 billion global bond sale to finance the privatization of its AI and data center arm, NTT Data.
Conversely, Rakuten Group Inc. and Nissan Motor Co. faced heightened investor scrutiny as active issuers of overseas high-yield bonds, reflecting their aggressive expansion strategies but also raising concerns over their relatively higher financial risk.
Automotive exporters, including Toyota Motor Corp. and Honda Motor Co., found support in optimism that the U.S.-Japan trade agreement would provide a stable, tariff-free environment for their key exports.
Written by Adrian PING An
Figure (daily, weekly)
PSU(Public Sector Undertakings) Bank Sector: It is the top gainer this week as the Nifty PSU Bank index (.NIFTYPSU) rose by 0.87% on Friday alone and concluded the week with a 2.1% gain. The performance was an extension of a powerful trend: the index has now posted its third consecutive weekly advance, building on a 7% rally from the previous week.
The recent rally in PSU bank stocks is driven by three factors: higher foreign investor inflows, policy direction, and improving fundamentals. Foreign institutional investors increased their stakes as PSU banks showed stronger performance and balance-sheet improvement, which boosted market confidence. At the same time, speculation that the government may raise the foreign ownership limit in PSU banks from 20% to 49% led investors to position ahead of possible passive inflows.
Policy sentiment strengthened further when Finance Minister Nirmala Sitharaman confirmed that the government is working with the RBI and lenders to build “big, world-class banks.” Fundamentals reinforced the move: SBI reported a 10% year-on-year increase in net profit to ₹20,160 crore, core operating profit came in about 15% above estimates, credit growth guidance was revised up to 12–14%, and asset quality improved to gross NPAs of 1.73% and net NPAs of 0.42%.
Shriram Finance Ltd. (NSE: SHRIRAMFIN) was a top gainer in the Nifty 50 this week, surging approximately 9% amid broader market caution. The stock hit a new 52-week high of ₹820.00 on Friday, closing at ₹816.35 on elevated trading volumes. The rally was ignited by the company's strong Q2FY26 results, which beat market expectations. Following this positive earnings surprise, the stock benefited from a wave of analyst upgrades, with widespread 'Buy' or 'Strong Buy' ratings. Analysts are optimistic due to factors like low credit costs, strong EPS growth, and potential upside from new partnerships or future rating improvements.
Written by Daisy DAI Yingxi
In the AI sector, GenAI Fund has allocated US$6 million to six startups selected for the first cohort of ASEAN’s Enterprise FastTrack AI Accelerator on November 7th, which is expected to accelerate the development of enterprise-grade AI solutions across the region.
In the E-commerce domain, Amazon has announced its plan to establish Vietnam as a high-quality e-commerce export hub for Southeast Asia by 2026 on November 7th, indicating increasing confidence in the market's manufacturing capabilities and logistics infrastructure.
In the sustainable development division, the ASEAN Taxonomy Board (ATB) released Version 4 of the ASEAN Taxonomy for Sustainable Finance on November 6th, 2025. This marks a major milestone in ASEAN’s sustainable finance journey, as the updated taxonomy provides a clear and consistent framework for identifying sustainable investments.
In the construction and supply chain, the Southeast Asian construction industry is projected to grow by over 6.2% annually from 2024 to 2028, fueled by urbanization and increased infrastructure investments. Japanese electronics supplier Kaga Electronics announced a billion-yen investment to build a new plant in Thailand on November 6th, underscoring the region's growing role in global supply chains.
DBS Group Holdings Ltd (DBS) reported better-than-expected third-quarter earnings for 2025 and announced a commitment to increase its dividend payout for the upcoming fiscal year on November 6th. The commitment sent the bank's market cap above $157 billion, and a new record of $55.55 per share price. The consistent dividend payouts and capital return program provide a stable and predictable return for investors.
Grab Holdings Ltd (GRAB) has shown strong growth in its on-demand services and reported a 22% year-over-year increase in revenue for the third quarter of 2025 on November 4th. The stock price saw a decline following the earnings report. However, analyst ratings are generally positive, as the recent pullback in the stock price could present a buying opportunity for long-term investors. In general, investors should be mindful of the company's path to sustained profitability.
Published by Ashley LEE
Written by Kevin XIA Yunchu
Technology stocks led the market gains this week, with the Nasdaq Composite rising 2.2%. Tesla was a standout, surging over 5% after tensions between CEO Elon Musk and President Donald Trump eased, helping the company recover a portion of the $150 billion in market value lost earlier. Other major tech companies, including Nvidia, Alphabet, Meta Platforms, Microsoft, Apple, and Amazon, also posted gains ranging from 1% to 2%. However, Broadcom shares declined nearly 4% after issuing a revenue forecast below expectations. In retail, Lululemon’s shares fell sharply by 21% following a downward revision of its annual profit forecast, citing increased tariff-related costs. Energy prices remained steady, with crude oil near $65 per barrel amid ongoing supply concerns.
Tesla’s stock rebounded strongly this week, climbing more than 5% after a public dispute between CEO Elon Musk and President Trump appeared to de-escalate, restoring investor confidence. Broadcom reported a revenue outlook that missed analyst expectations, leading to a nearly 4% drop in its share price. Lululemon issued a profit warning, attributing the revision to higher costs from tariffs, which caused its shares to plunge 21%. The overall market optimism was supported by a stronger-than-expected May jobs report and steady unemployment, which helped ease concerns over an economic slowdown and increased hopes for potential Federal Reserve rate cuts later this year.
Written by Kevin XIA Yunchu
Across European regions, industry contributions were largely positive in May, with cyclical sectors leading performance. Tech contributed broadly, especially in the U.S., as U.S. Big Tech rallied on strong earnings and outlook, with the exception of Apple Inc., which has potentially higher exposure to trade risks. Financials, discretionary, and industrials contributed across all regions, notably U.S. discretionary and Asia-Pacific Financials. Health Care generally struggled and lagged the most.
The outlook for euro area economic growth is clouded by trade tensions and elevated global uncertainty. For 2025 as a whole, these effects are seen to be partly compensated by stronger-than-expected economic activity in the first quarter, which likely reflects in part the frontloading of exports in anticipation of higher tariffs. In the medium term, economic activity is seen to be supported by the recently announced new fiscal measures. Annual average real GDP growth is expected to be 0.9% in 2025, 1.1% in 2026 and 1.3% in 2027.
JD Sports shares plunged over 7% after reporting a 2% drop in underlying sales. Julius Baer fell 5.5% following news of a CHF 130 million writedown. Marks & Spencer lost more than 3% after revealing a recent cyberattack could result in a £300 million hit to operating profit. Infineon gained 1.6% after announcing a collaboration with Nvidia to develop a new power delivery architecture for AI data centers.
The EURO STOXX 50 Index closed the week at 5430.17, a 1.18% increase, marking its largest one-week gain since mid-May. The European Central Bank (ECB) reduced the three key ECB interest rates by 25 basis points on June 5. The next meeting is scheduled for June 17, 2025. Euro area economic activity increased by 0.3% in the first quarter of 2025. Domestic demand, driven by private consumption, likely made a positive contribution to growth in the first quarter, as did net trade. The industrial sector shows signs of a recovery, with a manufacturing output PMI of 51.5, while the services PMI indicates stagnation.
Written by Kevin XIA Yunchu
The Mainland China and Hong Kong markets demonstrated steady gains this week, supported by positive liquidity conditions and ongoing economic stabilization measures. The Hang Seng Index rose 1.63% to close at 24,181.43, marking its highest level since late March 2025, while the Shanghai Composite Index advanced 0.43% to 3,399.77. The recent increase in China’s Bloomberg Credit Impulse Index to 24.04 in April reflects the effectiveness of the People’s Bank of China’s expansionary monetary policy, which has enhanced liquidity and supported credit growth. This credit expansion is historically correlated with cyclical uptrends in the Hong Kong market.
The Hang Seng Indexes Company Limited implemented its quarterly index review, increasing the number of Hang Seng Index constituents from 83 to 85, with notable inclusions such as Midea Group Co., Ltd. and ZTO Express. The Hang Seng TECH Index welcomed BYD Co. Ltd., a leading electric vehicle manufacturer, highlighting the ongoing importance of innovation and green technology in the region’s economic development. The Hang Seng Composite Index also expanded, reflecting the broadening of market representation.
Investor interest remained strong in sectors aligned with China’s strategic priorities, including new energy vehicles, technology, and healthcare. Electric vehicle makers such as BYD and Li Auto continued to show robust performance, supported by government policies promoting sustainable development. Pharmaceutical companies like Wuxi Biologics and Hansoh Pharmaceutical also advanced, benefiting from increased healthcare investment.
BYD Co. Ltd. was newly included in the Hang Seng TECH Index, underscoring its growing influence in the electric vehicle sector. The company’s shares continued to perform well amid strong domestic demand and supportive policy environments. Li Auto’s shares rose 3.8%, reflecting positive market sentiment toward the new energy vehicle industry. Mining stocks, including Zijin Mining, surged as gold prices reached a one-week high, with Zijin gaining 7.5%. CATL, a major EV battery producer, jumped 9% following a strong market debut.
JD Sports experienced a decline of over 7% after reporting a 2% drop in underlying sales, while Marks & Spencer’s shares fell more than 3% due to a cyberattack-related profit impact. Julius Baer’s shares dropped 5.5% following a significant writedown announcement.
Written by Kevin XIA Yunchu
Japanese equities showed resilience in May and early June, supported by easing global economic concerns and robust domestic demand. The TOPIX index rose 5.10% in May, while the Nikkei 225 gained 0.92% during the week ending June 6, 2025. Of the 33 Tokyo Stock Exchange sectors, 29 advanced, led by Nonferrous Metals, Warehousing & Harbour Transportation Services, and Machinery. Conversely, Electric Power & Gas, Pulp & Paper, and Iron & Steel sectors saw declines.
The market benefited from positive developments in US-China trade relations, with the US and China agreeing to significantly reduce additional tariffs, easing fears of a prolonged global economic slowdown. This contributed to buying interest in domestically focused stocks and high-tech sectors, boosted by strong earnings reports from major US chipmakers. However, the yen temporarily appreciated against the US dollar ahead of a meeting between US and Japanese finance ministers, reflecting concerns over potential pressure on Japan to strengthen its currency, which weighed on export-sensitive stocks.
Sompo Holdings shares declined 6.6%, while Tokio Marine Holdings, Advantest Corp., and Sony Group Corp. also faced losses. Toyota Motor edged up 0.1% following the launch of a new software system in its revamped RAV4 model, signalling ongoing innovation in the automotive sector.
Electric vehicle and technology-related stocks continued to attract investor interest amid global trends toward sustainability and digitalization. Meanwhile, concerns remain over potential impacts from US tariffs scheduled to take effect in July, particularly on Japan’s automotive exports.
Written by Charles SHI Qiyuan
Real Estate Sector: This week, it was the second-best performing sector, with a gain of 7.97%. On Friday, the Reserve Bank of India announced a 50 basis point rate cut, which exceeded market expectations. At the same time, the RBI also indicated plans to reduce the reserve ratio to continue injecting liquidity into banks. Driven by these policies, the stock market rebounded strongly on Friday, with the Nifty Real Estate Index leading all sectors (up more than 3%).
This rate cut marks the RBI’s third consecutive reduction in the repo rate in 2025, with a total decrease of 100 basis points so far this year. The significant rate cut is clearly positive news for the real estate industry, as it helps lower mortgage rates, improves housing affordability for buyers, and stimulates demand. In addition, lower interest rates reduce borrowing costs for developers, supporting project financing and expansion. This proactive monetary easing policy aims to boost economic growth, reduce borrowing costs, and improve the affordability of home loans, thereby directly benefiting the real estate sector. Analysts expect a strong recovery in housing demand and real estate investment over the next 2 to 3 years, particularly in the affordable and mid-income housing segments.
Tata Technologies Ltd (NSE: TATATECH) As Apple expands its manufacturing operations beyond China, India has become one of its major production hubs. The Tata Group has rapidly emerged as a key supplier, assembling iPhones at three factories in southern India for both domestic and international markets — one of which also produces certain iPhone components. In the latest reported expansion of their collaboration, Apple has transferred its iPhone and MacBook device repair services—previously handled by the Indian subsidiary of Taiwan’s Wistron Group, ICT Service Management Solutions—to Tata. These after-sales repairs are expected to be carried out at Tata’s iPhone assembly campus in Karnataka. In recent years, iPhone sales in the Indian market have surged. Of the 11 million smartphones sold in India last year, iPhones accounted for about 7%, up from just 1% market share in 2020. At the same time, amid escalating U.S.-China trade tensions due to Trump-era tariffs, India has also become a popular site for iPhone manufacturing and exports. The latest contract award highlights Apple’s growing confidence in Tata, whose role in the U.S. tech giant’s supply chain is steadily strengthening.
Written by Rachel HU Xinyue
AI-related equities posted mixed results. Super Micro Computer (NASDAQ: SMCI) rose by 7.8%, Palantir (NYSE: PLTR) gained 4.09%, while BullFrog AI (private company) declined 2.22%.
Semiconductor stocks were generally weaker. The Philadelphia Semiconductor Index closed down 0.94% for the day and recorded a weekly loss of 0.89%. The 2x leveraged ETF tracking Nvidia (NYSE: NVDA) declined 1.52%, whereas Wolfspeed (NYSE: WOLF) saw a notable gain of 9.58%.
Boeing (NYSE: BA) advanced 10.07% this week, following reports that President Trump announced the company would be responsible for developing the next-generation U.S. Air Force fighter jet, the F-47.
FedEx (NYSE: FDX) declined 4.9% over the week after releasing its fiscal Q3 earnings, which were mixed. While revenue came in ahead of expectations, earnings fell short. The company also revised down its full-year profit and revenue guidance, which may have weighed on investor sentiment.
Micron Technology (NASDAQ: MU) fell 8.04%, despite reporting a strong Q2 data center revenue performance, which more than doubled year-over-year, and Q3 revenue guidance that exceeded expectations. However, the company’s gross margin outlook came in lower than anticipated, potentially contributing to the share price decline.
Written by Robin HONG Yee Ching
The automotive sector also saw steep declines due to mounting concerns over trade barriers. Volkswagen fell 4.15%, BMW dropped 3.53%, Mercedes-Benz lost 2.44%, Porsche declined 3.4%, and Stellantis retreated 3%. Carmakers are considered among the most vulnerable to trade tensions due to their extensive international exposure and manufacturing operations in Canada and Mexico — both of which have been primary targets of Trump’s tariffs.
Nike reported third-quarter financial year 2025 revenues of $11.3 billion (€10.4bn), which was a year-on-year decrease of 9% on a reported basis. This drop was primarily because of a decrease in demand for the company’s core footwear and apparel divisions, with sales lagging particularly in China. Equipment sales increased. Nike Direct revenues also plunged 12% to $4.7bn (€4.3bn), with its gross margin falling 330 basis points to 41.5%. The company’s chief financial officer (CFO), Matthew Friend, highlighted during an investor call that geopolitical dynamics, tax regulations and new tariffs were some of the factors causing uncertainty. The company’s share price dropped more than 5% in pre-market trading on the New York Stock Exchange (NYSE) on Friday morning.
Written by Kevin XIA
Technology and AI: Chinese tech stocks have been performing well, with US-listed companies like Alibaba, Baidu, and PDD Holdings seeing significant gains. This is partly due to the softening of governmental oversight of tech giants and the rise of innovative AI companies.
Real Estate: China's property sector has been a focus for policymakers, with efforts to stabilize and boost consumption. However, a prolonged housing slump continues to impact consumer spending.
BYD Company Gained 1.1% following the announcement of new electric vehicle charging technology. However, its stock experienced volatility last week. On March 21, the stock closed at 388.00 HKD, down 5.86% from the previous day's close of 412.15 HKD. However, it had seen gains earlier in the week, such as a 2.82% rise on March 19.
Written by Dacian DENG Shen
Japan’s stock markets posted gains over the past week, with the Nikkei 225 Index rising 1.68% and the broader TOPIX climbing 3.25%. Foreign investor interest contributed to the strong performance, particularly boosting shares of Japanese trading companies. The yen weakened slightly, trading at the lower end of JPY 149 against the U.S. dollar, compared to JPY 148.6 the previous week. Meanwhile, the yield on the 10-year Japanese government bond fell marginally from 1.54% to 1.52%.
At its March 18–19 monetary policy meeting, the Bank of Japan (BoJ) kept its short-term policy rate unchanged at 0.5%, as expected. Inflation data showed Japan’s core consumer price index rose by 3.0% year-on-year in February, exceeding consensus expectations of 2.9% but slowing from January’s 3.2%. Early results from Japan’s spring wage negotiations (“shunto”) indicated steady wage growth, which aligns with the BoJ’s focus on monitoring a virtuous cycle between wages and prices to sustain inflation expectations.
Foxconn is close to a deal with Mitsubishi Motors to produce electric vehicles (EVs), marking a significant step for both companies. Mitsubishi aims to expand its EV lineup while cutting costs, and Foxconn seeks to diversify beyond iPhone assembly into EV manufacturing. Meanwhile, SoftBank has acquired US chip start-up Ampere Computing for $6.5 billion to strengthen its AI infrastructure strategy, complementing its existing investments like Arm and Graphcore. These developments highlight Japan's push toward innovation in EVs and AI.
Mitsubishi Motors The potential partnership with Foxconn could positively impact Mitsubishi's stock by signalling innovation and cost-efficiency in the EV market. However, the company has yet to confirm the deal officially.
SoftBank Group SoftBank's acquisition of Ampere Computing further solidifies its position in the AI sector. This move may bolster investor confidence in SoftBank's long-term growth strategy centered around AI infrastructure.
Written by Justin CHUNG Lok Yin
Aviation: India's aviation sector is showing a healthy picture, with domestic air passenger traffic showing a robust 11.04% year-on-year growth in February. International passenger traffic too has shown robust growth, with Indian carriers carrying approximately 280.9 lakh passengers between April-January, a 14.8% rise over last year and a 41.3% rise over pre-COVID levels.
Among airlines, Akasa Air achieved a 4.7% share of the market by transporting 6.59 lakh passengers, while SpiceJet recorded a 3.2% share with 4.54 lakh passengers.
Credit rating agency ICRA has a "stable" outlook for the industry, supported by stronger pricing power and moderate growth prospects. Domestic air traffic is expected to progress 7-10% year on year during FY2025 and FY2026, while international passenger traffic for Indian carriers will grow 15-20%.
Garden Reach Shipbuilders & Engineers Ltd. (NSE:GRSE): GRSE stock rose over 6% on March 20, 2025, following the company's announcement of a Memorandum of Understanding (MoU) with Nagaland's Public Works Department (PWD). This comes after the company's good run of growth, its stock has risen 127% year-to-date and 30.6% last week. The MoU, signed on March 19, 2025, is for the supply of eight double-lane modular Steel Bridges under the Make in India initiative. This is GRSE's first significant collaboration with a Northeastern state, with the aim of enhancing regional infrastructure. Being amongst the premier defense-sector shipbuilders, GRSE has reported 37.69% revenue growth YoY and a net profit increase of 11% in Q3 FY 2024-2025. It is projected to grow by analysts but they perceive resistance at ₹1,800-₹2,000 and support at ₹1,640.
Written by Sarah LEONG Si Ian
The technology sector has shown the highest price rise of 3.04.% among all the sector indexes in the US. This might be one result of the US’s Artificial Intelligence initiative, which gives consumer confidence. In the previous week, the stock price of Intel shares increased by 14%, following the appointment of the new CEO Lip-Bu Tan.
Microsoft (MSFT) has shown fluctuations in the previous week. It opened at a price of 392.35 and has been going up and down until it reached the week’s low of 376.99, but eventually closed with a 2.58% rise at 388.56. The P/E TTM was at 31.31. The net outflow was 108.52M, with most of the orders being small orders.
Written by Kathy TAM
The consumer sector in Europe showed a mixed performance during the week. The STOXX 600 index, which includes consumer stocks, gained 0.8% during the week, driven by strong performances in resources and consumer sectors. This rise reflects resilience in consumer spending, supported by a slight improvement in consumer confidence, which rose to -13.6 in February 2025, marking the highest level in four months. Cross-border e-commerce continues to grow, with 30% of online buyers in the EU making purchases from sellers in other EU countries. However, inflation concerns persist, as evidenced by recent economic data showing headline inflation expected to average 2.3% in 2025. Despite these challenges, household spending is projected to strengthen from an annual rate of increase of around 0.9% in 2023-24 to 1.3% in 2025-27, supported by rising wages and easing inflation.
Ryanair's stock experienced a slight decline after releasing its February passenger data, despite a 14% increase in passengers to 12.6 million. The stock fell by 0.5% due to concerns over future growth rates, as investors focused on the airline's forward-looking guidance. Ryanair aims to carry nearly 200 million passengers in fiscal year 2025, but achieving this target may require slowing passenger growth to 5.2% in March, partly due to the Easter holiday impact. Additionally, Ryanair remains involved in a legal dispute with the European Commission over state aid to SAS, reflecting broader tensions between airlines and EU regulators.
Written by Kevin XIA
The Hang Seng Index (HSI) rose by 2.1% to close at 23,959 points on March 14, despite losing 1.1% for the week. The Hang Seng China Enterprises Index gained 2.7% to finish at 8,877 points, reflecting positive sentiment towards mainland companies. The Hang Seng TECH Index increased by 2.3% to close at 5,880 points, driven by technology stocks. In mainland China, the Shanghai Composite Index and the Shenzhen Component Index also showed positive movements, with the former rising by 1.5% and the latter by 1.8% over the week.
The technology sector in both mainland China and Hong Kong is seen as a driver of growth, particularly with stocks related to AI and e-commerce. This trend is supported by positive US-China relations and ongoing investments in AI technologies. The consumer sector is also expected to benefit from policies supporting domestic consumption, such as childbirth incentives in Inner Mongolia and other regional initiatives. These measures are anticipated to boost consumer-related stocks and contribute to economic recovery. Additionally, the financial sector in both regions is supported by ample liquidity and regulatory support for capital markets, which helps maintain investor confidence.
Several key stocks have been in focus during the week. Guming, a Chinese bubble-tea giant, is preparing for a Hong Kong IPO, targeting US$200 million. This move highlights the growing interest in consumer goods companies in the region. Tech blue chips like JD.com, Alibaba, and Baidu have shown resilience, benefiting from positive trends in AI and e-commerce. In mainland China, companies such as Huawei and Xiaomi are also gaining attention due to their strategic investments in technology and innovation. Despite these positive developments, investors remain cautious about potential challenges, including economic recovery and policy support falling short of expectations.
Written by Kevin XIA
The Nikkei 225, Japan's benchmark stock index, rose by 0.72% to close at 37,053.10 on March 14, 2025. This increase was part of a broader trend where most Asian markets experienced gains, buoyed by positive sentiment from Wall Street.
Japan's economic sectors have been influenced by various policy and market developments. The technology sector is gaining attention due to investments in innovation and strategic partnerships. The energy sector is undergoing changes with plans to phase out the feed-in tariff system for solar power by 2032, aiming to consolidate small-scale projects and promote larger operators. Additionally, Japan is focusing on expanding its agricultural exports, including rice, with a goal to increase exports eight-fold by 2030. The country is also promoting its cold chain logistics standards in Southeast Asia to boost food exports.
Several Japanese companies have been in focus recently. Trading giants such as Itochu Corp., Mareni Corp, and Mitsubishi Corp. saw their shares rise after Warren Buffett's Berkshire Hathaway increased its stakes in these firms. This move is perceived as a vote of confidence in Japan's economic landscape. Despite these positive developments, challenges persist, including a decline in the Leading Economic Index (LEI) due to weak new orders for machinery and construction, which may signal caution in business investment decisions.
Written by Charles SHI Qiyuan
Energy Sector: This week, India made a significant adjustment to its energy strategy. On Wednesday, Parliament passed an amendment bill that separates oil operations from the mining sector. The aim is to encourage foreign investors to enter India's oil and gas exploration industry, with hopes of attracting more international capital to enhance domestic energy self-sufficiency and drive industry modernization. At the same time, updated data shows that since February, Indian refineries have been turning to crude oil imports from Latin America and Africa, with a slight increase, to replace Russian oil. In February, Russian oil imports dropped by 3% compared to the previous month to around 1.54 million barrels per day, marking the lowest share since January 2024. This shift allows Indian refiners to reduce the instability in the global oil supply chain and increase the diversity and stability of their energy supplies.
Indian Railway Finance Corp Ltd (NSE: IRFC): This stock will be in the spotlight next week as the board will discuss and approve the proposal for the second interim dividend of the fiscal year on Monday, and the stock has announced a record date of March 21 for dividend payment. However, the stock has fallen more than 20% so far this year (down 4.03% this week, now at 117.03) following the stock market crash since November 2024.
Nevertheless, the company's development is encouraging, with a post-tax profit exceeding ₹6,400 crore as of last March. It is the third-largest public sector non-banking financial company in India and has provided crucial financial support for nearly 80% of the Indian Railways' locomotive and rolling stock. The company also has a positive outlook, with reports indicating that it is undergoing strategic diversification into sectors such as power generation and transmission, mining, fuel, coal, warehousing, telecom, and hospitality. The returns from these higher-margin projects are expected to be 3 to 5 times higher, which could enhance its net interest margin (NIM) and profitability. Additionally, the existing ₹60,000 crore in unabsorbed depreciation buffers ensures the company will not face significant tax burdens in the short term, supporting better earnings retention.
Written by Sarah LEONG Si Ian
The financial sector has shown the highest price rise of 2.07% among all the sector indexes in the US. This might be one of the results of the continuously low interest rate in the US, which lowers the cost of borrowings for investors. It is expected that the interest rate will be low for a longer time, which further increases investors’ confidence.
In general, all of the sectors in the US have shown a price rise in the previous week, with the lowest growth rate of 0.81% in the real estate sector.
Apple (AAPL) has shown fluctuations in the previous week. It opened at a price of 236.950 and has been showing a downward trend until it reached the week’s low of 230.20, but eventually closed with a 1.91% rise at 241.84. The P/E TTM was at 38.39. The net outflow was 90.78M, with most of the orders being small orders.
Written by Kathy TAM Ka Ioi
The European technology sector indeed faced significant challenges in early 2025, with the Stoxx Technology index declining by 1.2%. This downturn was primarily triggered by a sharp drop in Nvidia's shares on Wall Street, which had a ripple effect on European chip manufacturers. Notable declines included BE Semiconductor dropping 9%, Infineon falling 3%, and ASML experiencing a 6% decline. These losses underscore the interconnectedness of global tech markets and the sensitivity of European tech stocks to developments in the U.S. semiconductor industry.
Luxury goods company LVMH has been experiencing difficulties, particularly in the Chinese market. In the third quarter of 2024, LVMH recorded a 3% sales decline, marking its weakest quarter since the pandemic. This performance reflects broader challenges in the luxury sector, which has traditionally been a standout performer in European markets. The company's struggles are largely attributed to falling sales in China, a crucial market for luxury goods. In the Asia Pacific region, predominantly China, sales fell by 16% year-on-year in the third quarter of 2024. Despite these challenges, there are some signs of potential recovery. LVMH reported slightly better-than-expected annual results for 2024, with revenue of 86.15 billion euros ($94.27 billion), surpassing analyst forecasts. However, the market reaction was cautious, with LVMH shares dropping 5% following the announcement.While LVMH's CEO Bernard Arnault expressed optimism to 2025, particularly regarding the U.S. market, analysts caution that the luxury sector still faces significant challenges, including a slow-to-recover Chinese market and the risk of new American taxes.
Written by Alexander ANTONIOU
Escalating US tariffs on Chinese imports significantly impact the economy. Specific Chinese sectors are particularly targeted in a new American CFIUS memo aimed at restricting spending on strategic sectors like technology and energy. US plans to strengthen restrictions on US semiconductor technology exports to China (such as cutting-edge Nvidia chips), reducing investor confidence in Chinese technology and AI prospects.
Despite tightening pressure on Chinese imports and exports, the New International Land- Sea Trade Corridor, a new major logistics network for international trade out of China, has transported record units via intermodal rail-sea service in the first two months of this year. According to the China Railway Nanning Group, transport volume has already exceeded the total from 2019, with a year-on-year increase averaging 58.4%. Demand for freight transportation surged in February, pushed by increases in timber on stone materials from Guangxi, with tea and roll paper from Hunan province.
XIAOMI-W (1810.HK) gained 0.29% this week. The tech giant debuted its new SU7 Ultra SUV on Thursday, citing over 6900 pre-orders within ten minutes. Xiaomi successfully launched the SU7 line, one of the first vehicles on the market to seamlessly link to a smartphone.
CATL: Contemporary Amperex Technology Co., Limited (300750.SZ) is down −4.08% this week, despite a deal to provide their newest battery technologies to Baidu to develop competitive ‘robo-taxi’ driverless vehicles.
NEW WORLD DEV (0017.HK) gained 8.80% this week. The Hong Kong based real estate and infrastructure conglomerate reported a net loss of HK$6.63 billion on Friday, for the first half ended in December.
Written by Charles SHI Qiyuan
BSFI In the cash segment, FIIs had a net outflow of 22,011 crore rupees, while DIIs had a net inflow of 22,252 crore rupees, providing some support to the market. In February, foreign portfolio investors (FPIs) continued to divest from the Indian stock market, selling shares worth 35,694 crore rupees, mainly due to concerns about short-term valuations and corporate earnings. As capital continued to flow into the US market, the engagement between the Chinese government and business leaders has inspired optimism about a potential economic recovery (the Hang Seng Index rose by 18.7% within the month), and the "sell India, buy China" trade is likely to continue in the short term.
However, India's structural growth drivers remain unaffected. With the improvement of economic fundamentals and earnings growth in the coming six months, foreign institutional investor (FII) funds are likely to return to India. At the same time, in the near future, with the increase in government capital expenditure following the implementation of election- related measures and budget proposals, credit growth will accelerate. Large banks are capable of taking advantage of this cycle, although profit margins may face slight pressure, as the reduction of interest rates by the Reserve Bank of India leads to the repricing of loans while the cost of deposits remains high. Public sector banks will benefit from the resolutions of the National Company Law Tribunal and the write-back of provisions. The Reserve Bank of India has decided to lower the repo rate to prevent a sharp depreciation of the Indian rupee, inject sustained liquidity into the banking system, and relax the risk weights for lending to non-banking financial companies. These measures are likely to support the future growth of the banking, financial services, and insurance (BFSI) sector. Therefore, when the Indian stock market has been continuously declining, the BFSI sector has the potential to be the main driving force leading the market higher in the next round of rebound.
Tata Consultancy Services Ltd (NSE: TCS) It experienced a decrease of 249.10 points (6.68%) in the past week and dropped to its lowest level in 52 weeks (3457.35) on Friday, February 28th. The announcement on that day of the extension of the cooperation with DNB Bank of Norway did not help this IT leader recover after the stock market crash.
The main reason was that market concerns about the slowdown of the US economy and the rising inflation expectations triggered by Trump's tariffs dampened market sentiment. At the same time, the weak global economic data made the situation even worse, and most Asian stock markets declined. In addition, after NVIDIA released its latest earnings report, its performance was not as strong as expected, and its share price dropped, triggering the selling of artificial intelligence stocks and major technology stocks. The share prices of Infosys, Mphasis, and HCL were all under pressure during the same period, decreasing by 5.45%, 9.66%, and 4.79% respectively.
Written by Rachel HU Xinyue
U.S. stocks struggled this week, with the Dow Jones dropping 1.01%, the S&P 500 falling 0.43%, and the Nasdaq declining 0.47%. Analysts pointed to persistent inflation concerns as a key driver, noting that stronger-than-expected inflation data and a stable labor market have dampened expectations for further accommodative measures from the Federal Reserve. Despite Atlanta Fed President Bostic's forecast of two rate cuts this year, uncertainty remains due to factors like tariffs and other economic challenges. Market experts have raised concerns over the Trump administration’s ongoing tariff policies. Following last week’s decision to impose a 25% tariff on imported steel and aluminum, the administration has now indicated it may expand these measures to other goods, including automobiles, semiconductors, pharmaceuticals, and timber. Analysts warn that such a move could disrupt global supply chains, raise production costs, and exacerbate inflationary pressures, further straining the economy. In addition, recent economic data failed to alleviate investor concerns. The S&P PMI dropped to 50.4, signaling a slowdown in economic activity, while the University of Michigan’s Consumer Sentiment Index fell to 64, reflecting weaker consumer confidence. On top of that, the housing market showed signs of weakness, with new home starts down 9.8% and existing home sales falling 4.9%. These indicators have further fueled concerns about a potential broader economic slowdown.
The banking sector experienced a general decline this week, with notable decreases observed across several major institutions. JPMorgan Chase (JPM) saw a reduction of 4.46%, Bank of America (BAC) decreased by 1.54%, Wells Fargo (WFC) fell by 2.14%, Morgan Stanley (MS) dropped by 4.51%, Goldman Sachs (GS) declined by 3.87%, and Citigroup (C) experienced a decrease of 3.1%. On the other hand, stocks related to quantum computing continued to show upward movement. D-Wave Quantum (QBTS) increased by 13%, SEALSQ (SEAL) rose by 10.36%, Arqit Quantum (ARQQ) gained 6.47%, Rigetti Computing (RGTI) saw an increase of 3.99%, and Quantum (QUBT) rose by 3.6%.
Shares of UnitedHealth (UNH.US) dropped 10.91% this week following reports that the U.S. Department of Justice is investigating the company’s patient diagnosis practices. Sources revealed that UnitedHealth is being scrutinized for allegedly securing additional benefits from the Medicare Advantage program, a practice that could fall under civil fraud. Walmart (WMT.US) saw a dramatic 6.53% drop in its stock price on Thursday, the largest single-day decline in 15 years, contributing to an 8.9% overall weekly decrease. The downturn followed the release of the company’s 2024 financial results, which included a bleak outlook for 2025. The market experts indicate that the forecast, falling short of consumer expectations, raises concerns that the coming year may present significant challenges for the retail industry.
Written by Hong Yee Ching Robin
European stock markets closed higher Friday as a busy week for earnings drew to a close. The regional Stoxx 600 index ended the session 0.52% higher, after earnings disappointments led to two sessions in the red. Germany’s DAX closed 0.12% lower as the country heads into its election weekend, while France’s CAC 40.
A European fund focused on defense companies has garnered $1 billion in assets. The Future of Defense UCITS ETF, which has the ticker NATO on the London, Italian, Swiss and French stock exchanges, employs a “NATO screen” to provide exposure to companies domiciled in NATO or allied member states, according to its manager HANetf. The fund, launched in 2023, has accumulated $1.08 billion in total assets under management, with $210 million in new fund flows this year. The ETF holds about 60 stocks and has risen more than 15% this year, outperforming the broader benchmarkers Stoxx Europe 600 and S&P 500.
Ferrexpo shares rebound by 15% Shares in London-listed miner Ferrexpo rebounded by about 15% a day after it lost nearly a third of its value. The stock plunged on Thursday after news emerged of the Ukrainian government’s decision to move ahead with the nationalization of the company’s Poltava mining and processing plant. Reuters news agency reported that the Ukrainian State Bureau of Investigations was awaiting court approval to seize the assets, amid allegations of misappropriation of funds related to illegal mining. The company’s shares also saw about half their value lost in a trading day earlier this month when Ukraine filed a $3.8 billion civil claim against the company. Shares had retraced much of their losses.
Written by David LU Zhiyuan
As February 2025 nears its end, Chinese equities saw a broad rebound ahead of the Chinese New Year, supported by renewed investor confidence and expectations of economic stimulus. The SSE Composite Index rose by 1.36%, while the SZSE Component Index gained 4.44%, driven by strong performances in the technology and consumer sectors. The HSI increased by 1.90%, reflecting optimism in Hong Kong’s market as policymakers signaled potential measures to boost economic stability. Seasonal demand ahead of the holiday provided additional support to retail and travelrelated stocks, while institutional investors adjusted portfolios in anticipation of upcoming policy announcements. Analysts expect further government initiatives to sustain momentum, though trading activity may slow temporarily as the holiday period approaches.
Ice and snow economy: The release of ice and snow economy policies targets industry growth to 1.2 trillion yuan by 2027 and 1.5 trillion yuan by 2030, emphasizing winter sports, tourism, infrastructure, and equipment upgrades. These policies balance supply-side upgrades and demand-side incentives, promoting high-quality development. Functional apparel is a key beneficiary, with down jackets and outdoor apparel seeing strong sales in the winter season. The 2025 Asian Winter Games in Harbin, alongside recent tourism-boosting policies, is expected to sustain consumer enthusiasm and drive growth in key destinations and related industries. EV sector: New energy vehicle (EV) stocks showed resilience, supported by favorable policies aimed at boosting industry growth. Leading EV makers rose modestly, with BYD (1211.HK) gaining over 3%. On the policy front, recent announcements highlighted increased subsidies for EV purchases in rural areas and expanded support for charging infrastructure, aiming to accelerate EV adoption and promote green consumption. Analysts believe these measures, coupled with long-term goals for carbon neutrality, will strengthen the EV supply chain and drive sustainable growth. The focus on expanding charging networks and reducing ownership costs is expected to solidify consumer confidence and enhance the competitiveness of domestic EV manufacturers.
Alibaba (HKG:9988) surged 13.74% last week, reflecting renewed investor confidence following a meeting between Chinese President Xi Jinping and Jack Ma. The stock's rise was fueled by optimism over potential regulatory easing and a more favorable business environment for China's tech giants. Market participants speculated that the discussion could signal a shift in policy stance, supporting Alibaba’s long-term growth prospects. Analysts note that while the rally underscores improving sentiment toward the sector, sustained gains will depend on concrete policy measures and broader economic recovery trends. Same trends are found for make Chinese high-technology firms. Shanghai Phoenix (SHA:600679) dropped 30.51% last week, marking a significant decline in its stock price. The sharp decline may be attributed to profit-taking by investors after previous gains, as well as concerns over the company's growth prospects in a highly competitive e-bike market. Analysts suggest that the drop reflects market caution toward speculative trading, highlighting the need for sustained business performance to restore investor confidence.
Written by Dacian DENG Shen
Japan's stock markets experienced a decline over the past week, with the Nikkei 225 Index falling by 0.95% and the broader TOPIX Index down by 0.82%. This downward trend was influenced by several macroeconomic factors, including a strengthening yen and rising yields on Japanese government bonds (JGBs). The yen appreciated to approximately JPY 150.4 against the U.S. dollar, a notable shift from about JPY 152.3 at the end of the previous week. The Bank of Japan (BoJ) is under pressure to adjust its monetary policy in light of rising inflation and economic growth data. The yield on the 10-year JGB reached its highest level since 2009, climbing to 1.43% from 1.35%, reflecting market expectations for further interest rate hikes by the BoJ. BoJ Governor Kazuo Ueda indicated readiness to increase JGB purchases if long-term yields rise sharply, signaling a potential shift in policy if economic conditions continue to improve. Japan's GDP expanded by 0.7% quarter-on-quarter in Q4 2024, surpassing the consensus estimate of 0.3%. This growth, coupled with a year-on-year increase of 2.8%, suggests a resilient economic recovery that may prompt more aggressive monetary tightening from the BoJ.
Energy Sector: In a significant development for the energy sector, U.S. President Donald Trump announced that Nippon Steel would abandon its acquisition plans for U.S. Steel but would instead invest heavily in the Pittsburgh-based company. Trump also hinted at potential tariffs on Japanese exports if trade deficits are not addressed, which could impact various sectors reliant on exports. Technology and Supply Chains: Japan is facing challenges due to China's tightened export controls on semiconductor raw materials, including gallium and germanium, which are critical for electronics and automotive industries. Japanese companies, being major consumers of these materials, are concerned about disruptions in supply chains as compliance with new regulations becomes increasingly complex.
Nissan: Following the collapse of merger talks with Honda, Nissan is exploring new strategic partnerships, including potential investments from Tesla. A high-level initiative led by former Prime Minister Yoshihide Suga aims to court Tesla as a strategic investor to bolster Nissan's manufacturing capabilities amid concerns over foreign takeovers. Following reports of this initiative, Nissan's shares surged by as much as 11.5% before closing up 9.5% on Friday.
Written by Justin CHUNG Lok Yin
With lingering pessimism, the Indian market this week saw marginal changes. The NIFTY 50 Index dropped for a modest 0.16% and the SENSEX Index fell 0.13%. Data from LSEG shows that India has underperformed major global markets as of 20 February 2025. Analysts attribute the market downturn to US tariff policies, weak corporate earnings, a falling rupee, high valuations, and slowing economic growth. International investors note India lacks near-term catalysts, as key events like the budget and rate cuts are already priced in. Despite recent declines, Indian equities remain overvalued, dampening sentiment and capping short-term upside potential. Foreign investors' capital outflows have moderated compared with the previous week but remained substantial, with a new outflow of 7793 Crores. A Bank of America survey released this week showed that fund managers allocate a 19% net underweight position in the Indian market. As for individual investors, The Financial Times reports that household savings that were channeled into the stock market through 'Systematic Investment Plans' (SIPs), an investment plan methodology offered by Indian Mutual Funds that enables investors to conduct dollar-cost-averaging investments focusing on the small-to-mid cap Indian market, may have been eroded significantly amid the 21% drop in the BSE Small-Cap Index. The analysis opines that this may create a "dangerous pressure" for individual investors to redeem their investments, driving further dips. Investors await greater clarity on geopolitical developments and corporate performance in the coming month. Analysts anticipate that the current market weakness will likely persist until at least the end of March.
According to a statement from HSBC, India’s private sector activity accelerated in February, with the HSBC Flash Composite PMI rising to 60.6 from 57.7 in January, marking the fastest growth in six months. The surge was driven by a strong Services PMI of 61.1, up from 56.5, while the Manufacturing PMI dipped slightly to 57.1 from 57.7, still above the long-run average of 54.1, signaling robust sector health. Export orders grew sharply, particularly for services, supported by global restocking and a depreciating rupee. Improved margins, driven by rising output prices and easing input costs, boosted optimism. Hiring also increased, with services outpacing manufacturing. Of 100 indicators, 65% showed upward trends in Q3 FY2025, up from 55% in Q2, reflecting a broader recovery.
LIC Housing Finance (NSE: LICHSGFIN): On 18 February 2025, Tuesday, Reuters reported that LIC Housing Finance, a housing finance company registered with the National Housing Bank (NHB), plans to raise 24 billion rupees ($276.13 million), including a greenshoe option of 14 billion rupees, through a sale of bonds maturing in five years. The company had made waves by raising over 10 billion rupees through a reissue of 7.74% February 2028 bonds last week, receiving bids totalling 10.03 billion rupees at a yield of 7.68%. This showcases strong investor confidence in the company’s debt offerings, and possibly the Indian housing market inthe long term. The company is currently trading at a P/E ratio of 5.8 times, below its 5-year P/E median of 7.3 times. This week, Motilal Oswal has maintained a Buy rating on the stock with a target price of Rs 690, implying a 26.5% upside from current levels. Analysts see that the company’s affordable housing foray, strong provisioning buffers, and stable NIMs are expected to support long-term growth. As per the current market research conducted by CMI, the Indian housing finance market is expected to record robust growth with a CAGR of 24.1% from 2024 to 2033, providing a positive outlook for LIC Housing Finance.
Written by Sarah LEONG Si Ian
This week, the three major indexes have shown fluctuations but an overall upward trend. S&P 500 increased by 1.13%, NASDAQ Composite index increased by 1.82% whereas Dow Jones Industrial Average increased by 0.34% throughout the week. Towards closing, S&P 500 drop by 0.01%, NASDAQ Composite index increased by 0.41% and Dow Jones Industrial Average dropped by 0.37%. Looking into several important economic events in the US, Crude Oil Inventories was at 4.070M, which was higher than the forecast value of 2.400M but lower than the previous value of 8.664M, which implies a bearish trend for crude oil prices. US 10-Year Note Auction was at 4.632%, slightly lower than the previous 4.680%. US 30-Year Bond Auction was at 4.748%, which was also lower than the previous 4.913%. Initial Jobless Claims was 213K, which was lower than the forecast value of 217K and the previous value of 220K, indicating bullish effect on USD.
The communication services sector has shown the highest price rise of 0.41% among all the sector indexes in the US. It was one of the US’s strongest-performing stocks partly as because of the growing awareness and development of technology. It is projected to be growing consistently in the future years. In general, more than half of the sectors in the US have shown a price drop in the previous week, with the lowest rate of -1.11% in the health sector. Energy sector showed the lowest price rise of 0.13% throughout all the sectors.
Tesla (TSLA) has faced substantial fluctuations in the previous week. Following the announcement of the Chinese EV company BYD to integrate Deepseek into its technologies on 11/2, the price of Tesla dropped by 6.3% to the week’s low of 326.44, eventually closing with a 0.03% reduction. The P/E TTM was at 174.43. The net outflow was 317.52M, with most of the orders being small orders.
Written by Kathy Tam
The DAX has continued its remarkable rally, reaching an all-time high of 22,625 points last week, with a 3.3% weekly gain and a 13.1% year-to-date increase, far exceeding its historical average of 1.9% for this period. This surge is fueled by optimism over potential peace in Ukraine, anticipated billions in reconstruction investments, and hopes for a pro-business government following Germany’s federal election on February 23. However, analysts caution that the DAX's current price-to-book ratio of 1.8 and forward P/E ratio of 14, both above historical medians, signal potential overvaluation risks. While 58% of Stoxx 600 companies have exceeded earnings expectations this quarter, concerns over U.S. tariffs, inflationary pressures, and geopolitical uncertainties suggest that the DAX may face resistance near its fair valuation range of 21,600 points, making the upcoming election a critical factor for market momentum.
The European defense sector is undergoing a transformative period, marked by the European Commission's €1.065 billion EDF 2025 Work Programme, which prioritizes innovation in areas like AI, cybersecurity, and energy resilience while supporting SMEs through the EU Defence Innovation Scheme (EUDIS). At the 2025 Munich Security Conference (MSC) between February 14 and 16 , leaders called for increased defense spending to 3-4% of GDP, with NATO urging member states to meet these targets to address a €500 billion defense spending gap over the next decade. Europe has already provided €62 billion in military aid to Ukraine, surpassing U.S. contributions in total assistance, highlighting its growing role in global security. The push for centralized procurement and cross-border collaboration aims to reduce inefficiencies and strengthen Europe's strategic autonomy, while sustainability and dual-use technologies are becoming integral to modernization efforts.
This week, Rheinmetall AG has solidified its position as the most significant single stock in Europe, with shares surging 11% to €909, marking a year-to-date increase of over 30%. The stock’s rally is fueled by expectations of increased European defense spending, with NATO potentially raising its target to 3-5% of GDP and Germany committing to surpass the 2% threshold. Analysts have upgraded Rheinmetall’s price targets to as high as €1,080, citing its strategic role in supplying critical military equipment like 155mm artillery shells and advanced defense technologies. With Europe projected to close a €500 billion defense spending gap over the next decade, Rheinmetall is poised for sustained growth.
Written by Alec
This week saw Mainland Chinese stocks rise: Shanghai Composite grew 0.43% andShenzhen Component gained 1.2% on Friday, in a response to a statement by People’s Bank of China pledging looser monetary policy. The central bank forecast stable economic growth in China for 2025 despite the producer price index falling 2.3% in January from December, marking the 28th consecutive month of factory deflation. Consumer price index rose an unexpected 0.5% from January 2024, despite a yearlong slump in housing, which has strongly encouraged consumer saving. Meanwhile, Trump has held off on immediately pushing reciprocal tariffs on China. Hang Seng Index jumped 7.04% as hype over DeepSeek continues to drive tech strength as investors invested heavily in artificial intelligence within China.
Following the launch of DeepSeek, AI optimism has turned the Hang Seng China Enterprises Index into the world’s best performer, according to Bloomberg. Top Chinese entrepreneurs gathered with President Xi Jinping, including Alibaba’s Jack Ma, indicating support for China’s private sector after years of crackdowns. This event further boosts interest in China’s technology sector, with investors expecting pro-business measures from Beijing. Despite increased government incentive to boost the housing sector, Moody’s lowered its credit rating of Vanke, Chinese state-backed real estate developer, from B3 to Caa1. Moody cites poor financial performance for the downgrade, as Vanke struggles with a liquidity crisis and weak sales due to struggles in the housing sector. In 2021 the default and subsequent liquidation of China Evergrande flagged the housing sector’s downturn; China’s government is working on a plan to plug Vanke’s 50 billion yuan funding gap to prevent further setbacks in the sector, according to Bloomberg.
TENCENT (0700.HK) shares were set to open up 6.6% on Monday (17 Feb) after announcing beta testing of DeepSeek within its Weixin messaging app. Guming Holdings Ltd (1364.HK), the bubble tea maker, slumped 6.4% from the IPO price of HKD9.94. Guming raised HKD1.81 billion from the sale of shares; Huang River investment, a Tencent Holdings subsidiary, invested USD25 million. Super Telecom Co.,Ltd (603322.SS) shares rose 4% as the company appointed Guo Yanqi as CFO succeeding Hu Hongyue.
Written by Kevin XIA Yunchu
Japan's economy demonstrated resilience in the fourth quarter of 2024, with an impressive annualized GDP growth rate of 2.8%. This growth exceeded analysts' expectations and marked the third consecutive quarter of expansion, indicating a robust recovery trajectory. The primary drivers of this growth were strong corporate spending and a positive contribution from net exports. Exports benefitted from a weaker yen, which made Japanese goods more competitive in international markets. Despite these encouraging figures, there are underlying concerns regarding domestic consumption. Private consumption, which accounts for a significant portion of Japan's GDP, has not kept pace with the overall economic growth. Consumers are grappling with rising prices due to inflationary pressures, leading to cautious spending behavior. The latest data indicated that consumer confidence remains fragile, with many households prioritizing savings over discretionary spending. The Bank of Japan (BoJ) has maintained its accommodative monetary policy but is facing increasing pressure to adjust its stance in light of the improving economic conditions. Speculation about potential interest rate hikes has begun to circulate among investors, particularly as inflation rates have consistently exceeded the BoJ's target. The central bank's next meeting will be closely watched for any signals regarding future policy shifts.
The Japanese stock market exhibited mixed performance during the week, reflecting the broader economic landscape. The Nikkei 225 index managed a slight gain of 0.04%, closing at 28,500 points. This modest increase was primarily supported by gains in the financial sector, where stocks like Sumitomo Mitsui Trust Holdings and Mitsubishi UFJ Financial Group rose by 2.1% and 1.5%, respectively. Investors are optimistic about the potential for higher interest rates, which could enhance profitability for banks and financial institutions. Conversely, the auto sector faced headwinds as concerns grew over potential U.S. tariffs on Japanese imports. Toyota Motor Corporation, one of Japan's largest automakers, saw its shares decline by 2% amid these fears. The company is already dealing with supply chain challenges and rising material costs, which have put pressure on profit margins. Analysts are closely monitoring how these external factors will impact Toyota's sales performance in key markets like North America.
Fast Retailing Co., Ltd., known for its UNIQLO brand, experienced a significant decline this week, falling by 6.81% after reporting lower-than-expected quarterly earnings due to rising costs and supply chain disruptions. The company has been working to mitigate these challenges but faces stiff competition in both domestic and international markets. Similarly, shares of Mitsui Mining & Smelting Co., Ltd. dropped by 6.49%, impacted by fluctuations in metal prices and concerns over global demand for materials used in electronics and batteries.
Written by Charles SHI Qiyuan
The Indian stock market did not perform very well last week, with the benchmark index falling for the eighth consecutive trading day. The Sensex benchmark index dropped by 2.47%, while NIFTY saw a decline of 2.85%. The main influencing factor was the political actions in the United States, particularly the idea of implementing a comprehensive "reciprocal tariff" system, which increases the risk and uncertainty for the economies that may be impacted. According to economists from international investment banks, the next tariff issue under Trump’s administration is expected to open a new "trade front" in Asia. Among emerging Asian economies, India is particularly vulnerable to U.S. import tariffs. With Thailand, they are the two economies most likely to be impacted by reciprocal tariffs from the U.S., with tariff increases expected to range between 4% and 6%. Given the overall slowdown in economic growth, the impact of reciprocal tariffs is especially significant for India. At the same time, the Indian rupee continues to weaken, and the ongoing depreciation of the rupee against the U.S. dollar remains a key reason why domestic investors are waiting for stabilization in the national currency, especially after the Reserve Bank of India announced interest rate cuts. Domestic investors are reluctant to take new positions in their portfolios, as the weakened rupee is expected to drive foreign investors to shift from the stock market to currency and bond markets, leading to further asset sell-offs. Following recent geopolitical tensions, crude oil prices have become highly volatile, making it difficult for companies to control profit margins. This is reflected in the performance for the third quarter of 2025, with downward pressure on the stock market exacerbated by the lack of early buying behavior from Domestic Institutional Investors (DIIs) as the financial year comes to a close.
The NIFTY Auto index continued its decline this week, falling by 6.08%. This follows a reduction in the Ministry of Commerce's capital expenditure allocation for the fiscal year 2025, from ₹11.11 billion to ₹10.18 billion. This cut has negatively impacted the commercial vehicle sector, shattering the hopes of a much-needed boost for this struggling industry. Analysts state that the government’s capital expenditure initiatives directly affect sales in the commercial vehicle and ancillary sectors. Market experts indicate that this year, the pace of national highway construction has slowed, and the central government has shifted focus to election-related activities, which has hurt the sector. This week, Prime Minister Modi's visit to the U.S. included talks with Tesla CEO Elon Musk, with Tesla continuing to wait for entry into India. India is one of the world’s largest automotive markets, but Tesla faces significant obstacles due to the country’s high import tariffs on cars. India recently introduced a new policy offering extended tariff benefits for foreign car manufacturers that commit to local production, specifically for fully imported electric vehicles. Additionally, India's electric vehicle (EV) market is still in its nascent stages, accounting for just over 2% of total car sales last year. However, the government aims to change this by raising the EV market share to 30% by 2030.
Tata Steel Ltd (NSE: TATASTEEL): This week, Tata Steel’s stock declined by 0.84%, losing 1.14 points. During a meeting on Friday, the Tata Steel Board reviewed and approved a fundraising initiative through non-convertible debentures (NCDs). The company plans to raise ₹30,000 crore by issuing 300,000 five-year NCDs with a face value of ₹1 lakh each. Recently, Indian rating agencies upgraded the bonds of this blue-chip steel company from AA to the highest rating of AAA, with a stable outlook. The upgrade was primarily driven by the likelihood of its UK assets achieving breakeven in the second half of the fiscal year 2026. It also reflects the strategic relationship between Tata Steel Limited (TSL) and its promoter, Tata Sons Private Limited, as well as Tata Sons' strong financial flexibility. Despite the positive fundraising news, the company has outstanding bonds exceeding ₹12,800 crore, with ₹670 crore of debt set to mature next month. On the same day, its stock closed down 1.32% on the Bombay Stock Exchange, at ₹134.40 per share.
Written by Rachel HU Xinyue
This week, market sentiment was rather poor, with all three major indices experiencing slight declines: the Dow Jones Industrial Average fell by 0.54%, the S&P 500 dropped by 0.24%, and the Nasdaq declined by 0.53%. Several economic data releases this week presented a mixed outlook. Regarding the nonfarm payrolls data, the U.S. economy added 143,000 jobs in January, significantly lower than the revised 307,000 jobs in December and the forecasted 170,000 jobs. However, other data signals were more positive, such as the U.S. unemployment rate, which dropped by 0.1 percentage points to 4.0%, the lowest level since May. This suggests that the labor market remains relatively healthy, which could make it difficult for the Federal Reserve to shift its neutral stance on interest rate cuts.As for industry PMIs, the ISM Services PMI for January, after a downward revision for December, dropped from 54 to 52.8, significantly lower than the expected 54.3, possibly due to the negative impact of tariffs. On the other hand, the Manufacturing PMI rose from 49.2 in December to 50.9 in January, exceeding the expected 49.8. In December, job openings in the labor market decreased by 556,000 to 7.6 million, lower than the market expectation of 8 million. Meanwhile, the University of Michigan's Consumer Confidence Index for February 2025 dropped from 71.1 in January to 67.8, below the forecasted 71.1. This marks the second consecutive month of decline and the lowest level since July 2024. Furthermore, the public's inflation expectations for the coming year surged from 3.3% to 4.3%, reflecting concerns about a potential resurgence of high inflation, which has raised market caution. The combination of this week’s employment data and comments from former President Trump regarding tariffs has dampened market risk appetite, increasing risk-aversion sentiment. As a result, the 10-year U.S. Treasury yield briefly dipped before rising above 4.51%. Concerns about a potential trade war, the possibility of weakening oil demand, rising U.S. crude oil inventories, and Trump’s reiterated commitment to increasing U.S. oil production have all put pressure on oil prices. U.S. crude oil fell by 2.11%, while Brent crude oil declined by 1.33%. Meanwhile, gold rose by 2.23% this week.
Affected by the overall market trend, semiconductor stocks generally declined this week, with AMD falling by 7.24%, TSMC dropping by 1.53%, and Wolfspeed decreasing by 13.05%. In contrast, nuclear energy stocks surged across the board, with Centrus Energy jumping nearly 30%, Oklo Inc. rising over 22%, and NuScale Power increasing by more than 14%.
Aurora's ADR (AUR) rose by 17.46%, as the company’s AI platform, GPTBots.ai, was enhanced through the integration of DeepSeek LLM. Amazon (AMZN) declined by 3.59%, due to first-quarter earnings guidance falling short of expectations and capital expenditures exceeding projections. Tesla (TSLA) dropped by 10.52%, and it sold 63,238 China-made vehicles in January, representing an 11.5% year-on-year decline and a 32.6% month-on-month drop, marking the fourth consecutive month of decline.
Written by David LU Zhiyuanu
Last week, the Chinese and Hong Kong stock markets showed notable gains in the first week after the Chinese New Year. The Shanghai Stock Exchange (SSE) increased by 2.3%, and the Shenzhen Stock Exchange (SZSE) rose by 3.22%, reflecting optimism in the domestic markets. Meanwhile, the Hang Seng Index in Hong Kong surged by an impressive 5.05%, signaling strong investor confidence in the region. These increases occurred despite external pressures, including tariffs imposed by former U.S. President Donald Trump on Chinese products. The positive performance could be attributed to post-holiday market recovery, investor optimism about China's economic resilience, and expectations of domestic policy support to counter external challenges. However, ongoing trade tensions remain a potential risk for sustained growth.
Last week, the Chinese and Hong Kong markets experienced notable fluctuations across various sectors. Apple concept stocks rose against the trend in the tech sector, with AAC Technologies (2018.HK) surging over 7%. This came amid reports that Apple is developing a more advanced Siri digital assistant with stronger conversational capabilities, aiming to surpass OpenAI’s ChatGPT and other voice services. Meanwhile, chips, internet, and securities services industries declined, reflecting broader weakness in these sectors. The gaming sector outperformed significantly after the National Press and Publication Administration approved 112 domestic online games in November 2024, marking the second consecutive month with over 110 game approvals, signaling a strong recovery in this industry. In contrast, the electric vehicle (EV) sector underperformed due to news that Warren Buffett’s Berkshire Hathaway reduced its stake in BYD to below 5%, further scaling back its long-term investment in China’s largest EV maker as the company refocuses on U.S. investments.
Hangzhou Raycloud Technology Co Ltd (SHA. 688365) has increased by 36.46% in the passing week. The 36.46% surge in the past week suggests strong market confidence, likely driven by positive earnings expectations, industry growth in cloud services, or strategic advancements. As a tech company, it may benefit from investor interest in high-growth sectors post-Chinese New Year. Beijing Thunisoft Co Ltd (SHA. 300271) has increased by 20.05% in the passing week. The 20.05% increase reflects optimism in the software and IT services sector. This growth could be linked to favorable policies, new contracts, or recovery in the technology sector. Investors may see potential in its role within China's digital transformation initiatives.
Written by Dacian DENG Shen
Japan's stock markets declined over the week, with the Nikkei 225 Index decreasing by 2.0% and the TOPIX Index by 1.8%, as hawkish comments from the Bank of Japan (BoJ) strengthened the yen. This impacted the profit outlook for Japan’s export-heavy industries. The yield on the 10-year Japanese government bond increased to 1.28% due to expectations of further interest rate increases by the BoJ. Data indicated a sharp rise in nominal wages in December and a second consecutive month of growth in real wages, alongside a rebound in household spending. The BoJ's January meeting summary revealed discussions about the divergence in monetary policies between the BoJ and the U.S. Federal Reserve (Fed), noting concerns over potential market fluctuations and increased flexibility in the BoJ’s monetary policy due to the Fed's expected pause in rate cuts.
Energy Sector: Donald Trump announced that Nippon Steel had abandoned its plan to acquire US Steel, but would invest heavily in the Pittsburgh producer. Trump mentioned the prospect of this investment at a joint press conference with Japanese Prime Minister Shigeru Ishiba. Although details of the investment remain unfinalized, Trump said he would meet with Nippon officials to work out the details. The United Steelworkers union, a major opponent of the acquisition, remains concerned about Nippon Steel. Trump also stated that he would consider tariffs on Japanese exports if the U.S. trade deficit wasn't eliminated and that he would unveil reciprocal tariffs on other nations the following week. Furthermore, Japan would be buying more U.S. liquefied natural gas.
Renault has restarted discussions with Foxconn, a Taiwanese iPhone contract manufacturer, regarding its stake in Nissan. This follows the collapse of merger talks between Nissan and Honda. Renault is also looking for new investors, including approaching technology companies like Apple. Renault's search for new investors stems from concerns about potentially depressed shares in Nissan, which lacks a new partner. At present, Renault holds a 36% stake in Nissan, including 18.7% held in a French trust that it wants to offload. Although Renault is open to selling its shares, Nissan has the first right of refusal. Nissan is also searching for a strategic tech partner after ending talks with Honda to create the world’s fourth-largest carmaker.
Written by Justin CHUNG Lok Yin
This week, the Indian market faced notable uncertainty ahead of the Reserve Bank of India’s (RBI) rate decision on Friday, February 7. Concerns over monetary policy led foreign portfolio investors (FPIs) to withdraw over ₹8,800 crore from Indian equities, creating significant pressure on the rupee, which fell to a historic low of 87.79 against the US dollar. Market performance was volatile. The NIFTY 50 Index reached a weekly high of 23,773.55 on Wednesday, February 5, before failing to break the 23,800 resistance level and slipping below the 23,500 support level. On Thursday, February 6, it also fell below its 50-day moving average. Despite these corrections, the NIFTY 50 Index rose by 0.96% for the week, while the SENSEX Index outperformed with a 1.36% gain. On Friday, February 7, the RBI announced its first repo rate cut since 2020, lowering it from 6.5% to 6.25%. The decision, though expected, was a response to declining corporate profitability, which contributed to India’s underperformance against other Asian markets in 2024. However, the RBI also downgraded its 2025 real GDP growth forecast from 7.2% to 6.7%, citing ongoing risks such as geopolitical tensions, protectionist trade policies, commodity price volatility, and financial market uncertainties. While the rate cut was a positive step, the lack of additional liquidity measures and the downgraded forecast disappointed the market, preventing a rebound on Friday. With limited room for fiscal stimulus due to budgetary constraints, economists expect the RBI to take a central role in supporting the economy. Analysts anticipate further rate cuts of 0.5% to 1% to stimulate growth.
The real estate sector continued to underperform, with the NIFTY Realty Index falling by 2.86% during the week and 11.81% year-to-date. After delivering a strong 65% return over the past two years, the sector appears to have entered a correction phase. Slowing housing sales, resulting from high property prices, have negatively impacted real estate companies’ revenues and cash flows. According to PropEquity, residential real estate sales in India’s top nine cities fell by 9% in 2024, with new supply dropping by 15%. Despite these challenges, the recent RBI rate cut is expected to benefit the sector by lowering borrowing costs and improving affordability, which could support demand in the coming months.
National Mineral Development Corporation Ltd (NSE: NMDC): NMDC, a government-backed enterprise specializing in mineral resources, delivered strong performance this week, with its stock rising by 7.36%. The rally of the domestic mineral supplier was supported by higher domestic demand for infrastructure and hence metals, the imposition of anti-dumping duties on Chinese steel products, and global supply chain challenges due to uncertain development of global tariff policies. The RBI’s rate cut further boosted sentiment, as lower borrowing costs are expected to support infrastructure development and commodity demand.
Written by Rachel HU Xinyue
This week, the US stock market continued to rise, with the S&P 500 up by 1.74%, the Nasdaq rising by 1.65%, the Dow Jones up by 2.15%, and the Russell 2000 increasing by 1.4%. It is expected to mark the best performance in the first five trading days of a presidential term since President Reagan's inauguration in 1985. As Trump softened his rhetoric regarding tariffs, the US dollar weakened significantly against major currencies this week. The US Dollar Index posted its largest weekly drop since November 2023, while gold prices continued to rise, increasing from 2.740 to 2.777. Meanwhile, US Treasury bonds saw little price movement, with the 10-year bond yield almost unchanged compared to the previous week, following a sharp decline in recent weeks due to concerns that the new administration's agenda would increase government debt and push up inflation. On Tuesday, Trump announced the "Stargate" plan, which involves a $500 billion investment over the next four years to boost AI infrastructure, further fueling market optimism. Additionally, in his speech at Davos, Trump called for Saudi Arabia and OPEC to lower oil prices and to encourage the return of manufacturing to the US, which led to a sharp drop in oil prices, with WTI decreasing from 77.8 to 74.6. On Thursday, the U.S. Department of Labor released a report showing that as of January 18, the number of initial jobless claims in the U.S. increased by 6,000 from the previous week, marking the largest weekly increase in six weeks. Meanwhile, the number of continuing claims rose by 46,000 from the previous week, representing the largest increase since November 2021. On Friday, the National Association of Realtors released a report showing a 2.2% month-on-month increase in US existing home sales in December, marking the highest level since February 2024, highlighting a strong recovery in housing sales.
This week, nuclear energy stocks performed strongly, with NANO Nuclear Energy (NNE) rising by 80.13%, NuScale Power (SMR) up by 27.31%, and Oklo (OKLO), where Ortman serves as a director, increasing by 60.54%. Due to Trump's Stargate Plan, AI-related stocks surged, with Oracle's stock (ORCL) rising by 14%, NVIDIA (NVDA) increasing by 3.6%, and Arm (ARM) up by 8.9%.
Novo Nordisk (NVO) shares surged by 11.79% this week, as the latest clinical trial results showed that the company's weight-loss drug helped patients reduce 22% of their body weight over 36 weeks. Drone-related stock SES AI Corp (SES.US) soared by over 70% after signing a $10 million contract with two global OEM partners. Blockchain company Diginex (DGNX.US) triggered multiple circuit breakers, with its stock now up by 160.93%.
Written by Robin HONG Yee Ching
European equities extended gains on Thursday, with the STOXX 600 up 0.22% and the DAX rising 0.74% to another record high. Optimism surrounding Trump’s pro-growth policies and easing trade rhetoric buoyed sentiment, alongside strong corporate earnings. Siemens Energy surged 6.6% on favorable analyst commentary about AI-driven infrastructure demand, while Adidas gained 1.9% after upbeat results. UK’s FTSE 100 also neared record levels, supported by rising energy and industrial stocks. Investors are eyeing next week’s ECB meeting, where another rate cut is anticipated, and key macro data including Eurozone PMIs today.
The luxury sector is navigating a challenging landscape as it attempts to recover from recent downturns. Following a period of robust growth post-COVID, marked by double-digit increases, the industry now faces significant hurdles. Analysts predict a slow recovery in 2025, with major brands like LVMH, Kering, and Burberry expected to see modest sales growth of 3% to 4%. Factors such as a sluggish Chinese market, potential new tariffs in the U.S., and cautious consumer spending are contributing to this uncertainty. While some brands are adapting their strategies to retain high-net-worth customers and appeal to the middle class, the overall sentiment remains mixed as the sector grapples with shifting consumer preferences and economic pressures.
Novo Nordisk's shares jumped over 9% after announcing that its new drug, amycretin, resulted in a 22% weight loss for participants with obesity in a clinical trial. The trial involved 125 individuals averaging 93 kg and lasted 36 weeks. Unlike Wegovy, which it resembles, amycretin also targets the hormone amylin, which plays a role in hunger regulation.
Written by David LU Zhiyuanu
As January 2025 comes to an end, Chinese equities displayed mixed performance as markets approached the Chinese New Year. The SSE Composite Index decreased slightly by 0.19%, while the SZSE Component Index fell by 1.62%, with profit-taking in growth stocks continuing to weigh on sentiment. In contrast, the HSI increased by 0.34%, reflecting cautious optimism in Hong Kong's market as investors anticipated stronger economic policies from Beijing. Trading activity was influenced by seasonal factors, with consumer and travel-related sectors seeing some support ahead of the holiday. Looking forward, analysts expect the government to introduce more supportive measures to stabilize growth amid global uncertainties, while the holiday period is likely to bring subdued trading as investors await clearer signals on China's economic recovery.
Ice and snow economy: The release of ice and snow economy policies targets industry growth to 1.2 trillion yuan by 2027 and 1.5 trillion yuan by 2030, emphasizing winter sports, tourism, infrastructure, and equipment upgrades. These policies balance supply-side upgrades and demand-side incentives, promoting high-quality development. Functional apparel is a key beneficiary, with down jackets and outdoor apparel seeing strong sales in the winter season. The 2025 Asian Winter Games in Harbin, alongside recent tourism-boosting policies, is expected to sustain consumer enthusiasm and drive growth in key destinations and related industries. EV sector: New energy vehicle (EV) stocks showed resilience, supported by favorable policies aimed at boosting industry growth. Leading EV makers rose modestly, with BYD (1211.HK) gaining over 3%. On the policy front, recent announcements highlighted increased subsidies for EV purchases in rural areas and expanded support for charging infrastructure, aiming to accelerate EV adoption and promote green consumption. Analysts believe these measures, coupled with long-term goals for carbon neutrality, will strengthen the EV supply chain and drive sustainable growth. The focus on expanding charging networks and reducing ownership costs is expected to solidify consumer confidence and enhance the competitiveness of domestic EV manufacturers.
Zhongbai Group (SHE:000759) surged 54.42% last week, making it one of the top-performing stocks in the A-share market. The rally was driven by market speculation surrounding potential reforms in the retail sector and expectations of policy support for state-owned enterprises (SOEs). Analysts suggest the stock's sharp rise may also be linked to improved consumer sentiment and increased activity in the domestic retail market but caution against overheating due to speculative trading. Shanghai Phoenix (SHA:600679) dropped 30.51% last week, marking a significant decline in its stock price. The sharp decline may be attributed to profit-taking by investors after previous gains, as well as concerns over the company's growth prospects in a highly competitive e-bike market. Analysts suggest that the drop reflects market caution toward speculative trading, highlighting the need for sustained business performance to restore investor confidence.
Written by Dacian DENG Shen
Japan’s stock markets rose over the week, with the Nikkei 225 gaining 3.85% and the TOPIX Index up 2.67%, as Japanese exporters benefited from U.S. President Donald Trump’s decision not to impose new tariffs. However, yen strength, supported by government and Bank of Japan (BoJ) actions, posed a modest headwind. The yen appreciated to the high JPY 155 range against the USD. The BoJ raised its policy rate by 0.25 percentage points to 0.5%, the highest level since 2008, marking its third hike in a year. This move, along with an upward revision to inflation expectations for 2025, signals potential further rate increases later in the year. Japan’s core consumer price index rose 3.0% year-on-year in December 2024, exceeding the BoJ’s 2% target and supporting monetary policy normalization. The 10-year Japanese government bond yield also rose to 1.23%.
Japan’s largest banks, including MUFG, SMFG, and Mizuho, are nearing or surpassing key valuation levels for the first time in nearly a decade, as expectations rise that the Bank of Japan (BoJ) will increase interest rates and further normalize monetary policy. MUFG is now trading above its book value, while SMFG and Mizuho are at or close to this level, driven by the anticipated end of Japan's long-standing negative interest rate policy. Analysts predict that the average price-to-book ratio for the three megabanks could reach 1.1–1.2 by mid-2025. While megabanks benefit from improving market conditions and international expansion (e.g., MUFG generates over half its revenues abroad), smaller regional banks continue to trade at significantly lower valuations, reflecting persistent challenges.
Fuji Media Holdings is in crisis after allegations involving Masahiro Nakai, a former SMAP member and Fuji TV star, led 80 major advertisers, including Toyota and McDonald’s, to pull ads. Activist investors have criticized the company’s poor handling of the scandal, accusing it of governance failures and moral corruption. In response, Fuji Media announced an independent investigation, though its limited press access and muted response have drawn further backlash. Nakai denied allegations of violence but announced his retirement, while the company’s shares rose on speculation of asset sales and management changes. The scandal has reignited concerns about harassment in Japan’s media industry and could have lasting financial impacts despite limited short-term effects. Analysts warn advertisers may not renew contracts, and investors see the crisis as a chance to push for governance reforms. Fuji Media’s significant assets, including real estate and stock holdings, remain undervalued, with shareholders calling for management changes to unlock potential value.
Written by Kevin XIA Yunchu
The Indian stock market experienced notable volatility this week. The benchmark indices, Sensex and Nifty 50, faced significant declines, closing at 76,330.01 (-1.36%) and 23,085.95 (-1.47%) respectively. Financial sectors were hit the hardest, especially with investors winding up positions due to the last day of FaO expiry. Analysts attribute the market downturn to reactions ahead of the Federal Open Market Committee (FOMC) meeting in the US and budget announcements in India.
IT and Technology: The technology sector remained resilient despite the broader market turbulence. A number of IT companies, including TCS and Infosys, reported strong earnings, which somewhat helped buffer the negative sentiment across the market. Oil & Gas: The oil and gas sector was under pressure this week. This stemmed from global events, including US announcements to boost crude output, leading to Brent crude prices settling at $78 per barrel, a 4% drop over 5 days. Banking and Finance: The banking sector experienced considerable selling pressure. Stocks of India's major banks likenICICI Bank and HDFC Bank were particularly impacted, with the sector index dropping by 1.42%.
Adani Enterprises: An FPO announcement led to significant movement in Adani Enterprises' stock, which saw a decline of 6.29%. Investors remained cautious, leading to considerable offloading of positions. Wipro and Tanla Platforms: Several stocks, including Wipro and Tanla Platforms, are set to trade ex-dividend next week. This captures the interest of long-term investors looking for dividends.
Written by Sarah LEONG Si Ian
In the past week, the three major indexes have demonstrated bullish trends. This might be a consequence of the Labor Department’s inflation report which showed a slowdown published by the US . S&P 500 showed a bullish trend throughout the whole week, closing at 5996.66 with a 1% increase. NASDAQ Composite Index was also rising. Although there were some slight drops at the beginning of the week, it started rising and reached 19630.20 when it closed, which was a 1.51% increase. A similar trend is also seen in the Dow Jones Industrial Average, which ended at 43487.83, a 0.78% increase. Looking into several important data in the US, Crude Oil Inventories declined by 1.962M, which was higher than both the previous (-0.959M) but lower than the forecast value (-3.500M). The Initial Jobless Claims was 217K, which was higher than both the previous value of 203K and the expected value of 217K. This indicates a bearish change for this index.
The US consumer discretionary sector has shown the highest rise of 1.71% in price in the previous week. From the previous data, it has already shown an increasing trend, which might potentially be driven by a slowdown of inflation rises. Although the consumer discretionary has been increasing, the spending intention is still lower than 2021 levels. In general, most of the sectors in the US have shown a price rise in the previous week, with the highest rate of 1.71% in consumer discretionary and the lowest of 0.1% in the utilities sector. Whilst the real estate sector showed a decline of 0.1% in price level and the health sector dropped by 0.67%.
Amazon (AMZN) has fluctuated in its stock prices but shown an overall increasing trend and closed at the week’s highest of 225.94, a 2.39% increase. The P/E TTM was at 48.28. The net inflow was 242.71M, with the majority from small orders.
Written by Kathy Tam
Deloitte reported the inflation rate in December this week, with Eurozone inflation accelerated to 2.4%, marking the third consecutive month of increases. This rise is primarily driven by a rebound in energy prices, which rose 0.1% year-on-year after three months of decline. Core inflation, excluding volatile food and energy prices, remained steady at 2.7%, consistent with the previous four months. A notable divergence persists between goods and services inflation, with non-energy industrial goods rising only 0.5% while services inflation surged by 4%. This ongoing services inflation poses a concern for the European Central Bank (ECB), which has been cutting interest rates to address economic weaknesses despite the relatively stable bond yields indicating investor confidence in the ECB's approach. Inflation rates varied significantly across member countries, with Germany and Spain both at 2.8%, while Belgium faced the highest rate at 4.4%.
European shares rose nearly 1% on Thursday, with the pan-European Stoxx 600 climbing 0.98% to 520.05 points, its highest level since mid-December, largely driven by a surge in luxury stocks following Richemont's strong earnings report. The luxury sector saw a notable boost, with Richemont shares soaring 16.3% after exceeding quarterly sales expectations, signaling robust demand during the holiday season. France’s benchmark index reached a near three-month high, outperforming other regional exchanges, as luxury firms collectively advanced 6.7%, marking their best performance in nearly four months. Major players like LVMH, Dior, Kering, and Hermes also recorded significant gains, reflecting optimism about the high-end market's resilience amid global economic challenges. Deutsche Bank highlighted that these results suggest premium luxury brands are likely to outperform, indicating that the current slowdown in luxury is more cyclical than structural and that growth in other regions can help mitigate weaknesses in China.
Zalando SE (ZAL) experienced a significant boost in its stock price, rising 8.6% after the company announced that it expects its profit for 2024 to exceed previous forecasts. Following this positive outlook, Goldman Sachs updated its price target for Zalando from €37.00 to €42.50, indicating a potential upside of approximately 35%. The anticipated adjusted EBIT for FY24 is projected to reach around €510 million, surpassing the company's own guidance of €440 million to €480 million. This strong performance can be attributed to robust customer growth driven by effective marketing strategies and improved product sell-through rates, with Gross Merchandise Volume (GMV) rising 4.5% to €15.3 billion and revenues increasing by 3.9% to €10.5 billion.
Written by Alec ANTONIOU
Closing off the third week of the new year, both the Shanghai Composite and Shenzhen Component gained (0.18% and 0.6% respectively). Recent economic data showed that China’s economy grew 5.4% YOY in Q4 2024, exceeding expectation at 5%. Other data showed further promise, as industrial production rose 6.2% and retail sales grew 3.7% in December, outperforming forecasts. New home prices declined at a slower pace whilst unemployment rate sits at 5.1%, down 0.1% annually. Recent data does not suggest that Beijing will continue pushing further stimulus measures. Nonetheless, investors are optimistic about potential cuts in reserve requirement ratio (RRR) for banks before the Spring Festival, as state media report potential action by China’s central bank.
New home prices stayed flat from December to November, marking the fourth month of slower declines in the housing market. This improvement comes following a consistent push from Beijing to revive the economy through considerable fiscal and monetary stimulus, helping push up the slumping housing sector. Retail sales grew 3.7% YOY, beating expectations of 3.5% as private spending rebounded. This is a strong indicator of consumption capacity, demonstrating that the economy retained much of its strength in the fourth quarter. Economic data showed fixed asset investment in 2024 was up 3.2% YOY. This is reflected through investment in infrastructure and manufacturing sectors, expanding 4.4% and 9.2% respectively. High-tech industries saw similar growth with investment up 8% YOY, with higher auto, computer, and solar cell sales.
ZTE Corp (0763.HK) is up 13.47% this week as it announces partnership with Indosat to supply further rural 4G coverage across Indonesia. ZTE’s rapid growth is reflective of bolstered high-tech sales from China. Nanjing Panda Electronics (600775.SS) is down 21.08% over the past month. The company expects an attributable loss of 150-220 million yuan for 2024. Anticipated losses are mainly attributed to fierce competition within intelligent manufacturing, power supply, and communication businesses. A law banning TikTok has been enacted in the US.
Written by Charles SHI Qiyuan
This week, the market experienced volatility but trended toward stability overall. The Sensex benchmark index and the NIFTY50 closed with declines of 0.98% and 0.23%, respectively. Investor sentiment remained cautious amid continued foreign capital outflows. However, the domestic equity market ended a four-day losing streak on Tuesday, buoyed by easing domestic inflation, lower crude oil prices fueling bargain buying, and positive global cues, closing in the green. The rally extended into Thursday, driven by growing optimism about a softening U.S. inflation outlook, which raised hopes for rate cuts. Both indices closed up 0.4% on the day. On Friday, disappointing performance in IT and banking stocks, combined with uncertainty over potential U.S. policy shifts ahead of Donald Trump's inauguration, led to an overall decline. India’s recent cooling inflation has paved the way for potential rate cuts. On Monday, the government reported a Consumer Price Index (CPI) growth of 5.22% year-on-year for December, down from November's 5.48% and below economists’ forecast of 5.45%. Economists anticipate the Reserve Bank of India (RBI) will initiate a rate-cut cycle at its February Monetary Policy Committee meeting, lowering the benchmark rate by 25 basis points to 6.25%. However, the timing of monetary easing remains uncertain due to the weakening Indian rupee (at a record low of 86.58 against the U.S. dollar), slowing economic growth (Q3 2024 marked the lowest in nearly two years), and heightened uncertainty driven by global bond yield fluctuations.
The market saw mixed performance across sectors, with the Nifty IT and Private Bank indices emerging as the worst performers, each declining by over 2%. The Banking Nifty and Financial Services indices followed, registering losses of over 1%. In contrast, the Nifty FMCG, Metals, OMC, and Realty indices closed higher, with gains of 1.56%. The Nifty IT index recorded the steepest decline, plunging 2.68%. This was primarily driven by a sharp drop in Infosys stock following the company’s Q3 earnings report. Infosys shares closed at ₹1,817.50 on Friday, down 5.8%, amid bleak growth prospects that prompted investors to cut their positions. Morgan Stanley highlighted concerns over the quality of earnings, noting that revenue growth was fueled by an increase in the "third-party projects" component within deal pipelines. Additionally, valuations for mid-cap IT firms continue to exceed those of larger players, raising questions about sustainability. The ongoing global economic slowdown further adds uncertainty for IT stocks.
Reliance Industries Ltd（NSE: RELIANCE): Reliance Industries Ltd (RIL) posted a weekly gain of 5.35% (66 basis points), supported by strong Q3 earnings. The company reported a consolidated net profit of ₹18,540 crore for Q3 FY24, representing a 7.4% increase compared to ₹17,265 crore in the same period last year. Consolidated revenue grew by 6.7% year-on-year, rising from ₹22.5 lakh crore to ₹24 lakh crore. At the operational level, Reliance Industries recorded an EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of ₹43,789 crore for the quarter ended December 2024, an 8% increase year-on-year from ₹40,656 crore. The company's EBITDA margin improved by 20 basis points (bps) to 18.3% from 18.1% in the prior year, driven by higher refining margins and growth in digital services.
Written by Rachel HU Xinyue
This week, the U.S. stock market opened on a weak note, with all three major indices closing the week down by more than 1.5%. The Dow Jones Industrial Average dropped 1.88%, the S&P 500 fell 1.95%, and the Nasdaq Composite declined 2.34%. Labor market data remained robust, with initial jobless claims for the week ending January 4 declining by 10,000 to 201,000—the lowest level in 11 months. In the energy sector, U.S. crude oil inventories decreased by 959,000 barrels, while gasoline and distillate stocks increased by 6.33 million barrels, leading to weekly price increases of 3.59% and 3.69% for WTI and Brent crude, respectively. Despite positive labor and energy market developments, consumer confidence weakened. The University of Michigan Consumer Sentiment Index fell from 74 in November to 73.23 in December, below expectations of 73.8, reflecting lingering concerns over future inflation despite an easing in perceptions of current living costs. In addition, the unemployment rate in December decreased from 4.2% to 4.1%, better than market forecasts. Non-farm payrolls increased by 256,000, marking the largest gain in nine months, with retail contributing 43,000 new jobs. Strong labor market performance dampened investor expectations for another Federal Reserve rate cut within the next six months.
Among the 11 sectors of the S&P 500 Index, only one ended the week in positive territory, with the financials, real estate, and technology sectors leading the declines. Insurance stocks experienced significant losses this week due to forecasts of wildfire damages in California reaching $20 billion. Mercury General Corporation (MCY) saw its stock price drop 24% this week, The Allstate Corporation (ALL) fell by 5.64%, and The Travelers Companies, Inc. (TRV) declined by 4.26%. However, it is anticipated that insurance companies may have brighter prospects in the long term after overcoming this short-term setback. The technology sector led the losses this week. Semiconductor stocks plummeted as the Biden administration prepared to impose a new round of restrictions on AI chip exports. Nvidia closed down 5.76%, AMD declined by 4.76%, and NXP Semiconductors ended the week 5.1% lower. Apple dropped 2.41%, likely due to concerns over 2025 shipment projections falling short of market expectations.
Walgreens Boots Alliance, Inc. (NASDAQ: WBA) saw its stock rise by 28% to $11.82 after reporting first-quarter financial results that exceeded market expectations. IGM Biosciences Inc. (NASDAQ: IGMS) experienced a significant decline of 66%, with its stock falling to $2.1250 following the company's announcement to discontinue further development of Imvotamab and IGM-2644.
Written by Robin HONG Yee Ching
The STOXX 50 and STOXX 600 fell nearly 1% on Friday, driven lower by astronger-than-expected U.S. jobs report that reinforced the Federal Reserve's cautious stance on future rate cuts. This, combined with inflation concerns, the ongoing UK debt market crisis, and uncertainty over President-elect Trump's potential tariff policies, weighed heavily on investor sentiment. Most sectors and bourses were in the red, with utilities and food & beverage stocks dropping 2.3%, while autos were the exception, rising 0.48%.
The banking sector was buoyed by UBS shares, which surged nearly 10% week on week to a 16-year high following a Wall Street Journal report that the bank would be fined hundreds of millions in a settlement with the US Justice Department. The case is related to Credit Suisse, which was investigated for violating a plea agreement involving assistance to US taxpayers in filing false income tax returns.
Marks and Spencer’s on Thursday said like-for-like food sales rose 8.9% in the 13 weeks to the end of December, while clothing, home and beauty added 1.9% over the same period. “This was another good Christmas for M&S,” chief executive Stuart Machin said in a statement. “Sales records were broken across the business, with Food recording its biggest day and Clothing, Home & Beauty online its biggest week, but we’re not complacent — as a growth business it’s our job to break records.” The external environment however would remain challenging, Machin warned, pointing to cost and economic headwinds, but also noted that there was much in the group’s control.
Written by Kevin XIA Yunchu
China's Central Economic Work Conference (CEWC) concluded on January 9, 2025, with policymakers emphasizing proactive policy support to bolster consumption and stabilize housing and stock markets. The conference highlighted the need for a higher fiscal deficit and moderately loose monetary policy to address economic challenges. Despite these measures, China's retail sales softened to 3.0% year-on-year growth in December, while industrial production rose by 5.4% year-on-year. The Producer Price Index (PPI) inflation rose to -2.5% year-on-year, indicating a demand pick-up for industrial products. In Hong Kong SAR, the Hang Seng Index fell by 1.83% in its final hour of trade on January 13, 2025, while the CSI 300 Index in mainland China lost 2.37% and ended at 3,933.18. The decline was attributed to Beijing's stimulus pledges falling short of investor expectations.
The technology sector in Hong Kong SAR saw significant movements, driven by the listing of several sizeable deals, including four of the ten largest IPOs in the past three years. These listings included Specialist Technology Companies under Chapter 18C, primarily engaged in Al and robotics. This influx of tech IPOs has reinforced Hong Kong's position as a hub for innovation and contributed to a 78% increase in funds raised compared to 2023.
In mainland China, BYD Company Ltd (SZ: 002594)., a leading electric vehicle manufacturer, experienced a notable surge in its stock price following reports of increased production targets and expansion plans. The company's shares rose by 7.5% over the week, reflecting investor optimism about its growth prospects. In Hong Kong SAR, Mao Geping (HK: 01318), a Chinese cosmetics firm, made a spectacular debut on the stock market. The company's shares surged by 70% on the first day of trading, reaching HK$53.05 at its peak. The IPO was highly popular, with retail investors oversubscribing the shares 918 times. This strong performance highlights the growing interest in premium beauty products and the company's successful market entry.
Written by Dacian DENG Shen
Japan's stock markets declined over the week, with the Nikkei 225 Index dropping 1.8% and the TOPIX Index falling 2.5%. Speculation persisted about the timing of the Bank of Japan’s (BoJ) next interest rate hike. The yen weakened against the U.S. dollar due to uncertainty surrounding BoJ’s monetary policy normalization and the widening U.S.-Japan interest rate differential. Japan's Finance Minister issued a warning against speculative currency moves, signaling potential intervention. In fixed income, the 10-year Japanese government bond (JGB) yield rose to 1.19%, the highest since 2011, driven by higher U.S. Treasury yields and reduced expectations of Federal Reserve rate cuts. The BoJ maintained a tightening bias, but recent comments suggest the likelihood of a January rate hike is low, with some investors predicting delays until March or April. Meanwhile, Japan’s real wage growth declined for the fourth consecutive month in November, falling 0.3% year-on-year. The BoJ remains focused on economic and price developments, along with wage growth, to determine future rate hikes.
Retail Sector: Seven & i Holdings <3382> increased by 0.12%. Fast Retailing <9983>, whose operating profit for the September-November 2024 period, announced the previous day, fell short of market expectations, causing its stock to plunge nearly 8% at one point. The sharp drop in Fast Retailing worsened investor sentiment, dragging the Nikkei 225 down by over 300 points alone.
Technology Sector: Advantest <6857> increased by 12.85%. NTT Data <9613> decreased by 0.76%. TDK <6762> decreased by 8.56%.
KKR has urged the board of Fuji Soft <9749> to take legal action against Bain Capital, accusing its rival of violating a non-disclosure agreement in their $4 billion bid for the Japanese software company. KKR's call for an injunction escalates the public battle between the two private equity firms, a rare occurrence in Japan. Bain launched a $4.3 billion counterbid in December, positioning itself as a "white knight" with the support of Fuji Soft's founder, despite the board repeatedly backing KKR's lower bid due to fears of a potential deadlock and concerns about Bain's higher bid timeline. KKR also accused Bain of misusing confidential information and misleading the market, while Bain argued it had destroyed all required data and would proceed with its offer based on public information. Fuji Soft's shares rose above Bain's offer price, leading analysts to speculate on the possibility of higher bids.
Written by Justin CHUNG Lok Yin
This week, the Indian stock market experienced a significant downturn. The NIFTY 50 Index declined by 2.49%, and the SENSEX Index dropped by 2.2%. Investor confidence in the Indian market remained weak. The closing of global markets at lower levels this week set the stage for declines in major Asian markets. An increased expectation that the U.S. Federal Reserve will maintain its current interest rate has strengthened the U.S. dollar and raised bond yields, adversely affecting global market performances. If the Fed decides to hold rates in January, the Reserve Bank of India may be more inclined to hold rates in February, which could further impact market performances. Amid ongoing uncertainties, foreign portfolio investors (FPIs) have divested over ₹8,500 crore from Indian equities in January. Persistent foreign capital outflows remain a key factor in the depressed Indian stock market. India's economy is projected to grow by 6.4% in the fiscal year ending in March 2025, marking the slowest growth since the COVID-impacted fiscal year of 2020/21 and a decline from the 8.2% growth of the previous year. This figure also falls short of the government's earlier forecast of 6.5%. The slowdown is primarily attributed to weaker growth in gross fixed capital formation and inventories, despite accelerated spending by the private sector (7.3% compared to 4%) and the government (4.1% compared to 2.5%). Additionally, exports grew at a faster rate (5.9% compared to 2.6%), while imports contracted (-1.3% compared to 10.9%). On the production side, manufacturing growth is expected to slow significantly (5.3% compared to 9.9%), while growth in other major GDP contributors such as trade and hotels (5.8% compared to 6.4%) and financial services and real estate (7.3% compared to 8.4%) also moderated, offset by a stronger performance in agriculture (3.8% compared to 1.4%).
Auto: The Federation of Automobile Dealers Associations (FADA) reported that auto retail grew by 9.1% year-on-year in 2024 despite challenges such as extreme weather, elections, and uneven monsoons. However, the data for December was disappointing, as overall retail declined by 12.4%, with almost all segments showing degrowth. In December, two-wheeler retails were affected by low cash flow, poor sentiment, delayed harvest payments, and heightened competition from electric vehicles, while the passenger vehicle segment saw degrowth due to high post-festive inventory, aggressive discounting, and limited new launches, with many buyers deferring purchases until January.
Tata Consultancy Services Ltd (NSE: TCS): The company gained 5.6% on January 10, Friday, culminating in a net 3.35% gain for the week. The largest IT firm in India announced positive results for the October to December quarter on January 9, Thursday, reporting a 12% rise in net profit to ₹12,380 crore for the third quarter of the fiscal year 2024-25, compared to ₹11,058 crore in the previous year.
Written by Sarah LEONG Si Ian
Over the past week, the three major indexes have shown fluctuations in their prices but all of them are eventually bullish. S&P 500 started at 5891.07 on 30/12/2025, which created a price gap with the close on 27/12/2025. It then fluctuated and hit the lowest of 5888.66 on 2/1/2025. It eventually rebounded and ended at 5942.47, which was a 1.26% increase. A similar trend was seen also for the NASDAQ Composite index, with a lowest of 19379.57 towards the end of the week and a surge back to 19621.68 at the time it closed, which was a 1.77% increase. Dow Jones Industrial Average has reached its highest price of 42782.76 and lowest of 42436.92, and eventually ends at 42732.13, a 0.8% increase.
Looking into several important economic events in the US, the Chicago PMI, measuring the economic health of the manufacturing sector in Chicago, showed a price of 36.9. This was lower than both the forecast price of 42.7 and the previous price of 40.2, which indicated a bearish change. The actual Initial Jobless Claims was 211K, which was lower than both the previous (220K) and the forecast number (222K). The Crude Oil Inventories declined by 1.178M, which was fewer than both the previous (-4.237M) and the forecast value (-2.400M). This indicates a bearish sign for the price of crude oil.
The US consumer discretionary market has shown the highest price rise of 2.42% among all the sector indexes in the US. The strong gain might be partly caused by the interest rate cuts earlier since the market is highly sensitive to macroeconomic factors. It is forecasted that the gain in this market will remain huge given the economy is healthy.
In general, all the sectors in the US have shown a price rise in the previous week, with the highest rate of 2.42% in the consumer discretionary market and the lowest of 0.1% in the consumer staples sector.
Uber Technologies (UBER) has shown its constant bullish growing trend in the previous week. It opened at a price of 63.69 and has been growing until it reached the week’s peak of 65.22 and eventually closed with a 2.25% at 64.59. The P/E TTM was at 31.82. The net inflow was 108.92M, with most of the orders being small orders.
Written by Kathy Tam
This week, European sector developments highlighted both challenges and opportunities across key industries. In energy, the halt of Russian gas transit via Ukraine on January 1, 2025, pushed natural gas prices above €50/MWh, underscoring Europe's ongoing energy security concerns and accelerating its shift toward LNG imports and renewable energy investments. The automotive sector faced regulatory pressure as new EU CO2 standards took effect, requiring at least 20% of vehicles sold to be electric, while the Czech Republic's manufacturing PMI fell to 44.8 in December, reflecting deep structural issues in the car industry. Meanwhile, Europe's real estate sector showed signs of recovery, with analysts projecting a 15% increase in investment activity for 2025, driven by demand for prime assets in cities like Madrid and Stockholm and a rebound in office leasing due to return-to-office policies.
The banking sector was buoyed by UBS shares, which surged nearly 10% week on week to a 16-year high following a Wall Street Journal report that the bank would be fined hundreds of millions in a settlement with the US Justice Department. The case is related to Credit Suisse, which was investigated for violating a plea agreement involving assistance to US taxpayers in filing false income tax returns.
AstraZeneca (AZN), the Anglo-Swedish pharmaceutical giant, is under investigation by Chinese regulators for alleged illegal drug imports, data breaches, and health insurance fraud, a situation that has already led to the detention of Leon Wang, AstraZeneca’s China President. These issues have raised concerns about its future in a market that contributes 13% of its revenue, with reports indicating declining prescriptions for its medicines as doctors distance themselves amidst the controversy. Compounding this, a U.S. lawsuit alleges AstraZeneca misled investors by understating its exposure to regulatory risks in China. Over the past six months, the stock has dropped 15%, though it showed slight stabilization this week, rising approximately 1.2% to close at £10,594 on January 3, 2025. This may due to the company's strong global performance, with analysts projecting robust earnings growth fueled by its innovative drug pipeline, including treatments for cancer, rare diseases, and obesity. Additionally, AstraZeneca’s upcoming launch of Breztri Aerosphere for COPD in India and its continued expansion in the U.S., supported by a $3.5 billion investment plan, signal confidence in its ability to diversify revenue streams and reduce dependency on the Chinese market.
Written by Kim Chui
Japan's markets were lower after the close on Monday, as losses in the Shipbuilding, Precision Instruments and Communication sectors led shares lower.. The Nikkei 225 dropped by 1.47%, closing at 39,307.05 on January 3, 2025, as technology and manufacturing sectors surged. Similarly, the broader TOPIX index dropped 1,02%, ending at 2,756.38. Export-driven industries benefited from the yen's depreciation against the U.S. dollar, with the exchange rate reaching 157.16 JPY/USD, making Japanese goods more competitive overseas.
Economic indicators showed mixed results. The December Manufacturing PMI rose slightly from 49.0 to 49.6, signaling marginal expansion, while the Services PMI stood at 50.9, reflecting modest domestic demand. However, concerns about inflation persist, as Japan's core consumer price index (CPI) rose by 2.7% year-on-year in December, exceeding the Bank of Japan's 2% target for the 18th consecutive month. This has fueled speculation about the BOJ potentially adjusting its ultra-loose monetary policy, but Governor Ueda reiterated the need for continued stimulus to achieve sustainable growth.
Industrials Sector:
Industrial machinery company Ebara Corp. (TYO:6361) jumped 5.71%; engineering firm IHI Corp. (TYO:7013) declined by 5.48%.
Technology Sector:
Electrical equipment manufacturer Furukawa Electric Co., Ltd. (TYO:5801) increased by 5.40%.
Fujitsu General Ltd. (TYO:6705) is set to be acquired by Paloma Rheem Holdings in a deal valued at approximately ¥257 billion ($1.6 billion). The offer includes a 24% premium over Fujitsu General's closing price on January 6, 2025, with Paloma Rheem proposing to pay ¥2,808 per share. This acquisition aims to facilitate Fujitsu's strategic shift, allowing the company to concentrate on its core IT business by divesting its air-conditioner unit. The transaction is expected to be financed through bank borrowing, with a tender offer anticipated around July. This move follows previous negotiations with private equity firms that did not materialize, highlighting Fujitsu's intent to streamline its operations by shedding non-core assets.
Written by Charles SHI Qiyuan
This week, the stock market saw mixed performance, but overall, it closed slightly higher. The Sensex benchmark index rose by 0.98%, and the NIFTY50 index increased by 0.67%. The decline leading up to the New Year was primarily driven by the automotive and banking sectors, with Tata Motors and the State Bank of India falling by 2.2% and 1.4%, respectively. On December 30th, the Sensex index closed down 0.6% at 78,248.13 points. The main downward pressure on Tuesday came from the technology sector, which reflected a delayed impact from the sharp fall in U.S. tech stocks. The mid-week low was recorded at 77,564.24 points. After the New Year, the Indian stock market performed well, driven by a rebound in automotive stocks and support from the financial sector. By Thursday, the market had approached the 80,000 mark near the close. However, this strong rally came to an abrupt halt on Friday due to a sell-off in the technology sector, primarily driven by cautious sentiment from foreign investors as they entered the New Year.
Summarizing the performance of the market this year, the Nifty 50 index ended the year with a gain of 8.8%, marking the ninth consecutive year of growth for the Indian stock market. Over the past fourteen years, the cumulative gain has reached an impressive 355%, leading among major global indices, highlighting the potential of India's stock market, largely supported by domestic institutional investors and policy continuity following the re-election of the ruling party. However, the main issue facing the market was the slowdown in corporate earnings and the outflow of foreign funds, which reduced the annual gain to around 8.5%, putting it at a disadvantage compared to global rankings. At the same time, the rupee hit multiple historical lows in December due to the rising U.S. dollar index and U.S. Treasury yields. The Federal Reserve's slowdown in rate cuts may exacerbate the outflow of foreign capital from emerging markets like India. Additionally, India’s economic slowdown, growing trade deficit, and decelerating capital inflows have intensified its challenges. Looking ahead to the New Year, the Reserve Bank of India's monetary policy, geopolitical developments in the Middle East, and the policies proposed by U.S. President-elect Donald Trump will be the major factors influencing emerging markets in 2025.
Pharmaceutical Sector: Among all sectors, the pharmaceutical stocks have delivered the best performance this year, with a weekly gain of 1.11% and an impressive annual increase of 39%. This growth is attributed to steady sales growth in both the Indian domestic and U.S. markets, along with stable pricing in the U.S. pharmaceutical market. The Indian pharmaceutical industry has been on an upward trajectory in recent years, largely driven by government policy support and strong industry development efforts, with the aim of positioning India as the "pharmacy of the world." Although Indian companies reported lower-than-expected earnings in the second quarter, the Nifty Pharma index saw a 14.30% year-on-year revenue growth and a 23.59% year-on-year profit increase. Looking forward to 2025, the Indian pharmaceutical sector is full of promise and is expected to be one of the biggest beneficiaries in the "Trump 2.0" era. The ongoing political struggles between U.S. political parties are likely to suppress industry costs, preventing any major tariff wars. For the pharmaceutical industry, China's "Plus One" strategy may be pushed forward to diversify pharmaceutical manufacturing and supply chains. This shift presents incremental opportunities for Indian pharmaceutical companies, making it a significant positive factor for the sector.
Adani Group’s Exit from Wilmar International JV and its Impact on Adani Wilmar: On Monday afternoon, Adani Enterprises announced its decision to exit its consumer goods joint venture with Singapore’s Wilmar International, causing a significant 7.7% drop in Adani Wilmar's stock price due to a market-wide selloff. The group plans to raise $2 billion by selling its 44% stake in the joint venture with Wilmar International, and the proceeds will be directed towards its core infrastructure business. Although the group’s revenue, which exceeds ₹515 billion for FY 2024, primarily comes from the sale of edible oils through this joint venture, with a market share of 20%, this move appears justified. The Adani Group is facing intense scrutiny over bribery allegations, and raising funds in the medium to short term has become a critical focus, particularly in overseas markets. Moreover, the merged group is heavily indebted, with listed company liabilities exceeding ₹2.4 billion. Given these factors, the decision to exit the Wilmar JV appears to be a strategic move to reduce debt before exploring other avenues. By shedding its consumer business, the group aims to better allocate capital and focus on its core operations, promoting a more centralized and focused growth strategy. This decision reflects a more prudent approach to financial management amid ongoing challenges.
Written by Rachel HU Xinyue
The U.S. stock market remained stable this week, influenced by the Christmas holiday and a sell-off in tech stocks on Friday. The Dow rose 0.35%, the S&P 500 increased by 0.67%, and the NASDAQ gained 0.74%. However, the market experienced significant outflows, with investors withdrawing over $35 billion—marking the largest outflow since December 2022—following a record $62 billion inflow the previous week. After last week's 25bp Fed rate cut, expectations for further rate reductions next year have declined. The probability of the Fed holding rates steady in January is now 91.4%, with an 8.6% chance of a 25bp cut. This has pushed U.S. Treasury yields higher, with the benchmark 10-year yield reaching 4.627%, its highest since May.
The U.S. Census Bureau reported a 1.1% decline in durable goods orders in November, well below the forecasted 0.4% drop. However, core capital goods orders (excluding aircraft and defence) rose 0.7%, the largest increase since July 2023. Consumer confidence also weakened, with the Conference Board's index falling from 112.8 to 104.7. Meanwhile, new home sales rose 5.9% MoM in November, recovering from a 14.8% drop in October but falling short of the expected 9.8% increase. The growth was likely driven by delayed transactions due to earlier hurricanes and a 14-year high in new home supply. Labor market data remained strong, with initial jobless claims falling by 1,000 to 219,000 in mid-December, below the expected 224,000. This marks the lowest level since the 213,000 recorded a month ago. In energy markets, U.S. crude oil inventories fell by 3.2 million barrels last week, following a 4.7 million-barrel drop the previous week. The tightened supply pushed crude oil and Brent prices up by 1.41% and 1.24%, respectively, for the week.
Quantum computing-related stocks surged, setting the stage for a robust year-end rebound in the emerging sector. Rigetti Computing Inc. soared by 86%, while SEALSQ Corp skyrocketed over 230.18%. Meanwhile, the electric vehicle sector continued its upward trend, with Toyota Motor Corp. rising 11.98% and Li Auto Inc. climbing 8.19%. However, heavy sell-offs in major tech companies on Friday weighed on Wall Street. Tesla dropped 4.9%, NVIDIA fell 2%, and Broadcom declined 3.05%. Thin holiday trading amplified market volatility, leading the Nasdaq 100 to fall 1.3% and the Dow Jones Industrial Average to drop 333 points on that day
Honda Motor Co. Ltd. (NYSE: HMC) experienced a significant stock increase of 20.39% this week, following the announcement of formal merger talks with Nissan Motor Co. This potential merger aims to create the world's third-largest automaker, enhancing competitiveness in the evolving electric vehicle market.
Written by Robin HONG Yee Ching
European stocks recorded their first weekly gain in three weeks, with the Stoxx Europe 600 Index rising by 0.7% as trading resumed after Christmas. This increase was notable despite thin trading volumes during the holiday period, with strong performances observed in the automotive, banking, and financial sectors, while retailers lagged behind. The index has encountered challenges throughout the fourth quarter, experiencing an overall 3% decline primarily due to concerns surrounding regional political uncertainties and potential US tariffs under President-elect Donald Trump. France's CAC 40 underperformed with a decline of approximately 2.5% for the year, while Germany's DAX led gains with an increase of over 15%, excluding dividends. In the banking sector, M&A activity surged in 2024, with deals surpassing $41.5 billion, marking the busiest year for European banks since 2020. This heightened deal-making activity has contributed to a total return of 32% for bank stocks in 2024, reflecting robust investor confidence.
The banking sector has emerged as a prominent player in European M&A activities, representing 17% of total deals this year. This resurgence can be attributed to depressed valuations across industries, with European bank shares trading at a historic 40% discount compared to their US counterparts. Motivated by the need to achieve scale, reduce costs, and prepare for a potential decline in interest rates, the sector is actively pursuing growth. In contrast, the automotive sector is encountering challenges due to proposed tariffs by President-elect Donald Trump, impacting major manufacturers such as V olkswagen and BMW, who are already grappling with sluggish demand in China. Additionally, the telecom sector is experiencing increased deal-making activity, aided by regulatory changes that are facilitating mergers and acquisitions.
Delivery Hero SE witnessed a significant 9% drop in its stock value after Taiwan's Fair Trade Commission blocked Uber Technologies Inc.'s planned $950 million acquisition of its Foodpanda business on antitrust grounds. This decision had a notable impact on Delivery Hero, which had intended to utilize the sale proceeds to bolster its financial position amidst ongoing restructuring efforts prompted by activist investor pressures. In contrast, Banca Monte Dei Paschi di Siena SpA has seen its stock price more than double following Italy's initiatives to privatize the bank and establish a new national banking leader, signifying a remarkable turnaround after years of decline for the world's oldest financial institution. Unicredit SpA is also in the spotlight for acquiring a stake in Commerzbank AG and pursuing additional opportunities for domestic consolidation.
Written by David LU Zhiyuan
Chinese equities showed mixed performance but relatively small fluctuations in the final week of 2024, with the SSE Composite Index rising 1.60%, while the SZSE Component Index declined slightly by 0.33%. The HSI gained 1.90%, reflecting positive sentiment in the Hong Kong market. Investors remained cautious amid year-end trading, balancing optimism over domestic economic recovery with concerns about external uncertainties. Gains in the SSE were supported by stronger-than-expected retail and industrial data, while declines in the SZSE were driven by profit-taking in growth stocks. The Chinese government is expected to implement more supportive measures in 2025 to stabilize growth, as analysts suggest current policies may need to adapt to global economic challenges.
New energy vehicle (EV) stocks showed resilience, supported by favorable policies aimed at boosting industry growth. Leading EV makers rose modestly, with BYD (1211.HK) gaining over 3%. On the policy front, recent announcements highlighted increased subsidies for EV purchases in rural areas and expanded support for charging infrastructure, aiming to accelerate EV adoption and promote green consumption. Analysts believe these measures, coupled with long-term goals for carbon neutrality, will strengthen the EV supply chain and drive sustainable growth. The focus on expanding charging networks and reducing ownership costs is expected to solidify consumer confidence and enhance the competitiveness of domestic EV manufacturers.
Zhongbai Group (SHE:000759) surged 54.42% last week, making it one of the top-performing stocks in the A-share market. The rally was driven by market speculation surrounding potential reforms in the retail sector and expectations of policy support for state-owned enterprises (SOEs). Analysts suggest the stock's sharp rise may also be linked to improved consumer sentiment and increased activity in the domestic retail market but caution against overheating due to speculative trading. Shanghai Phoenix (SHA:600679) dropped 30.51% last week, marking a significant decline in its stock price. The sharp decline may be attributed to profit-taking by investors after previous gains, as well as concerns over the company's growth prospects in a highly competitive e-bike market. Analysts suggest that the drop reflects market caution toward speculative trading, highlighting the need for sustained business performance to restore investor confidence.
Written by Dacian DENG Shen
Japan's stock markets rose significantly over the week, with the Nikkei 225 gaining 4.08% and the TOPIX Index up 3.69%, supported by a weaker yen that bolstered export-heavy industries. The yen declined to JPY 157 against the U.S. dollar, and 10-year Japanese government bond yields rose to a five-week high of 1.1%. Bank of Japan (BoJ) Governor Kazuo Ueda suggested potential interest rate hikes if economic conditions improve, emphasizing a cautious approach to ensure inflation stays near the 2% target while keeping policy accommodative. Tokyo's December inflation rose above expectations, with the CPI up 3% year-on-year and core CPI rising 2.4%, indicating potential national trends. Economic data for November showed mixed results: industrial production fell 2.3% but outperformed expectations, retail sales rose 1.8%, and unemployment remained steady at 2.5%.
TSMC has begun mass production at its new fab in Kumamoto, Japan, marking a milestone in advanced chip manufacturing in the country. Operated by Japan Advanced Semiconductor Manufacturing (JASM), the plant uses 40nm, 28nm, 22nm, 16nm, and 12nm-class process technologies, with a focus on automotive and consumer electronics applications. This facility represents the first production of FinFET logic chips in Japan and can handle up to 55,000 wafer starts per month. Supported by a $3 billion subsidy from the Japanese government, the $8.27 billion investment involves TSMC (holding an 86.5% stake), Sony, Denso, and Toyota. Plans for a second fab at the site are set for 2025, targeting 6nm and 7nm-class nodes, with operations expected by 2027. Combined, the two fabs aim for a capacity of over 100,000 wafers per month, with total investments reaching $20 billion. TSMC's expansion in Japan follows its moves into the U.S. and Germany. Additional plans for a third fab in Kumamoto depend on the success of the first two, as well as solutions for infrastructure and environmental challenges.
Honda and Nissan plan to merge to counter competition from China's growing electric vehicle (EV) industry, aiming to solidify their market position by 2030. The merger would include Mitsubishi, enabling resource sharing among the three companies to compete with EV leaders like Tesla and BYD. The partnership aims to combat China's dominance in EV production, which benefits from lower costs and government subsidies. Nissan and Honda’s combined sales exceed $191 billion, and their leaders emphasize the urgency of building competitive capabilities. However, the merger's success depends on Nissan's financial recovery. Nissan has faced declining sales and reputational challenges, including fallout from the arrest of former CEO Carlos Ghosn. Political scrutiny in Japan and potential job cuts are anticipated, as is the likely end of Nissan's alliance with Renault. The companies have already deepened their cooperation in EV technologies, focusing on batteries and related advancements.
Written by Justin CHUNG Lok Yin
Following the crash last week, the Indian stock market was stagnant in the Christmas week. The Sensex benchmark rose 0.24% as the NIFTY 50 rose 0.4%, both ended nearly flat on a subdued note. This reflects investors’ cautious sentiments as the year wraps up. The Indian market lacked major triggers this week while the Indian rupee kept falling to historical lows against the dollar. The rupee ended at a fresh record low of 85.54 per dollar on December 27, Friday, due to a strong greenback amid surging month-end demand from banks and importers. Looking at the global market, investors are prudently observing the US Republican Party administration starting next month.
The Nifty Pharma Index rose 1.85%. The outperformance of the Pharma Index could be explained from a technical perspective. On December 26, Thursday, the 9-day moving average broke the 50-day and 100-day moving averages. A symmetrical triangle pattern established last Friday also broke out at the same time, stimulating a 2% rise within 24 hours. The Nifty Auto Index rose 1.7%. A possible explanation is the official commencement of the merger talk between Japanese auto giants Honda, Nissan, and Mitsubishi on December 23, Monday. The Indian auto market from now on pays more attention to how Indian car companies, factories, and supply chains can capitalise on such synergies.
Hindustan Aeronautics Ltd (NSE: HAL): Hindustan Aeronautics, one of the largest Indian defence stocks, rose 1.33% in the week. Analysts are confident in the stock despite a 20% downfall in 6 months. On December 24, Tuesday, Phillip Securities initiated coverage of the company with a buy rating and a price target of INR 5,500. On December 27, Friday, Antique Stock Broking selected the stock as one of its top picks in the defence sector. Hindustan is credited based on its extensive experience and evolving capabilities in the aerospace and defence sectors, which fuels its robust earnings trajectory in 2025. Favourable policies also provide a strong growth outlook for Hindustan. To enhance operational readiness, the Indian Defence Acquisition Council (DAC) has approved Acceptance of Necessity (AoN) proposals worth Rs 4.4 trillion in 2024, a 29% Y oY increase over 2023’s Rs 3.5 trillion. Notably, 94% of these approvals will benefit domestic companies, including Defence Public Sector Undertakings (DPSUs) like Hindustan.
Written by Sarah LEONG Si Ian
In the past week, the three major indexes have performed relatively stable in the first few days and plummeted on 19/12. Which might be a consequence of the scaling back of the forecast interest rate announced by the Fed. S&P 500 showed a bearish trend and dropped significantly on 19/12, causing it to close at 5930.84, despite a rise on 20/12. NASDAQ Composite Index was quite stable in the first few days. On 19/12, however, it dropped significantly and hit the week’s low of 19168.38 at the start of 20/12. It closed at 19572.60. A similar trend is also seen in the Dow Jones Industrial Average, which ended at 42840.26. Looking into several important data in the US, Crude Oil Inventories declined by 0.934M, which was higher than both the previous (-1.425M) and the forecast value (-1.600M). The Fed Interest Rate Decision was at 4.50%, which matched its forecast and was lower than the previous rate of 4.75%. The actual Initial Jobless Claims was 220K, which was lower than both the previous (242K) and the forecast number (229K).
The US real estate market has shown the highest rise of 1.82% in price in the previous week. This is likely to be a result of the loosened interest rate, which reduces the mortgage rates and makes real estates more affordable. In general, all the sectors in the US have shown a price rise in the previous week, with the highest rate of 1.82% in the real estate market and the lowest of 0.14% in the consumer discretionary sector.
Meta Platforms Inc. (Meta) has shown continuous decline and closed at 585.25 in the previous week, which has been the week’s lowest and lower than the previous close of 595.570. The P/E TTM was at 27.62. The net was 917.33M, with the majority from medium orders.
Written by Kathy Tam
European stock markets faced downward pressure, with the Euro STOXX 600 index declining by 0.6%, reflecting ongoing concerns about global monetary policies and fluctuations in energy markets. The German DAX fell by 0.43% to 19,884.75, while France's CAC 40 dropped by 0.27% to 7,274.48, indicating a cautious investor sentiment amid expectations of further interest rate adjustments from central banks. The UK’s FTSE 100 also saw a slight decrease of 0.26%, closing at 8,084.61. These declines are attributed to investors' anxieties regarding the economic outlook, particularly as the European Central Bank (ECB) has recently cut interest rates for the fourth time this year, aiming to address inflation projected to average around 2.4% in 2024. Despite these challenges, some indices like Spain's IBEX 35 managed a modest gain of 0.24%, highlighting a mixed performance across the region as market participants remain sensitive to geopolitical developments.
The European automotive sector is under significant stress due to President-elect Donald Trump's proposed blanket tariffs on imports, which could severely affect major German manufacturers such as Volkswagen, BMW, and Mercedes-Benz. These companies are already facing challenges from sluggish demand in China and have issued profit warnings as a result. Germany’s auto industry exported approximately €23 billion ($24.2 billion) in passenger cars to the U.S. last year, highlighting its importance to the economy. Analysts emphasize that the automotive sector is intricately linked to related industries like steel and chemicals, making its stability crucial for overall manufacturing in Germany. Additionally, with Mercedes-Benz employing over 11,000 people in the U.S. and BMW operating 30 locations across multiple states, the proposed tariffs raise concerns about potential job losses and broader economic implications for Europe.
ASML Holding N.V. (ASML) is currently facing a securities fraud lawsuit following a 16% drop in its stock price after the company reported disappointing earnings on October 15, 2024. The lawsuit alleges that ASML misled investors regarding the impact of new Dutch export controls on semiconductor technology, claiming it would not adversely affect its financial outlook. Following the earnings report, which revealed lower-than-expected sales and net income, ASML's stock fell significantly, prompting investors to seek legal recourse. As of December 18, 2024, ASML's stock is trading at approximately $735.19, reflecting a slight decline of about 2.14% for the day. The stock has shown volatility in recent months, with a year-to-date performance of approximately -2.05%. Analysts have projected that ASML's total net sales for 2024 will be around €28 billion, with expectations for growth to between €30 billion and €35 billion in 2025. Despite the ongoing legal challenges and market fluctuations, ASML remains a critical player in the semiconductor industry, particularly due to its advanced lithography equipment essential for chip manufacturing.
Written by Kim Chui
This week, the Bank of Japan (BoJ) maintained its benchmark interest rate at 0.1%, citing concerns over global economic volatility and domestic inflation trends. The Nikkei 225 index declined by 1.2%, closing at 31,657.42, primarily due to uncertainty in global markets and a net outflow of ¥24 billion from Japanese equities. Japan's annual core inflation rate remained elevated at 3.1% in November, marking the 15th consecutive month above the BoJ's target of 2%.
The Nikkei Technology Index fell by 1.7%, driven by declining demand for high-end chips. Nvidia's stock dropped by 3.2%, and AMD's declined by 2.8%, reflecting weaker sales in AI and gaming. Meanwhile, the Japan Automotive Index rose by 2.3%, benefiting from strong performance by exporters amid a weak yen.
SoftBank Group Corp. (9984.T) has shown a positive performance this week, with a weekly increase of 3.4%, closing at ¥5,450. Key drivers for this surge include the Vision Fund's return to profitability for the first time in 18 months, posting a ¥150 billion profit for the quarter. Additionally, the IPO of chip-design company Arm Holdings earlier this year continues to bolster investor sentiment, with Arm's stock rising by 4% during the week due to strong earnings. SoftBank also announced plans to accelerate AI-related investments in 2024, signaling its intent to capitalize on the AI boom. However, risks remain regarding SoftBank's exposure to volatile tech startups, particularly in China, where regulatory pressures persist.
Written by Charles SHI Qiyuan
The key trend for the Indian stock market this week was a notable crash. The Sensex benchmark closed the week with a 4.98% loss, plunging more than 4,000 points. The NIFTY 50 also dropped by 4.68%, falling below the 200-day exponential moving average of approximately 23,700 points. The volatile market sentiment was largely driven by adjustments in the Federal Reserve's interest rate policy. The effects became apparent starting Tuesday and peaked on Thursday after the Fed revised its rate cut expectations. This led to a sharp decline of 1.04% on that day alone. Initially, markets anticipated three to four rate cuts in 2025; however, the Fed’s revision clarified that only two cuts are likely. The hawkish stance strengthened the U.S. dollar and bond yields, which, in turn, accelerated foreign capital outflows from the Indian market. Foreign Institutional Investors sold over ₹12,000 crore worth of stocks in the past four trading days. Compared to the beginning of the month, this FII selling pressure has significantly impacted large-cap stocks, particularly in the financial, banking, and IT sectors. The weak performance of major sectors has contributed to the overall market weakness, and the deteriorating macroeconomic environment has only deepened investor concerns. Domestic economic growth has slowed for three consecutive quarters, and the weakening ruble has led to a record-high trade deficit in November. On a more positive note, there is potential for recovery in the third quarter, driven by year-on-year growth in heavily impacted sectors such as oil and gas, along with the seasonal boost from the holiday period. Domestic corporate earnings data for Q3 will also be closely monitored. However, persistent inflation and delayed interest rate cuts continue to fuel skepticism, making it difficult for investor confidence to fully recover.
After a relatively weak first half in FY 2025, India's hospitality sector has made a strong recovery, fueled by a surge in demand driven by the wedding season and the growth of Meetings, Incentives, Conferences, and Exhibitions (MICE) activities. The sector is expected to see a 10-12% year-on-year growth in Revenue Per Available Room (RevPAR), driven by an 8-10% increase in Average Room Rate (ARR). This positive momentum is expected to continue into December, driven by corporate gatherings, cultural events, and leisure tourism. However, demand typically tends to taper off towards the end of the year, which remains an important metric for monitoring sector performance. One key sector player is Indian Hotels Company Ltd (NSE: INDHOTEL), which is expected to witness an 8% upside . The company has experienced significant growth since its transformation between 2017 and 2024, with a compound annual growth rate (CAGR) of over 30% in its new businesses. The company’s healthy portfolio expansion and strong revenue growth are expected to further boost its EBITDA margin. For the period from FY 2024 to FY 2027, the CAGR for revenue, EBITDA, and PAT is forecasted to be 18%, 24%, and 26%, respectively. With the upcoming New Year holidays, the sector is poised to maintain favorable supply-demand dynamics, indicating potential further growth in the short term.
Siemens Ltd (NSE: SIEMENS): Siemens shares fell 10% to a one-month low of Rs 6,868 a share in Friday's trade, the biggest intraday drop since early June. This followed the company's September quarter earnings call, where the division's margins declined during the quarter due to pricing pressures and unfavourable product mix. Siemens India's digital industrial business is currently facing challenges due to ongoing semiconductor shortages and de-stocking by some customers. However, the management said indicated that the business is expected to recover in the coming quarters once the de-stocking process is completed. During the quarter, the company secured new orders worth Rs 61.64 crore (14% growth in the new financial year) with strong demand across all business segments.
Written by Rachel HU Xinyue
This week, U.S. equity markets exhibited mixed performance, reflecting underlying market uncertainties. The S&P 500 declined by 0.64%, the Dow Jones Industrial Average by 1.82%, while the NASDAQ advanced by 0.34%, and the Russell 2000 contracted by 2.58%. The U.S. labor market demonstrated notable softness this week, as initial unemployment claims increased to 242,000, exceeding the projected 220,000 and marking the highest level observed in two months. And the US Dollar Index increased by approximately 1%, driven by rate cut policies implemented in several countries, including Canada and Switzerland, which contributed to the strengthening of the US dollar. According to the latest report, the November CPI stood at 2.7%, largely in line with expectations, while the PPI reached 3% compared to the forecast of 2.6%. These figures further support the case for rate cuts, with traders raising the probability of a 25 basis point rate cut in December to 99%, according to the CME Group’s FedWatch measure.
This week, tech stocks performed strongly, with the seven trillion-dollar tech companies adding roughly $416 billion in market cap on Wednesday. The tech megacaps lifted the NASDAQ past 20,000 for the first time. Amazon, Apple, and Meta have all been regularly reaching new highs. Since Trump’s victory, the market has been on the rise, as people believe the new administration will ease market regulations. On Tuesday, Trump named Andrew Ferguson, known for his support of innovation, as the next chair of the Federal Trade Commission, replacing Lina Khan, which further boosted market sentiment. At the same time, the increasing possibility of interest rate cuts could lead to a rise in large tech stocks.
Alphabet Inc. (GOOG:NASDAQ): Alphabet unveiled its latest quantum computing chip on Monday, described as a “breakthrough” and “an important step in our journey to build a useful quantum computer with practical applications.” This announcement led to an 11% surge in the company’s stock price on Tuesday and Wednesday, surpassing its previous record of 191.18$. Broadcom Inc.(A VGO:NASDAQ): Broadcom released its fourth-quarter earnings report on Thursday, showing a strong 51% year-over-year growth. The company stated that its AI revenue increased by 200% this year and that it is working with major cloud clients to develop customized AI chips. As a result, Broadcom's stock surged over 21% to $220 on Friday morning, with its market capitalization surpassing $1 trillion for the first time. NVIDIA Corp(NVDA:NASDAQ): Nvidia's stock declined by 2.6% on Monday, primarily due to allegations of potential violations of China's antimonopoly law, with the State Administration for Market Regulation conducting an investigation into Nvidia's acquisition of Mellanox. Although the stock experienced a rebound afterward, it ultimately closed the week down by 2.25% relative to the previous week.
Written by Robin HONG Yee Ching
The economic landscape in Europe remains clouded by political instability and sluggish growth, particularly in major economies like France and Germany. These factors have contributed to one of the worst annual performances for European stocks compared to the S&P 500, which has surged by 27% this year, driven by strong demand for large-cap stocks and advancements in artificial intelligence. The European Central Bank (ECB) has also adopted a dovish stance, cutting interest rates to stimulate the economy in anticipation of potential disruptions from Donald Trump's return to office.
Despite the overall pessimism, some strategists maintain a cautiously optimistic outlook for specific sectors. Citigroup and Deutsche Bank are among the most bullish, projecting gains of 10% and 13%, respectively, for the Stoxx 600. This optimism is based on expectations of solid corporate earnings growth, which is projected at 8% for Europe in 2025. However, concerns persist regarding the sustainability of this growth amid a projected eurozone GDP growth of only 1.1%.
Individual companies within the European market show varied performance expectations. While Deutsche Bank AG is currently trading at €17.03 with a slight increase of 0.66%, analysts caution that broader market conditions could lead to declines for weaker firms. UBS Group AG and TFS Derivatives have issued bearish forecasts for the Stoxx 600, predicting a drop to around 470 points due to anticipated declines in sales and margins.
Written by Kevin XIA Yunchu
China's Central Economic Work Conference (CEWC) concluded on December 12, 2024, with policymakers emphasizing proactive policy support to bolster consumption and stabilize housing and stock markets. The conference highlighted the need for a higher fiscal deficit and moderately loose monetary policy to address economic challenges. Despite these measures, China's retail sales softened to 3.0% year-on-year growth in November, while industrial production rose by 5.4% year-on-year. The Producer Price Index (PPI) inflation rose to -2.5% year-on-year, indicating a demand pick-up for industrial products.
In Hong Kong, the Hang Seng Index fell by 1.83% in its final hour of trade on December 13, 2024, while the CSI 300 Index in mainland China lost 2.37% and ended at 3,933.18. The decline was attributed to Beijing's stimulus pledges falling short of investor expectations.
The technology sector in Hong Kong saw significant movements, driven by the listing of several sizeable deals, including four of the ten largest IPOs in the past three years. These listings included Specialist Technology Companies under Chapter 18C, primarily engaged in Al and robotics. This influx of tech IPOs has reinforced Hong Kong's position as a hub for innovation and contributed to a 78% increase in funds raised compared to 2023.
In mainland China, BYD Company Ltd., a leading electric vehicle manufacturer, experienced a notable surge in its stock price following reports of increased production targets and expansion plans. The company's shares rose by 7.5% over the week, reflecting investor optimism about its growth prospects.
In Hong Kong SAR, Mao Geping, a Chinese cosmetics firm, made a spectacular debut on the stock market. The company's shares surged by 70% on the first day of trading, reaching HK$53.05 at its peak. The IPO was highly popular, with retail investors oversubscribing the shares 918 times. This strong performance highlights the growing interest in premium beauty products and the company's successful market entry.
Written by Dacian DENG Shen
Japan's stock markets posted modest gains over the week, with the Nikkei 225 Index rising by 0.97% and the TOPIX Index gaining 0.71%. Market sentiment was bolstered by China’s announcement of proactive fiscal measures and moderately looser monetary policy.
Domestically, speculation increased that the Bank of Japan (BoJ) may delay an interest rate hike at its December 18–19 meeting, causing the yen to weaken to the mid-JPY 153 range against the USD, compared to the previous week’s 150. Meanwhile, the yield on 10-year Japanese government bonds declined to around 1.04% from 1.06%.
Investor sentiment now leans toward the BoJ implementing a 25-basis-point rate hike at its January meeting instead of December. This shift is likely due to the additional economic data the BoJ would receive by waiting, including two more inflation prints, the quarterly economic report, and feedback from its regional manager meeting. The BoJ has emphasized that any rate hike will depend on meeting its projections for economic growth, inflation, and wage increases.
Japan's final GDP data revealed 0.3% quarterly growth in Q3, surpassing the 0.2% consensus estimate. Additionally, the BoJ’s Tankan survey showed improved sentiment among large manufacturers in Q4, with optimism about business conditions outweighing pessimism.
The US Treasury has warned that the Committee on Foreign Investment in the United States (Cfius) cannot agree on mitigating security concerns over Japan’s proposed $15 billion acquisition of US Steel, likely leading President Biden to block the deal. While some US agencies see no risks, opposition led by the trade representative persists, citing political motives. This dispute strains US-Japan relations, with Japan criticizing Washington for labeling its steel industry a security risk while seeking cooperation against China. Critics argue this politicizes Cfius and harms the US-Japan alliance.
Socionext Inc. (6526.T) With the growth of generative AI, the rise of AI ASICs is drawing attention as a potential alternative to NVIDIA ’s GPUs. Morgan Stanley’s recent report predicts the AI ASIC market will grow from $12 billion in 2024 to $30 billion by 2027, driven by cost and performance advantages. While NVIDIA (NVDA.US) remains dominant in training large language models, Socionext Inc. (6526.T) is well-positioned to benefit from the expanding adoption of AI ASICs. Morgan Stanley highlights that GPUs and ASICs are likely to coexist, serving different needs in the AI ecosystem.
Written by Justin CHUNG Lok Yin
The Indian rupee fell to an all-time low of 84.88 against the dollar on December 12, Thursday. While the Indian macro environment stays strong, outflow pressures persist due to the optimistic sentiments towards the US. The dollar/rupee non-deliverable forward (NDF) rates rose during the week, creating an arbitrage opportunity between the offshore NDF market and the onshore market. To exploit the arbitrage, banks have been buying dollars in the near-term onshore forward market. This activity has pushed the 1-month dollar/rupee forward premium to spike above 2.5%, a level that rarely exceeds the 1-year yield. This has further pressurized the rupee and fueled the historical low.
Market rebounded before market closing on Friday, potentially due to a positive CPI release on December 12, Thursday. Y oY retail inflation eased to 5.48% in November, down from 6.21% in October. This marks the first drop since July 2024. This cooling inflation has raised expectations of a rate cut by the Reserve Bank of India in the next monetary policy meeting. Despite the stock market recovery, the market breadth remained weak, with more stocks declining (2,173) than advancing (1,818).
The Nifty Auto Index fell by 0.44% during the week. On December 9, Monday, data from Federation of Automobile Dealers Associations of India (FADA) revealed that passenger vehicle (PV) sales fell sharply by 33% MoM and 14% Y oY in November 2024. While November was initially expected to build on its prior momentum, particularly due to the marriage season, dealer feedback suggests that this segment underperformed overall expectations. The fast-moving consumer goods (FMCG) sector also seems to slow down. The Nifty FMCG Index bottomed out at 55,442.60 on Friday, December 13, hitting a six-month low after falling 16% since late September. This decline reflects tepid sales reported by FMCG companies. Executives from leading FMCG companies attribute the slowdown in urban areas to multiple factors such as rising urban real estate costs, food inflation, and slower wage growth, which fell to 7.7% Y oY in Q3 from 14.2% a year ago. These challenges strained middle-class spending power.
Bharti Airtel Ltd (NSE: BHARTIARTL): On December 13, Friday, Bharti Airtel’s shares surged by 4.4% after Jefferies selected it as one of its top picks for 2025, citing the company’s strong earnings growth driven by recent tariff hikes in the telecom sector. The stock grew 17.8% in 6 months and 66% YTD, significantly outperforming the 5.1% and 13.9% rise of the NIFTY 50 Index during the same periods. From a technical perspective, the stock has broken out of a falling trendline, with Friday’s closing near the day’s high signaling a continuation of the uptrend. The major EMAs are trending upward, supporting the price action. Additionally, the RSI stands at 63, further confirming bullish momentum.
Written by Sarah LEONG Si Ian
In the past week, the three major indexes have shown different trends of movements. S&P 500 was at 6090.28 with a growth of 0.25%. NASDAQ Composite Index has shown a growing trend closing at its peak of 19859.77, a 0.81% growth. Dow Jones Industrial Average has first shown growth but declined later, ending at 44642.52, a drop of 0.6%. Looking into several important data in the US, Crude Oil Inventories declined by 5.073M, which was more severe than both the previous (-1.844M) and the forecast value (-1.600M). US 10-Year Note Auction was 4.347%, which was higher than the previous 4.066%. The actual Initial Jobless Claims was 224K, which was higher than both the previous (215K) and the forecast number (215K).
The US job market has shown signals of recovery after hurricanes and strikes in November, with the most significant employment gains of 54,000 in the healthcare sector.
The consumer discretionary sector in the US has shown 2.39% increase in price, which has been the highest price increase throughout the sectors identified.
Tesla (TSLA) has shown continuous growth in stock prices after Trump’s election, hitting the 52 weeks high of 389.490 in the previous week and closed at 389.220, a 5.34% increase. The P/E TTM was at 106.64. The net inflow was 1373.09, with the majority from small orders.
Written by Kathy Tam
European markets broadly closed higher, with the pan-European Stoxx 600 index ending the day up 0.54%. Key indexes showed mixed results, with Germany's DAX gaining 0.13%, while the UK's FTSE 100 declined by 0.49%. The French CAC 40 had a volatile session, closing slightly up by 0.02%, despite political turmoil surrounding a contested budget and potential no-confidence votes. Economic data indicated a deterioration in manufacturing activity across the eurozone and the UK, while the eurozone unemployment rate remained steady at 6.3%. Analysts expressed concerns about rising U.S. inflation and potential impacts on global growth, with expectations of looser monetary policy in Europe amid economic challenges.
Britain is projected to reach "peak petrol" in 2024, signaling a major shift towards electric vehicles (EVs), according to a report by Auto Trader. The number of gasoline-powered cars is expected to decline from 18.7 million in 2024 to 11.1 million by 2034, while EVs on the roads are projected to rise from 1.25 million to 13.7 million. The share of EVs in the new car market is anticipated to increase from 18% this year to 23% by 2025, though this is below the UK government's target of 28%. The Zero Emission Vehicle (ZEV) mandate requires at least 22% of new cars sold to be zero-emission, increasing to 28% next year, and eventually to 100% by 2035.
Despite the positive outlook, industry leaders warn that high EV costs and regulatory pressures could jeopardize business viability and jobs. In response, the UK government plans consultations to support the industry, including a £2 billion investment for domestic manufacturing and over £300 million to encourage EV adoption.
(SHEL) British oil and gas supermajor Shell has announced a merger of its UK continental shelf (UKCS) upstream assets with those of Norwegian peer Equinor, forming a 50/50 joint venture set to begin by late 2025. This merger will create the UK's largest oil producer, with pro forma production expected to reach 140,000 barrels of oil equivalent per day (Kboed) in 2025 and rise to 220,000 Kboed by 2030 as the Rosebank and Jackdaw projects come online. The joint venture will include all offshore upstream assets and exploration licenses from both companies, totaling interests in 12 fields. Despite the North Sea's maturity, the new entity has significant growth potential with the Rosebank and Jackdaw fields contributing notably to production.
The UKCS has seen a decline in investment, with upstream capital dropping from over £16 billion in 2014 to around £5.5 billion in 2019. Major players like Chevron and Exxon have exited the region, contributing to over $10 billion in divestments since 2017. This merger is expected to positively affect Shell’s stock, with analysts maintaining a price target of $80 per NYSE-ADR, viewing it as a strategic move to strengthen Shell's market position in a challenging environment. However, risks from fluctuating oil prices and potential exploration setbacks remain.
Written by Alec ANTONIOU
Following anticipation of fresh stimulus measures, Chinese stocks rose: SSE Composite jumped 1.05% to close at 3,404 while SHE Component rallied 1.47% on Friday. Investors are optimistic about China’s leadership announcing additional economic support measures at next week’s Central Economic Work Conference (CEWC), scheduled for 11 December. Expected on the agenda are additional Chinese measures to help target economic risks posed by the incoming Trump administration, amidst escalating trade tensions with the US. Begin December, Beijing imposed a ban on export of critical minerals with military applications to the US, an act of retaliation against the White House’s recent tariffs on China’s chip industry. High-growth technology, new energy, and financial stocks led the rally.
China’s factory activity grew for the second consecutive month, with Purchasing Managers’ Index (PMI) rising to 50.3 from 50.1 in October, outperforming expectations. Key indicators of quantitative easing (RRR, LPR, MLF) remain unchanged since October.
In the housing market, the value of new home sales by China’s top 100 developers fell 6.9% this November YTD. This continued decline in new home prices demonstrates the continuing adversity faced by China’s property sector, as investors expect Beijing to roll out further measures to push a sustained recovery in the housing sector.
China’s 10-year government bond yield dropped to a multi-decade low of 1.96% on Monday, the lowest in 22 years. Despite the reserve requirement ratio (RRR) remaining unchanged, the bond yield decline is driven by expectations of economic stimulus from the CEWC, including a possible reduction in RRR for commercial lenders.
Chinese car manufacturers BYD, Leapmotor, and Xiaomi surpassed annual delivery targets a month ahead of the expected date. Among a boom in Chinese car sales, American carmaker Tesla cut prices for its Model Y by 10,000 yuan in an aim to stay competitive in the intensifying market price war.
NIO Inc. (9866.HK) is down 13.60% over the past month as the carmaker struggled to keep up with outperforming market sales trends, expecting to fall short of the annual sales target.
HSBC HOLDINGS (0005.HK) traded at 74.55 at market close on Friday, gaining 3.04% over past four weeks. HSBC HK app introduced its ‘open banking’ feature, allowing users to check their account information for Bank of China Hong Kong and Hang Seng Bank.
Meituan (3690.HK) increased 2.01% since previous trading session, as it announced strong profits with a 22.4% rise in Q3 revenue, beating a slowing Chinese consumption market.
Written by Kim Chui
The Bank of Japan's decision to maintain the benchmark interest rate at 0.1%, as the Nikkei 225 index surged by 3.5% over the past week. This rebound was primarily driven by increased foreign institutional investor activity, with net inflows of approximately ¥2 trillion in the first week of December after a period of significant sell-offs.
Notably, Thursday’s inflow accounted for 60% of this total (¥1.2 trillion), driving a 2% intraday gain, peaking at 33,000 points. This market reversal can be interpreted as a revaluation of the market's strong fundamentals and as a speculative opportunity following the previous downturn. Japan’s market continues to attract capital, bolstered by its growth potential and profitability.
The rise in liquidity and stable interest rates have created a positive market atmosphere in the short term, stabilizing market sentiment and making Japan an appealing destination for medium- to long-term investments. Moreover, global stock market risk aversion and economic policies are worth closely monitoring, particularly the Federal Reserve’s potential rate cut announcement in this month’s meeting, as such policy shifts could have significant implications for global capital flows and the domestic stock market.
Technology Sector: The technology sector has been experiencing a significant rally, driven by the global demand for high-end chips used in AI applications. Major chipmakers like Nvidia and Advanced Micro Devices have seen substantial gains. The Nikkei 225 index, heavily influenced by tech stocks, reached a fresh 34-year high.
Nissan Motor Co. (7201.T): Nissan's stock has been under pressure as the company faces uncertainty about its future direction under President Makoto Uchida, who has been in office for five years. The company's performance has been lackluster, and investors are concerned about its long-term strategy. Over the past week, Nissan's stock has seen a slight increase of 2.26%. Toyota Motor Corporation (7203.T): Toyota has been performing well, benefiting from the weak yen and strong global demand for its vehicles. The company's stock has seen a steady rise, and it continues to attract investor interest due to its solid financial performance and growth prospects. Toyota's stock has increased by 2.97% over the past week.
Toyota Motor Corporation (7203.T): Toyota has been performing well, benefiting from the weak yen and strong global demand for its vehicles. The company's stock has seen a steady rise, and it continues to attract investor interest due to its solid financial performance and growth prospects. Toyota's stock has increased by 2.97% over the past week.
Written by Charles Shi
Following the RBI's decision on Friday to maintain the benchmark interest rate at 6.5%, the equity indices completed a strong five-day rally, with the Sensex up 2.39% and NIFTY 50 up 2.27%. The early-month rebound was primarily driven by foreign institutional investors, who turned net buyers, with net inflows of approximately Rs 11,935 Crore in the first week of December after a period of significant sell-offs. Notably, Thursday’s inflow accounted for 71% of this total (Rs 8,540 Crore), driving a 1.5% intraday gain, peaking at 82,312.55 points. This market reversal can be interpreted as a revaluation of the market's strong fundamentals and as a speculative opportunity following the previous downturn. India’s market continues to attract capital, bolstered by its growth potential and profitability. Additionally, the RBI’s 50 basis point cut in the Cash Reserve Ratio (CRR) to 4%, coupled with a stable benchmark interest rate, aims to strike a balance between fostering economic growth and controlling inflation. The rise in liquidity and stable interest rates have created a positive market atmosphere in the short term, stabilizing market sentiment and making India an appealing destination for medium- to long-term investments. Moreover, global stock market risk aversion and economic policies are worth closely monitoring, particularly the Federal Reserve’s potential rate cut announcement in this month’s meeting, as such policy shifts could have significant implications for global capital flows and the domestic stock market.
Real estate on the rise: The real estate sector is experiencing strong momentum, with the Nifty Real Estate Index up 8% year-to-date, outperforming the broader market index by 4%. Three Indian real estate companies have attracted bullishness from UBS analysts: Prestige Estates, DLF and Oberoi Realty. The first two are rated "Buy," with expected upside of 26% and 18%, respectively, while the latter is rated "Neutral," with an expected upside of 5%. The Indian real estate sector is in its prime, with market oversupply falling to its lowest in 15 years, while purchasing power is at its highest during this period. With India's growing domestic population and urbanization, a combination of potential interest rate cuts, regulatory reforms (RERA) and many other positive factors, the sector expects sustained growth in demand. India is facing a situation similar to China in the early 2000s when its real estate market began a long-term boom. Brokerages forecast that the next three to five years will be a period of sustained growth for the industry, with residential presale CAGR projected to reach 15% during the FY24-29 period. As the trend of remote working continues and the expansion of Global Capacity Centres (GCC) progresses, the commercial segment is expected to grow by 26%.
HDFC Bank Ltd (NSE: HDFCBANK): The stock reached a one-year high on Thursday, with a gain of over 10% in the past three weeks. After the merger of HDFC and HDFC Bank, the bank has continued to generate strong financial performance, driven by sustained growth in net interest income and other revenue sources. Amid a general increase in asset quality issues related to unsecured loans, its superior profitability and asset quality have made its recent performance stand out significantly compared to other large private banks. Responsible actions have further boosted investor confidence. From a technical perspective, the stock is at a 10-month high in its ratio to Bank Nifty, with the MACD enhancing the current bullish momentum, while the RSI remains in a favorable position.
Written by Rachel HU Xinyue
Over the past week, U.S. markets experienced robust gains, with the Dow Jones rising by 188.59 points (+0.42%), reaching a 52-week high on November 29. The NASDAQ advanced by 157.69 points (+0.83%), while the S&P 500 increased by 33.64 points (+0.56%). The 10-year treasury yield fell 14 basis points to 4.265%, while the 2-year yield dropped 10 basis points to 4.264%. This positive performance appears to be driven, in part, by the announcement that President-elect Trump appointed Wall Street hedge fund manager Scott Bessent as the new U.S. Treasury Secretary. Bessent's support for moderating Trump's protectionist policies, including gradual tariff increases to combat inflation, has bolstered investor sentiment and strengthened confidence in the economic outlook. On November 27, the government released the latest PCE report, showing total PCE stabilizing at 2.3%, in line with market expectations, with a month-on-month increase of 0.2%. The labor market continues to demonstrate strength, with the unemployment rate holding steady at 4.1%, and third-quarter GDP growth recorded at a solid 2.8%. During the November monetary policy meeting, it was communicated that the Federal Reserve would pursue a gradual reduction in interest rates starting in December, in response to prevailing economic conditions. According to CME data, the probability of a 25 basis point interest rate reduction in December is estimated at 66%.
U.S. sector equities broadly showed an upward trend, with the exception of the Real Estate and Utility sectors, which recorded declines of 0.52% and 0.05%, respectively. Shares of key global semiconductor equipment firms jumped on Thursday after a report that the U.S. is considering sanctions on China’s chip industry that stop short of earlier proposal. The stock price of semiconductor company ASML increased by 2.9% on Thursday afternoon. On Friday, President-elect Trump nominated Dr. Marty Makary, a renowned pancreatic surgeon from Johns Hopkins University, as the new FDA commissioner. Dr. Makary, known for his medical expertise and opposition to anti-vaccine stances, replaces former commissioner Califf. This appointment has fostered investor optimism, leading to an uptick in pharmaceutical stocks.
Ambarella's stock (AMBA) rose 14% to $78.04 on Wednesday, driven by partnerships with Xpeng Motors and Honda and the resolution of inventory issues, despite the broader weakness in the semiconductor market. Dell Technologies (DELL) reported mixed quarterly results with sales falling short of expectations, leading to a 12.3% stock decline on Wednesday, the largest drop in the S&P 500 that day. Applied Therapeutics (APLT) stock plummeted 75% on Friday after the FDA rejected its experimental treatment application for the rare metabolic disorder galactosemia. On Tuesday, Eli Lilly (LLY) and Novo Nordisk (NVO) shares rose 6% and 2%, respectively, after the Biden administration proposed expanding coverage of their weight-loss drugs under Medicare and Medicaid.
Written by Robin HONG Yee Ching
European stocks experienced a rally on Friday, with the Stoxx Europe 600 Index closing 0.6% higher, driven by gains in the technology sector and resources-related stocks. However, concerns lingered over trade tariffs proposed by President-elect Donald Trump and ongoing political instability in France, where the government is struggling to pass the budget. Euro-area inflation has risen above the European Central Bank's (ECB) 2% target, yet officials remain committed to lowering interest rates in the near future. Despite these challenges, European equities have only gained 1% for the month, significantly lagging behind the S&P 500’s impressive 26% increase this year.
The technology sector led the gains on Friday, contributing significantly to the overall performance of European stocks. Miners also performed well, buoyed by strong iron ore prices amid expectations of increased stimulus from China. Conversely, sectors such as autos and utilities faced headwinds due to tariff concerns and political uncertainties. The market remains cautious as investors weigh the potential impacts of Trump's tariff plans and their implications for European exports.
Anglo American Plc saw a notable rise after Jefferies upgraded its rating to "buy," citing the potential for mergers and acquisitions. Direct Line Insurance Group Plc shares increased for a second consecutive day following reports that Aviva Plc had begun contacting its shareholders. Delivery Hero SE reversed earlier losses after announcing its Middle Eastern unit's IPO pricing at the top of the expected range. Overall, stock movements were influenced by deal-making news amidst broader market uncertainties related to tariffs and political developments in France.
Written by David LU Zhiyuan
This week, A-shares and Hong Kong Stock markets experienced a certain recovery after a slump. The SSE Composite Index increased by 1.57% and closed at 3326; the SZSE Composite Index increased by 2.33% and closed at 11072; the Hang Seng Index increased by 0.29% and closed at 19424. The recovery was boosted by factors such as rising domestic policy expectations of the Chinese Mainland, falling U.S. Treasury interest rates, and the dollar. Compared with A shares, Hong Kong stocks have recently recovered more from their highs; one is because Hong Kong stocks are more sensitive to the external disturbance of the "Trump trade," and the other is that the mood change of foreign investors is more drastic than that of domestic investors. In the correction process, overseas funds again flowed out, especially the further deepening of the proportion of active funds allocated to Chinese stocks.
The technology sector in A-shares and Hong Kong stocks faced declines last week. Semiconductor and internet stocks weakened amid demand concerns, with the CSCI Info Tech Index down 3.8%. Xiaomi has a decrease of 4.8%, and AAC Technologies stays unchanged, which is a significant decrease compared to the increase of 7% last week. The EV sector underperformed last week (November 25 to November 29, 2024). A-share leader BYD dropped 3.64% amid concerns over weak year-end consumer demand. Li Auto rose 1.3% in Hong Kong, driven by expectations of strong November sales. Overall, the sector saw significant capital outflows, with cautious investor sentiment. The consumer staples sector showed resilience last week (November 25–29, 2024). A-share leaders Wuliangye and Moutai rose 1.6% and 1.98%, respectively, supported by year-end demand recovery. In Hong Kong, Mengniu Dairy gained 2.1% on strong sales expectations, while overall sector sentiment improved amid easing concerns over domestic consumption growth.
Alibaba Group (9988.HK): Alibaba rebounded after a two-month decline, supported by bargain hunting and optimism about its restructuring strategy. Improved sentiment in the e-commerce sector, driven by Singles' Day sales data, may have also contributed. Baidu (9888.HK): Baidu recovered after a month-long decline, likely driven by optimism around its AI ecosystem and the recent expansion of its large language model (Ernie Bot). The rebound also reflects oversold conditions in prior weeks. Hangzhou Wensli Silk Culture (301066.SZ): Wensli surged due to expectations around its high-end silk product expansion and increased demand for cultural exports. Speculative trading likely amplified the gains.
Written by Dacian DENG Shen
Japanese stocks posted modest losses last week, with the Nikkei 225 falling 0.2% and the TOPIX Index down 0.6%. Geopolitical risks dampened global investor sentiment, boosting demand for safer assets. The resulting yen appreciation pressured Japan's export-heavy sectors. On the Tokyo Stock Exchange Prime Market, 40.3% of stocks rose, while 56.6% declined. The yen strengthened to around JPY 150 against the USD, from JPY 154 the previous week, driven by safe-haven appeal and domestic inflation concerns. The Tokyo-area core CPI rose 2.2% year-on-year in November, exceeding expectations and fueling speculation of a Bank of Japan (BoJ) rate hike, likely in December or January. The 10-year Japanese government bond yield fell to 1.06% from 1.08% but remained near a 13-year high amid BoJ rate hike speculation. Governor Kazuo Ueda reiterated that rate increases depend on economic and price trends meeting forecasts. Prime Minister Shigeru Ishiba presented a stimulus plan to parliament, seeking approval for an extra budget to support rural economies and counter inflation's impact. The plan includes energy subsidies, cash handouts for low-income households, and a higher tax-free salary threshold to boost disposable income. Ishiba aims to foster wage growth exceeding inflation and investment-led economic growth, continuing his predecessor’s policy direction.
By sector, transportation equipment, machinery, precision instruments, electrical equipment, and shipping saw declines, while banking, insurance, textiles, services, and utilities posted gains. The market remained resilient, supported by buying in financial and domestic demand-driven stocks.
Toyota Motor Corporation shares remained stable on Friday. In October, global sales rose 1.4% to 903,103 vehicles, the first increase in five months. Sales outside Japan grew 0.4% to 759,555, including Lexus but excluding Daihatsu and Hino. North American sales dropped 5.3%, while Latin America saw an 18.6% rise, and Europe grew by 1.4%. Global production fell 0.8% year-over-year to 893,164 vehicles. Production in China decreased 8.7%, and Thailand saw a 12.8% decline. Toyota plans to produce at least 2.5 million vehicles annually in China by 2030, emphasising closer integration of sales and production and more local executive control. In the U.S., North American COO Jack Hollis criticised rapid EV adoption policies, arguing they don't align with consumer demand. He noted a gap between regulatory goals and buyer preferences, particularly regarding EPA and California emissions standards. Stock Movement: TM shares rose 0.40% to $170.40 as of the latest check Friday.
Written by Justin CHUNG Lok Yin
The Sensex benchmark and the NIFTY 50 Index both experienced a downturn on November 28, Thursday and did not recover during the week. They recorded declines of 0.47% and 0.74% respectively. The drop is attributed to increased geopolitical tensions in Israel and Ukraine. Against a backdrop of a strengthening US dollar and rising bond yields since September, investors may have shifted their focus to bonds and forex, contributing to the mid-week downturn. On November 29, preliminary data released by the Ministry of Statistics and Program Implementation indicated that India's GDP growth was only 5.4% year-over-year in the third quarter of 2024, well below the lowest forecasts. This marked the slowest growth rate since the fourth quarter of 2022. Despite initiatives like the PLI scheme and the "Make in India" campaign, manufacturing growth decelerated to 2.2%. Furthermore, exports slowed to 2.8% and imports shrunk by 2.9%, underscoring significant domestic challenges. Coupled with recent strong inflation figures (recap: domestic inflation hit a 14-month high of 6.21% last week, surpassing the 6% threshold), analysts are now divided over whether the Reserve Bank of India will implement a rate cut or maintain rates at their next meeting on December 6. The consensus leans towards maintaining current rates.
The agriculture sector saw a recovery, growing at a rate of 3.5% after underperforming in the previous four quarters, indicating a potential uptick in rural demand. In October, coal, steel, and cement production increased by 7.8%, 4.2%, and 3.3% respectively. Conversely, crude oil and natural gas production fell by 4.8% and 1.2%. Manufacturing growth in the third quarter of 2024 slowed to 2.2% from 7.0%. The construction sector's momentum was sluggish, and the mining and quarrying sector entered a contraction phase.
Adani Enterprises Ltd (NSE: ADANIENT) Rebound Attempt: Following allegations of fraud involving the company’s executives last week, Adani Enterprises' stock price bottomed at ₹2145.65 on November 26, Tuesday. This week, Adani issued a statement denying all bribery allegations against Chairman Gautam Adani. The group also assured that all its portfolio companies have adequate liquidity to meet their debt obligations for at least the next year. Following these positive announcements, subsidiary Adani Green Energy (NSE: ADANIGREEN) saw a 10%increase, while the main company, Adani Enterprises, surged by 11.5%.
Written by Sarah LEONG Si Ian
In the previous week, 3 major indexes rallied due to higher-than-expected global service PMI and the S&P 500 peaked at 5972.9, +0.35%. Russell 2000 also steadily increased, hitting a peak of 2409.22, +1.87%. The NASDAQ Comp closed at 19003.65 on Friday.
Data-wise, the U.S. labour market remained healthy with the initial jobless claims stood at 212k, down from expectations of 220K. The Service PMI index improved to 57, signalling growth in the service sector. Existing home sales were reported at 3.96 million, slightly higher than expected, which seemed to help drive positive sentiment toward the end of the week.
WTI prices, at $70.7 received some support from a drop of US API weekly crude oil stock was reported on Wed at 4.753 million, fell by 0.573, as well as from the rise in PMI data.
The utilities sector outperformed as commentary on NVIDIA’s earnings call seemed to drive optimism around rising artificial intelligence-driven demand for clean energy.
Communication services stocks lagged, driven in part by a drop in shares of Google parent Alphabet following reports of the Justice Department filing a proposal to break up the internet search giant.
AAPL fluctuated throughout the week but exhibited an overall upward trend, reaching a peak of 230.72. In the previous week, the net outflow exceeded the net inflow by 32,576.87, with the majority of transactions being small orders. The total trading volume was 821.39K, and the put-call ratio stood at 0.68, indicating a bullish sentiment toward the stock. Apple’s P/E ratio was 37.81, significantly higher than the historical 10-year average of 21.43. NVDA’s Q3 earnings release on Wednesday. Shares of the chip giant ended the week little changed as investors appeared to be generally satisfied with the results.
Written by Kathy TAM Ka Loi
European markets had a mixed day, with the Stoxx 600 index up 1.18%, fueled by strong performances in health care and retail stocks. In the U.K., the pound hit a six-month low against the U.S. dollar after retail sales fell 0.7% in October, much worse than the expected 0.3% drop. Despite this, the FTSE 100 rose 1.4% as investors considered the possibility of interest rate cuts from the Bank of England. Meanwhile, the euro weakened after disappointing PMI data revealed a significant decline in Eurozone business activity, with the composite index dropping to 48.1 in November. This was largely due to reduced new business and ongoing political instability in France and Germany, while Germany's GDP growth for the third quarter was revised down to just 0.1%.
In November 2024, the UK retail sector faced significant challenges as retail sales fell more than expected, declining by 0.7% on a monthly basis in October, in contrast to a revised 0.1% rise in September. Excluding auto fuel, sales fell 0.9%, with non-food stores experiencing a 1.4% reduction in sales volumes. Factors contributing to this downturn included reduced consumer spending on food and clothing, alongside heightened uncertainty from the Autumn Budget, which raised concerns about tax increases. Year-on-year growth in retail sales slowed to 2.4% in October from 3.2% in September. Despite the decline, consumer confidence showed some improvement in November, with the confidence index rising to -18 from -21 in October, suggesting that consumers were beginning to feel slightly more optimistic ahead of the holiday shopping season. However, the overall economic picture remains precarious, as households grapple with budget uncertainties and inflationary pressures.
The Underperformance of NVO: Novo Nordisk's stock has plunged 25.1% over the past three months, significantly underperforming the industry and the S&P 500. This decline was primarily driven by disappointing third-quarter results, where diabetes and obesity care sales failed to meet investor expectations, leading management to lower its forecasts for both sales and operating profit growth. The company is struggling to meet the heavy demand for its semaglutide drugs, Ozempic and Wegovy, particularly in the U.S. market. In contrast, competitor Eli Lilly has successfully increased its production capacity for similar drugs. Furthermore, criticism from U.S. Senator Bernie Sanders regarding high drug prices compared to other countries has added to the stock's challenges. Despite these setbacks, analysts remain optimistic about Novo Nordisk's strong fundamentals, including a 90.3% revenue increase over five years and a net profit margin exceeding 31%, suggesting that the current decline may represent a temporary setback for long-term investors.
Written by Alexander ANTONIOU
Chinese equities faced declines, with SSE Composite Index dropping 3.06% and SZSE Component falling 3.52%. Investors expressed concerns about the effectiveness of recent stimulus and potential for higher American tariffs under the Trump administration, contributing to a negative sentiment in the market. HSI has also declined as a result of this, with a 1.9% loss (371 points). The Chinese government has been investing effort in supporting the economy, including a debt swap worth RMB 10 trillion, to ease local government debt burdens; analysts indicate that more robust measures may be required to offset the effects of potential US policy changes. Chinese banks left their one- and five-year loan prime rates unchanged at 3.1% and 3.6%, respectively. The move was largely anticipated after banks slashed the benchmark lending rates by a greater-than-expected 25 basis points in October, making it cheaper for consumers to take out mortgages and other loans.
Chips, internet and securities services industries declined while Apple concept stocks rose against the trend, with AAC Technologies (2018.HK) rising more than 7%. On the news front, it is reported that Apple is developing a Siri digital assistant with stronger conversational capabilities, aiming to surpass OpenAI's ChatGPT and other voice services.
The gaming sector outperformed as the National Press and Publication Administration announced the approval information of domestic online games in November 2024. A total of 112 games were approved, and the number of games issued exceeded 110 for the second consecutive month.
The EV sector underperformed as Warren Buffett’s Berkshire Hathaway pared its stake in BYD to less than 5%, further unwinding its long-term bet on China’s largest electric-vehicle maker amid a broader refocus on U.S. investments.
Baidu (9888.HK) plunged over -8% in Hong Kong after the search engine operator reported disappointing Q3 online marketing revenue. Alibaba Group (9988.HK) fell more than -4% in Hong Kong after rival PDD Holdings cautioned about intensifying competition in the e-commerce industry. CNOOC (0883.HK/600938.SH) added 1.19% after announced to add a fourth production vessel to the ones already operating in the Stabroek Block offshore Guyana, alongside with Exxon Mobil and Hess. Xiaomi (1810.HK) rallied for 1.42% on Fri as internal sources claimed that it's second EV model is planned to be launched in Feb/ March next year.
Written by Kim CHUI Chunho
Following two consecutive sessions of declines, Japan’s Nikkei 225 and TOPIX indices rebounded, closing higher by 0.68% at 38,283.85 and 0.51% at 2,696.53,
respectively, on Friday. However, both indices recorded weekly losses of 1.6% and 1.06%. This rebound was driven by gains in technology stocks, particularly those weighted in chips, in response to NVIDIA’s rise in the US NASDAQ market. Nonetheless, concerns over high valuations and a strengthening US Dollar Index continued to exert selling pressure on the Japanese stock market.
In November, data from the Japanese Ministry of Statistics revealed that domestic inflation for October increased by 2.3% year-on-year (YoY), slightly surpassing the forecast of 2.2%. This marks the highest inflation rate in 14 months, exceeding the Bank of Japan's (BOJ) target of 2%.
The persistently high inflation has diminished the effectiveness of domestic consumption stimulus measures, leading to lowered market expectations for a potential rate cut by the BOJ at its upcoming policy meeting on December 18-19. Analysts now anticipate a hike in short-term rates to 0.5% from the current 0.25%, as inflationary pressures persist due to rising wages and the renewed depreciation of the yen.
Technology Sector: Chip-making equipment maker Tokyo Electron (8035.T) jumped 2.16%; Chip-testing equipment maker Advantest (6857.T) rose 0.66%; Chip materials maker Resonac (4004.T) jumped 4.66%.
Transportation Sector: The TOPIX Transportation Equipment Index (.ITEQP.T) experienced a slight decline of 0.15%, with Toyota Motor (7203.T) falling by 0.37%, which weighed on the Topix index.
Health Services Sector: The TOPIX Pharmaceutical Index (.IPHAM.T) decreased by 0.43%, driven by a 1.07% decline in Daiichi Sankyo (4568.T).
On Wednesday, November 20, Sony Group Corp. (TYO: 6758) announced acquisition discussions with media conglomerate Kadokawa, the company behind popular titles such as Elden Ring and Sekiro: Shadows Die Twice. In early afternoon trading, Kadokawa shares rose by 15.91% to ¥4,341 on the Tokyo Stock Exchange, while Sony Group Corp. also advanced by 2.86% to ¥3,020, despite the broader market’s Nikkei 225 index drifting lower.
According to data from a Sony presentation, the anime market is projected to nearly double to $60 billion by 2030, indicating significant growth potential in Japan's gaming and entertainment industry.
Written by Charles SHI Qiyuan
Despite a significant mid-week decline, both the Sensex benchmark and the NIFTY 50 Index rebounded to close higher, with respective gains of 1.98% and 1.46%. This is driven by widespread healthy buying, particularly in heavyweight stocks. However, concerns over high valuations and the rise of the US Dollar Index continued to exert selling pressure on the Indian stock market. Since October, foreign institutional investors have withdrawn a total of INR 1.2168 trillion (equivalent to over HKD 120 billion). On November 18, net selling of Indian equities by global funds triggered a sharp market downturn, with the Sensex falling by 853.99 points (0.31%) to close at 77,339.01 points, reflecting a cumulative decline of more than 10% from its September peak. Similarly, the Nifty index has also fallen by more than 10% from its historical high. Furthermore, data from the Indian Ministry of Statistics revealed that domestic inflation for October rose by 6.21% year-on-year, the highest level in 14 months, exceeding the RBI’s tolerance band of 2%-6%. The persistence of high inflation has further dampened the effectiveness of domestic consumption stimulus measures, diminishing market expectations for a potential rate cut by the RBI at its upcoming policy meeting on December 6.
The upcoming results of the Maharashtra elections could lead to a rebound in the infrastructure and banking sectors. The NDA, led by the BJP, is expected to secure a decisive victory in the elections, and the government has placed a special focus on infrastructure development. As companies in the infrastructure sector seek credit lines from banks, banking stocks may also see some potential buying interest. Investors have already started to pay attention to stocks in the railway, infrastructure, and banking sectors. The positive impact of political stability on investor sentiment is likely to drive a shift in investment strategies from defensive to more aggressive positions.
Stock Crash of Adani Enterprises Ltd (NSE: ADANIENT): On Thursday, November 21, Gautam Adani and seven other corporate executives were charged in New York for allegedly being involved in a multi-billion-dollar bribery and fraud scheme. Despite the group denying the allegations and actively seeking legal remedies, panic selling led to significant losses in Adani Group-related stocks. The biggest drop was seen in the heavyweight stock Adani Enterprises, which closed at ₹2,182.55 on the 21st, falling 22.61% to reach its lowest point. This sell-off directly impacted the Indian stock market, with Sensex dropping 422.59 points (0.54%) and NIFTY 50 falling 168.60 points (0.72%) on the same day.
Written by Erika Lau and Kevin Xia
The U.S. stock market saw a partial retreat from the gains made during the “Trump Trade” period, with uncertainty surrounding the new administration’s policies influencing market movements. Data-wise, inflation data on Wed were largely in line with expectations with headline prices rising 0.2% in October and core prices rising 3%. Yoy headline inflation rose from 2.4% to 2.6%, for the first time since March. Powell spoke on Thu that “the economy is not sending any signals that we need to be in a hurry to lower rates.” Which lowers the CME 25bps cut in December from 64.6% to 58.4%. Long-term interest rates rose, reflected in the 10-year U.S. Treasury note reaching a five-month high. Corporate bond markets saw active issuance, with spreads widening as investors focused on new supply. Similarly, the high yield market experienced some downward pressure due to rate movements and increased primary market activity, while the bank loan market remained active with a high volume of new deals.
Electric vehicle (EV) stocks, including Tesla, experienced fluctuations following reports of the potential end of tax credits for EV purchases by the incoming administration. Economic indicators such as inflation data and remarks from Federal Reserve Chair Jerome Powell added to market dynamics, with expectations for interest rate cuts shifting slightly over the week. Bitcoin had surged by nearly a third (32.46%) since the eve of the election, as investors anticipated looser regulation of digital currencies. However, sectors like financials and energy benefited from hopes of deregulation, while health care shares faced a decline due to concerns over the nomination of Robert F. Kennedy, Jr., known for his criticisms of the pharmaceutical industry.
In local currency terms, the pan-European STOXX Europe 600 Index ended 0.69% lower, falling for a fourth consecutive week due to the concern about upcoming Trump administration and trade policies. Higher tariffs on eurozone exports to the US could weaken economic growth in the eurozone, but would have a mixed effect on inflation, according to ECB’s Piero Cipollone. The impact on euro area inflation could be offset by a weakening euro, which would increase the prices of imports priced in US dollars. The European Commission’s Autumn Economic Forecast projects GDP growth in 2024 at 0.9% in the EU and 0.8% in the euro area. Economic activity is expected to accelerate in 2025 and 2026, with inflation easing significantly.
The Shanghai Composite Index fell 3.52%, while the blue chip CSI 300 gave up 3.29%. HSI plunged 6.28% amid persistent deflation pressure and worries over US tariffs. China consumer price index rose 0.3%, lower than consensus and down from 0.4% from Sep.
Property - There was a 0.5% decrease in new home prices across 70 cities in October compared to September. This followed a 0.7% drop in home prices from August to September. Bloomberg reported that October saw the second consecutive month of decelerating home price declines, with the slowest rate of decline since March. The positive trend was attributed to a set of stimulus actions implemented by Beijing in recent months to revitalize the housing market, such as lowering mortgage rates, easing home purchase restrictions in major cities, and reducing taxes on property transactions.
Japan’s stock markets experienced a decline during the week, with the Nikkei 225 Index dropping by 2.2% and the broader TOPIX Index decreasing by 1.1%. The yen depreciated to the JPY 155 level against the U.S. dollar, compared to 152.6 following the US election outcomes. This shift was influenced by anticipations that Trump’s win could lead to inflationary policies, potentially impacting the Federal Reserve’s intentions to reduce borrowing rates.
Written by Erika Lau
Positive bank and tech earnings over the past week saw Wall Street indexes hit a series of record highs, with upcoming earnings likely to decide whether this momentum will continue. The S&P 500 rose 0.4% to 5,864.67 points on Friday, while the NASDAQ Composite rose 0.6% to 18,489.67 points. The Dow Jones Industrial Average edged up 0.1% but just managed to hit a record high of 43,257.91 points. U.S. retail sales increased 0.4% last month vs est. 0.3% vs prev. 0.1%. A measure of retail sales that excludes auto dealerships, building materials, food services, and gas stations climbed 0.7% from the prior month—the fastest rate of growth in three months. Industrial production dropped 0.3% in September after increasing 0.3% in the preceding month. The final number for August was revised downward from an initial estimate of 0.8%. Initial jobless claims fell unexpectedly to 241,000.
Energy stocks pulled back in sympathy with oil prices, which retreated as fears of possible Israeli attacks on Iran’s oil and gas infrastructure subsided. Strategist at Bank of America, pointed out that in view of the increased possibility of Trump being elected and the Republican Party taking control of Congress, investors have begun to increase their positions in assets that performed well after Trump won in 2016, including banks, small stocks and the U.S. dollar.
Netflix NFLX was up 11% on Friday after reporting to have grew its subscriber numbers and expanded its operating margins by more than expected in the third quarter. Strong quarterly results from Taiwan Semiconductor Manufacturing TSM, which operates foundries that make advanced digital semiconductors, appeared to reignite excitement for artificial intelligence (AI)-related stocks that are in the Nasdaq. This week: TSLA is the biggest company to report earnings this Wed, after another EV maker GM on Tue. Major chips stocks TXN (Tue) LRCX (Wed) and WDC (Thu) are also set to report. Boarder tech sector IBM due on Wed. Telecom majors VZ (Tue), TMUS (Wed) and T (Wed) are also due. Consumer names LRLCY (Tue), MMM (Tue), KO (Wed)
Chinese equities rose as the central bank unveiled more support measures after data showed that deflationary pressures grew more entrenched in the economy. The Shanghai Composite Index gained 1.36% in local currency terms, while the blue chip CSI 300 added 0.98%. HSI Index fell 2.11%. GDP reported to be at 4.6% higher than consensus, though lower than Q2 at 4.7% and government’s target at 5%. Other economic data showed signs of improvement. Industrial production rose a better-than-expected 5.4% yoy vs prev. +4.5%. Retail sales grew an above-forecast 3.2 yoy vs prev. +2.1%. Higher sales ofhousehold appliances were a contributing factor. Meanwhile, PPI fell a bigger-than-expected 2.8% from a year ago, deepening from August’s 1.8% drop.
TAIEX were up 2.3% driven up by TSMC (2330) positive earnings report on Friday. Net revenue came in at $23.5 billion in the third quarter, up 36% year on year. The starting price of Vivo’s latest “X200” series equipped with MediaTek’s (2454) new flagship 5G chip “Dimensity 9400" is 7.5% higher than market expectations. The industry believes that it is related to the substantial increase in the unit price of MediaTek’s Dimensity 9400, which is expected to trigger subsequent more non-Apple brands followed up with price increases, benefiting the share price ofMediaTek.
Written by Erika Lau
S&P 500 ended higher over the week driven by upside earning surprise despite disappointing economic data. Markets were pricing a roughly 18% chance the Fed doesn’t cut in November, up from a 3% chance seen a week prior, per the CME FedWatch Tool. Thursday released headline and core (less food and energy) inflation, which rose in September by 0.2% and 0.3%, respectively, both a tick above expectations. There was also a surprising jump in weekly jobless claims to 258,000, the highest level in 14 months. Long-term bond yields also rose in the wake of the inflation data, with the yield on the benchmark 10-year U.S. Treasury note hitting its highest intraday level (4.12%) since July 31. The investment-grade corporate bond market remained also mostly oversubscribed. Focus this week is now on addresses from a string of Fed officials, which are likely to provide more cues on the central bank’s plans to cut interest rates further.
JPM and WF rose on Friday after the banking giants reported smaller-than-feared declines in third-quarter profits. NVIDIA raised following reports that the Justice Department was considering asking a federal judge to order a breakup of the company. TSLA weakened after the disappointing unveiling of its new “robotaxis” and “robovans.” Upcoming earnings report this week: JNJ, BAC, C, GS, UAL set to report on Tuesday. MS will report on Wednesday, rounding out the major bank earnings. Chipmaking bellwether also reports on Wednesday. NFLX will report on Thursday.
Shanghai Composite Index lost 3.56%, CSI300 -3.25% and HIS -6.53%, pulling back from the peak in the week before after optimism of the policy boost faded. The People’s Bank of China initiated a swap facility worth RMB 500 billion to inject liquidity into institutional investors for stock purchases. This program allows nonbank financial entities like securities firms, funds, and insurers to access highly liquid assets such as government bonds and central bank bills by providing specific collateral. This move was a part of an extensive stimulus plan unveiled by the central bank in late September, which encompassed interest rate reductions and other strategies aimed at revitalizing China’s economy. Spending by Chinese consumers during the recent extended holiday fell short of pre-pandemic levels. Official data revealed a 5.9% rise in passenger traffic and a 6.3% increase in spending compared to the previous year. Box office earnings stood at RMB 2.1 billion, a decline from RMB 2.7 billion recorded a year ago. Nevertheless, the average daily expenditure per trip rose to about RMB 131, up from RMB 113 during the five-day Labor Day break in May. Earlier this morning, Goldman Sachs raises China’s GDP forecast to 4.9% in 2024.
EV: Guangzhou Automobile Group Co 2238.HK is exploring the manufacture of EVs in Europe to avoid EU tariffs. It will launch an electric SUV tailored to the European market at the Paris Auto Show, kicking off on Monday.
TAIEX was up 1.92% following the rally in the US market and over the chip sector. TSMC led the raise for 4.73% while Hon Hai dropped 0.5%.
Semiconductors: TSMC 2330.TW and Largan 3008.TW will jointly hold a meeting on the 17th. TSMC will announce its third-quarter operating results and release its industry outlook. With ASML’s financial report will be released the day before TSMC’s legal meeting, investors are concerned about the Dutch government’s expansion of its export controls on two deep ultraviolet exposure machines (DUV) from mainland China, including the 1970i and 1980i. Automobile: Tong Yang Industry Co Ltd 1319.TW (+1%) reported 3.934 billion yuan before tax revenue in the first three quarters of last year.
Written by Erika Lau
Over the week, S&P 500 moved to record highs, as investors appeared to celebrate new stimulus measures in China. Sector-wise, Chemicals and materials stocks were particularly strong on hopes for a rebound in Chinese demand. Copper prices also increased, raising hopes that “Doctor Copper” was again reflecting a healthier global industrial economy. Technology stocks outperformed as well, helped by reports of a possible takeover of Intel and news that NVIDIA’s CEO had ceased sales of his own shares in the company. In addition, chipmaker Micron Technology surged and seemed to provide a general tailwind for the sector following its upbeat outlook for AI demand. Data-wise, Consumer confidence on Tue fell to 98.7, largely missed consenus of 103.9. New home sales on Wed declined 4.7% in August while building permits data were revised lower. PCE on Fri rose only 0.1% in August, a tick below expectations. On a yoy basis, the index climbed only 2.2%, close to the Fed’s 2.0% long-term inflation target and the least since February 2021, suggesting a moderation in inflationary pressures. The yield on the benchmark 10-year U.S. Treasury note ended little changed for the week.
Chinese stocks surged after Beijing unveiled a slew of measures to shore up the economy. The Shanghai Composite Index climbed 12.8%, while the blue chip CSI 300 soared 15.7%. In Hong Kong, the Hang Seng Index gained 13%. PBOC cut its RRR by 50 basis points, and reduced its seven-day reverse repo rate by 20 basis points to 1.5%. It cut the MLF rate by 30 basis points to 2%, marking the largest-ever cut to the monetary policy tool since 2016. The moves were part of a sweeping stimulus package announced last Tuesday at a rare press conference by PBOC Governor Pan Gongsheng that aims to jumpstart China’s ailing economy. Other measures unveiled by the PBOC included a rate cut for existing home mortgages and slashing the nationwide down payment ratio for second home purchases to 15% from 25%.
Japan’s stock markets gained over the week, with the Nikkei 225 Index rising 5.6% and the broader TOPIX Index up 3.7%. The latest commentary from the Bank of Japan (BoJ), perceived as dovish, weighed on the yen, providing a favorable backdrop. Optimism also came from China’s stimulus announcements, especially for the exports to China. The new Prime Minister was elected to be Shigeru Ishiba on Fri, who has been critical of the Bank of Japan’s easy policies in the past. However, he sounded more conciliatory over the weekend saying monetary policy “must remain accommodative” given the state of the economy. That helped the dollar bounce 0.5% to 142.85 yen, after sliding 1.8% on Friday from a 146.49 top. Interest rate - BoJ Governor Kazuo Ueda said that the central bank has enough time to assess market and economic developments before adjusting monetary policy again—suggesting that it is in no rush to raise rates further.
Written by Erika Lau
The large-cap indexes moved to record highs as investors celebrated the kickoff of the rate-cutting cycle by a 50 bps cut on Thursday morning. The rally was also relatively broad, with the smaller-cap indexes outperforming, although they remained below previous peaks—the small-cap Russell 2000 Index, in particular, ended the week roughly 9% below the all-time high it established in November 2021. The rally is accompanied by good consumer data that ease recession fears. Retail sales on Tue had risen 0.1%, which was more than expected and which followed an upwardly revised jump of 1.1% in July. The downside surprise on jobless claims on Thu provided more evidence for supporting the consumer in good shape. The housing sector also improved by a 4.9% rise in housing permits of August on Wed, although sales of existing homes had unexpectedly fallen 2.5%.
10 year treasury yield rose. Spreads in the investment-grade corporate bond market tightened throughout the week as higher rates spurred demand early in the week. Issuance occurred early in the week, before the Fed’s policy meeting, and was, on average, oversubscribed.
INTC ended the week with an announcement of a potential acquisition with Qualcomm which helped pushed the stock up 11% for the week.
Chinese equities rose in a holiday-shortened week as the Fed’s decision to cut interest rates offset a batch of disappointing economic data. The Shanghai Composite Index gained 1.21%, while the blue chip CSI 300 added 1.32%. Disappointing foreign direct investment flows on Friday were down 31.5% on the same period last year, the biggest fall since January 2009. Industrial production rose 4.5% from a year earlier, lagging forecasts and down from July’s 5.1% increase amid weaker commodity prices and auto sales. Retail sales expanded a below-consensus 2.1% from a year ago, easing from July’s 2.7% rise. The yuan is its strongest in 16 months though, thanks to the central bank’s reluctance to cut rates and rising expectations that authorities will soon unveil stimulus that will revive growth, asset prices and confidence. Sector-wise, EU tariffs on Chinese EV makers are revised down. BYD saw tariffs cut to 17% from 17.4%, Geely to 19.3% from 19.9%, and SAIC saw a reduction to 36.3% from 37.6%. Despite the tariffs, analysts say Chinese EV prices will remain competitive in Europe when compared to Chinese-made Tesla. Research by Rhodium group suggests tariffs of up to 50% are needed to significantly deter Chinese EV exports. Tech-front, the U.S. Commerce Department is expected on Monday to propose prohibiting Chinese software and hardware in connected and autonomous vehicles on U.S. roads due to national security concerns, sources told Reuters. The proposed regulation would ban the import and sale of vehicles from China with key communications or automated driving system software or hardware. More details await.
BYD is expected to expand into Pakistan in partnership with Pakistan’s biggest private electricity producer Hub Power’s subsidiary Mega Motor to set up the country’s first electric vehicle assembly plant by 2026.
Japan’s stock markets rose over the week, with the Nikkei 225 Index gaining 3.1% and the broader TOPIX Index up 2.8%. The Bank of Japan decided not to raise rates, but it signaled it is in no hurry to raise them again. This helped push the yen to its weakest daily close since September 4, which in turn helped lift Japanese stocks. The yen starts the week on a soft footing after a roller-coaster ride last week. It rallied through 140.00 per dollar for the first time in over a year but closed near 144.00 per dollar for a weekly loss of 2%, its worst week since April. Data-wise, core CPI rose 2.8% year on year in August, in line with expectations and up from 2.7% in July. The overall CPI rose 3.0%, also matching consensus and up from the prior month’s 2.8%.
Written by Dacian Deng
U.S. stocks rebounded after a sell-off, led by strong gains in growth stocks, particularly in the tech sector, with NVIDIA playing a key role. Inflation data for August was mixed, with core inflation slightly exceeding expectations, while housing sector data offered some hope as mortgage rates hit their lowest level since February 2023. Treasury yields also reached year-to-date lows, with strong performance in high-yield bonds supported by equity gains and expectations of a Federal Reserve rate cut. FOMC cut rates by 50 basis points (bps), bringing them to a range of 4.75%-5.0%, but signalled a more gradual pace of rate cuts moving forward. The dot plot suggests further cuts totalling 100bps in both 2024 and 2025, indicating a cautious approach. Chairman Powell emphasized that the economy is not at risk of recession, with the labour market remaining a key focus to prevent further deterioration. While markets had priced in 250bps of cuts over the next year, Powell’s remarks and the dot plot suggest that actual rate cuts will likely be smaller, around 150bps, unless the economy weakens significantly. The Fed will continue to monitor economic data to guide future decisions, implying a flexible policy stance going forward.
Stocks rose following an interest rate cut by the European Central Bank (ECB), though the ECB gave no clear direction on future policy moves. Meanwhile, the UK economy stagnated, but wage growth remained high, complicating inflation control efforts.
Japan saw mixed stock performance, and hawkish comments from policymakers pointed to further rate hikes. However, GDP growth for the second quarter was revised lower. In China, weak inflation data raised concerns of an economic slowdown, although export growth exceeded expectations, providing a rare bright spot amid ongoing challenges in the property sector. Reference: https://corporate.nordea.com/article/95391/fomc-review-don-t-get-used-to-50s https://www.troweprice.com/personal-investing/resources/insights/global-markets-weekly-update.html
Written by Erika Lau
Stocks ended mixed in light pre-holiday trading with the Nasdaq Composite performing the worst due to NVIDIA's decline of more than 10%. CPE raise by 0.2% in July, largely as expected, although the year-over-year increase came in a tick lower than consensus, at 2.6%. Investors seemed pleased with confirmation that inflation was remaining subdued and near the Fed’s target, with Nasdaq futures, in particular, surging in the wake of the release. Personal incomes had increased an unexpected 0.3% in July, up from June’s 0.2%. Personal spending rose even more, 0.5%, although the gain was in line with consensus. The yield on the benchmark 10-year U.S. Treasury note drifted higher over the week, as hopes appeared to dim that the Federal Reserve would cut interest rates by a full 50 basis points (0.50 percentage point) at its mid-September meeting.
European stock indexes rose, with STOXX Europe 600 reaching a record high amidst prospects of ECB interest rate cuts. The pan-European STOXX Europe 600 Index surged by 1.34%, reaching an all-time high. This key indicator continued its upward trend for the fourth consecutive week as significantly slower inflation provided grounds for the European Central Bank (ECB) to consider reducing interest rates in September. Inflation has approached its target level, with headline annual inflation dropping to 2.2% in August from 2.6% in July—the lowest figure in three years and slightly above the ECB's 2% goal.
The Shanghai Composite Index is down for 0.43% while HSI is up for 2.17% after mixed corporate earnings data. Investor downgraded their expectations on some of the key economic data such as Retail Sales, from 4.5% to 4.0%, Fixed Asset Invesment, from 4.4% to 4.2% and Consumer Price Index, from 0.6% to 0.5%. Given the above slowdown in growth, China might not be able to meet it’s GDP target of 5% this year. In terms of monetary policy, the medium-term lending facilities remains the same at 2.3% while the short term 7 day repo lending rate remains at 1.7%.
Written by Kayla Tarliman
Last week saw significant fluctuations in US stocks. An early-week rally propelled markets to new highs, but the momentum faded towards the end of the week, primarily due to a downturn in the tech sector. The major indices ended mixed: the S&P 500 and Nasdaq closed lower, while the Dow posted a solid gain.
Both stock prices and interest rates had been rising together earlier in 2024. However, recently, interest rates have declined significantly due to moderating inflation and anticipated Fed rate cuts. Despite this, equities continue their uptrend, bolstered by rising corporate earnings.
A key theme last week was the rotation in market leadership. The tech sector experienced a pullback, while cyclical sectors, which had lagged this year, gained traction. This shift was highlighted by a robust rally in small-cap stocks. Such changes underscore the importance of maintaining a diversified and balanced investment portfolio.
A sharp selloff in high-flying tech stocks led to the S&P 500 experiencing its worst day since December 2022. The index fell 2.3% on Wednesday, breaking a 356-session streak without a 2% decline, its longest streak in 17 years. This came after the index had risen significantly above its 200-day moving average the previous week, a level historically associated with past selloffs.
European stocks are set to open lower on Thursday following significant losses in US stocks overnight, driven by steep declines in the tech sector. European markets extended their losses on Friday, marking the longest losing streak since October 2023. A tech outage caused by defective CrowdStrike software disrupted Microsoft’s Azure and Office365 services, affecting various sectors globally.
By mid-morning CET, the Euro STOXX 50 had fallen 0.5%, and the Euro STOXX 600 was down 0.6%, marking the fifth consecutive session of losses. Major country indices were all in negative territory, with Germany’s DAX down 0.8%, Italy’s FTSE MIB down 0.7%, France’s CAC 40 down 0.7%, and Spain’s Ibex 35 down 0.3%.
Travel and shipping sectors were hit hard by the tech outage. Air France-KLM’s Dutch arm halted most operations, leading to a 1.1% drop in its shares. Lufthansa Group shares fell 1.5% amid warnings of potential delays and cancellations. Similarly, low-cost carriers Ryanair and Wizz Air experienced significant check-in system failures, causing shares to drop by 2.9% and 2.1%, respectively.
European banks also recorded losses, though less severe than those in the travel and shipping sectors. French banks BNP Paribas, Societe Generale, and Credit Agricole saw declines, as did Spanish banks Banco Santander, BBVA, and Bankinter. In Germany, Deutsche Bank shares fell by 1.5%, marking their tenth negative session in the last eleven.
In the bond market, yields held steady, with Bund yields down marginally by 1 basis point to 2.43%. The euro eased by 0.1% against the dollar, falling to 1.0880, while the British pound was down 0.3% to 1.2910.
CrowdStrike Holdings plummeted over 20% in pre-market trading after an update to its cloud platform caused disruptions to Microsoft’s Azure systems. This marked CrowdStrike's worst daily performance since its IPO in 2019. Meanwhile, competitors like SentinelOne, Palo Alto Networks, and Cloudflare saw gains.
Chinese shares ended lower due to muted investor sentiment. The Shanghai Composite Index fell 0.5%, the Shenzhen Composite Index declined 1.3%, and the ChiNext Price Index dropped 1.2%. Property and auto stocks led the losses, with limited expectations for property stimulus measures from the upcoming Politburo meeting. Hong Kong shares also ended lower, weighed down by technology stocks. The Hang Seng Index fell 0.9%, and the Hang Seng Tech Index declined 1.5%. Major decliners included Meituan and Xiaomi, while gainers included China Resources Power and Cnooc.
Japanese stocks ended lower amid cautious sentiment over potential Bank of Japan rate increases and a rebounding yen. The Nikkei Stock Average declined 1.1%, with notable drops in Mitsubishi Motors, Isuzu Motors, and Sumitomo Realty & Development.
Indian shares closed lower, impacted by finance and bank stocks amid concerns over the budget plan and proposed higher capital gains taxes. The benchmark Sensex declined 0.35%, though Tech Mahindra and Tata Motors saw gains.
Asian shares were hit hard on Thursday as a global tech slump sent investors fleeing to safer assets like short-dated bonds, the yen, and the Swiss franc. Chinese stocks received little support despite a surprise rate cut by the central bank. MSCI's broadest index of Asia-Pacific shares outside Japan lost 0.7%, with Japan's Nikkei tumbling 2.9% and South Korea's KOSPI dropping 2%.
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The S&P 500 Index continued to climb to record highs, although the market’s gains remained notably narrow. As measured by Russell 1000 indexes, growth shares outperformed value stocks by 415 basis points (4.15 percentage points), while the small- and mid-cap benchmarks recorded losses.
The technology-heavy Nasdaq Composite ended the week 73.71% off its lows since the market began its rebound in mid- to late-2022, while the more value-oriented and narrowly focused Dow Jones Industrial Average had gained less than half of that amount, 32.79%. Markets were closed Thursday in observance of the Independence Day holiday, and T. Rowe Price traders noted lighter trading volumes as the week progressed.
Expectations for lower interest rates, fed by signs of weakening growth and easing inflation pressures, seemed to remain a major factor in favoring growth stocks by placing a lower implied discount on future earnings. On Monday, the Institute for Supply Management (ISM) posted its lowest reading of manufacturing activity (48.5, with levels below 50.0 indicating contraction) since February. A separate reading also showed a surprise contraction in construction activity.
While the thought of a slowing economy and a potential recession can be concerning, it is important to remember that they are a natural part of every economic cycle and set the stage for the next growth phase. Fortunately, with the slow unwinding of inflation over the past two years, the Fed should have more room to cut rates, which we believe will shorten the length and severity of a potential recession and help contain the slowdown.
In local currency terms, the pan-European STOXX Europe 600 Index ended 1.01% higher. Political jitters eased as the far right in France failed to win an outright majority in the first round of legislative elections on June 30. Meanwhile, the Labour Party won the UK general election on July 4 with a large majority. Major stock indexes also rose, with France’s CAC 40 Index climbing 2.62%, Germany’s DAX gaining 1.32%, and Italy’s FTSE MIB putting on 2.51%. The UK’s FTSE 100 Index added 0.49%.
A final estimate of eurozone inflation confirmed that the year-over-year change in consumer prices ticked lower in June to 2.5%. However, a crucial services component remained stubbornly high, likely reinforcing the ECB’s case for caution.
Japan’s stock markets gained ground, with the Nikkei 225 Index climbing 3.36% and the broader TOPIX Index advancing 2.65% in local currency terms. Both indexes hit all-time highs during the week, propelled in part by weakness in the Japanese yen, which is typically a tailwind for export-focused industries. The yen strengthened a bit later in the week. In the first three months of the year, Japan’s economy shrank by 2.9% year over year, a sharper contraction than the first estimate that put the decline in gross domestic product (GDP) at 1.8%. The government attributed this revision to corrections in construction orders. The annualized change in GDP was also lowered for the fourth and third quarters of 2023.
Chinese equities fell as underwhelming manufacturing data reinforced concerns about the slowing economy. The Shanghai Composite Index and the blue chip CSI 300 both registered modest losses for the week. In Hong Kong, the benchmark Hang Seng Index gained 0.46% during a holiday-shortened week.
The value of new home sales by the country’s top 100 developers fell 17% in June from the prior-year period, easing from a 34% decline in May, according to the China Real Estate Information Corp. The data boosted hopes that China’s housing market, now in its fourth year of a downturn, may start to gain traction after the government announced a sweeping rescue package in May. China's manufacturing sector shrank in June for the second consecutive month, government data showed. The official manufacturing purchasing managers’ index (PMI) reached 49.5 in June, unchanged from May, as new orders and exports declined. The data reflected the uneven performance of China’s economy this year amid a yearslong property slump that has hit domestic consumption and rising trade tensions that threaten the manufacturing sector.
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Written by Xia Yunchu
Labor Market Recovery: The US economy added 559,000 jobs in June 2024, beating expectations. The unemployment rate declined to 3.8%, signaling a robust labor market recovery. However, wage growth remains moderate, and some sectors face labor shortages. Consumer Slowdown: Recent data shows a slowdown in US retail sales. Consumers are becoming cautious due to rising inflation, supply chain disruptions, and uncertainties related to the pandemic. This trend could impact economic recovery and corporate profits.
Fiscal Challenges: The Eurozone faces fiscal challenges stemming from an aging population. As birth rates decline, the proportion of elderly citizens increases. This puts pressure on pension systems and healthcare budgets. Policymakers must find sustainable solutions to support retirees and maintain economic stability. Tight Labor Market: Despite demographic challenges, the Eurozone's labor market remains tight. Skill shortages persist in certain sectors, leading to wage pressures and potential productivity bottlenecks.
Inflation Insights: Japan and the United Kingdom are experiencing easing underlying inflation. This suggests that supply chain disruptions and energy price spikes may be temporary. However, central banks remain vigilant, closely monitoring inflation data to guide monetary policy decisions. Global Markets Monitor: APAC markets are closely watching upcoming elections (such as India's state elections) and inflation data. Investors are also awaiting Friday's release of the US Personal Consumption Expenditures (PCE) inflation index, which could impact the Federal Reserve's interest rate trajectory.
Written by Erika Lau
As of Friday close: S&P500: 5432 (+1.6%) ; NADQ Comp: 17688 (+3.2%) ; S&P mid-cap 400: 2895 (-0.8%) ; Russell2000: 2006 (-0.01%) S&P500 and NADQ touched new highs pushed by AI enthusiasm and technology-related stocks, while small and mid-cap underperformed over the week. Core inflation fell to 3.4%, the lowest since April 2021. The Producer Price Index (PPI) inflation, which was announced on Thursday, came as a surprise by declining 0.2%, contrary to expectations of a slight increase. Furthermore, on a year-over-year basis, the core PPI decreased to 2.3%, putting an end to five consecutive months of growth. In a related trend, import prices also experienced a decline of 0.4% in May, marking their first decrease in four months. 10-year treasury yield decreased from 4.43% to 4.21% after higher-than-expected jobless claims built inflation pressure. IG corporate bond market was quiet over the week as investors awaited inflation release and Fed’s meeting.
In Japan, the stock markets had a mixed performance for the week, with the Nikkei 225 Index gaining 0.3% while the broader TOPIX Index declined by 0.3%. The Bank of Japan’s (BoJ) June meeting had a dovish tone, which supported the equity market. In the fixed income markets, the yield on the 10-year Japanese government bond (JGB) decreased to 0.93% from 0.98% the previous week. The Japanese yen, already at historically low levels, weakened further against the US dollar, with the exchange rate reaching around JPY 157.5 from 156.6.
Chinese equities faced a decline during a short week, reflecting ongoing deflationary pressures impacting the economy. The Shanghai Composite Index dropped by 0.61%, while the blue chip CSI 300 decreased by 0.91%. In Hong Kong, the Hang Seng Index fell by 2.31% according to FactSet. Chinese markets were closed on Monday for the Dragon Boat Festival. China’s consumer price index showed a modest increase of 0.3% in May compared to the previous year, matching April’s rise. Core inflation, which excludes volatile food and energy prices, grew by 0.6%, slowing down from April’s 0.7% increase. On the other hand, the producer price index experienced a 1.4% decline compared to the previous year, marking its 20th consecutive month of decline. However, this decline was less severe than the 2.5% drop seen in April. Despite Beijing’s efforts to stimulate the economy and stabilize the markets, weak consumer confidence and a prolonged slump in the property sector have kept prices in China under pressure.
JP 1Q GDP: -0.5%, meet est. of -0.5%, down from prev. 0.1% JP Interest rate: 0.1%, meet est. of 0.1%, same as prev. UK GDP MoM: 0%, meet est. of 0%, down from prev. 0.4% US Core CPI MoM: 0.2%, miss est. of 0.3%, same as prev. US PPI MoM: -0.2%, miss est. of 0.1%, down from prev. 0.1% US Crude Oil Inventories 3.7M, beat est. of -1.2M, up from prev. 1.2M US Interest rate: 5.5%, meet est. of 5.5%, same as prev. US Initial jobless claims: 242K, miss est. of 225K, up from prev. 229K
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Written by Dacian Deng
The U.S. market experienced mixed results as longer-term bond yields fell. The S&P 500 and Nasdaq Composite reached record highs, while smaller-cap indexes pulled back. Growth stocks outperformed value shares due to falling interest rates. However, the artificial intelligence (AI) sector saw some slowdown as U.S. officials slowed the issuance of licenses for AI chip sales to the Middle East and opened antitrust investigations into Microsoft and NVIDIA.
The major indexes had varied performances for the week, with the DJIA up 2.94%, S&P 500 up 12.10%, Nasdaq Composite up 14.13%, S&P MidCap 400 down 5.00%, and Russell 2000 down slightly by 0.03% year-to-date.
Despite positive data indicating a potential recovery in the property sector, stocks in China experienced a decline. The Shanghai Composite Index dropped 1.15%, while the CSI 300 Index fell by 0.16%. In contrast, Hong Kong's Hang Seng Index rose 1.59%.
In economic news, the private Caixin/S&P Global survey showed a slight improvement in manufacturing activity, with a reading of 51.7 in May compared to 51.4 in April, indicating the seventh consecutive month of expansion. The Caixin services purchasing managers' index also exceeded expectations, reaching 54 in May, up from 52.5 in April. This private survey focused on smaller and export-oriented firms, adding to official data from the previous week, which showed an unexpected contraction in manufacturing activity in May.
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Written by Erika Lau
US ended higher for the week as it tapped into the second week of the earnings release. A cooler labor market, as indicated by lower-than-expected nonfarm payrolls, lowered the inflationary pressure and gave investors a greater hope of loosening interest rates. Powell’s response to the data also pushed back stagflation worries which further encouraged investors.
For individual stocks, AAPL beat consensus revenue expectations and announced the largest buyback of 110bn USD helped boost investors’ confidence. TSLA also lifted the market after a 15% rally under China’s tentative approval of the self-driving technology.
Europe ended lower amid mixed earnings and an unsure interest rate outlook. The German DAX index experienced a decrease of 0.88%, while France’s CAC 40 Index saw a decline of 1.62%. Italy’s FTSE MIB index also weakened, with a decrease of 1.81%. In contrast, the UK’s FTSE 100 Index registered a gain of 0.90% and reached a new high, primarily fueled by the robust performance of mining and energy stocks.
Chinese stocks rose during a week as investors expressed optimism regarding increased government assistance that China would utilize various monetary policy tools, such as potential interest rate reductions and adjustments to the reserve requirement ratio. SSEC rose by 0.52%, while the prominent CSI 300 index of blue-chip stocks saw a slight gain of 0.56%. A larger rally in Hong Kong with the surge of HSI by 4.67%.
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Written by Leo Xu Mingyuan
Stocks recorded their third consecutive week of broad losses, as concerns over tensions in the Middle East and the possibility of U.S. interest rates remaining high. Mega-cap technology shares lagged as rising rates placed a higher theoretical discount on future earnings.
Some strong economic data appeared to increase worries that the Federal Reserve would push back any interest rates cuts to the fall, if not to 2025. On Monday, the Commerce Department reported that retail sales rose 0.7% in March, well above consensus expectations of around 0.3%, while February’s gain was revised upward to 0.9%. The retail sales data helped push the yield on the benchmark 10-year U.S. Treasury note to its highest intraday level since last November.
Fed officials expressed their concern with recent economic data. On Tuesday, Fed Chair Jerome Powell stated at an economic conference that "recent data have clearly not given us greater confidence and instead indicate that it’s likely to take longer than expected to achieve that confidence."
Consumer prices in the UK grew an annual 3.2% in March, down from 3.4% in February. Although the inflation rate fell to its lowest level in two and a half years, the decline was slightly less than forecast by Bank of England (BoE) due to elevated price growth in fuel and communication goods. Higher oil prices and the somewhat sticky inflation data prompted financial markets to push out expectations for a first cut in UK interest rates from June to sometime in the fall.
European Central Bank (ECB) policymakers at the IMF meeting reiterated that June was the likely target date for lowering borrowing costs, barring unexpected economic shocks. Three to four rate cuts this year priced in by markets were in line with the bank’s economic outlook.
Chinese equities rose after the economy expanded more than expected in the first quarter. The Shanghai Composite Index gained 1.52%, while the blue chip CSI 300 added 1.89%. In Hong Kong, the benchmark Hang Seng Index gave up 2.89% as escalating geopolitical tensions in the Middle East hurt investor sentiment.
China’s gross domestic product expanded an above-consensus 5.3% in the first quarter from a year ago, accelerating slightly from the 5.2% growth in last year’s fourth quarter. On the monetary policy front, the People’s Bank of China injected RMB 100 billion into the banking system via its medium-term lending facility compared with RMB 170 billion in maturing loans and left the lending rate unchanged, as expected. The operation resulted in a net withdrawal of RMB 70 billion from the banking system, marking the second cash extraction this year.
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Written by Jonathan Chen
While the S&P 500 ended a record-setting streak by falling just below the flatline, it still managed to secure a win for the week. The Dow Jones Industrial Average saw a slight increase of about 0.2%, whereas the tech-heavy Nasdaq Composite experienced a minor drop close to 0.4%. This mixed closing was amid investors bracing for the Fed's upcoming meeting, focusing on potential rate cuts and the central bank's latest viewpoint on inflation and economic growth.
The week also highlighted anticipation for major tech companies' earnings reports, with Alphabet and Microsoft set to start the earnings season. These reports are keenly watched due to the significant influence these companies have on both the global economy and investors' portfolios.
Furthermore, the US market witnessed crude oil gaining more than 6% over the week, driven by bullish economic data and ongoing tensions in the Red Sea region. This rise in oil prices was supported by freezing temperatures affecting US production, a reduction in crude inventories, and various global economic factors.
The Swiss National Bank made a surprise interest rate cut, becoming the first major financial center to do so recently. Investors were also anticipating major economies' manufacturing PMI and CPI data as they continue to address inflation concerns.
Additionally, European stocks experienced mixed movements, with the tech sector influencing Wall Street's performance and Bitcoin's value jumping significantly. The Dutch TTF benchmark for European gas prices saw a significant decrease, suggesting a possible easing of the energy crisis.
Chinese regulators reportedly blocked Syngenta's planned $9bn Shanghai IPO due to liquidity concerns. Indian stocks did not experience the traditional pre-election rally as the country prepares for parliamentary elections; US yields and a significant earthquake impacted markets like Nikkei and Hang Seng. Meanwhile, China's solar sector is facing oversupply and low prices, suggesting a year of consolidation ahead.
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Written by Kevin Xia
Oil Prices Rise on Strong Global Demand and Fed Rate Cut Expectations: Oil prices rose on March 13, 2024, on expectations of strong global demand, including in the United States, and as even somewhat sticky U.S. inflation did not dent expectations the Fed might start cutting rates soon. Brent futures for May delivery were up 36 cents, or 0.44%, at $82.28 a barrel.
US Consumer Prices Rise: The consumer price index increased 0.4% for the month of February and 3.2% from a year ago. The monthly gain was in line with expectations, but the annual rate was slightly ahead of the 3.1% forecast from the Dow Jones consensus.
US Fed: The Federal Reserve held its key interest rate steady Wednesday for the fifth consecutive meeting, as the central bank awaits more data to determine when to cut rates.
European and US Equity Futures Trade Higher: On March 18, 2024, European and US equity futures traded higher following a selloff in equities and bonds when markets rounded off a week that saw hot inflation concerns roiled markets.
Europe's Worst Earnings Season Since Covid: Europe had its worst earnings season since the onset of Covid.
Red Sea Situation and Fruit Exports: Maersk's March 2024 market update covered the Red Sea situation, fruit exports, port updates, inland solutions, labor regulations, and last-mile strategies.
Eurozone Inflation Drops to 2.4%: The European Central Bank (ECB) was slower to raise interest rates, but that did not stop eurozone inflation from dropping to 2.4%, just above the 2% target rate.
Asia Markets Fall Ahead of Central Bank Interest Rate Decisions: On March 18, 2024, Asia-Pacific markets fell ahead of central bank monetary policy decisions from the Bank of Japan and the Reserve Bank of Australia. Asian Markets Mixed Ahead of Bank of Japan Decision: On March 19, 2024, Asian markets were mixed ahead of a much-anticipated Bank of Japan meeting.
Written by Erika Lau
The U.S. stock market mostly ended higher for the week, driven by favorable inflation news. The Nasdaq Composite and S&P 500 reached record levels, with the S&P 500 having its strongest start to the year since 2019. The gains were broad-based, with an equal-weighted version of the S&P 500 outperforming the market capitalization version. Large, technology-oriented growth stocks continued to outperform, contributing to the overall performance.
The release of the Commerce Department’s core personal consumption expenditures (PCE) price index, which is considered the Federal Reserve’s preferred measure of inflation, helped boost market sentiment. The index rose 2.8% for the 12 months ended in January, in line with expectations, alleviating concerns raised by the Labor Department’s consumer price index, which showed higher-than-expected core prices. Despite the positive reaction in the stock market, Federal Reserve policymakers maintained their stance of not rushing to cut interest rates.
The manufacturing sector, however, surrendered some of its recent momentum, with the Institute for Supply Management’s (ISM) gauge of manufacturing activity falling below expectations in February. Durable goods showed a more positive outlook, and personal incomes saw a significant increase in February.
The yield on the 10-year Treasury note reached its lowest level in weeks, reflecting the positive reaction to the PCE data and the downside surprise in the manufacturing sector. U.S. Treasuries generated positive returns as yields decreased, and municipal bonds received an additional boost from light issuance.
In the investment-grade corporate bond market, spreads widened due to heavy supply, as February saw a record-breaking amount of new issuance. High yield market trading activity was subdued early in the week but tightened credit spreads following the release of the core PCE price data.
Overall, the U.S. stock market experienced gains, driven by positive inflation news, while the manufacturing sector showed a slight decline. Bond markets reacted positively to the economic data, and corporate bond issuance reached a new record in February.
