APAC Market Wrap - 19 Jun

China: The three major A-share indices closed slightly higher today, with the Shanghai Composite Index up 0.04% at 3,388.81 points, the Shenzhen Component Index up 0.24% at 10,175.59 points, and the ChiNext Index up 0.23% at 2,054.73 points.

 

Total trading volume in Shanghai and Shenzhen markets was 1.1911 trillion yuan, down slightly by 16.1 billion yuan from the previous day. On the market, hotspots were scattered, with more stocks declining than advancing, as over 3,400 stocks fell across the market.  

 

Sector performance: PCB, CPO, military equipment, and AI glasses sectors led gains, while beauty care, glyphosate, rare earth permanent magnets, and brain-computer interface sectors led declines.  

 

Hong Kong: All three major Hong Kong stock indices declined, with the Hang Seng Index falling 1.99%, the Hang Seng Tech Index dropping 2.42%, and the H-share Index decreasing 2.13%.  

 

Sector performance: Tech and internet stocks weakened, some new consumer concept stocks adjusted, internet healthcare stocks saw broad declines, certain oil and gas stocks rose against the trend, securities and brokerage stocks fell, and biotechnology stocks generally dropped.

 

Japan Stock Market: The Nikkei 225 Index fell 1.02%, or 396.81 points, closing at 38,488.34. On the Tokyo Stock Exchange’s main board, 890 stocks declined, accounting for more than half. Sector performance: 10 sectors, including aquaculture, land transportation, retail, and steel, saw gains, while 23 sectors, including pharmaceuticals, electronic equipment, and transportation equipment, recorded declines.

 

South Korea Stock Market: The KOSPI Index rose 0.19% to 2,977.74, its highest level since January 2022, driven primarily by significant gains in tech firms. Naver surged 3.49%, and Kakao soared 9.42%, while Samsung Electronics and SK Hynix saw minor declines.  

 

Singapore Stock Market: The Straits Times Index fell 0.64%, or 25.03 points, closing at 3,895.78. Apparel and industrial retail sectors led declines, while medical distribution, forestry, and education sectors posted gains.

“Largest Attack in 48 Hours”: Israeli Military Claims Iran Launched Over 20 Missiles at Israel! Khamenei’s Residence Targeted? Iranian Media Responds  

On the morning of June 19, local time, Israel’s Home Front Command announced that missiles were detected being launched from Iran toward Israel. The Home Front Command urged residents to evacuate to shelters immediately.  

 

Preliminary Israeli statistics indicate that this round of attacks was the largest launched by Iran within 48 hours, involving over 20 missiles.  

Japan Adjusts Bond Issuance Plan! Cuts Ultra-Long-Term Bond Issuance by 10%, Increases Short-Term Bonds  

Starting in July, Japan plans to reduce the issuance of 20-year, 30-year, and 40-year bonds by 100 billion yen (approximately $690 million) each per auction until March 2026, resulting in a roughly 10% reduction in ultra-long-term bond issuance for the fiscal year compared to the original plan. To cover the shortfall, the Ministry of Finance plans to increase short-term bond issuance and bonds designed for households.  

Avoiding Hormuz! Tankers Reroute, Shipping Costs Surge Over 100% in a Week  

Following Israel’s attack on Iran, tanker rental rates in the Strait of Hormuz soared by over 100% within a week, with very large crude carrier rates rising from $19,998 per day to $47,609 per day, a 138% increase.

 

Shipowners are avoiding the route or significantly raising prices due to geopolitical risks and navigation signal disruptions. Oil giants like Shell have admitted to being “extra cautious” in Middle East shipping and have prepared contingency plans.  

Switch 2 Sells Out, Breaking Records, Nintendo Stock Soars  

With the explosive sales of Nintendo’s next-generation console, Switch 2, and investors viewing it as a safe haven amid global market turmoil, the company’s stock saw its largest gain in two months on Wednesday, reaching a record high.

 

Nintendo Switch 2 officially launched on June 5. Data released last week by Nintendo showed that the highly anticipated console sold over 350 units in its first four days, far surpassing the original Switch’s performance during the same period and setting the company’s fastest sales record ever.