APAC Market Wrap - 24 Jun
China: At the close, the Shanghai Composite rose 1.15%, the Shenzhen Component gained 1.68%, and the ChiNext Index surged 2.3%.
Markets trended higher throughout the day, with the ChiNext leading gains and the Shanghai Index reclaiming 3,400. Total trading volume across Shanghai and Shenzhen hit 1.41 trillion RMB, up 292 billion RMB from the prior session. Market hotspots were scattered, with more stocks rising than falling—over 4,700 stocks advanced.
Sector-wise, solid-state batteries, humanoid robots, gaming, and autonomous driving led gains, while oil and gas, ports, and precious metals lagged.
Hong Kong: All three major Hong Kong indexes rose, with the Hang Seng Index up 2.06%, the Hang Seng Tech Index up 2.14%, and the H-share Index up 1.90%.
Tech and internet stocks mostly climbed, Chinese brokerage stocks strengthened, insurance stocks broadly gained, Apple concept stocks shone, biotech advanced, and lithium battery stocks rallied.
Japan: The Nikkei 225 closed up 436.47 points, or 1.14%, at 38,790.56.
On the Tokyo Stock Exchange’s main board, over 1,000 stocks rose, accounting for more than 60% of the total.
Sector-wise, 20 industries advanced, including non-ferrous metals, air transport, securities and commodities futures, and other products. Meanwhile, 13 industries declined, such as mining, oil and coal, real estate, and shipping.
South Korea: The KOSPI index surged 2.96% to 3,103.64. Sectors like utilities, banking, and semiconductors rallied, while defense and non-ferrous metals fell.
Singapore: The Straits Times Index rose 0.63%, up 24.44 points to 3,903.70. Industrial products, defensive retail, and construction materials soared, while forestry products, healthcare services, and commodities slumped.
Key Events
Iran Denies Firing Missiles at Israel After Ceasefire
On June 24, Iran denied launching missiles at Israel following the ceasefire, according to Iran’s state television.
After the ceasefire took effect, the Israel Defense Forces reported detecting ballistic missile launches from Iran, activating air defenses and urging the public to seek shelter until further notice. Israeli Defense Minister Katz said he ordered a “forceful response” to Iran’s ceasefire violation, targeting central Tehran.
Bank of Korea Deputy Governor: Gradual Stablecoin Rollout, Starting with Banks
On Tuesday, Bank of Korea Senior Deputy Governor Ryu Sang-doon said introducing a won-based stablecoin should follow a “banks-first, non-banks-later” approach to ensure financial stability. He stressed that stablecoins could impact monetary policy and payment systems, requiring robust safeguards, echoing BOK Governor Rhee Chang-yong’s concerns over capital flow risks.
Middle East Conflict Hits Indian Rice Traders: Exports Stall, Local Prices Drop
The Israel-Iran conflict is causing a severe export crisis for Indian rice traders.
Sushil Jain, state chapter president of the Indian Rice Exporters Association, said the ongoing Middle East conflict is disrupting trade. Around 100,000 tonnes of basmati rice are stuck at Indian ports, and payments for nearly 200,000 tonnes exported to Iran, worth 15-20 billion rupees, are delayed due to the conflict.
Institutional Views
Middle East Tensions Ease? Wall Street Analysts: Falling Oil Prices to Boost Global Stocks
Last night, signs of easing Middle East tensions emerged after reports that Iranian officials accepted a ceasefire, reducing geopolitical risks and triggering a sharp drop in oil prices.
Wall Street strategists believe this oil price decline will be a key driver for global stock market gains.
Yardeni Research President Ed Yardeni wrote in a recent report that he expects Iran to “seek peace” and avoid further escalation long-term, maintaining his year-end S&P 500 target of 6,500.
Yardeni noted, “If so, oil prices should fall, and global stocks should climb.”
Goldman Sachs: Hedge Fund Leverage Hit Five-Year High Last Week, Financials Most Favored
Goldman Sachs data shows hedge fund leverage reached a five-year high last week, with speculators buying bank, trading, and insurance stocks. This occurred before the Fed’s pause and the U.S. strikes on Iranian nuclear facilities.
Gross leverage, measuring hedge fund trading scale, rose to about 294%, the highest since 2020, up from 271.8% at the start of the year.
Goldman’s prime brokerage client report showed hedge funds increased short positions in Europe and Asia while maintaining modest long positions in North American stocks.
JPMorgan: Robust Data Center Spending Growth, Asian Tech Stocks Poised for 15-20% Gains This Year
JPMorgan said strong data center spending and growing confidence in AI’s long-term growth prospects will drive AI stocks as the core of this rally cycle. Leading AI tech stocks are likely to sustain gains over the next 12 months, with Asian tech stocks potentially rising 15-20% this year.