APAC Market Wrap - 14 Jul  

China: At close, the Shanghai Composite rose 0.27%, while the Shenzhen Component fell 0.11% and the ChiNext Index dropped 0.45%. Top gainers included precious metals, power, humanoid robots, and grid equipment, while diversified finance, gaming, real estate, and securities lagged.  

 

Hong Kong: All major indices climbed, with the Hang Seng up 0.26%, the Hang Seng Tech Index up 0.67%, and the State-Owned Enterprises Index up 0.52%. Sector-wise, tech stocks mostly rose, fueled by Bitcoin hitting new highs! Crypto-related stocks kept surging, building materials gained, coal stocks shone, pharma stocks strengthened, and internet healthcare showed mixed results.  

 

Japan Stock Market: The Nikkei averaged a third straight day of decline, down 0.28% to 39,459.62 yen. By industry, 19 sectors like electrical, gas, machinery, real estate, transport equipment, and insurance rose, while 14 sectors including other products, telecom, aviation, land transport, and banking fell.  

 

South Korea Stock Market:The Kospi rose 0.83% to 3,202.03.Gainers included health insurance, air logistics, and department stores, while IT services, office telecom equipment, and gaming declined.  

 

Australia Stock Market: The S&P/ASX 200 (XJO) fell 0.11% to 8,570.400 points. Aerospace, semiconductors, and diversified finance led gains, while building materials, home construction, furniture, and lighting lagged.  

 

Singapore Stock Market: The Straits Times Index rose 0.52% to 4,109.21 points. Industrial products, building materials, and oil and gas topped gains, while metals and mining, healthcare, and education saw larger drops.  

 

Malaysia Stock Market: The Malaysia Index edged up 0.09% to 1,537.51 points. Energy and business trusts led the rise, while transport, plantations, and logistics fell.  

Key Events  

Singapore Retains Title as World’s Most Expensive Luxury Goods City  

 

Singapore marks its third year as the priciest city globally for luxury goods, with London overtaking Hong Kong for second place.  

 

According to Julius Baer’s annual report, Monaco and Zurich follow, while Shanghai, the 2022 leader, slipped to sixth. For the first time since 2020, a basket of luxury goods saw a 2% price drop—“quite unusual,” Baer noted, as luxury prices typically outpace regular goods by double.  

 

Japan Bank May Raise Inflation Forecast This Month  

 

Sources familiar with the Bank of Japan’s thinking say it will consider raising this fiscal year’s inflation forecast, reflecting persistent rice and broader food price hikes.  

 

However, it’s expected to hold steady on 2026-2027 forecasts, pausing rate hikes until U.S. tariffs’ impact on Japan clarifies.  

 

South Korea’s H1 ICT Exports Top $115 Billion, Chips at $73.3B  

 

Data released Monday shows South Korea’s ICT product exports grew 5.8% year-on-year to $115.16 billion in the first half, driven by global data center chip demand.  

 

Imports rose 5% to $70.92 billion, yielding a $44.24 billion trade surplus.  

Institutional Views 

Goldman Sachs: Central Banks’ Gold Buying Spree Continues, Gold to Hit $4,000 by Mid-2025  

 

Goldman notes central banks and institutions bought 77 tons of gold monthly from January to May. It predicts new highs in coming quarters, with fund net positions dropping from April’s peak, creating “structural space” for ETF and central bank purchases.  

 

Jefferies: Singapore Dollar Could Reach Parity with USD  

 

Jefferies analysts suggest the Singapore dollar might hit parity with the USD in five years. Strategist Christopher Wood’s “Greed & Fear” note highlights its 6%+ rise against the USD this year, cementing its “Asian Swiss franc” status, with bond yields attracting conservative wealth-preserving funds.  

 

RBC: Raises S&P 500 Year-End Target to 6,250  

 

Royal Bank of Canada lifted its S&P 500 year-end target from 5,730 to 6,250, the second hike this year, citing stronger investor confidence and growing focus on 2026 prospects.  

 

Morgan Stanley: 30-Year JGB Yield Could Hit 3.2% if Ruling Party Loses  

 

Analysts Hiroyuki Uezato and Koichi Sugisaki from Morgan Stanley MUFG Research say a ruling party majority win could push 30-year Japanese government bond yields to 2.90% with mild fiscal stimulus, but a loss might drive it to 3.2% with big spending plans.  

 

CITIC Securities: U.S. Inflation Pressure May Emerge in H2 2025  

 

CITIC warns that under Trump’s tariffs, U.S. retailers, manufacturers, and automakers have signaled price hikes. With strong cost-pass-through ability, tariff-driven inflation risks are rising, with leading indicators hinting at pressure in the second half.  

 

Huatai Securities: Hong Kong Market Volatility May Rise  

 

Huatai’s Hong Kong strategy report predicts higher volatility and rising sector rotation importance. Tariff concerns fade, policy expectations grow, and southbound funds surge, with foreign inflows returning. Mid-term liquidity logic holds, but short-term adjustments in hot sectors may amplify index swings.