APAC Market Wrap - 28 Aug
China Stock Market: The market staged a V-shaped rebound in the afternoon, with the ChiNext Index up nearly 4% and the STAR 50 Index surging over 7%. Cambricon and SMIC both hit historic highs. Total turnover for the Shanghai and Shenzhen markets reached ¥2.97 trillion, down ¥194.8 billion from the previous trading day.
By the close, the Shanghai Composite Index rose 1.14%, the Shenzhen Component Index gained 2.25%, and the ChiNext Index climbed 3.82%. Sector-wise, CPO, semiconductor, copper foil, and PCB sectors led the gains, while agriculture, weight-loss drugs, apparel, and liquor sectors saw the largest declines.
Hong Kong Stock Market: The major Hong Kong indices weakened today. By the close, the Hang Seng Index fell 0.81% to 24,998.82 points, the Tech Index dropped 0.94% to 5,644.02 points, and the State-Owned Enterprises Index declined 1.15% to 8,916.93 points.
Market performance showed strength in semiconductors, robotics, and insurance stocks, while sports apparel and pharmaceutical stocks underperformed.
Japan Stock Market: The Nikkei 225 continued its upward trend, rising 0.73% or 308.52 yen to close at 42,828.79 yen.
By industry, 29 sectors, including mining, non-metallic metals, securities and commodity futures, insurance, and oil and coal, recorded gains.
South Korea Stock Market: The KOSPI rose 0.29% to 3,196.32 points.
Sector-wise, life insurance, oil and gas, and food sectors led the gains, while stationery, electrical products, diversified consumer services, and broadcasting and entertainment sectors saw the largest drops.
Australia Stock Market: The S&P/ASX 200 (XJO) rose 0.22% to close at 8,980.500 points.
Sectors like education, automotive and components, and transportation saw slight gains, while healthcare, aerospace, agriculture, and biotechnology sectors experienced minor declines.
Singapore Stock Market: The Straits Times Index rose 0.21% to close at 4,254.35 points.
By sector, forestry products, non-alcoholic beverages, business services, and alcoholic beverages saw slight gains, while agriculture, cyclical retail, steel, and industrial products recorded larger declines.
Malaysia Stock Market: The Malaysia Index fell 0.05% to close at 1,587.07 points.
Sectors like closed-end funds, real estate, and financial services saw slight gains, while utilities, technology, and transportation and logistics sectors collectively declined.
Key Events
Japan Trade Negotiator Delays U.S. Visit, Tokyo Urges Faster Tariff Deal
A senior Japanese government spokesperson urged the U.S. to accelerate the implementation of the tariff agreement, while Japan’s chief trade negotiator, Ryosei Akazawa, unexpectedly canceled a planned trip to Washington.
The visit, originally set to depart from Tokyo on Thursday, was intended to be the tenth round of talks to advance the tariff agreement announced on July 22 with the Trump administration.
Buffett Boosts Japan Trading House Stakes, Lifts Share Prices
Warren Buffett’s Berkshire Hathaway Inc. increased its stakes in Mitsubishi Corporation and Mitsui & Co., boosting confidence in these Japanese trading houses and driving their share prices higher.
Mitsubishi Corporation announced on Thursday that, based on voting rights, the U.S. investment giant’s subsidiary raised its stake from 9.74% in March to 10.23%, while Mitsui & Co. revealed a similar increase by Berkshire Hathaway.
India Online Gambling Ban Faces First Legal Challenge
A legal filing shows that Indian gaming company A23 has challenged the government’s ban on online money games, marking the first legal challenge to the restriction. The ban, introduced last week by Prime Minister Narendra Modi’s government, led to the sudden removal of several popular skill-based games, casting uncertainty over the industry’s future.
Industry stakeholders argue these games rely on skill, not luck, and should not be classified as gambling, given India’s already strict gambling regulations.
South Korea Central Bank Warns of Tariff Impact
The Bank of Korea stated on Thursday that the U.S.’s 15% blanket tariff on Korean exports, contrasting with the zero-tariff policy in prior bilateral trade agreements, will significantly impact the Korean economy.
Following its decision to maintain interest rates, the bank reported that the tariffs are expected to reduce Korea’s GDP growth by 0.45 percentage points in 2025 and 0.6 points in 2026, while lowering consumer inflation by 0.15 points in 2025 and 0.25 points in 2026.