APAC Market Wrap - Oct 3
China Stock Market: Closed for holiday
Hong Kong Stock Market: Overall, major indices performed strongly this week, with all three indices closing higher.
At the close, the Hang Seng Index gained 3.88% cumulatively, reaching 27,140.92 points; the Tech Index surged 6.90% to 6,622.85 points; and the Hang Seng China Enterprises Index rose 3.82% to 9,658.34 points.
In terms of market performance, semiconductors and power stocks led gains, while auto and gold stocks weakened.
Japan Stock Market: The Nikkei 225 surged 1.85%, closing at 45,769.50 points, up 832.77 points from the previous trading day, setting a new all-time high.
By sector, 28 industries, including electrical equipment, electricity and gas, textiles, and information and communication, rose, while 5 industries, such as mining, oil and coal, and insurance, fell.
South Korea Stock Market: Closed for holiday
Australia Stock Market: The S&P/ASX 200 rose 0.46% to 8,987.40 points.
Aerospace, independent power, construction materials, and hardware sectors gained, while utilities, other energy, and consumer goods packaging saw slight declines.
Singapore Stock Market: The Straits Times Index rose 0.38% to 4,411.95 points.
Utilities, semiconductors, and industrial distribution surged, while medical distribution, personalized services, and other energy saw larger declines.
Malaysia Stock Market: The FTSE Malaysia KLCI fell 0.17% to 1,635.06 points.
Closed-end funds, commercial trusts, and energy sectors rose, while healthcare, utilities, and communication and media declined.
Key Events
Nvidia and Fujitsu Partner to Develop AI Robots and Other Technologies
On Friday, U.S. tech company Nvidia (NVDA) and Japanese telecom and computer manufacturer Fujitsu (6702.T) reached an agreement to collaborate in artificial intelligence, leveraging Nvidia’s chips to develop intelligent robots and innovative technologies.
“The AI industrial revolution has begun. Building the infrastructure to support this revolution is critical in Japan and globally,” Nvidia CEO Jensen Huang said while embracing Fujitsu President Takahito Tokita on stage.
Tesla Restaurant Sells 50,000 Burgers in 72 Days
On Thursday, alongside its Q3 delivery figures, Tesla shared data on its Supercharger business for the third quarter.
On July 21, Tesla opened its highly anticipated first Supercharger restaurant in California. Despite operating for only 72 days, the data shared by Tesla is impressive.
Since opening, the Tesla restaurant has sold 50,000 burgers, averaging 694.4 burgers per day, potentially rivaling many well-known fast-food burger chains.
Samsung and SK Hynix Compete for Chip Talent to Meet AI Demand
According to industry sources, Samsung Electronics and SK Hynix are intensifying efforts to recruit talent for next-generation technologies, driven by the AI boom and a potential “super cycle” in the semiconductor industry.
Sources say SK Hynix began accepting applications this week for experienced employees, recruiting for 10 positions, including high-bandwidth memory (HBM) circuit design and solution design roles.
Institutional Views
Goldman Sachs Raises S&P 500 and Asia-Pacific Market Targets
Goldman Sachs believes that despite global growth cooling due to trade frictions, particularly impacting the U.S. economy, loose monetary policy and valuation advantages will continue to support U.S. and Asia-Pacific markets.
Goldman raised its 3/6/12-month S&P 500 targets to 6,800/7,000/7,200 from 6,400/6,600/6,900.
It also lifted the MSCI Asia-Pacific ex-Japan Index (MXAPJ) targets to 720/730/755 from 660/680/710 and Japan’s TOPIX Index targets to 3,300/3,300/3,400 from 3,050/3,100/3,200.
Asia-Pacific Markets Poised to Outperform U.S. Stocks This Quarter, Institutions Bullish on Valuations and Earnings
A recent institutional survey shows that Asia-Pacific markets are expected to outperform U.S. stocks this quarter due to more attractive valuations and earnings prospects. Since the start of the year, the MSCI Asia-Pacific Index has risen ~22%, outpacing the S&P 500’s 14% gain, potentially marking its first full-year outperformance since 2022.
In a late-September survey of 15 strategists and fund managers, over two-thirds expect this lead to continue. Respondents cited multiple risks to U.S. markets, including high valuations, gains concentrated in a few tech giants, and downside pressure from potential tariff policies.