APAC Market Wrap - Oct 7

China Stock Market: Closed today.  

 

Hong Kong Stock Market: Closed today.  

 

Japan Stock Market: The Nikkei 225 edged up 0.01%, closing slightly higher by 6.12 yen at 47,950.88 yen (estimated volume: 2.5 billion shares), continuing to hit record highs for several days.  

 

By sector, 20 industries rose, including steel, air transport, rubber products, and nonferrous metals, while 13 fell, such as other financials, retail, insurance, and services.  

 

South Korea Stock Market: Closed today.  

 

Australia Stock Market: The S&P/ASX 200 fell 0.27% to 8,956.80 points.

 

Sectors like semiconductors, hardware, and automotive parts saw strong gains, while non-alcoholic beverages, furniture, and industrial distribution posted larger declines.  

 

Singapore Stock Market: The Straits Times Index rose 1.14% to 4,472.26 points.

 

Sectors like apparel & accessories, industrial products, and industrial distribution surged, while healthcare services, regulated utilities, and construction materials saw significant declines.  

 

Malaysia Stock Market: The FTSE Malaysia KLCI dropped 0.49% to 1,630.03 points.

 

Closed-end funds, technology, and industrial products rose, while healthcare, real estate, and communications & media fell.  

Key Events

Thailand Gold Heist  

 

On the evening of October 5, a Thai shopping mall was hit by an armed robbery. About 10 masked gunmen dressed in black stormed a gold store, stealing ~400 baht (~6,000 grams) of gold jewelry before fleeing in a pickup truck.  

 

Trump: Decision Made on Supplying Ukraine with Tomahawk Missiles  

 

On October 6, U.S. President Trump said he has made a decision regarding the provision of Tomahawk missiles to Ukraine. He expressed a desire to know what Ukraine does with the missiles or where they are sent.  

 

Gold to Overtake LNG and Metallurgical Coal as Australia’s Second Most Valuable Export  

 

The Australian government stated that, driven by a “sharp surge” in precious metal prices to record highs, gold is set to surpass LNG as the country’s second most valuable commodity export.  

 

A report from Australia’s Department of Industry, Science and Resources noted that in the 2025-26 fiscal year (ending June 2026), gold export revenue is expected to jump from AUD 47 billion (~USD 39.6 billion) last year to AUD 60 billion, nearly doubling from two years ago. This will partially offset expected declines in other commodity exports like iron ore.  

 

Japan’s 30-Year Bond Auction Sees Strong Demand  

 

Demand for Japan’s 30-year bond auction exceeded the 12-month average, easing investor concerns sparked by Sanae Takaichi’s surprise election as ruling party leader, who advocates for stimulus policies.

 

The auction’s bid-to-cover ratio was 3.41, above the previous 3.31 and the 12-month average of 3.37. Japan’s bond futures trimmed losses after the results.  

 

Trump Announces Tariffs on Medium and Heavy Trucks Starting November 1  

 

U.S. President Donald Trump announced a 25% import tariff on medium and heavy trucks starting November 1, the latest move in his expanding tariff regime to protect domestic industries.  

 

The proposed tariff faced intense lobbying from Detroit’s legacy automakers. Initially set for October 1, the timeline was delayed after the government heard industry concerns about its potential impact.  

Institutional Views

Goldman Sachs Raises December 2026 Gold Price Forecast to $4,900  

 

Goldman Sachs upped its December 2026 gold price target from $4,300 to $4,900 per ounce, citing strong Western ETF inflows and continued central bank buying.

 

The firm noted, “We believe the revised gold price forecast still carries upside risk, as private sector diversification into the relatively small gold market could push ETF holdings beyond our rate-based model estimates.”  

 

Bank of America: Gold Better Suited for Raising Stop-Loss Levels  

 

Bank of America analyst Paul Ciana said in a research note that, from a technical perspective, as gold nears $4,000 per ounce, its uptrend shows signs of “exhaustion.” The chief technical strategist suggested gold may enter consolidation or correction in Q4.

 

“From a trend-following and risk-management perspective, it’s now more suitable to raise stop-loss levels, hedge, or reduce some long positions,” Ciana said. He noted that gold’s 21% premium over its 200-day moving average often signals a peak, with a higher likelihood if it nears 25%.  

 

World Bank: U.S. Tariffs on India to Drag Down South Asia’s Growth in 2026  

 

The World Bank said on Tuesday that higher U.S. tariffs on Indian exports will slow South Asia’s economic growth in 2026, though growth this year remains robust, supported by government spending. The bank forecasts South Asia’s growth to drop to 5.8% in 2026 from 6.6% in 2025, covering India, Bangladesh, Sri Lanka, Nepal, Bhutan, and Maldives.

 

The report noted, “The 2026 growth forecast was cut as some supportive factors fade, and India faces higher-than-expected U.S. tariff pressures.” The bank raised India’s growth forecast for the fiscal year ending March 2026 from 6.3% to 6.5% but lowered the next fiscal year’s forecast from 6.5% to 6.3%.