APAC Market Wrap - Oct 8

China Stock Market: Closed today.   

 

Hong Kong Stock Market: As of today’s close, the Hang Seng Index fell 1.15% over the holiday period, closing at 26,829.46 points; the Tech Index dropped 1.64% to 6,514.19 points; the H-share Index declined 1.39% to 9,523.87 points.  

 

By sector, AI, internet, and aviation stocks faced pressure, while gold, nuclear power, and pharmaceutical stocks bucked the trend with gains.  

 

Japan Stock Market: The Nikkei 225 retreated 0.45% after five straight days of gains, closing down 215.89 yen at 47,734.99 yen.  

 

By industry, 14 sectors rose, including nonferrous metals, fisheries & agriculture, insurance, securities & commodity futures, and banking, while 19 fell, such as rubber products, precision instruments, pulp & paper, and chemicals.  

 

South Korea Stock Market: Closed today.   

 

Australia Stock Market: The S&P/ASX 200 dipped 0.10% to 8,947.60 points.

 

Sectors like construction materials, aerospace, and semiconductors saw strong gains, while industrial products, cyclical retail, and apparel & accessories posted larger declines.  

 

Singapore Stock Market: The Straits Times Index fell 0.36% to 4,456.30 points.

 

Sectors like medical equipment, diversified financials, and personalized services surged, while industrial distribution, cyclical retail, and packaging & containers saw significant declines.  

 

Malaysia Stock Market: The FTSE Malaysia KLCI dropped 0.16% to 1,627.50 points.

 

Commercial trusts, energy, and plantations rose, while technology, utilities, and healthcare fell.  

Key Events

UK’s Revolut to Launch Payment Platform in India, Targeting 20 Million Users by 2030  

 

London-based fintech Revolut announced on Wednesday it will launch a payment platform in India, marking its first entry into one of the world’s largest digital payment markets and a key step in its global expansion.  

 

Revolut will partner with India’s Unified Payments Interface (UPI) and Visa to offer domestic and international payment services. The service will initially roll out to 350,000 pre-registered users later this year, with broader access to follow.  

 

Thailand Central Bank Unexpectedly Holds Rates Steady, New Governor Faces Test  

 

In its first policy meeting under new governor Vitai Ratanakorn, Thailand’s central bank unexpectedly kept the benchmark rate unchanged. With a fragile economy and strengthening Thai baht, officials preserved policy flexibility, defying expectations of a rate cut. The monetary policy committee voted 5-2 to maintain the one-day repurchase rate at 1.50%.  

 

Former BOJ Board Member: Yen’s Sharp Drop May Prompt Rate Hike as Early as October  

 

Former Bank of Japan board member Kazuo Momma said Wednesday that the yen’s recent sharp decline could push the BOJ to raise rates as early as this month. Since fiscal and monetary policy hawk Sanae Takaichi won the LDP leadership race last Saturday, the yen has weakened significantly.

 

Takaichi, likely Japan’s next prime minister, has raised concerns about pressuring the BOJ to delay further rate hikes.  

 

South Korea Warns EU Steel Protection Plan Will Have “Significant Impact”  

 

South Korea’s trade ministry said the EU’s proposed 50% tariffs and reduced import quotas to protect its steel industry would have a “significant impact” on the Asian nation’s steel exports. The EU is the second-largest export destination for South Korean steelmakers.  

 

South Korea’s Coffee Bean Imports Near $1.2 Billion in First 8 Months, Set for Record Year  

 

Data from South Korea’s customs service on Wednesday showed a sharp rise in coffee bean imports in 2024, with expectations of a record-breaking year.

 

Last year, imports of green and roasted coffee beans reached $1.24 billion, up 13% from $1.1 billion the prior year. Import volume grew 5.7% to 194,809 tons in 2024.  

Institutional Views

ING: Gold Has Further Upside Potential  

 

An ING report states that gold has room to climb higher, having reached a record $4,000 per ounce.

 

Despite the high, China’s central bank continued buying gold for the 11th straight month in September, and ongoing trade wars under President Trump, coupled with elevated geopolitical risks, suggest further upside for gold.  

 

JPMorgan: Stablecoin Adoption to Bolster Dollar Dominance, Drive Trillions in Inflows  

 

A JPMorgan report by analysts including Kunj Padh, Meera Chandan, and Octavia Popescu notes that, despite differing views on stablecoin demand, their global adoption could drive trillions in dollar inflows over the coming years.

 

The team said, “Rather than accelerating ‘de-dollarization,’ the growing reach of stablecoins could further solidify the dollar’s role in the global financial system.”  

 

Bridgewater Founder Dalio: Gold Safer Than the Dollar  

 

Billionaire Ray Dalio said gold is “definitely” a better safe haven than the dollar, likening its record rally to the 1970s, when gold soared amid high inflation and economic instability.

 

Speaking at the Greenwich Economic Forum in Connecticut on Tuesday, Dalio agreed with Citadel’s Ken Griffin that gold’s rise reflects anxiety about the U.S. currency.  

 

“Gold is an excellent portfolio diversifier,” Dalio said during a panel discussion. “From a strategic asset allocation perspective, the optimal portfolio would likely include about 15% in gold.”