APAC Market Wrap - Oct 24
China Stock Market: At the close, the Shanghai Composite rose 0.71%, the Shenzhen Component gained 2.02%, and the ChiNext Index surged 3.57%.
By sector, memory chips, CPO, and semiconductors led gains, while coal and oil & gas saw the largest declines.
Hong Kong Stock Market: At the close, the Hang Seng Index rose 3.62% cumulatively to 26,160.15 points, the Tech Index gained 5.20% to 6,059.89 points, and the H-share Index increased 3.91% to 9,363.94 points.
Today’s market showed strong performance in semiconductors, internet tech, lithium batteries, and robotics concept stocks, while defensive sectors like coal and utilities adjusted lower.
Japan Stock Market: The Nikkei 225 rebounded sharply by 1.35%.
By industry, nonferrous metals, electrical equipment, and mining rose; pharmaceuticals, real estate, and other financials declined.
South Korea Stock Market: The KOSPI rose 2.50%. By sector, electrical products, chemicals, oil & gas, and steel surged; health management, panels, and trading declined.
Australia Stock Market: The S&P/ASX 200 fell 0.15% to 9,019.000 points. Non-alcoholic beverages, semiconductors, and industrial distribution rose sharply; aerospace, biotechnology, and agriculture saw larger declines.
Singapore Stock Market: The FTSE Straits Times Index (STI) rose 0.13%. Personalized services, industrial products, and cyclical retail gained; medical equipment, furniture, diversified media, and education declined.
Malaysia Stock Market: The FTSE Malaysia KLCI rose 0.33%. Transportation & logistics, technology, and utilities rose; communication & media, healthcare, and plantations saw slight declines.
Key Events
An Ad Causes Trouble? Trump: U.S. Terminates All Trade Talks with Canada
On Thursday evening Eastern Time, U.S. President Donald Trump announced he would terminate all trade negotiations with Canada, citing an ad by the Ontario government featuring former President Ronald Reagan criticizing tariffs.
Trump posted the statement on his “Truth Social” platform, writing:
“The Ronald Reagan Foundation just announced that Canada illegally used a fake ad featuring Ronald Reagan speaking negatively about tariffs.”
“They did this to interfere with U.S. Supreme Court and other court rulings. Tariffs are vital to U.S. national security and economy. Due to their bad behavior, all trade talks with Canada are hereby terminated. Thank you for your attention!”
Japan’s September Core CPI Accelerates—BOJ Rate Hike Closer?
On Friday, Bank of Japan data showed September core CPI rose 2.9% YoY, still above the 2% target and accelerating from 2.7% the prior month, sustaining near-term rate hike expectations.
U.S.-Korea Accelerate $350 Billion Investment Deal
The U.S. and South Korea are fast-tracking a $350 billion investment agreement, shifting focus to investment structure rather than currency swaps, aiming for finalization at the APEC summit. Following Japan’s $550 billion pledge, this model may become a template for Europe and the Middle East.
However, commentary notes the scale raises feasibility doubts, with funds bypassing Congress for presidential discretion, sparking concerns over viability and checks and balances.
The two nations are accelerating talks on a record “government-to-government” $350 billion investment pledge, alongside Japan’s prior $550 billion deal, expected to be finalized during Trump’s APEC summit attendance next week.
Wedbush Analyst: Tesla Robots to Enter Homes in 2-3 Years
Wedbush Securities analyst and Tesla bull Dan Ives said, “Tesla is entering a golden era.”
On Thursday (October 23), Ives reiterated optimism about Tesla’s AI, autonomous driving, and robotics efforts in an interview.
He said, “From autonomous driving, robotics, and AI development, this will be a golden chapter for Tesla. That’s why you should hold the stock.”
Institutional Views
JPMorgan: 2026 Gold Price Average to Break $5,000, Long-Term Bullish to $6,000
JPMorgan analysts maintained a bullish stance on gold, projecting an average price of $5,055/oz by Q4 2026. The forecast assumes “average quarterly investor demand and central bank purchases at 566 tons in 2026.”
JPMorgan’s global commodities strategist Natasha Kaneva said, “Gold remains our highest-conviction long this year, with upside potential as markets enter the Fed easing cycle.” She reaffirmed a long-term $6,000/oz target by 2028, emphasizing a multi-year view of gold trends.
Barclays: CPI Must Far Exceed Expectations to Alter Fed Rate Cut Outlook
Investors are watching Friday’s U.S. September CPI release, expected to show headline CPI up 0.4% MoM and core CPI up 0.3% MoM.
The Bureau of Labor Statistics said last week it will release the report despite the ongoing (now fourth-week) government shutdown to help the Social Security Administration set 2026 cost-of-living adjustments for millions of retirees and beneficiaries. Analysts expect the data won’t derail next week’s 25bps Fed cut but could signal December action.
State Street: Investor Optimism on Risk Assets May Be Excessive
State Street Global Markets’ Asia-Pacific macro strategist Dwyfor Evans said investor confidence in high-risk assets may be overdone. Speaking at the Asian Securities Industry & Financial Markets Association asset management conference in Singapore, he noted investors are buying U.S. stocks while hedging dollar exposure and selling Treasuries.
Evans expects U.S. inflation to rise gradually as import and domestic goods prices increase, saying “3% is the new 2%.” This matters for the Fed—fewer rate cuts could rebound the dollar. With high policy uncertainty, Evans warned current risk positioning may be overly optimistic.
ING: Rising Japan Inflation Opens Door for BOJ December Hike
ING senior economist Min Joo Kang said Japan’s rising inflation makes a December BOJ rate hike possible. September CPI accelerated to 2.9% from 2.7% in August. Underlying inflationary pressure remains strong. Other data shows steady wage growth boosting private spending, with a weaker yen potentially exacerbating short-term inflation. This supports BOJ rate hikes in coming months. The group now views a December hike as the base case.