APAC Market Wrap - Nov 4

China Stock Market: At close, Shanghai Composite down 0.41%, Shenzhen Component down 1.71%, ChiNext down 1.96%.

Sectors: Fujian Free Trade Zone, banks, ice & snow industries led gains; precious metals, pharma, robotics led declines.

Hong Kong Stock Market: Hong Kong's three major indices all adjusted lower. At close, Hang Seng down 0.79% to 25,952.40 points; Tech Index down 1.76% to 5,818.29 points; State-owned Enterprises Index down 0.92% to 9,173.21 points.

Performance: Banks, insurance dividend stocks strong; gold, lithium batteries, pharma weak.

Japan Stock Market: Nikkei average down 1.74, after multiple days of record highs, closed at 52,411.34 points, up 1,085.73 points.

Sectors: 23 industries up including electric/gas, food, non-ferrous metals, electrical equipment, info/comms; 10 down including transport equipment, metal products, pharma, pulp/paper, services.

Korea Stock Market: KOSPI down 2.37%.

Sectors: Life sciences, bioengineering, health management, electronics surged. Semiconductors, autos, air freight, securities fell.

Australia Stock Market: S&P/ASX 200 down 0.91% to 8,813.700 points.

Sectors: Aerospace, restaurants, real estate slight gains; semiconductors, business services, other energy bigger declines.

Singapore Stock Market: FTSE Singapore Straits Times Index down 0.49%.

Sectors: Education, industrial distribution, consumer packaging up; forestry products, non-alcoholic beverages, other energy down.

Malaysia Stock Market: FTSE Malaysia KLSE Index up 0.07%.

Sectors: Financial services, business trusts, communications & media up; closed-end funds, real estate, tech slight declines.

Key Events

SK Hynix Up Over 240% YTD! Korea Exchange Issues Rare Investment Warning

SK Hynix shares up 240% this year, catching Korea Exchange's eye. Exchange urges investors to consider the stock carefully, possibly signaling overheat.

Korea Exchange issued a one-day "investment caution" for SK Hynix late Monday (Nov 3), based on sharp gains.

After the warning, shares fell as much as 5.3% Tuesday (Nov 4)—biggest drop in three weeks.

Singapore Scam Cases Near 20,000 in H1, Govt Plans Caning for Fraudsters

Singapore will cane fraudsters under new law as the city-state tackles crimes hitting thousands.

Measure passed parliament Tuesday amid rising financial scams in Southeast Asia and globally. Police data: Since 2020, victims lost ~SGD 3.8B ($2.9B); last year record SGD 1.1B. H1 this year ~20,000 cases, SGD 456.4M losses—prompting govt alarm.

RBA Holds Rates, Warns Inflation Pressures Rising

RBA kept benchmark rate steady as widely expected; warned inflation pressures building in economy, future moves data-dependent.

RBA Tuesday held cash rate at 3.6%. Prior quarter CPI beat forecasts, labor market tight.

Korea to Go "All in AI" Nationwide?

President Lee Jae-myung put AI at core of his govt's economic vision in first budget speech, vowing massive AI investment and policy support to transform core industries, public services, even defense—aiming full AI integration across the country.

Institutional Views

Goldman Warns: U.S. Shutdown Could Cause Worst Economic Hit Ever

Goldman economist Alec Phillips: This U.S. shutdown may have unprecedented impact—could last longer than 2018-2019's 35 days, broader scope. ~6-week shutdown could cut Q4 growth 1.15 percentage points, rebound only early 2026. Phillips: Disruptions from air traffic control to food stamps worsening, Congress pressure mounting.

Citi: Global AI Industry Revenue to Hit $975B by 2030

Citi forecasts global AI industry revenue at $975B by 2030, up from $43B in 2025—CAGR 86%. Reflects accelerating enterprise AI adoption/commercialization; hyperscalers ramping infrastructure to meet demand. Last week, Alphabet, Meta, Microsoft, Amazon all announced big capex hikes for semis infrastructure/data centers to support AI growth.

Citi estimates U.S. major cloud providers' capex 2026-2030: $4.4T; global (incl. sovereign funds/others): $7.75T.

BofA: Volatility Not Up Much, USD/JPY May Test 158 Before Pushing to 160

BofA analyst Yamada Monday report: Without big speculative positioning or volatility spike, USD/JPY "could test 158 before meaningful policy response." Keeps year-end 155 forecast, but "Q4 2025 risk of pushing to 160 has risen."

ING: U.S. Treasury Yield Curve Still Too Flat

ING rates strategists report: U.S. Treasury yield curve remains too flat. Tradeweb data: 2Y-10Y spread ~50 bps. Strategists: In good risk sentiment, curve could steepen some, driven by long end—unless new data changes.