APAC Market Wrap - Nov 6  

China Stock Market: At close, Shanghai Composite up 0.97%, Shenzhen Component up 1.73%, ChiNext up 1.84%.

 

Sectors: phosphorus chemical, semiconductor, CPO led gains; Hainan, film theaters, tourism & hotels led declines.  

 

Hong Kong Stock Market: Today Hong Kong's three major indices continue warming up. At close, Hang Seng up 2.12% to 26,485.90 points; Tech Index up 2.74% to 5,944.22 points; State-owned Enterprises Index up 2.10% to 9,355.97 points.  

 

Notably, this Hong Kong rebound not only continues momentum, market bullish sentiment also further repaired.  

 

From market performance, semiconductor, gold, securities, insurance, consumer electronics, wind power sectors active.  

 

Japan Stock Market: At close, Nikkei 225 up 1.34% to 50,883.68 points; TOPIX up 1.38% to 3,313.45 points.  

 

From industry sectors, non-ferrous metals, machinery, securities, fisheries, banks up; shipping, rubber products, steel, land transport multiple sectors down.  

 

Korea Stock Market: KOSPI up 0.55%.

 

Sectors: property insurance, electronic products, electric utilities, life insurance big gains. Cosmetics, internet, machinery, broadcasting & entertainment down.  

 

Australia Stock Market: S&P/ASX 200 up 0.30% to 8,828.300 points.

 

Sectors: packaging & containers, metals & mining, tourism & leisure small gains; building materials, aerospace, hardware bigger drops.  

 

Singapore Stock Market: FTSE Singapore Straits Times Index up 1.54%.

 

Sectors: industrial products, cyclical retail, interactive media, telecom services up; tourism & leisure, apparel, steel, industrial distribution down.  

 

Malaysia Stock Market: FTSE Malaysia KLSE Index down 0.16%.

 

Sectors: construction, transport & logistics, energy up; industrial products & apparel, healthcare, financial services small drops.  

Key events  

KKR and Singtel plan $3.9 billion deal to fully control Singapore data center firm  

 

Two sources directly familiar with plans reveal KKR Group and Singapore Telecommunications in deep talks to acquire over 80% of ST Telemedia Global Data Centres. If deal closes, both achieve full control, deal size over S$5 billion (about $3.9 billion).  

 

Currently, KKR holds about 14% of the company; as Singapore's largest telecom operator, Singtel holds over 4%. Remaining shares held by ST Telemedia, wholly-owned subsidiary of Singapore state investment firm Temasek Holdings.  

 

Korean stock short selling hits highest in over two years! But retail still maintains some risk appetite  

 

Due to AI valuation worries, Korean stocks plunged Wednesday (November 5), Thursday (6) industry data shows that day's short volume hit highest in over two years.  

 

Wednesday, Korea's benchmark KOSPI closed down over 2%, intraday once down over 6%, triggering KRX "Sidecar" mechanism, five-minute sell order pause.  

 

Per latest data jointly released by KRX and Yonhap Infomax, Wednesday total 1.97 trillion KRW (about $1.4 billion) stocks shorted, highest since July 26, 2023. Foreign investors 67% of total, institutions 32.1%.  

 

Japan consolidates "AI nation-building" strategy: Plans annual 1 trillion yen to support chips and AI industries  

 

This Thursday, a Japanese lawmaker revealed ruling Liberal Democratic Party plans to maintain and consolidate support for AI industry, allocate about 1 trillion yen annually (about RMB 46.303 billion) to support domestic chips and AI.  

 

Per LDP lawmakers alliance secretary-general Kan Yoshihiro, most funds through regular annual budget starting April next year, not current fiscal year's supplementary budget.  

 

This funding method differs from past years—past years Japanese government implemented AI chip revival strategy via supplementary budgets.  

Institutional views  

Goldman Sachs: Even if U.S. Supreme Court rules Trump tariffs illegal, impact on overall trade limited  

 

Goldman Sachs notes in oral arguments, multiple U.S. Supreme Court justices questioned Trump using International Emergency Economic Powers Act for authority, indicating court increasingly likely to rule government use of emergency powers for tariffs unconstitutional.

 

Prediction markets now see probability of court upholding tariffs down about 10 percentage points. Final ruling expected December 2025 to January 2026. If court rejects tariff legality, government may need months to refund then-collected about $115-145 billion tariffs.

 

But government likely seeks other legal bases to reimpose similar tariffs, meaning overall trade impact limited. Any tariff cuts likely only for smaller trade partners, no major changes for EU and other big economies. But refund processing and temporary tariff gaps may cause short-term market volatility.  

 

Bank of Singapore: Asia stock volatility may persist, correction seen as healthy adjustment  

 

Bank of Singapore's Low Pei Han says Asia stock volatility may continue short-term.

 

Asia stocks, especially high-tech-weight regions, volatility up recently after U.S. tech-led selloff. She notes: "This correction not unexpected, can be seen as healthy adjustment, especially given strong Asia stock gains this year." She adds Asia ex-Japan stocks still offer attractive opportunities, correction may provide buying chances for strong fundamental company stocks.  

 

Danske Bank: Bank of England to cut 25 bps, Governor Bailey and Deputy Governor Breeden votes key  

 

Danske Bank says expects Bank of England to pass 25 bps cut by 5-4 vote. This non-consensus forecast, market sees only 30% chance of BOE cut, we see slightly over 50%.

 

Recent data confirms labor market cooling continues, but not yet worrying speed. Also consumer demand mild, both indicate no rush for cuts. Weak inflation data also opens door for further easing.