APAC Market Wrap - Nov 11

China Stock Market: At close, Shanghai Composite fell 0.39%, Shenzhen Component fell 1.03%, ChiNext fell 1.4%. In terms of sectors, cultured diamonds, dairy, PV equipment and other sectors led the gains, Hainan, software development, CPO and other sectors led the declines.

Hong Kong Stock Market: Hong Kong's three major indices all closed up. At close, Hang Seng rose 0.18% to 26,696.41 points; Tech Index rose 0.15% to 5,924.39 points; State-owned Enterprises Index rose 0.19% to 9,461.49 points.

From market performance, real estate, property management, aviation shares were strong, while semiconductors, gold shares saw adjustments.

Japan Stock Market: On the afternoon of the 11th, Japan's Nikkei average stock price fell 68 yen from the previous day, down 0.14%, closing at 50,842.93 yen.

From the industry perspective, out of all 33 industries, 17 industries fell, 16 industries rose.

Korea Stock Market: Korea Composite Stock Price Index (Kospi) led the gains, up 0.81%. Power, utilities, semiconductors, communication equipment and other industries rose, broadcasting entertainment, internet, hotels, cosmetics and other sectors fell.

Australia Stock Market: Australia S&P / ASX 200 index fell 0.19% to 8,818.80 points. Agriculture, tourism, alcoholic beverages and other sectors rose, banks, furniture, other energy and other sectors fell.

Singapore Stock Market: FTSE Singapore Straits Times Index STI rose 1.20% to 4,542.20 points, in terms of sectors furniture, forestry products, software and other sectors rose, education, diversified media, semiconductors and other sectors fell.

Malaysia Stock Market: FTSE Malaysia KLSE index rose 0.46% to 1,634.83 points, in terms of sectors communications and media, consumer goods, plantations and other sectors rose, transport and logistics, energy, real estate and other sectors small declines.

Key events

What signal? SoftBank unexpectedly clears Nvidia

As market concerns over AI concept stocks high valuation heat up, Japan's well-known tech investment company SoftBank Group made a surprising move: cleared the "AI chip overlord" Nvidia shares, cashed out 5.8 billion dollars.

SoftBank on Tuesday released the second quarter earnings for FY 2025 ending September. The earnings show that the company's second quarter profit far exceeded expectations, because aggressive artificial intelligence investments brought it rich returns.

SoftBank also said that it sold all held Nvidia shares in October, total about 32.1 million shares, total value about 5.83 billion dollars. This sale is not reflected in SoftBank's second quarter earnings, the company also did not disclose the sale reason.

World's first data center designed and operated by AI to be located in Korea? Key decisions made by AI

Korea is planning to spend 35 billion dollars to build a groundbreaking data center, it may become the world's first large facility fully designed, built and operated by artificial intelligence (AI).

It is reported that investment group Stock Farm Road (SFR) cooperates with artificial intelligence developer Voltai, SFR co-founded by LG Electronics founder Koo In-hwoi's grandson Brian Koo and BADR Investments founder Amin Badr-El-Din. The project also received support from Stanford University.

This ambitious project is named Project Concord, aims to integrate artificial intelligence into all aspects of data center operations, including design, construction, managing power and water resources and adapting to artificial intelligence computing workloads.

Although there will be human supervision, key decisions will be made by artificial intelligence.

Korea bond yields surge to highest this year, because rate cut hopes weaken

Data released on Tuesday shows that Korea bond yields surged to the highest level this year, because rate cut hopes weaken, prompting investors to start large-scale selling bonds to reduce risk.

Data shows that Korea 3-year bond yield reached 2.894% last Friday, the highest level this year. Compared with 2.507% at the beginning of this year, this number is higher by more than 30 basis points.

10-year bond return recently also rose to one-year high, reached 3.23% on Monday, rose 48 basis points over the above period.

Institutional views

Citi: Indonesia stock prospects seem more optimistic

Citi Investment Research analysts report says, looking ahead to 2026, Indonesia stock prospects seem more optimistic. They point out that structural challenges such as foreign direct investment bottlenecks and exchange rate stability still exist.

However, higher liquidity, larger fiscal multipliers and resilient domestic demand combined, should provide a favorable environment for Indonesia stocks. Higher liquidity and lower financing costs may support banking profit recovery through stronger loan growth, margin expansion and credit cost normalization.

These analysts say that fiscal spending increase and social subsidy programs also should drive household consumption, making consumer and retail stocks including Mayora Indah benefit. Citi set Jakarta Composite Index 2026 target at 9,250 points.

JPMorgan Private Bank: By the end of 2026, gold price may reach 5200-5300 dollars

JPMorgan Private Bank says that gold's strong uptrend may push the price to over 5000 dollars per ounce next year, the main driver comes from emerging market economies central banks' continued buying. The bank's global macro and fixed income strategy head Alex Wolf points out that gold price by the end of 2026 may reach 5200 to 5300 dollars, more than 25% higher than current trading level.

Global central bank gold buying in the past two years became the key driver for gold's fierce rise. Policymakers seek value storage and asset diversification, making gold price once hit over 4380 dollars historical high in October this year, although pulled back in recent weeks, but still up more than 50% so far this year.

Wolf says that for many central banks, gold's proportion in foreign exchange reserves is still relatively small, especially in emerging market countries. He adds: “We still see them adding gold, although due to price rise, the buying speed may slow down.”

Sparta Capital Securities: U.S. government shutdown may make Fed December further rate cut possible

Sparta Capital Securities' Peter Cardillo says that gold futures rose, because it is expected that the end of U.S. government shutdown will make government data resume normal release schedule. This may make Fed further rate cut in December possible.

“Once the government reopens, the past unreleased macro data flow may indicate that inflation is still stubborn, and labor market condition is weaker than what ADP report showed.” He adds: “These two factors may prompt Fed to cut rates in December, although they have repeatedly issued cautious words.”

Crédit Agricole: U.S. government shutdown end may terminate dollar uptrend

Crédit Agricole says that dollar's uptrend since October will face major test, because U.S. government shutdown may end soon. The bank points out that once U.S. government shutdown ends and resumes publishing economic data, weak data may highlight its negative impact on the economy, and fuel dovish atmosphere.

In addition, with government shutdown end and Treasury cash hoarding release, dollar's liquidity premium may fade, this also makes dollar lose another support factor.