APAC Market Wrap - Nov 12

China Stock Market: At close, Shanghai Composite fell 0.07%, Shenzhen Component fell 0.36%, ChiNext fell 0.39%.

 

Sectors: insurance, medicine, oil & gas led gains; cultured diamonds, PV, controlled nuclear fusion led declines.

 

Hong Kong Stock Market: Hong Kong's three major indices all closed up. At close, Hang Seng rose 0.85% to 26,922.73 points; Tech Index rose 0.16% to 5,933.99 points; State-owned Enterprises Index rose 0.82% to 9,538.99 points.

 

From market performance, insurance, real estate, medicine, home appliances strong; autos and gold weak.

 

Japan Stock Market: Nikkei 225 up 0.43% to 51,063.31 points

 

From industries, non-ferrous metals, pharmaceuticals, banks led gains; metal products, information & communication, retail fell.

Korea Stock Market: Korea Composite Stock Price Index (KOSPI) up 1.07%. Biotech, non-ferrous metals, life insurance, securities rose; utilities, electrical equipment, communications equipment fell.

 

Australia Stock Market: S&P/ASX 200 fell 0.22% to 8,799.50 points. Clothing, furniture, alcoholic beverages rose; tourism, leisure, credit fell.

 

Singapore Stock Market: FTSE Singapore Straits Times Index STI up 0.59% to 4,568.91 points. Sectors: personalized services, industrial distribution, oil & gas rose; autos & parts, retail, industrial products fell.

 

Malaysia Stock Market: FTSE Malaysia KLSE fell 0.20% to 1,631.61 points. Sectors: funds, transport & logistics, construction rose; tech, healthcare, communications & media small declines.

Key events

Unprecedented memory chip price storm! Morgan Stanley raises Samsung, SK Hynix targets

 

Wall Street giant Morgan Stanley recently released report titled "Memory–Maximum Pricing Power," outlining latest views on memory industry.

 

Morgan Stanley raised target prices for Korea's two memory chip giants Samsung Electronics and SK Hynix. This based on bank's recent emphasis "memory chips to enter super cycle."

 

Specifically, Morgan Stanley set Samsung target at 144,000 KRW (nearly 40% above latest close 103,100 KRW). Predicts bull case to 175,000 KRW.

 

Set SK Hynix target at 730,000 KRW (nearly 20% above latest close 617,000 KRW), bull case to 850,000 KRW.

 

Clear Nvidia to add OpenAI? Investors not buying it, SoftBank once dives 10%

 

Wednesday, Japan's tech investment giant SoftBank shares once plunged 10%, after day before company announced clearing "AI chip overlord" Nvidia, making investors already nervous about tech high valuations more panicked.

 

Wednesday, SoftBank opened with big dive, once down 10%, though narrowed later.

 

SoftBank Tuesday disclosed sold all Nvidia stake in October for $5.83 billion. Facing doubts, company said sale unrelated to Nvidia, necessary financing.

 

SoftBank CFO: "Due to large OpenAI investment, raised funds through (selling stocks) and put to use." But dodged AI investment "bubbly."

 

Sea (SE.US) Q3 profit doubles but sold off, Wall Street giants still endorse

 

Sea (SE.US) recently released Q3 earnings, performance won analyst recognition. Singapore-based company revenue up 38%, net profit doubled, but missed average expectations, post-earnings once plunged 9%. But multiple Wall Street giants still confident.

 

Earnings show Q3 adjusted EPS $0.59, $0.43 below analyst $1.02. Revenue $6 billion, above expected $5.69 billion, up 38.3% YoY. Though revenue strong, profit miss overshadowed.

 

Morgan Stanley reiterated bullish on e-commerce stock, said overall in line. Analyst Divya Gangahar Kothiyal: "After lowered expectations, no major surprises except Garena (we flagged potential upside). Management on growth, e-commerce competition, reinvestment, 2026 priorities key to sentiment."

 

This year global best, AI trading leading indicator! Korea stock volatility surges

 

As market leading indicator Korea Kospi 200 Volatility Index (VKOSPI) recently jumped to highest since April turmoil, reflecting investor anxiety as Kospi hits all-time high.

 

After biggest annual gain in over 20 years leading global, Korea stock frenzy flashing warning. Key fear gauge surging, sparking worries if tech-driven feast sustainable.

Institutional views

Goldman: U.S. October may lose 50,000 jobs

 

Goldman estimates U.S. October nonfarm payrolls down ~50,000, biggest drop since 2020. Employment growth tracker slowed from September 85,000 to 50,000, plus 100,000 cuts from Trump "deferred resignation plan." Layoffs rising, labor indicators weakening.

 

ING: U.S. long-term Treasury yields limited downside

 

ING rates strategist Benjamin Schroeder says as long as market prices Fed cuts to ~3%, U.S. long-term yields further downside limited. 10-year ~4.1% not particularly high. Wednesday 10-year, Thursday 30-year auctions better test short-term demand at current yields. Veterans Day, U.S. Treasury market closed Tuesday.

 

UBS: Global gold demand this and next year to highest since 2011

 

UBS report says expect gold demand this and next year strongest since 2011, adds: "Any significant rise in political or financial market risk could push gold to our $4,700/oz target."

 

ABN AMRO: U.S. institutional politicization threatens dollar reserve status

 

ABN AMRO economists report says under Trump, U.S. institutional politicization and pressure on independents risks dollar global reserve dominance. U.S. institutional decline high-speed since year start, dollar reserve trustworthiness issue can't ignore.

 

White House firing overseers, suing opponents, dismantling regulation, deeply partisan restructuring. Raises questions if U.S. can maintain rule-following, diverse institutions, strong markets attracting investment supporting dollar.