APAC Market Wrap - Nov 13 

China Stock Market: At close, Shanghai Composite up 0.73%, Shenzhen Component up 1.78%, ChiNext up 2.55%. Sectors: energy metals, batteries, non-ferrous metals led gains; fentanyl, oil & gas led declines.  

 

Hong Kong Stock Market: Hong Kong's three major indices closed up again. At close, Hang Seng up 0.56% to 27,073.03 points; Tech Index up 0.80% to 5,981.30 points; State-owned Enterprises Index up 0.63% to 9,599.06 points.  

From market, medicine, paper, semiconductors & gold strong; some new consumption & coal adjusted.  

 

Japan Stock Market: Nikkei 225 up 0.43% to 51,281.83 points  

 

From industries, non-ferrous metals, power, rubber products led gains; metal products, precision instruments, information & communication fell.  

 

Korea Stock Market: Korea Composite Stock Price Index (KOSPI) up 0.49%. Non-ferrous metals, biotech, publishing, machinery rose; health management, insurance, communications equipment fell.  

 

Australia Stock Market: S&P/ASX 200 fell 0.52% to 8,753.400 points. Steel, mining, biotech rose; aerospace, semiconductors, clothing fell.  

 

Singapore Stock Market: FTSE Singapore Straits Times Index STI up 0.15% to 4,575.91 points. Sectors: non-alcoholic beverages, interactive media, utilities rose; personalized services, business services, diversified media fell.  

 

Malaysia Stock Market: FTSE Malaysia KLSE up 0.04% to 1,632.27 points. Sectors: industrial goods, real estate, energy rose; communications & media, utilities, business trusts small declines.  

Key events  

"Memory super cycle" coming? Morningstar recommends "sell" Korea chip duo  

 

As memory sector hot with global investors, some analysts contrarian, recommend "sell" Korea's two memory chip leaders Samsung Electronics and SK Hynix.  

 

Top independent research firm Morningstar Inc. analyst says Korea chip stocks valuation too high to justify, making them vulnerable to big drops on slight negatives.  

 

Notably, this analyst only one rating both Korea chip duo "sell."  

 

Over month ago, Morningstar first bearish view, largely ignored then, but as tech giants' aggressive AI spending faces scrutiny, view regains attention. Recent sentiment shift triggered global tech volatility, exposing cracks in one of this year's hottest trades.  

 

"Investor confidence very unstable, very nervous," Morningstar Singapore equity analyst Jing Jie Yu in report, "When expectations so high, to push shares higher, all drivers and catalysts must perfect—slight miss disappoints."  

 

Samsung restarts M&A after eight years, reportedly forms deal team  

 

Industry sources Thursday (November 13) say Samsung Electronics new business support unit formed dedicated M&A team. This fuels expectations Korea tech giant to accelerate deals after eight-year "quiet period."  

 

Sources say business support unit operational last week. November 2017, Samsung Group closed Future Strategy Office, now new business support unit with dedicated M&A team.  

 

Team led by Samsung Electronics VP, M&A head Ahn Joong-hyun, who handled deals including U.S. auto electronics Harman International.  

 

Korea rice output down fourth straight year, planting area record low  

 

Korea government Thursday data shows 2025 rice output down fourth year, mainly due to record low planting area and diet changes.  

 

Per Korea data and statistics, this year rice output down 1.3% YoY to 3.54 million tons.  

 

Second lowest on record, only behind 2020's 3.51 million tons.  

 

Japan exchange reportedly studies curbing listed firms crypto hoarding  

 

As concerns grow over losses from crypto hoarding frenzy, Japan Exchange Group considering measures to limit growth of listed digital asset fund managers.  

 

Insiders say options include tightening backdoor listing rules, requiring new audits. Plans not public, requested anonymity. Adds no formal action decided yet.  

 

One insider says since September, due to Japan exchange obstruction, three listed Japan firms paused crypto buying plans; told if crypto buying business strategy, financing ability limited.  

Institutional views 

Nomura: Expect Fed pause rate cuts December  

 

Nomura Securities now expects Fed hold rates December, argues though U.S. government shutdown impacted official data, recent indicators show labor market resilient. Report to clients says Fed Chair Powell unexpectedly hawkish tone October press conference reinforces view Fed may pause after two cuts.

 

Pause could reignite political pressure on Fed, expect President Trump criticize as premature growth curb ahead election year.  

 

UBS: Gold price still in uptrend  

 

UBS analyst Giovanni Staunovo says, "Everyone waiting clearer government shutdown news, when U.S. data out. Before gold continues up, may steady temporarily... For gold price, still uptrend. Structure nothing changed." JPMorgan Wednesday report says expect central banks and consumers reliable buyers on dips, gold to over $5,000 by Q4 2026.  

 

Goldman predicts: U.S. stocks underperform emerging markets next decade  

 

Per U.S. media, Goldman strategists expect U.S. stocks continue lag global next decade. Analyst Peter Oppenheimer and team advise increase non-U.S. diversification, as high valuations limit returns. Expect S&P 500 6.5% annual return next 10 years, weakest region. Emerging markets strongest at 10.9%.

 

After decade tech surge and AI boom-driven outperformance, S&P 500 this year clearly lags global peers. Benchmark up 16%, MSCI world ex-U.S. up 27%. Strategists expect emerging earnings driven by strong China and India profit growth next years. Japan annual 8.2%, Europe 7.1% for investors.