APAC Market Wrap - Nov 20
Mainland China stock market: Chinese stocks closed lower. The Shanghai Composite fell 0.4%, the Shenzhen Component dropped 0.76%, and the ChiNext Index declined 1.12%. Gains were led by Hainan-related stocks and banks, while beauty care, solar equipment, and food processing were the biggest laggards.
Hong Kong stock market: Hong Kong indices remained range-bound. The Hang Seng Index edged up 0.02% to 25,835.57, the Hang Seng Tech Index fell 0.58% to 5,574.59, and the State-owned Enterprises Index dipped 0.08% to 9,143.34. Real estate developers, brokerages, and banks outperformed; lithium battery and gaming stocks lagged.
Japanese stock market: The Nikkei 225 surged 2.65% to close at 49,823.94. Oil & coal, retail, real estate, and construction posted modest gains, while machinery and fishery stocks saw small declines.
South Korean stock market: The KOSPI rose 1.92% to 4,004.85. Financials, hotels, healthcare, and biotech advanced strongly; tobacco, paper, and autos were among the decliners.
Australian stock market: The ASX 200 gained 1.24% to 8,552.70. Agriculture, medical diagnostics, steel, and apparel rose, while aerospace, agribusiness, and hardware names weakened.
Singapore stock market: The Straits Times Index (STI) was nearly flat, up just 0.01% at 4,502.22. Agriculture, healthcare, pharmaceuticals, and semiconductors gained, offset by weakness in property development, power, and utilities.
Malaysian stock market: The KLCI fell 0.24% to 1,619.96. Closed-end funds, technology, and real estate edged higher, while telecom & media, energy, and healthcare drifted lower.
Key events
One set of documents, dual listing: Singapore Exchange and Nasdaq to launch “Global Listing Board”
To attract top regional tech companies, Singapore will allow issuers with a market cap of at least S$2 billion to file a single set of documents and list simultaneously on both SGX and Nasdaq. The “Global Listing Board” is scheduled to launch in mid-2026.
Indonesia in talks with Singapore and Malaysia over trilateral data-center project
Coordinating Minister Airlangga Hartarto said the three countries are discussing a joint data-center cluster located in Indonesia, Singapore, and Johor, though details remain limited.
Japan preparing its largest stimulus package since the pandemic
A draft shows a ¥21.3 trillion plan — much larger than last year’s ¥13.9 trillion — aimed at cushioning households from inflation. Markets have sold off the yen and JGBs in anticipation of looser fiscal policy under PM Sanae Takaichi.
Yen and won lead Asian currency weakness
USD/JPY broke above 157 overnight, the highest since January. The won has fallen roughly 3% over the past month, making it the second-worst performer in Asia after the yen. Korean authorities have vowed to work with the National Pension Service and other major players to defend the currency.
Institutional views
UBS raised its S&P 500 year-end 2025 target to 6,900 and upgraded U.S. equities to “attractive.” It expects limited impact from AI valuation concerns and forecasts the MSCI Emerging Markets Index up ~9% and Asia ex-Japan up ~11% in 2026, with a particular liking for Chinese AI names.
Citi describes U.S. investors as “reluctant bulls” — worried about valuations and AI bubbles but still heavily long. The bank has kept its overweight call on China since July and sees global capital rotating back into Asia-Pacific.
Citi’s latest fund-manager survey shows Japan as the top pick in the region. Nearly 80% expect positive returns from Japanese stocks over the next 12 months, with zero respondents forecasting a double-digit drop. Semiconductors and banks are the most favored sectors. Over 90% are bullish on Asia-Pacific ex-Japan over the coming year.
JPMorgan believes the AI-driven semiconductor upcycle will extend through 2027, with global revenue growth of 18% in 2026 and 11% in 2027. It keeps TSMC as a top pick and recommends Asian tech names tied to generative AI and cloud expansion.