APAC Market Wrap - Nov 27
Mainland China stock market: At the close, the Shanghai Composite rose 0.29%, the Shenzhen Component fell 0.25%, and the ChiNext Index fell 0.44%.
In terms of sectors, organic silicon, batteries, consumer electronics and other sectors led the gains, while Hainan, cinema chains, AI applications and other sectors were among the biggest decliners.
Hong Kong stock market: Hong Kong’s three major indices showed mixed performance today. At the close, the Hang Seng Index rose 0.07% to 25,945.93; the Hang Seng Tech Index fell 0.36% to 5,598.05; the H-Shares Index rose 0.03% to 9,164.87.
From market performance, paper, new consumption, crypto-related stocks led the gains, while some internet & tech and pharmaceutical stocks weakened.
Japanese stock market: The Nikkei Index rose 1.23% to 50,167.1, closing above the key 50,000 level for the first time since November 17. The broader TOPIX Index rose 0.39% to 3,368.57.
By industry, electrical equipment, non-ferrous metals, mining, metal products edged higher; pharmaceuticals, oil & coal products, precision instruments, fisheries and other sectors declined.
Korean stock market: The KOSPI rose 0.66% to 3,986.91. Non-ferrous metals, roads, broadcasting & entertainment, healthcare and other sectors rose, while dual media, healthcare, financials, life sciences and other sectors fell.
Australian stock market: The S&P/ASX 200 rose 0.13% to 8,617.300. Restaurants, credit, semiconductors, building materials and other sectors rose, while industrial distribution, regulated utilities, interactive media and other sectors declined.
Singapore stock market: The FTSE Singapore Straits Times Index STI rose 0.17% to 4,509.34. By sector, personalized services, oil & gas, diversified media and other sectors rose, while industrial distribution, forestry products, travel & leisure, education and other sectors declined.
Malaysian stock market: The FTSE Malaysia KLCI fell 0.43% to 1,617.46. By sector, health insurance, transportation & logistics, real estate and other sectors rose, while closed-end funds, telecommunications & media, real estate and other sectors edged lower.
Key events
Bank of Korea expects semiconductor boom cycle to last at least until the end of next year
The Bank of Korea said on Thursday that the global semiconductor boom driven by artificial intelligence (AI) demand is expected to continue until the end of next year.
Deputy Governor Lee Ji-ho said at the day’s economic outlook briefing: “At present, the semiconductor boom cycle is expected to continue into next year, but it is difficult to predict whether it will last until 2027.”
He added: “Semiconductor upcycles usually last about two years, but the current upcycle may be prolonged due to the global AI boom. If it lasts until the end of 2026, its duration will be comparable to the IT bubble around 2000.”
After 14 months, Indian stocks hit all-time highs again
India’s two benchmark indices — the Nifty 50 and the BSE Sensex — both refreshed their all-time highs on Thursday, the first simultaneous record highs in about 14 months. Analysts said this was mainly driven by expectations of earnings recovery, earlier valuation pullbacks, and economic resilience supported by fiscal and monetary policy…
Market data showed the Nifty 50 rose as much as 0.4% intraday to 26,310.45, while the Sensex rose as much as 0.5% to 86,055.86, both breaking the previous all-time highs set in September 2024.
Gold to keep shining next year? Wall Street giants remain firmly bullish: another 20% upside is no dream
Wall Street heavyweights generally believe the explosive momentum that has repeatedly pushed gold prices to new highs this year may continue into 2026. They expect gold to extend its record-breaking rally, rising another ~20% by 2026.
Year-to-date, gold is up around 57%, one of the best performances in decades. This rally has been driven by a series of bullish forces such as increased central bank purchases, persistently high inflation, and investor concerns about U.S. economic strength and tariffs.
“Cathie Wood” reduces Tesla, buys Coinbase and Deere shares
Ark Investment Management founder Cathie Wood’s flagship ARKK fund sold 27,102 Tesla shares worth about $11.6 million on Wednesday.
The trade came as Tesla shares rose significantly, closing Wednesday at $426.58, up 1.71%.
Recently, Tesla’s market cap has surged $90 billion on excitement over its AI and autonomous driving plans. However, analysts remain concerned about the core business, saying the latest quarterly results sent mixed signals.
Ark added to Coinbase on the same day, buying a total of 62,166 shares worth about $16.5 million across multiple ETFs. Coinbase closed at $264.97, up 4.27%.
Institutional views
JPMorgan: Expects Fed to cut rates in December, overturning its prediction from a week ago
JPMorgan economists changed their forecast, now expecting the Fed to start cutting rates in December — reversing the bank’s view from a week earlier that policymakers would delay cuts until January next year.
A research team led by U.S. chief economist Michael Feroli said on Wednesday that supportive comments from several heavyweight Fed officials (especially New York Fed President Williams) prompted them to reassess the outlook. After the delayed September jobs report was released last week, JPMorgan had originally forecast rates would remain unchanged in December.
Morgan Stanley: No longer bullish on GBP, budget-driven gains will fade
Morgan Stanley has closed its bullish recommendation on the pound, noting the currency has likely seen its last positive catalyst in the near term. Strategists including David Adams wrote that while the pound may see a brief quick pop after Wednesday’s UK budget announcement, the gains are likely to fade.
They added that with GBP/USD correlation to equities now near zero and a lack of positive domestic drivers in the short term, the currency pair’s appeal has been hit. The strategists wrote: “With the budget now behind us, we think the pound may at best have one last hurrah — the unwinding of budget hedges — but ultimately there is too little reason to stay long GBP/USD.”
Fitch: Japan’s new stimulus plan may pose risks to its rating
Fitch Ratings warned that if Japan’s new stimulus package leads to persistently loose policy and pushes government debt higher, it could increase fiscal risks. While the package is large (around 3.4% of GDP), its true fiscal impact remains unclear as some measures involve non-fiscal tools, span multiple years, or carry implementation risks.
Fitch said Japan still has rating buffers after recent fiscal improvement, but continued spending increases or rising real interest rates could jeopardize the country’s current A/Stable rating.