APAC Market Wrap – Dec 1
Mainland China stock market: At the close, the Shanghai Composite rose 0.65%, the Shenzhen Component rose 1.25%, and the ChiNext Index rose 1.31%.
In terms of sectors, consumer electronics, non-ferrous metals and other sectors led the gains, while internet e-commerce, insurance, batteries and other sectors were among the biggest decliners.
Hong Kong stock market: Hong Kong’s three major indices all strengthened. At the close, the Hang Seng Index rose 0.67% to 26,033.26 points; the Hang Seng Tech Index rose 0.82% to 5,644.76 points; the H-Shares Index rose 0.47% to 9,172.84 points.
From market performance, non-ferrous metals, precious metals and auto stocks led the gains, while crypto-related stocks generally pulled back.
Japanese stock market: The Nikkei Index fell 1.89% to 49,303.28 points.
By industry, banks and insurance edged higher; power utilities, mining, non-ferrous metals, real estate and other sectors declined.
Korean stock market: The KOSPI fell 0.16% to 3,920.37 points. Shipping, retail, hotels, banks and other sectors rose, while power, electrical equipment, aerospace & defense, healthcare and other sectors fell.
Australian stock market: The S&P/ASX 200 fell 0.57% to 8,565.200 points.
Metals & mining, oil & gas, alcoholic beverages and other sectors rose, while medical equipment, semiconductors, industrial distribution, credit services and other sectors declined.
Singapore stock market: The FTSE Singapore Straits Times Index STI rose 0.05% to 4,526.22 points.
By sector, furniture, education, industrial products, business services and other sectors rose, while forestry products, personalized services, diversified media and other sectors declined.
Malaysian stock market: The FTSE Malaysia KLCI rose 1.25% to 1,624.57 points.
By sector, telecommunications & media, consumer goods, financial services and other sectors rose, while closed-end funds, technology, construction and other sectors edged lower.
Key events
Israeli military orders: Senior officers banned from using Android phones, must switch to iPhone
On November 26 local time, according to Israel Army Radio, the Israel Defense Forces will introduce new rules prohibiting the use of Android phones on military-issued lines and requiring lieutenant colonels and above to use Apple iPhones for official communications.
The move aims to reduce the risk of senior officers’ phones being hacked and strengthen information security.
Bitcoin plunges below $86,000! Market just seemed stable, selling panic erupts again
During Monday (December 1) Asian session, cryptocurrency prices broadly tumbled as investor risk-off sentiment surged again. The selling wave that appeared to be calming last week has reignited.
In early Asian trading, Bitcoin fell nearly 6% intraday, breaking below $86,000; Ethereum dropped more than 7% to around $2,800; most other tokens showed similar moves, with Solana down 7.8%.
After weeks of selling pressure, the cryptocurrency market remains highly unstable. This wave began in early October shortly after Bitcoin hit its all-time high, when roughly $19 billion in leveraged crypto positions were liquidated.
Strongest rate-hike signal yet? BOJ Governor hints at considering hike, yen jumps
On Monday, Bank of Japan Governor Kazuo Ueda publicly stated that the BOJ will assess the “pros and cons” of raising interest rates at its next policy meeting – the clearest signal this year that the BOJ may hike later this month.
The yen and Japanese bond yields rose immediately on the comments.
Korea November exports rise for sixth straight month, chip exports hit record high amid storage boom
Korea’s November exports grew for the sixth consecutive month and exceeded market expectations, driven by record semiconductor exports on strong demand, while auto exports also surged sharply after trade agreements with the U.S.
The latest trade data released on Monday showed that exports – a bellwether for global trade from Asia’s fourth-largest economy – rose 8.4% year-on-year to $61.04 billion, well above the median economist forecast of 5.7% growth and higher than October’s 3.5% increase.
In November, Korean semiconductor exports soared 38.5% year-on-year to a monthly record of $17.26 billion, fueled by robust demand for high-end chips used in data centers and rising memory chip prices.
Institutional views
Barclays economists said in a report that the probability of a 25 bps cut at the December 9-10 meeting is very high, with market pricing now over 80%. They expect Powell to vote for the cut and join a camp that includes at least Waller, Bowman, Williams, Jefferson, Cook and Barr.
However, they anticipate strong internal dissent, with at least two hawkish dissents from Schmid and Musalem, and one from Goolsbee or Collins.
Société Générale rate strategists said in a report that upcoming economic data should continue to show U.S. economic resilience, sticky inflation and a slightly worsening labor market; nonetheless, U.S. Treasury yields still have room to decline by the end of 2026.
After the December cut, they expect two more cuts next year, with the 2-year yield settling down to 3.20% and the 10-year to 3.75% by end-2026.
ANZ analysts at Sucden Financial noted gold edged higher in early Asian trading. The precious metal may be supported by irregular CME trading hours and the Fed’s continued dovish tilt.
The ANZ research team said Fed policymakers have hinted at lower borrowing costs, which is positive for gold as a non-yielding asset.
Nomura analysts said in a report that crude palm oil prices may rise this week due to concerns over lower Malaysian production and rising prices of other edible oils.
Adverse weather in Malaysia and Indonesia is expected to drag on supply, with Malaysian authorities confirming monsoon-triggered floods and landslides in parts of the country.
In the week ending November 27, crude palm oil prices fell more than 2%, partly due to a stronger ringgit and worries over declining exports. Recent CPO prices stand at MYR 4,114 per tonne, according to LSEG data.