APAC Market Wrap – Dec 3
Mainland China stock market: At the close, the Shanghai Composite fell 0.51%, the Shenzhen Component fell 0.78%, and the ChiNext Index fell 1.12%.
In terms of sectors, lab-grown diamonds, coal, wind power equipment and other sectors led the gains, while AI applications, lithium mining and other sectors were among the biggest decliners.
Hong Kong stock market: Hong Kong’s three major indices all adjusted lower today. At the close, the Hang Seng Index fell 1.28% to 25,760.73 points; the Hang Seng Tech Index fell 1.58% to 5,534.92 points; the H-Shares Index fell 1.68% to 9,028.55 points.
From market performance, home appliances, coal, and gold stocks performed strongly, while tech, pharmaceutical, and auto stocks underwent corrections.
Japanese stock market: The Nikkei Index rose 1.14% to 49,864.68 points.
By industry, non-ferrous metals, services and other sectors edged higher; banks, power utilities, retail and other sectors declined.
Korean stock market: The KOSPI rose 1.04% to 4,036.30 points. Roads, diversified telecom services, utilities and other industries rose, while other financials, life sciences, healthcare, internet and other sectors fell.
Australian stock market: The S&P/ASX 200 rose 0.18% to 8,595.200 points. Semiconductors, furniture, independent power, other energy and other sectors rose, while forestry products, packaging & containers, medical diagnostics and other sectors declined.
Singapore stock market: The FTSE Singapore Straits Times Index STI rose 0.36% to 4,554.52 points. By sector, transportation, medical equipment, defensive retail, packaging & containers and other sectors rose, while furniture, interactive media, auto & parts, cyclical retail and other sectors fell.
Malaysian stock market: The FTSE Malaysia KLCI fell 0.48% to 1,622.84 points. By sector, closed-end funds, technology, business trusts and other sectors rose, while telecom & media, REITs, consumer and other sectors edged lower.
Key Events
Taiwan prosecutors indict Tokyo Electron subsidiary over trade-secret theft – Tokyo Electron: No impact on parent company performance
Multiple media reports state that Taiwan prosecutors announced on Tuesday that they have filed multiple charges against Tokyo Electron’s Taiwan subsidiary, including violations of trade-secret laws, and are asking the court to fine the subsidiary for failing to prevent theft.
In August, a former employee of Tokyo Electron Taiwan was accused of stealing TSMC trade secrets. TSMC later confirmed its 2nm technology had been leaked, and Tokyo Electron admitted one of its Taiwan employees surnamed Chen was involved.
The indictment marks an escalation in tensions between two Asian chip industry pillars. Tokyo Electron said in a Wednesday statement that since its Japanese parent company was not indicted, the matter has no financial impact.
Japan exposed for round-the-clock construction of military base
Japanese media revealed that a roughly 2,000-meter runway is being built on Mage Island for U.S. carrier-based aircraft land-training and other activities.
To meet the March 2030 completion deadline, construction continues on weekends and at night. In addition to two runways, the island will also have mooring facilities capable of accommodating large destroyers.
U.S. government suspends immigrant applications from 19 countries
Officials say the U.S. has paused immigrant applications from 19 countries restricted earlier this year.
The pause applies to applicants from Iran, Sudan, Eritrea, Haiti, Somalia and others on the U.S. June ban list who are applying through U.S. Citizenship and Immigration Services (USCIS).
USCIS spokesman Matthew Tragesser confirmed the pause, saying “citizenship is a privilege, not a right.”
The U.S. government has not yet officially confirmed the news.
Institutional Views
Deutsche Bank: If next Fed Chair fails to tackle inflation risks effectively, dollar could face downward pressure
Deutsche Bank analyst Antje Praefcke noted that if the next Fed Chair responds to President Trump’s rate-cut calls while inflation remains high, the dollar could come under pressure. Expected nominee Kevin Hassett is seen as a loyal Trump supporter, increasing the likelihood of Fed cuts.
Failure to contain inflation risks would be negative for the currency. She said that even the mere market expectation of a more dovish Fed stance on inflation is enough to pressure the dollar.
Nomura: Indian stocks expected to rise another 12% over the next year
Nomura forecasts the Nifty 50 to reach 29,300 by end-2026 – about 12% above current levels – as cyclical momentum and earnings growth regain strength under supportive policies. Indian stocks hit a 14-month high last week, supported by strong domestic inflows.
BNP Paribas: Global economy to remain resilient in 2026, easing policy + AI investment forming joint support
In its 2026 Global Economic Outlook, BNP Paribas says the global economy will show resilience next year. “Monetary easing, fiscal stimulus, and solid household balance sheets have together helped the economy withstand multiple headwinds,” analysts said. AI investment and falling oil prices also provide support.
Risks this year (especially tariff-driven inflation) have proven milder than feared. The bank believes further rate cuts in the U.S. and emerging markets will consolidate existing growth momentum, keeping global activity robust. BNP Paribas forecasts 1.9% U.S. growth and 1.5% eurozone growth in 2026.
BofA Securities: Japan 10-year yield expected to reach 2% by end-2026
Driven by wage growth, fiscal expansion, and BOJ rate hikes, BofA forecasts the 10-year JGB yield to hit 2% by end-2026. Given expected net increase in JGB supply, BofA recommends staying short duration and preferring a steeper yield curve.
Ongoing BOJ QE tapering and higher government spending will push up net JGB supply, while domestic demand – mainly from pension funds – remains insufficient to absorb the new issuance.