APAC Market Wrap – Dec 10
Mainland China stock market: At the close, the Shanghai Composite fell 0.23%, the Shenzhen Component rose 0.29%, and the ChiNext Index fell 0.02%.
In terms of sectors, Hainan, precious metals, retail and others led the gains, while lab-grown diamonds, banks, organic silicon and others were among the biggest decliners.
Hong Kong stock market: Hong Kong’s three major indices all closed in the green. At the close, the Hang Seng Index rose 0.42% to 25,540.78 points; the Hang Seng Tech Index rose 0.48% to 5,581.10 points; the H-Shares Index rose 0.20% to 8,954.69 points.
From market performance, shipping, paper, oil and other stocks weakened, while gold, lithium batteries, and real estate stocks strengthened.
Japanese stock market: The Nikkei Index fell 0.10% to 50,602.80 points.
By industry, 22 out of 33 sectors rose, while 11 declined (other products, electrical equipment, precision instruments, etc.).
Korean stock market: The KOSPI fell 0.21% to 4,135.00 points. Biotech, broadcasting & entertainment, life sciences and others rose, while aerospace & defense, trading, shipping and others declined.
Australian stock market: The S&P/ASX 200 fell 0.08% to 8,8579.400 points. Aerospace, diversified financials, homebuilding and others rose, while furniture, industrial distribution, healthcare services and others declined.
Singapore stock market: The FTSE Singapore Straits Times Index STI fell 0.03% to 4,511.90 points. Industrial distribution, education, waste management and others rose, while forestry products, apparel, personalized services and others declined.
Malaysian stock market: The FTSE Malaysia KLCI fell 0.20% to 1,611.00 points. Tech, energy, closed-end funds and others rose, while healthcare, telecom & media, real estate and others edged lower.
Key Events
Korea unveils ₩700 trillion long-term investment plan – aims to build world’s largest chip cluster
Korea announced on Wednesday (Dec 10) a long-term investment plan to inject ₩700 trillion (~$534 billion) into its semiconductor industry to create the world’s largest chip cluster and gain an edge in the AI chip race.
The government wants to transform Korea’s semiconductor market from memory-centric to a balanced, innovation-driven ecosystem covering the entire value chain.
Amazon deepens India commitment – to invest $35 billion by 2030
Amazon said on Wednesday (Dec 10) it plans to invest over $35 billion in India by 2030 to expand operations and boost local AI capabilities – making it the latest global tech giant to double down in the world’s most populous country.
The new investment will focus on business expansion and three strategic pillars: AI-driven digital transformation, export growth, and job creation. The company aims to create an additional 1 million direct, indirect, induced, and seasonal jobs in India by 2030.
U.S. energy storage demand surges – Samsung SDI lands ₩2 trillion+ LFP battery deal
Samsung SDI announced its U.S. subsidiary has signed a contract worth over ₩2 trillion (~$1.36 billion) to supply LFP batteries for energy storage systems to a U.S. energy infrastructure developer/operator. This accounts for at least 15% of Samsung SDI’s expected 2025 revenue (~₩13 trillion). Deliveries will run for three years starting 2027, with production via retooled U.S. factory lines.
Institutional Views
JPMorgan: MSCI China could rise nearly 20% next year – focus on “anti-involution”
JPMorgan Chief China Equity Strategist Liu Mingdi said the bank is optimistic on both MSCI China and CSI 300 components next year, mainly driven by earnings growth, believing both can deliver 15% EPS growth. JPM sets MSCI China target at 100 (~18% upside) and CSI 300 at 5,200 (~12% upside).
Nomura: Latest Fed forecasts may reflect inflation easing over coming quarters
Nomura Capital Management said its baseline before mid-November was no Fed move in December. CIO Matthew Palley noted recent data pointing to slowing inflation and softening labor market make another cut possible.
New economic projections should reflect inflation easing in coming quarters, opening the door to further easing.
BNY Mellon: Market widely expects Fed cut – voting splits and dot plot will be key
BNY Mellon analysts said markets price ~90% odds of a 25 bps cut Wednesday, but investors should watch voting splits for guidance. “There are also points to watch: how much support there is within the committee for the expected pace of cuts – will we see dissents like October?”
Additionally, the Fed will release updated rate path (dot plot) as part of quarterly SEP. “Finally, we’ll likely hear the Fed announce readiness to provide liquidity support into year-end and 2026.”
Deutsche Bank: Global monetary policy shifting – rate-hike expectations rising in many countries
Deutsche Bank Global Macro Research Head Jim Reid noted traders are betting many central banks’ easing cycles will slow or end. “Strikingly, markets in more countries are pricing the next move as a hike.” If even the U.S. goes this route, it would upend next year’s risk-asset performance and economic outlook.”
Nomura: Doubts over BOJ hiking may cap yen strength
Nomura Global FX Strategy team said market skepticism that the BOJ will lift rates to 1.00% or higher is limiting yen gains. “Despite recent hints of a possible December hike, yen appreciation pressure hasn’t intensified significantly, with USD/JPY staying above 155.” Unless investors see more hawkish BOJ statements willing to push real rates from negative territory higher, they’ll find it hard to build large yen longs.