APAC Market Wrap – Dec 18

Mainland China stock market: At the close, the Shanghai Composite rose 0.16%, the Shenzhen Component fell 1.29%, and the ChiNext Index fell 2.17%.

 

In terms of sectors, pharmaceutical distribution, banks, retail and others led the gains, while batteries, power grid equipment and others were among the biggest decliners.

 

Hong Kong stock market: At the close, the Hang Seng Index rose 0.12% to 25,498.13 points; the Hang Seng Tech Index fell 0.73% to 5,418.29 points; the H-Shares Index fell 0.02% to 8,841.51 points.  

 

From market performance, optical communications, consumer electronics, lithium batteries and others led declines, while coal, aviation and a few others rose against the trend.

 

Japanese stock market:The Nikkei Index fell 1.03% to 49,001.50 points.  

 

By industry, pulp, air transport, fisheries and others rose, while non-ferrous metals, electrical equipment, machinery and others declined.

 

Korean stock market:The KOSPI fell 1.53% to 3,994.51 points. Investment, diversified consumer services, biotech, securities and others rose, while electrical, power, chemicals, non-ferrous metals and others declined.

 

Australian stock market:The S&P/ASX 200 rose 0.03% to 8,588.200 points. Credit, agriculture, education and others rose, while hardware, waste management, other energy and others declined.

 

Singapore stock market:The FTSE Singapore Straits Times Index STI fell 0.11% to 4,570.61 points. Medical distribution, apparel, medical equipment and others rose, while industrial products, industrial distribution, waste management and others declined.

 

Malaysian stock market:The FTSE Malaysia KLCI rose 0.33% to 1,646.90 points. Consumer goods, utilities, transport & logistics and others rose, while business trusts, tech, medical insurance and others edged lower.

Key Events  

Extreme “AI bubble” spectacle: Indian meme stock surges 550x in nearly two years, 149 consecutive limit-ups  

 

While global mainstream markets worry about an “AI bubble” in recent days, an Indian AI meme stock that has quietly surged for two years has redefined speculation for global investors.  

 

Background: Indian-listed semiconductor concept stock RRP Semiconductor has soared over 55,000% in the 20 months to December 17, reaching a $1.7 billion market cap. Among global stocks over $1 billion market cap, RRP Semiconductor tops the same-period gain list.  

 

This produced an extremely rare K-line chart: almost all limit-up bars. Statistics show that despite India’s regulators repeatedly tightening trading restrictions (including capping daily gains at 2%), RRP Semiconductor still posted 149 consecutive limit-ups. As the latest measure, the stock has traded only one day per week since November.

 

Eastern AI “shocks” Wall Street! U.S. investors pile into Chinese tech ETFs this year  

 

With billions of dollars “voting with their feet” this year, U.S. investors seem increasingly enamored with China’s tech self-reliance vision — and this enthusiasm could carry into the new year.  

 

Compiled industry data shows major U.S.-listed China tech ETFs have seen heavy inflows in 2025 YTD, while non-tech focused funds suffered outflows.

 

After U.S. tightens Venezuela oil blockade, investors find alternative plays  

 

With the U.S. escalating sanctions on Venezuela, the country’s market is in high chaos. CCTV reports major oil storage facilities and anchored tankers are rapidly filling with crude, expected to reach maximum capacity in 10 days — potentially forcing PDVSA to shut some wells.  

 

Trading and messaging sources say Venezuela oil buyers are demanding larger discounts and spot contract revisions from PDVSA.  

 

Discounts for flagship Merey heavy crude to China have widened to $21 below benchmark Brent, from $14–15 last week, mainly due to rising tanker risks from “war clauses.”

Institutional Views  

Saxo Bank: Gold increasingly seen as cornerstone asset  

 

Saxo Bank analyst Ole Hansen wrote that in a world of fragmentation, fiscal strain, and geopolitical uncertainty, gold is increasingly a cornerstone asset. Gold’s performance over the past two years reflects more than just a favorable macro cycle.

 

It signals deeper shifts in the global financial system where trust, diversification, and resilience are as important as yield and growth. Despite strong momentum, gold faces risks next year. Near-term, the most tangible risk comes from positioning and flows.

 

Gold and silver’s strong 2025 gains mean upcoming major commodity index rebalancing will trigger substantial futures selling, potentially causing significant short-term volatility.

 

iCapital: 10-year U.S. Treasury yield could reach 4.5% in H2 2026  

 

iCapital said in an outlook report it expects the 10-year U.S. Treasury yield to trade in the 4.0%–4.5% range in 2026, possibly hitting the upper end in the second half. “While we still see the 10-year yield fluctuating within this range at least early 2026, worsening deficit outlook could push it to 4.5%.”

 

The report said this could pressure risk assets and capital market activity.

 

ING: BOJ hike odds rising, but governor unlikely to sound hawkish  

 

ING senior economist Min Joo Kang wrote that strong Japanese exports raise BOJ hike odds Friday. November exports grew for the third straight month, October core machinery orders surged for the second month. Data suggests recovery from last quarter’s contraction.

 

Markets will watch Governor Ueda’s comments. With growing concerns over rising market rates, we expect Ueda won’t send hawkish signals at the press conference.