APAC Market Wrap – Dec 22
Mainland China stock market:At the close, the Shanghai Composite rose 0.69%, the Shenzhen Component rose 1.47%, and the ChiNext Index rose 2.23%.
In terms of sectors, Hainan Free Trade Zone, precious metals, computing hardware and others led the gains, while pharmaceutical distribution, film & cinema chains, education, banks and others were among the biggest decliners.
Hong Kong stock market:Hong Kong’s three major indices all closed higher today. At the close, the Hang Seng Index rose 0.43% to 25,801.77 points; the Hang Seng Tech Index rose 0.87% to 5,526.83 points; the H-Shares Index rose 0.43% to 8,939.68 points.
From market performance, non-ferrous metals, semiconductors, optical communications and others strengthened.
Japanese stock market:The Nikkei Index rose 1.81% to 50,402.39 points.
By industry, non-ferrous metals, electrical equipment, machinery and others rose, while land transport, air transport, other products and others declined.
Korean stock market:The KOSPI rose 2.12% to 4,105.93 points.
Venture capital, communications equipment, non-ferrous metals, semiconductors and others rose, while roads, retailers, display panels and others declined.
Australian stock market:The S&P/ASX 200 rose 0.91% to 8,699.900 points.
Semiconductors, aerospace, agriculture and others rose, while apparel, medical distribution, packaging & containers and others declined.
Singapore stock market:The FTSE Singapore Straits Times Index STI rose 0.89% to 4,610.29 points.
Forestry products, industrial products, semiconductors and others rose, while restaurants, furniture, education and others declined.
Malaysian stock market:The FTSE Malaysia KLCI rose 0.32% to 1,671.29 points. Industrials, construction, transport & logistics and others rose, while telecom & media, energy, plantations and others edged lower.
Key Events
Yen depreciation unrelenting – traders worry Japan government may be forced to intervene
After the BOJ hiked rates last Friday only to see the yen plunge rather than rise, Japan’s top official in charge of forex affairs expressed concern Monday. Traders are now weighing the prospect of forced government intervention.
As of press time, EUR/JPY hit a new all-time high Monday — equivalent to JPY hitting a record low vs EUR. Offshore CNH/JPY also oscillated after hitting a record high Friday, while USD/JPY stayed near yearly lows at 157.5.
Year-end approaching! SoftBank accelerates fundraising for OpenAI investment – AI reignites Japanese stocks
Japanese investment giant SoftBank is rushing to raise funds to fulfill its commitment to invest an additional $22.5 billion in OpenAI by year-end. Insiders say SoftBank is considering selling part of its stake in chip designer Arm or other listed holdings.
In March this year, SoftBank agreed to invest up to $40 billion in OpenAI, with SoftBank bearing $30 billion after consortium partners took $10 billion. The first $7.5 billion tranche was completed in Q1. Originally, the $22.5 billion follow-on was conditional on OpenAI restructuring, but in October SoftBank’s board removed the condition, confirming the investment by year-end.
Monday, news of SoftBank’s OpenAI deal reignited AI enthusiasm in Japanese stocks — SoftBank closed up 4.09%, Nikkei up 1.81%, shrugging off last week’s hike shadow, suggesting investors ignore tightening when AI prospects brighten.
Gold and silver both hit all-time highs! Geopolitical tensions boost safe-haven demand – spot gold above $4,390
Early Monday Asia session, international gold and silver prices both hit record highs — spot gold topping $4,390 for the first time, silver nearing $69 — as escalating geopolitical tensions boosted safe-haven demand.
Data shows spot gold at $4,386.7/oz, up over 1% intraday with a high above $4,390. COMEX gold futures at $4,419.2/oz, up over 0.7%.
Amid concerns over Iran “expanding ballistic missile production,” Israeli PM Netanyahu is preparing to tell President Trump that Israel may strike Iranian facilities again.
Reports say Trump and Netanyahu are expected to meet later this month at Mar-a-Lago in Florida. Netanyahu may argue Iran’s missile project expansion threatens not only Israel but regional security and U.S. interests, requiring swift military action.
Institutional Views
Goldman Sachs: Global stock bull market to continue in 2026 – recommend diversified investment
Goldman Sachs’ latest report says the global stock bull trend could extend further in 2026 as earnings growth persists across markets, with returns no longer confined to U.S. tech.
In Goldman’s latest global equity strategy outlook, the bank remains bullish on stocks next year but expects index returns lower than 2025.
The strategist team led by Peter Oppenheimer forecasts ~13% average global stock price gains in 2026, or near 15% including dividends — driven mainly by earnings, not valuation expansion.
UBS: FOMO and bubble anxiety signal more volatility in 2026 stocks
UBS analysts say U.S. stocks will remain tense next year as investors fear missing AI gains while worrying it’s a bubble about to burst. Sharp drops and quick reversals have characterized the past 18 months. This trend could persist into 2026. Some strategists expect AI to follow past tech revolution boom-bust cycles.
JPMorgan: BOJ may continue hiking
JPMorgan economist Ayako Fujita wrote that the BOJ may continue hiking to ease yen weakness concerns. Governor Ueda said Friday some committee members expressed worry over yen depreciation’s future inflation impact.
Many reporters questioned whether sustained yen weakness stems from delayed BOJ normalization. JPMorgan expects two BOJ hikes next year (April and October), bringing policy rate to 1.25% by end-2026.