APAC Market Wrap – Dec 23

Mainland China stock market:At the close, the Shanghai Composite rose 0.07%, the Shenzhen Component rose 0.27%, and the ChiNext Index rose 0.41%.

 

From a sector perspective, lithium batteries strengthened, semiconductor equipment concepts remained active, non-ferrous tungsten concepts performed strongly, commercial aerospace rose then pulled back, and tourism concepts saw multiple stocks decline.

 

Hong Kong stock market:Hong Kong’s three major indices all adjusted lower. At the close, the Hang Seng Index fell 0.11% to 25,774.14 points; the Hang Seng Tech Index fell 0.69% to 5,488.89 points; the H-Shares Index fell 0.29% to 8,913.83 points.  

 

From market performance, food, power equipment, lithium batteries and a few others rose against the trend, while optical communications and internet tech-related stocks were weak.

 

Japanese stock market:The Nikkei Index rose 0.02% to 50,412.87 points.  

 

By industry, air transport, securities, pharmaceuticals and others rose, while transportation equipment, non-ferrous metals, rubber products and others declined.

 

Korean stock market:The KOSPI rose 0.28% to 4,117.32 points. Roads, North Korea-related, broadcasting & entertainment and others rose, while venture capital, other financials, communications equipment and others declined.

 

Australian stock market:The S&P/ASX 200 rose 1.10% to 8,795.700 points. Aerospace, apparel, healthcare and others rose, while auto & parts, consumer goods, restaurants and others declined.

 

Singapore stock market:The FTSE Singapore Straits Times Index STI rose 0.62% to 4,638.97 points. Healthcare services, business services, transportation and others rose, while education, interactive media, diversified financials and others declined.

 

Malaysian stock market:The FTSE Malaysia KLCI rose 0.32% to 1,676.64 points. Telecom & media, real estate, utilities and others rose, while transport & logistics, closed-end funds, energy and others edged lower.

Key Events  

Ready to intervene? Japan’s Finance Minister issues strongest warning yet: Yen plunge detached from fundamentals!  

 

Amid sharp yen depreciation, Japan’s Finance Minister Sayuri Katayama issued her strongest warning to date on Tuesday, hinting the government is prepared to intervene in the currency market. She said Japan retains sovereign discretion in addressing excessive yen volatility.  

 

“This is driven by speculation and absolutely does not reflect fundamentals,” Katayama said at a press conference.  

 

Last Friday, the BOJ raised rates 25 bps to 0.75% — the highest in 30 years. The move was widely anticipated, so the yen only briefly strengthened before quickly retreating.  

 

“Memory shortage” reshapes Apple supply chain – Samsung reportedly to capture 60-70% of iPhone 17 DRAM  

 

Samsung Electronics has long played a key role in Apple’s supply chain, and as the global “memory shortage” intensifies, Apple is significantly increasing reliance on Samsung for iPhone memory chips.  

 

Reports say Apple will boost Samsung’s share of low-power DRAM for iPhone 17 to 60-70%, while previous generations had more balanced shares with SK Hynix and smaller Micron involvement.  

 

This shift comes amid tightening global memory supply.

 

Gold, silver, platinum, palladium surge – global “currency debasement trade” returning?  

 

Earlier this year when the “currency debasement trade” first emerged, former IIF chief economist and current Brookings senior fellow Robin J Brooks repeatedly discussed whether it truly existed.  

 

This week, with gold, silver, platinum, and palladium all surging again, he wrote Tuesday that the question is settled!  

 

As shown in the chart, since the Fed’s Jackson Hole symposium in August, silver has soared 76% in four months, palladium +65%, platinum +45%, while gold — the usual rally leader — lagged with “only” 30% gains.

Institutional Views  

Mizuho Securities: Gold and silver hit new highs – geopolitical spillover, but momentum questionable  

 

Analysts note international gold and silver futures both set records. U.S. seizure of Venezuelan tankers injected new uncertainty into an already tense geopolitical landscape with Russia-Ukraine and other pressures. However, in this holiday-shortened week, the situation may not sustain record highs.

 

Mizuho Securities U.S. analyst Robert Yawger wrote: “Expecting Venezuelan safe-haven flows to push gold much higher may be overly optimistic.”

 

Mitsubishi UFJ: Yen intervention unlikely to succeed without addressing fiscal risks  

 

Mitsubishi UFJ FX Research Head Derek Halpenny said Japanese authorities intervening to support the yen would likely fail without properly managing fiscal risks. Japan’s government is expected to pass the FY2026 budget Friday, and investors worry it may include outsized departmental spending.

 

If so, it could trigger JGB price drops and further yen depreciation. He warned: “The Finance Ministry may be forced to intervene, but success is highly uncertain.”

 

Mitsubishi UFJ: Dollar could weaken further in 2026  

 

Mitsubishi UFJ FX Research Head Derek Halpenny said the dollar may continue depreciating in 2026, but more moderately than this year. “Our base case is the dollar has topped and is starting a multi-year downcycle.” The bank forecasts ~5% DXY decline in 2026, consistent with EUR/USD rising to 1.24.

 

The main driver is policy divergence: the Fed likely cutting 3-4 times in 2026 while the ECB holds, supporting euro and weakening dollar relative attractiveness.