APAC Market Wrap – Dec 26
Mainland China stock market:At the close, the Shanghai Composite rose 0.1%, the Shenzhen Component rose 0.54%, and the ChiNext Index rose 0.14%.
From a sector perspective, commercial aerospace concepts continued to surge, Hainan Free Trade concepts remained active. On the downside, paper, baijiu (white liquor), computing hardware and others led declines.
Hong Kong stock market:Closed for holiday.
Japanese stock market:The Nikkei Index rose 0.68% to 50,750.39 points.
By industry, other products, retail, shipping and others rose, while non-ferrous metals, glass, mining and others declined.
Korean stock market:The KOSPI rose 0.51% to 4,129.68 points.
Other products, retail, shipping and others rose, while non-ferrous metals, glass, mining and others declined.
Australian stock market:Closed for holiday.
Singapore stock market:The FTSE Singapore Straits Times Index STI fell 0.19% to 4,636.15 points. Forestry products, personalized services, building materials and others rose, while industrial products, asset management, defensive retail and others declined.
Malaysian stock market:The FTSE Malaysia KLCI fell 0.07% to 1,677.10 points. Closed-end funds, business trusts, utilities and others rose, while construction, healthcare, tech and others declined.
Key Events
Japan’s small IPOs cool off: Tokyo Stock Exchange new rules trigger shift – number falls to 12-year low
This year, Japan’s small IPOs (under $50 million) dropped to the lowest in over a decade, mainly as prior Tokyo Stock Exchange reforms prompted some private firms to reconsider listing.
Data shows 43 small IPOs in Japan this year — the fewest since 2013.
Historically, small deals dominate Japan’s IPO market. From 2015–2024 average, small IPOs accounted for ~82% of total volume.
While small IPO numbers hit a 12-year low, Japan’s overall IPO fundraising reached a 7-year high, driven by large listings like semiconductor materials supplier JX Advanced Metals and SBI Shinsei Bank — raising $2.979B and $2.067B, ranking among the global top 10 this year.
Japan bolsters “AI nation” strategy: Next year’s budget to nearly triple chip and AI support
Reports say Friday (Dec 26), Japan’s government approved the FY2026 budget — total and debt servicing both new records.
The Ministry of Economy, Trade and Industry plans to nearly triple funding for advanced semiconductor and AI R&D to ~$7.9 billion.
This shows Japan aiming to strengthen frontier tech capabilities through massive chip and AI investment to catch up with the U.S. and China.
Samsung reportedly to launch “100% proprietary tech” GPU – ultimate ambition: Become the next Broadcom
Sources say Samsung — a player in both consumer electronics and chip foundry — will launch a mobile GPU developed with “100% proprietary technology.”
Background: Samsung last weekend released the world’s first 2nm smartphone chip Exynos 2600. Insiders said Thursday the onboard GPU is designed by Samsung using AMD architecture.
Industry sources say Samsung’s System LSI division plans to apply its own architecture to a self-designed GPU as early as 2027, integrated in Exynos 2800. This would make Samsung one of few companies globally designing GPUs with proprietary architecture — joining Nvidia, AMD, Intel, and Qualcomm.
Institutional Views
Barclays: Expect BOJ hikes in July and December next year
Two Barclays FICC Research members said in a report the BOJ may hike in July and December 2026. This outlook is based on Japan’s “spring wage negotiation cycle.”
They said the BOJ’s recent hike again shows wage hikes from annual spring talks are not only the starting point of the BOJ’s “wage-price cycle” narrative but also its strongest bargaining chip with the government on hikes. They added the BOJ must duly address risks of further yen depreciation, as it has done so far.
Barclays: Won strengthening on verbal intervention
The won strengthened against the dollar in Asia session supported by Korean authorities’ verbal intervention and measures. Two Barclays FICC Research analysts said in a report that Presidential Chief of Staff for Policy Kim Young-bam told local media there is firm resolve to ease won pressure.
Meanwhile, the BOK and finance ministry recently conducted verbal intervention. The finance ministry also unveiled plans to improve FX supply-demand via encouraging domestic investment and tax adjustments. However, analysts added these measures could lead to up to $23 billion in dollar selling but carry downside risks.
OANDA trader: Multiple factors fuel epic precious metals rally – gold/silver could target $5,000 and $90 next year
Spot gold hit a record $4,530.6/oz Friday, spot silver $75.14. OANDA senior market analyst Kelvin Wong said momentum-driven and speculative traders have pushed gold and silver higher since early December — thin year-end liquidity, Fed long-term cut expectations, dollar weakness, and surging geopolitical risks combined to new records.
Gold could target $5,000/oz in H1 next year, silver potentially ~$90/oz. Platinum and palladium surged on tight supply, tariff uncertainty, and rotation from gold — platinum up ~165% YTD, palladium over 90%. Reliance Securities senior research analyst Jigar Trivedi said platinum is supported by strong industrial demand, with U.S. inventory restocking amid sanction concerns helping maintain high prices.