APAC Market Wrap - Jan 5
China Stock Market:At close, the Shanghai Composite rose 1.38%, the Shenzhen Component gained 2.24%, and the ChiNext Index climbed 2.85%.
Brain-computer interface concepts led all day, insurance exploded higher, and the semiconductor chain strengthened. On the downside, Hainan free trade zone concepts plunged, with Hainan Development hitting the limit down.
Hong Kong Stock Market:Hong Kong’s three major indices were mixed. At close, the Hang Seng Index rose 0.03% to 26,347.24 points, the Tech Index gained 0.09% to 5,741.63 points, and the H-share Index fell 0.22% to 9,148.47 points.
Pharma, short video, brain-computer interface, and oil/gas equipment stocks were active highlights, while auto manufacturing and tourism stocks weighed on their sectors.
Japan Stock Market:The Nikkei Index rose 3.0% to 51,832.80 points, briefly topping 52,000 intraday.
Non-ferrous metals, machinery, and electrical equipment led gains, with mining and real estate edging lower.
Korea Stock Market:The KOSPI rose 3.43% to 4,457.52 points. Power, airlines, and semiconductors rose, while broadcasting/entertainment, transportation, health management, hotels, and furniture fell.
Australia Stock Market:The S&P/ASX 200 rose 0.01% to 8,728.60 points. Semiconductors, alternative energy, and metals/mining gained, while interactive media, credit, and tourism declined.
Singapore Stock Market:The Straits Times Index (STI) rose 0.52% to 4,680.50 points.
Industrial products, agriculture, and cyclical retail rose, while industrial distribution, autos, and apparel fell.
Malaysia Stock Market:The FTSE Malaysia KLSE Index rose 0.63% to 1,680.32 points.
Real estate, healthcare, and financial services gained, while business trusts, utilities, and energy eased lower.
Key Events
Bank of Japan governor sends strong hawkish signal: Rate hike cycle far from over
On Monday, in his first public appearance of 2026, Bank of Japan Governor Kazuo Ueda delivered a clear message: the BoJ’s rate hike cycle is far from finished.
He expects “wages and prices in Japan to rise moderately in tandem,” adding “we will continue raising rates in line with improvements in the economy and inflation.”
Ueda noted: “Appropriately adjusting monetary easing will help achieve stable inflation targets and long-term growth.”
AI rally overrides U.S.-Venezuela tensions, Asia enjoys “strong Monday” with Korea up over 3%
On Monday (January 5), Asian stocks mostly rose, led by Korea’s benchmark surging 3.43% to a fresh record high, while Japan gained nearly 3% back near all-time levels.
The KOSPI rose 3.43% to 4,457.52 points, extending last week’s close and adding 5.77% over two sessions. It gained 75.63% in 2025, the world’s top major market. Heavyweights Samsung Electronics +7.47%, SK Hynix +2.81%. Last week, Samsung co-CEO Jun Young-hyun’s optimistic New Year remarks boosted AI expectations.
Samsung fully embraces AI: Plans to double Gemini-equipped mobile devices this year
On Monday, as shares hit new highs, Samsung Electronics CEO said the company plans to double the number of AI-featured mobile devices with Google Gemini systems this year.
The move could help Samsung regain smartphone share via AI features and strengthen Google’s global AI edge.
Institutional Views
UBS raises gold target to $5,000
“We remain bullish on gold and raise March, June, and September 2026 targets from $4,500/oz to $5,000/oz,” UBS Wealth Management CIO office said. Recent record highs stem from weaker dollar, geopolitical tensions, institutional uncertainty, and seasonal liquidity tightness.
Central bank buying, ETF inflows, and physical bar/coin demand provide solid support. Looking to 2026, UBS expects worries over U.S. fiscal sustainability to drive continued preference for physical assets like gold with no counterparty risk.
Goldman Sachs: Venezuela output could rise, oil price risks skewed lower
Goldman Sachs says post-U.S. involvement, Venezuela production could rise further, eventually pressuring oil. Analysts including Daan Struyven and Yulia Zhestkova Grigsby: “Any rebound would be slow and limited due to damaged infrastructure and need for strong incentives for large upstream investment.”
Near-term forecasts unchanged: Brent average $56/bbl, WTI $52/bbl for 2026. But “beyond recent Russia/U.S. growth, longer-term Venezuela upside adds more downside risk to 2027+ forecasts.”
JPMorgan Asset Management: Venezuela event limited market impact
JPMorgan AM Asia-Pacific chief market strategist Tai Hui sees two reasons markets shrugged off U.S. Venezuela raid. First, Venezuela’s ~1% global output share is small; years of underinvestment mean quick ramp-up is unlikely.
New regime direction unclear under Trump’s short-term “takeover.” Impact mostly via energy markets. Geopolitically broader, but “financial markets aren’t great at pricing those risks,” he said.