APAC Market Wrap - Jan 7

Mainland China stock market:At the close, the Shanghai Composite rose 0.05%, the Shenzhen Component rose 0.06%, and the ChiNext Index rose 0.31%.

From a sector perspective, commercial aerospace concepts remained active, semiconductor equipment stocks continued strong, photoresist concepts performed actively, and brain-computer interface concepts pulled back in oscillation.

Hong Kong stock market:Hong Kong’s three major indices collectively adjusted today. At the close, the Hang Seng Index fell 0.94% to 26,458.95 points; the Hang Seng Tech Index fell 1.49% to 5,738.52 points; the H-Shares Index fell 1.14% to 9,138.75 points.

From today’s market performance, the market showed structural differentiation, with pharmaceuticals, non-ferrous metals, and coal stocks active, while autos and tech/internet stocks were the main drags on the broader market.

Japanese stock market:The Nikkei Index fell 1.06% to 51,961.98 points.

By industry, precision instruments, services, and pharmaceuticals rose, while mining, oil, electricity, transportation equipment and other sectors declined.

Korean stock market:The KOSPI rose 0.57% to 4,551.06 points.

Air freight, autos, department stores and others rose, while health management, sales, gaming/entertainment and others declined.

Australian stock market:The S&P/ASX 200 rose 0.15% to 8,695.600 points.

Semiconductors, restaurants, chemicals and others rose, while oil, banks, electricity and others declined.

Singapore stock market:The FTSE Singapore Straits Times Index STI rose 0.16% to 4,747.62 points.

Apparel, building materials, furniture and others rose, while cyclical retail, autos & parts, personalized services and others declined.

Malaysian stock market:The FTSE Malaysia KLCI rose 0.27% to 1,676.83 points.

Plantations, utilities, construction and others rose, while business trusts, healthcare, real estate and others declined.

Key Events

Samsung Exec Warns: Tight Memory Supply Raises Risk of Broad Electronics Price Hikes

Samsung Electronics executives say memory chip shortages are expected to drive up prices across the electronics industry — potentially even affecting their own consumer product pricing.

Samsung is already one of the world’s largest memory makers, but even so, its product lineup can’t escape the soaring costs of this key component — memory is used in everything from smartphones and laptops to smart home devices and autonomous vehicles.

Samsung Electronics Global Marketing Office President and Head Wonjin Lee said in an interview at CES 2026 in Las Vegas: “There will be issues with semiconductor supply, and it will affect everyone.”

“Prices are rising right now. Obviously, we don’t want to pass this burden to consumers, but we’ll eventually have to consider adjusting product pricing.”

Goldman Sachs Maintains “Overweight” on China Stocks – Expects 20% Upside This Year

Goldman Sachs Group expects China stocks to continue rising in 2026 supported by AI and policy measures — though gains will be slightly below 2025.

Goldman strategists led by Timothy Moe wrote in a Wednesday (Jan 7) report that by end-2026, the MSCI China Index will rise 20% from end-2025 levels, while the CSI 300 will rise 12% to 5,200 points.

From market performance, since the first trading day of 2026, the CSI 300 has risen 3.5% — hitting a four-year high; the MSCI China Index is up ~3.6%, outperforming the S&P 500.

Institutional Views

Citi Expects Copper to Potentially Break $14,000/Tonne in January and Peak

Citi says driven by strong momentum, copper will rise to $14,000/tonne in the next three months — but without new catalysts, prices may peak this month.

Goldman Sachs Recommends Overweight A-Shares and H-Shares in 2026 – Expects 20% Rise in MSCI China

Goldman Sachs released its 2026 China stocks outlook January 7, recommending Overweight A-shares and H-shares. The report expects MSCI China and CSI 300 to rise 20% and 12% respectively this year, mainly driven by double-digit EPS growth, moderate valuations, and generally low global investor positioning in China stocks.

Goldman Sachs: U.S. Grid to Face Power Shortages by 2030

A Goldman Sachs analyst says by 2030, surging data center power demand will leave nearly all U.S. grids short on key reserve capacity — setting the U.S. back in the AI race. “We’re not adding capacity fast enough,” Goldman Global Commodities Research Co-Head Samantha Dart said.

Grids typically target at least 15% reserve capacity — the gap between peak demand and available generation from coal, gas, nuclear, and renewables. Dart said some grids already lack reserves, and data centers driving demand growth will widen this gap over the next decade.