APAC Market Wrap - January 26
Chinese Stock Markets:
At close, the Shanghai Composite Index fell 0.09%, the Shenzhen Component Index dropped 0.85%, and the ChiNext Index declined 0.91%. Sector performance was mixed: non-ferrous metals led gains, chemicals rallied amid volatility, while commercial aerospace, semiconductor equipment, and related sectors saw the steepest declines.
Hong Kong Stock Market:
Hong Kong's major indices closed mixed today. The Hang Seng Index edged up 0.06% to 26,765.52; the Hang Seng Tech Index fell 1.24% to 5,725.99; and the Hang Seng China Enterprises Index dipped 0.15% to 9,147.21.
The market exhibited clear structural rotation: traditional cyclical names in petroleum, coal, and non-ferrous metals performed strongly, with capital clearly favoring value-oriented assets. Meanwhile, previously hot tech themes like commercial aerospace and brain-computer interfaces pulled back, signaling a short-term style shift from growth to value.
Japanese Stock Market:
The Nikkei 225 fell 1.79% to 52,885.25. By sector, fisheries, mining, and land transportation rose, while transportation equipment, banking, and wholesale trade declined.
South Korean Stock Market:
The KOSPI Composite Index dropped 0.81% to 4,949.59. Non-ferrous metals, healthcare management, and biotechnology sectors advanced, whereas air cargo, automobiles, and electronics fell.
Australian Stock Market: Closed for holiday.
Singapore Stock Market: The Straits Times Index (STI) fell 0.38% to 4,809.88. Sectors such as metals, non-alcoholic beverages, and steel advanced, while apparel, diversified media, and medical equipment declined.
Malaysian Stock Market: The FTSE Bursa Malaysia KLCI rose 1.40% to 1,744.07. Financial services and consumer goods sectors gained, whereas technology and energy sectors declined.
Key Events
High-Risk Nipah Virus Outbreak in India! Fatality Rate Up to 75% — No Specific Treatment or Vaccine Available
Earlier last week, a hospital in India confirmed two cases of Nipah virus — a rare bat-borne pathogen with historical fatality rates ranging from 40% to 75%. The outbreak is spreading in West Bengal state in eastern India, with 5 confirmed cases reported so far (including healthcare workers). Nearly 100 people have been quarantined. Nipah is a zoonotic virus transmissible between humans.
Average incubation period: 5–14 days. Initial symptoms include high fever and headache (lasting 3–14 days), followed by drowsiness, dizziness, and mental confusion.
First Time in 15 Years? US and Japan May Coordinate FX Intervention — Yen Hits Two-Month High
On Monday, the yen surged to a more than two-month high against the dollar amid widespread speculation that US and Japanese authorities could undertake rare coordinated intervention to prevent further yen weakness.
Japanese senior currency officials have not confirmed anything explicitly, fueling market speculation. With the Fed's rate decision this week and potential announcements on a new Fed Chair under the Trump administration, investors are trimming dollar positions to avoid volatility.
HBM Market Battle Escalates! Samsung Reportedly to Begin Supplying HBM4 Chips to Nvidia in February
Media reports on Monday, citing sources, indicate that Samsung Electronics plans to start production of its next-generation high-bandwidth memory (HBM4) chips next month and supply them to Nvidia.
Details on volumes were not disclosed. Korea Economic Daily also reported that Samsung's HBM4 has passed certification tests by Nvidia and AMD, with shipments to both expected to begin next month. In response, Samsung's shares rose over 2% intraday, while rival SK Hynix fell nearly 3%.
Institutional Views
OCBC Bank: Raises end-2026 gold target to $5,600/oz
OCBC analysts upgraded their gold forecast, now expecting $5,600 per ounce by end-2026 (up from previous $4,800). FX strategist Christopher Wong attributed the revision to the strong momentum in the safe-haven metal, which exceeded expectations. "The evolution is in the degree of allocation to gold, not a reassessment of the fundamental reasons for holding it."
Saxo Bank: Spot silver historically enters the "three-digit" era — entering uncharted territory ahead
Spot silver hit $100/oz intraday on Friday, officially entering the "three-digit era." Year-to-date gains are approaching 40% in less than a month, driven by safe-haven demand, dollar weakness, and robust industrial needs.
Saxo Bank's Ole Hansen: "Momentum has clearly become a key part of this move, with FOMO playing a significant role as prices enter unknown territory." However, he cautioned: "It would be wrong to dismiss this rally as pure speculation."
TD Securities: US–Japan joint intervention can no longer be ruled out — yen short bets no longer one-way
TD analyst Prashant Newnaha noted that Japanese PM Takaichi Sanae made verbal intervention remarks, and top forex official Mimura Jun confirmed close contact between Japan's MOF and the US Treasury.
This means coordinated intervention cannot be excluded. While the market bias remains short yen, the joint-action risk means it's no longer a one-sided bet.