APAC Market Wrap - Jan 27
Chinese Stock Markets:
At close, the Shanghai Composite Index rose 0.18%, the Shenzhen Component Index gained 0.09%, and the ChiNext Index climbed 0.71%. Sector highlights: chip industry chain continued its strong rally, precious metals concepts remained robust, CPO (Co-Packaged Optics) themes were active, and space photovoltaic concepts sustained their rebound.
Hong Kong Stock Market:
Hong Kong's major indices rebounded collectively today. The Hang Seng Index rose 1.35% to 27,126.95; the Hang Seng Tech Index gained 0.50% to 5,754.72; and the Hang Seng China Enterprises Index advanced 1.07% to 9,244.88.
Market performance showed clear rotation: insurance, semiconductors, and AI application stocks were active with significantly increased fund attention; coal, internet healthcare, and pharmaceutical stocks faced pressure and pulled back.
Japanese Stock Market:
The Nikkei 225 rose 0.85% to 53,333.54. By sector, fisheries, non-ferrous metals, and electrical equipment advanced, while power, air transport, retail, and pharmaceuticals declined.
South Korean Stock Market:
The KOSPI Composite Index surged 2.73% to 5,084.85. Wireless communication services, semiconductors, and banking sectors rose; aviation, internet, and steel sectors fell.
Australian Stock Market:
The S&P/ASX 200 (XJO) climbed 0.92% to 8,941.60. Apparel, interactive media, and healthcare services gained; aerospace & defense, building materials, and diversified media declined.
Singapore Stock Market:
The Straits Times Index (STI) rose 1.28% to 4,923.02. Industrial products, consumer packaging, and software sectors advanced; industrial distribution, non-alcoholic beverages, and diversified media declined.
Malaysian Stock Market:
The FTSE Bursa Malaysia KLCI gained 1.56% to 1,771.25. Financial services, real estate, and industrials rose; real estate (again listed), communications & media, and plantations declined.
Key Events
Exclusive HBM Supplier for Microsoft's Latest AI Chip? SK Hynix Hits New All-Time High
On Tuesday, South Korean memory giant SK Hynix shares reached a fresh record high after reports emerged that the company is the exclusive supplier of advanced memory for Microsoft's latest AI chip.
On Monday local time, Microsoft unveiled its next-generation AI accelerator Maia 200, describing it as “the highest-performance in-house chip among all hyperscalers.” The chip is already deployed in Microsoft's Iowa data center and will expand to more regions. Microsoft did not disclose the HBM supplier at launch.
Media reports citing industry sources indicate SK Hynix will exclusively supply HBM3E memory for Maia 200, with each accelerator using six SK Hynix HBM3E modules.
Under U.S. Pressure, India and EU Reach Major Trade Deal
India and the European Union have reached a landmark trade agreement. Prime Minister Narendra Modi stated on Tuesday that the deal aims to mitigate risks from unstable relations with the United States.
Modi and European Commission President Ursula von der Leyen are expected to issue a joint statement later Tuesday in New Delhi during the India-EU Summit, detailing the agreement.
Modi congratulated stakeholders in textiles, gems & jewelry, leather, and footwear, noting the deal will provide significant support to these sectors.
For India, which has been hit hard by U.S. tariffs (50% imposed by Trump last August), the pact serves as a strong countermeasure. India has been actively pursuing export diversification and has struck trade deals with multiple countries.
“Super Cycle” Has Arrived! Industry Insiders Predict Memory Shortage to Last at Least 2–3 Years
With AI infrastructure buildout in full swing, the memory chip supply tightness is increasingly seen as longer-lasting than initially expected. How long will the shortage persist?
Multiple senior semiconductor executives offered similar views: likely at least two to three years.
Synopsys CEO Sassine Ghazi told interviewers that the chip “shortage” will continue through 2026 and 2027.
Ghazi noted: “Most memory from top global vendors is flowing directly into AI infrastructure, leaving many other products short of supply and in trouble.”
While Samsung, SK Hynix, and Micron are expanding capacity, achieving meaningful increases will take “at least” two years — a key reason the shortage is expected to persist.
Institutional Views
Société Générale: Raises Gold Price Forecast — Could Reach $6,000 by Year-End
The $5,000/oz year-end gold price target has already been hit early. Société Générale now sees gold potentially reaching $6,000/oz by year-end, calling this possibly conservative. The report highlights record-high hedge fund positioning, while central bank demand appears to be slowing.
However, gold ETFs have seen strong recent inflows: over the past 8 weeks, ETFs recorded net inflows of 93 tonnes, bringing total holdings to 3,120 tonnes — up 500 tonnes from a year ago.
Goldman Sachs: Expects Fed to Hold Rates Steady
Goldman Sachs anticipates a uneventful January FOMC meeting, with broad consensus to keep rates unchanged. The bank notes Governors Waller and Bowman are likely to support the hold, with Governor Bowman as the lone dissenter. Goldman forecasts two rate cuts in 2026, with the first possibly in June.
Scotiabank: Gold Stocks Decoupled from Price — “Catch-Up” Opportunity
Scotiabank's latest report highlights a significant disconnect between gold prices and gold mining stocks, estimating gold equities trade at an approximate 17% discount to the metal's price — a substantial gap. With spot gold far exceeding even the most bullish forecasts, the bank sees the “catch-up trade” in gold stocks as one of the paths of least resistance.