APAC Market Wrap - Jan 29

Chinese Stock Markets:  

At close, the Shanghai Composite Index rose 0.16%, the Shenzhen Component Index fell 0.3%, and the ChiNext Index declined 0.57%. Sector highlights: baijiu (white liquor) stocks surged in the afternoon, non-ferrous metals remained active with swings, real estate rebounded amid volatility, while the chip industry chain pulled back.

 

Hong Kong Stock Market:  

Hong Kong's major indices closed mixed today. The Hang Seng Index rose 0.51% to 27,968.09; the Hang Seng Tech Index fell 1% to 5,841.10; and the Hang Seng China Enterprises Index gained 0.42% to 9,552.58.

 

Market action showed paper & packaging, real estate, and brokerage stocks leading gains, while optical communications and semiconductor sub-sectors saw stage-specific pullbacks.

 

Japanese Stock Market:  

The Nikkei 225 edged up 0.03% to 53,333.54. By sector, petroleum, transportation equipment, and mining advanced; other products, retail, and services declined.

 

South Korean Stock Market:  

The KOSPI Composite Index rose 0.98% to 5,221.25. Healthcare management, securities, and non-ferrous metals gained; display panels, steel, electronic equipment, and consumer sectors fell.

 

Australian Stock Market:  

The S&P/ASX 200 (XJO) dipped 0.07% to 8,927.50. Industrial distribution, other energy, and furniture rose; aerospace & defense, diversified financials, and homebuilding declined.

 

Singapore Stock Market:  

The Straits Times Index (STI) climbed 0.42% to 4,930.03. Forestry products, utilities, and oil & gas advanced; medical equipment, building materials, and personalized services declined.

 

Malaysian Stock Market:  

The FTSE Bursa Malaysia KLCI fell 1.46% to 1,730.89. Business trusts and real estate gained; healthcare, financial services, and communications & media declined.

Key Events

First Time Above 5,000 Tons! WGC: Global Gold Demand Hits Record High in 2025  

 

Despite record-high international gold prices curbing jewelry demand, surging investment demand driven by persistent geopolitical and economic uncertainty pushed total global gold demand to a new all-time high in 2025.

 

The World Gold Council’s (WGC) full-year 2025 *Global Gold Demand Trends* report released Thursday showed total demand rose 1% YoY to 5,002 tonnes — the first time ever exceeding 5,000 tonnes.

 

With higher demand and prices, total gold demand value reached $555 billion in 2025, up 45% YoY.

 

After Two-Day Plunge, Indonesia Stocks Downgraded by Goldman — Strategist Warns: Not Advisable to Enter Now  

 

On Thursday (January 29), Indonesian stocks continued sharp declines, recording the largest two-day drop in history amid fears of a downgrade. Investors rushed for the exits.

 

The day before, index provider MSCI flagged structural issues in Indonesia’s market transparency and accessibility, temporarily freezing index changes and warning that failure to address them could lead to a downgrade from emerging to frontier market status.

 

In response, Goldman Sachs downgraded Indonesian equities to “Underweight” and cautioned that a frontier-market downgrade could trigger over $13 billion in outflows.

 

Canada Pension Giant Warns of “De-Dollarization” — Yen and Gold as Alternatives  

 

The U.S. dollar remains under pressure amid Trump’s policies, prompting one of Canada’s largest institutional investors to consider “de-dollarization.”

 

The Ontario Investment Management Corporation (IMCO) released its annual global outlook report on Wednesday (January 28), stating that in the new environment of trade wars and geopolitical threats, currency risk has become prominent. Investors may consider the Swiss franc, Japanese yen (and of course gold) as diversification channels.

 

IMCO Chief Strategist Nick Chamie said: “Investors may need to think about the rebalancing of the global economy — and what a different role for the United States means for portfolios. This includes reducing exposure to the U.S. to capture growing opportunities elsewhere.”

 

AI Fuels Memory Price Surge! Samsung Q4 Revenue & Profit Hit Records — Chip Business Profit Soars 470%  

 

On Thursday (January 29), the world’s largest memory chip maker Samsung Electronics released Q4 2025 (ended Dec 31) and full-year results.

 

Intensified AI competition among tech giants exacerbated memory shortages and drove sharp price increases. Samsung’s Q4 operating profit nearly tripled YoY to a record high. The company also forecasts sustained strong demand for memory chips ahead.

Institutional Views

Goldman Sachs: Expects Fed to Resume Rate Cuts Later This Year  

 

Goldman Sachs analyst Kay Haigh said that given strong economic data and signs of labor market stability, the Fed is likely to keep policy unchanged for now.

 

However, the bank expects rate cuts to restart later this year as inflation eases, allowing the Fed to deliver two “normalization” cuts to bring rates back to the neutral level seen by FOMC members.

 

Bank of America: RBA Inflation Forecast Miss May Prompt Rate Hike  

 

BofA economist Nick Stamenkovic expects the Reserve Bank of Australia to raise the cash rate to 3.85% on February 3. Last year, the RBA cut rates three times while forecasting core inflation near the 2–3% midpoint target by end-2025.

 

In reality, core inflation annualized at 3.9% in H2 2025, with unemployment falling. Stamenkovic believes the RBA would not have cut 75 bps last year if it had this data. He sees a February hike, with risks tilted toward another in May.

 

Huatai Securities: Fed Likely Pauses Cuts Jan–May  

 

Huatai Securities noted that the Fed kept the policy rate at 3.5–3.75% in January, supporting their more optimistic view on U.S. economy and labor market.

 

Looking ahead, they maintain that the Fed will pause cuts from January to May, then resume with 1–2 cuts after the new Chair takes office mid-year.