APAC Market Wrap - Feb 26

China Equities:

The Shanghai Composite edged down 0.01%, the Shenzhen Component rose 0.19%, and the ChiNext Index declined 0.29%.

Sector-wise, computing hardware led the gainers, while minor metals remained active. On the downside, film and theater, insurance, and real estate led the laggards.

Hong Kong Equities:

All three major indices finished lower. The Hang Seng Index fell 1.44% to 26,381.02; the Hang Seng Tech Index dropped 2.87% to 5,109.32; and the HSCEI declined 2.44% to 8,814.29.

The session was characterized by a surge in "New Quality Productive Forces" while traditional cyclical sectors faced corrections. Electrical equipment, cryptocurrency, and optical communications gained on global industrial trends. Conversely, photovoltaics, building materials, lithium batteries, and gold/jewelry retracted due to supply-demand shifts and shareholder activity.

Japan Equities: The Nikkei 225 rose 0.29% to 58,753.39. By industry, banking, services, and marine transportation led gains, while glass, retail, and non-ferrous metals declined.

South Korea Equities: The KOSPI jumped 3.67% to 6,307.27, fueled by a rally in electronics, semiconductors, and display panels. Cigarettes, internet, and shipping companies fell.

Australia Equities: The S&P/ASX 200 added 0.51% to 9,175.30, supported by waste management, healthcare, and aerospace. Energy, building materials, and agriculture closed lower.

Singapore Equities: The STI fell 0.87% to 4,964.38.

Semiconductors, industrial products, and furniture rose; cyclical retail, asset management, and consumer packaging declined.

Malaysia Equities: The FTSE Bursa Malaysia KLCI edged down 0.39% to 1,740.94.

Construction, business trusts, and closed-end funds gained, while energy, communications, and consumer goods fell.

Key events

Saudi Arabia Reportedly Boosts Oil Output and Overseas Storage to Hedge Geopolitical Risk

Latest reports indicate Saudi Arabia is increasing crude production and exports as a contingency against escalating Middle East tensions.

Last June, the Kingdom raised exports by 0.5 million bpd and moved more barrels into overseas storage during U.S. strikes on Iranian nuclear facilities. Sources indicate the 2026 plan mirrors this strategy, aiming to secure global supply during potential emergencies while maintaining flexibility to return to OPEC+ quotas later.

Memory Market Shifts to Seller's Advantage: Apple Accepts 100% Price Hike

Reports indicate Apple has finalized LPDDR5X orders from Samsung's DS division for the iPhone 17 at double the previous price. Initially, Samsung aimed for a 60% increase but proposed 100% as a "test" bid.

To ensure supply stability amidst worsening shortages, Apple accepted the terms immediately. This underscores the fierce competition among smartphone manufacturers to secure dwindling memory inventories.

Nikkei Hits Historic 59,000 Mark as BoJ Hike Fears Cool

The Nikkei 225 hit a record intraday high above 59,000 on Thursday. The rally followed the nomination of "reflationist" policymakers to the Bank of Japan, signaling a continued dovish stance. NVIDIA’s stellar earnings also provided a boost to local tech shares.

The index is now up over 13% year-to-date and 53% over the past year.

Institutional Outlook

Bank of America: Gold Prices Could Reach $6,000/oz Within 12 Months

In a report released Tuesday, BofA projected gold could hit $6,000 per ounce within the next year. The firm added that despite potential demand headwinds for solar manufacturers, silver could also retest $100 per ounce this year.

Citi: Emerging Markets Set to Become the "Consensus Favorite" This Year

Reports indicate Citi analysts believe major asset managers—collectively overseeing $20 trillion—are pivoting to EM equities and local bonds. They are betting that strong global growth and a softening U.S. dollar will benefit these markets despite recent AI-related volatility in developed economies.

ING: Investors Fleeing AI Volatility May Turn to Euro Bonds

ING suggests that Eurozone government bonds may attract investors seeking refuge from U.S. tech swings. With "AI panic trades" triggering sharp moves in software and delivery stocks, the relative stability and attractive risk-adjusted yields of Euro bonds are gaining appeal.

J.P. Morgan: Bank of Thailand May Enter Prolonged Policy Pause

Economists at J.P. Morgan expect the BoT to maintain its policy rate at 1% through 2027. Recent statements suggest a high threshold for further cuts, and the Thai economy is expected to accelerate this year following stronger-than-expected Q4 2025 performance and post-election stability.