APAC Market Wrap - March 2
China Equities:By the close, the Shanghai Composite rose 0.47%, while the Shenzhen Component fell 0.2%, and the ChiNext Index dropped 0.49%.
Sector-wise, oil and gas stocks surged across the board, port and shipping concepts performed actively, and the coal sector rallied in the afternoon session.
Hong Kong Equities:Impacted by the continued escalation of geopolitical conflicts in the Middle East, the Hong Kong market faced overall pressure today, with all three major indices declining collectively.
By the close, the Hang Seng Index fell 2.14% to 26,059.85; the Tech Index dropped 2.89% to 4,989.37; and the HSCEI fell 1.78% to 8,701.91.
Notably, the Hang Seng Tech Index lost the key 5,000-point psychological level.
In today's session, oil, oilfield equipment, and gold stocks defied the trend to move higher, while AI and SaaS stocks led the decliners.
Japan Equities: The Nikkei 225 fell 1.35% to 58,057.24.
By industry, mining, non-ferrous metals, and marine transportation rose, while air transport, securities, banking, and rubber products declined.
South Korea Equities: Market closed for holiday.
Australia Equities: The XJO S&P/ASX 200 rose 0.25% to 9,200.900.
Oil and gas, aerospace, and agriculture sectors rose, while capital markets, credit, and healthcare distribution declined.
Singapore Equities: The Straits Times Index (STI) fell 2.09% to 4,890.86.
Containers and packaging, oil and gas, and metals and mining sectors rose, while personal services, pharmaceutical manufacturers, and transportation declined.
Malaysia Equities: The FTSE Malaysia Index fell 0.96% to 1,700.21.
Energy and industrial products and services rose, while technology, consumer products and apparel, and closed-end funds declined.
Key events
Japanese PCB Maker Jumps 16% to New High; Earnings Hike Rumored to be Directly Linked to SpaceX
On Monday, as global markets shuddered under Middle East tensions, Japanese PCB manufacturer Meiko Electronics surged 16% against the trend. According to sources, the contribution from U.S. private space giant SpaceX is "considerably high" behind the company's recent upward revision of its earnings guidance.
As background, Meiko Electronics is one of the world's major manufacturers of mid-to-high-end PCBs, known for producing high-reliability, high-density multilayer circuit boards and is deeply tied to "zero-failure" clients in automotive, industrial, and aerospace sectors. The company previously announced an upward revision of its fiscal year guidance ending this March, raising revenue by 12 billion yen to 235 billion yen and adjusting the dividend from 90 yen to 115 yen per share.
Stop Just Staring at NVIDIA! ARK Predicts: Custom Chips are the "Big Players" of the Future
Recently, Cathie Wood’s ARK Invest predicted that competition for NVIDIA will intensify in the coming years, forecasting that custom AI chips will occupy more than one-third of the computing market by 2030.
Frank Downing, head of Next Generation Internet Research at ARK, posted on X: "By 2030, we expect over one-third of the computing market will be held by custom chips."
He defines custom chips as non-graphics processor (GPU) chips, effectively alternatives to products from NVIDIA and AMD. However, he also noted that the industry boundaries between the two are becoming increasingly blurred.
War Spreads! Crude Surging Toward $100? Gold Breaches $5,300!
The U.S. and Israel launched military strikes and "decapitations" against Iran over the weekend, while Iran retaliated against multiple U.S. military bases in the Middle East. Despite two days of digestion over the weekend, financial markets this week are destined for turbulence.
Iran's crude oil capacity is approximately 3 million barrels per day (far higher than Venezuela's less than 1 million bpd), and its influence on the international crude market cannot be ignored. The Strait of Hormuz, which Iran announced it would block last Saturday, is the world's most important oil transportation route.
According to the EIA, oil flow through the Strait of Hormuz averaged 20 million bpd in 2024, equivalent to about 20% of global consumption. A prolonged blockade making oil prices hit $100 is not a fantasy. Furthermore, insurers may cancel policies for ships passing through the Persian Gulf and the Strait of Hormuz and raise premiums; international crude supply will inevitably suffer destructive short-term impacts.
Middle East Conflict Directly Impacts 9% of Global Supply; Aluminum Prices and Stocks Surge
Beyond obvious "Middle East war beneficiaries" like gold, silver, and oil, the industrial metal aluminum also strengthened on Monday, driving global aluminum stocks higher.
The logic behind the rise is clear: due to low power costs, the Middle East—where missiles and drones are currently flying—is one of the world's major primary aluminum production hubs, accounting for about 9% of global capacity. Major aluminum producers in the region need to import bauxite and export metal via the Strait of Hormuz.
Except for Oman, acting as a mediator, Middle East aluminum exporters like Iran, Saudi Arabia, the UAE, Bahrain, and Qatar have all been drawn into the conflict. Currently, the U.S. and Israel continue to launch waves of strikes, while Iran continues to attack neighboring countries.
Institutional Outlook
Japanese PCB Maker Jumps 16% to New High; Earnings Hike Rumored to be Directly Linked to SpaceX
On Monday, as global markets shuddered under Middle East tensions, Japanese PCB manufacturer Meiko Electronics surged 16% against the trend. According to sources, the contribution from U.S. private space giant SpaceX is "considerably high" behind the company's recent upward revision of its earnings guidance.
As background, Meiko Electronics is one of the world's major manufacturers of mid-to-high-end PCBs, known for producing high-reliability, high-density multilayer circuit boards and is deeply tied to "zero-failure" clients in automotive, industrial, and aerospace sectors.
The company previously announced an upward revision of its fiscal year guidance ending this March, raising revenue by 12 billion yen to 235 billion yen and adjusting the dividend from 90 yen to 115 yen per share.
Stop Just Staring at NVIDIA! ARK Predicts: Custom Chips are the "Big Players" of the Future
Recently, Cathie Wood’s ARK Invest predicted that competition for NVIDIA will intensify in the coming years, forecasting that custom AI chips will occupy more than one-third of the computing market by 2030.
Frank Downing, head of Next Generation Internet Research at ARK, posted on X: "By 2030, we expect over one-third of the computing market will be held by custom chips."
He defines custom chips as non-graphics processor (GPU) chips, effectively alternatives to products from NVIDIA and AMD. However, he also noted that the industry boundaries between the two are becoming increasingly blurred.
War Spreads! Crude Surging Toward $100? Gold Breaches $5,300!
The U.S. and Israel launched military strikes and "decapitations" against Iran over the weekend, while Iran retaliated against multiple U.S. military bases in the Middle East. Despite two days of digestion over the weekend, financial markets this week are destined for turbulence.
Iran's crude oil capacity is approximately 3 million barrels per day (far higher than Venezuela's less than 1 million bpd), and its influence on the international crude market cannot be ignored. The Strait of Hormuz, which Iran announced it would block last Saturday, is the world's most important oil transportation route.
According to the EIA, oil flow through the Strait of Hormuz averaged 20 million bpd in 2024, equivalent to about 20% of global consumption. A prolonged blockade making oil prices hit $100 is not a fantasy. Furthermore, insurers may cancel policies for ships passing through the Persian Gulf and the Strait of Hormuz and raise premiums; international crude supply will inevitably suffer destructive short-term impacts.
Middle East Conflict Directly Impacts 9% of Global Supply; Aluminum Prices and Stocks Surge
Beyond obvious "Middle East war beneficiaries" like gold, silver, and oil, the industrial metal aluminum also strengthened on Monday, driving global aluminum stocks higher.
The logic behind the rise is clear: due to low power costs, the Middle East—where missiles and drones are currently flying—is one of the world's major primary aluminum production hubs, accounting for about 9% of global capacity. Major aluminum producers in the region need to import bauxite and export metal via the Strait of Hormuz.
Except for Oman, acting as a mediator, Middle East aluminum exporters like Iran, Saudi Arabia, the UAE, Bahrain, and Qatar have all been drawn into the conflict. Currently, the U.S. and Israel continue to launch waves of strikes, while Iran continues to attack neighboring countries.