APAC Market Wrap - Mar 10
Chinese Equities: Mainland benchmarks closed significantly higher on Tuesday. The Shanghai Composite gained 0.65%, while the Shenzhen Component and ChiNext Index surged 2.04% and 3.04%, respectively. From a sectoral perspective, computing hardware concepts continued to rally and commercial aerospace concepts strengthened, while oil and gas stocks collectively retreated.
Hong Kong Market: The three major Hong Kong indices rose in tandem. The Hang Seng Index (HSI) jumped 2.17% to close at 25,959.90; the Hang Seng Tech Index rose 2.40% to 5,060.53; and the Hang Seng China Enterprises Index (HSCEI) gained 1.50% to 8,710.26.
In terms of today's performance, stocks related to optical communications, memory chips, healthcare, AI applications, and commercial aerospace gained momentum, while energy stocks such as coal and petroleum traded lower.
Japan Market: The Nikkei 225 surged 2.88% to 54,248.39. By industry, multiple sectors including non-ferrous metals, electrical equipment, and wholesale trade rose collectively.
South Korea Market: The KOSPI skyrocketed 5.35% to 5,532.59. By industry, sectors such as semiconductors and telecommunications equipment rallied across the board, while the gas sector saw a slight decline.
Australia Market: The S&P/ASX 200 (XJO) rose 1.09% to 8,692.60. Aerospace, semiconductors, and healthcare services sectors gained, while oil and gas, home building, and chemicals declined.
Singapore Market: The Straits Times Index (STI) climbed 2.19% to 4,860.64. By industry, sectors such as industrial products, interactive media, and non-alcoholic beverages rose collectively, while personal services, oil and gas, and steel declined.
Malaysia Market: The FTSE Bursa Malaysia KLCI rose 1.64% to 1,701.68. Healthcare, construction, and technology sectors advanced, while energy, transportation and logistics, and plantations saw declines.
Key Events
TSMC Revenue Surges 30%; AI Boom Faces Middle East "Litmus Test"
Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s premier foundry, reported a 30% revenue increase for the first two months of 2026, totaling NT$718.9 billion (approx. $22.6 billion).
Despite a slight seasonal dip in February due to the Lunar New Year, the data suggests that global demand for AI infrastructure—driven by Nvidia, AMD, and Broadcom—remains robust, effectively defying "AI bubble" concerns at least prior to the recent regional escalation.
South Korea Weighs "Priority Purchase Rights" to Secure Oil Supply
As the Middle East conflict widens, South Korea’s ruling Democratic Party and government officials are considering exercising priority rights to purchase over 6 million barrels of crude oil stored within its borders by foreign refiners.
A special task force met Tuesday to evaluate the economic impact of rising regional tensions and finalize strategies to safeguard the nation's energy security.
The "Hormuz Crisis": LNG Markets Face Greater Peril Than Oil
While crude prices spiked on news of the Strait of Hormuz blockade, analysts warn the impact on Liquified Natural Gas (LNG) could be more severe and prolonged.
Qatar Energy recently declared Force Majeure after military strikes forced the total shutdown of its Ras Laffan LNG complex. With 20% of global LNG passing through the Strait, European gas prices surged 63% last week, while Asian spot prices climbed to $23.40/mmBtu.
Institutional Perspectives
Goldman Sachs: Overweight on China Despite Volatility
Goldman Sachs remains "Overweight" on both A-shares and H-shares. Chief China Equity Strategist Kinger Lau identifies Middle East tensions and AI breakthroughs as the dual drivers of current sentiment.
While the MSCI China Index has retraced 12% from its January highs, Goldman suggests A-shares currently offer a superior risk-reward profile (Sharpe Ratio), advising investors to focus on structural themes until geopolitical risks subside.
Goldman & Barclays Warn: $100 Oil Could Push U.S. Inflation to 3%
Both firms cautioned that sustained energy costs threaten the disinflation narrative.
Goldman estimates every 10% rise in oil adds 0.28 percentage points to CPI. If oil sustains near $100/bbl, U.S. headline inflation could hit 3%, potentially forcing the Federal Reserve to delay its much-anticipated pivot to rate cuts.
CICC: Strategic Entry Opportunity for Hang Seng Tech
Kevin Liu, Managing Director at CICC, believes the Hang Seng Tech Index is entering a "left-side" accumulation zone.
With the index trading one standard deviation below its mean and RSI indicators signaling oversold conditions, the valuation has become attractive for long-term positioning. A sustained recovery will depend on a dovish Fed shift and renewed Southbound capital inflows.