APAC Market Wrap - Mar 24
China: Mainland markets closed higher. The Shanghai Composite rose 1.78%, the Shenzhen Component gained 1.43%, and the ChiNext Index added 0.5%. Sector-wise, the power sector surged, defense stocks strengthened, and shipping stocks trended upward in volatile trading.
Hong Kong: Broad-based rally. Hong Kong stocks saw widespread gains today as all three major indices closed higher amid active trading and significant sector rotation. The Hang Seng Index jumped 2.79% to 25,063.71; the Hang Seng Tech Index rose 2.51% to 4,830.89; and the HSCEI advanced 2.31% to 8,499.53. New-style tea drinks, pharmaceuticals, gold, optical communications, and AI applications emerged as lead gainers, signaling a notable warming in market sentiment.
Japan: The Nikkei 225 climbed 1.43% to 52,252.28. Insurance, non-ferrous metals, and petroleum sectors led the gains, while "other products" declined.
South Korea: The KOSPI surged 2.74% to 5,553.92. Electrical products, retail, and telecommunications equipment saw collective gains, while energy equipment, construction, and trading firms slipped.
Australia: The S&P/ASX 200 edged up 0.16% to 8,379.4. Metals and mining, homebuilding, and packaging containers rose, while aerospace, semiconductors, and apparel fell sharply.
Singapore: The Straits Times Index (STI) rose 0.44% to 4,862.43. Non-alcoholic beverages, industrial products, and cyclical retail advanced, while healthcare services, software, and forestry products declined.
Malaysia: The FTSE Bursa Malaysia KLCI fell 0.69% to 1,708.76. Utilities, telecommunications, and healthcare gained, while closed-end funds, technology, and transportation & logistics sectors retreated.
Key Events
SK Hynix Reportedly Eyes U.S. Listing to Raise $10 Billion for AI Infrastructure
South Korea’s SK Hynix is reportedly planning a U.S. listing to raise between 10 trillion and 15 trillion won (approx. $6.7 to $10 billion). As memory manufacturers race to expand capacity to meet AI-driven demand, the company intends to issue new shares via American Depositary Receipts (ADRs).
Proceeds are earmarked for AI infrastructure, including the semiconductor cluster in Yongin and overall production expansion. A spokesperson stated that measures to enhance shareholder value, including an ADR, are under review but no final decision has been made.
Iran War Drags Down Global Economy! Goldman Sachs: U.S. Recession Risk Rises to 30%
Despite "de-escalation signals" from President Trump, Middle East tensions remain high following Iran's repeated denials of direct dialogue. With energy prices stuck at elevated levels, Goldman Sachs warned that rising oil and gas costs, tightening financial conditions, and fading fiscal support are increasing the probability of a U.S. recession.
Storage Sector Enters Robust New Cycle: Wedbush Sees Price Hikes Up to 150%
Investment firm Wedbush noted that AI-driven demand and supply constraints could push prices for certain memory products up by over 100%. Analysts project "triple-digit" growth in the first half of 2026 compared to Q4 2025, with DRAM prices potentially surging 130% to 150%. This serves as a significant tailwind for Micron, Seagate, and Western Digital.
Institutional Views
Goldman Sachs: U.S. Recession Probability Raised to 30%.
Chief Economist Jan Hatzius raised the 12-month recession probability by 5 percentage points to 30% due to the energy price shock and tightening financial conditions. Goldman now projects year-end unemployment at 4.6% and H2 GDP growth between 1.25% and 1.75%. The bank noted that while global GDP growth could be shaved by 0.4 percentage points, a worst-case scenario could double or triple that impact.
HSBC: Japan’s Stagflation Risk Shadows Wage Negotiations.
Economists warned that while preliminary results show significant wage growth, real wages remain suppressed by inflation, now compounded by the Middle East energy shock. This leaves the BOJ in a dilemma: hiking too early could damage fragile growth, while waiting could hurt consumer confidence and trigger U.S. scrutiny if the yen depreciates excessively.
ANZ: Oil Prices Likely to Remain Above $100/bbl Short-Term.
ANZ Research expects oil prices to stay above $100/bbl due to the war premium and supply losses. Even if the conflict ends in March, prices are unlikely to return to the $60–$70 range. ANZ projects oil will average above $90/bbl in 2026.
Phillip Nova: Gold Prices to Remain Volatile in the Near Term.
Analysts noted that while geopolitical tension drives haven demand, the combination of high energy prices and a strong USD is capping gold's upside. The metal remains highly sensitive to diplomatic headlines, with each statement carrying the potential for a sharp reversal.