APAC Market Wrap - Apr 3
China Equities: The Shanghai Composite fell 1%, the Shenzhen Component dropped 0.99%, and the ChiNext Index shed 0.73% at the close. Computing hardware concepts defied the trend to strengthen, while the utilities sector weakened.
Hong Kong: Closed for Good Friday.
Japan: The Nikkei 225 rose 1.26% to 53,123.49. Non-ferrous metals, mining, and electrical equipment saw modest gains; pharmaceuticals fell sharply.
South Korea: The KOSPI surged 2.74% to 5,377.30. Energy equipment, trading firms, and semiconductors rallied collectively; display panels, hotels, and cosmetics saw slight declines.
Australia / Singapore: Closed for holidays.
Malaysia: The FTSE Bursa Malaysia slipped 0.16% to 1,695.50. Utilities, energy, and tech rose; business trusts, financials, and logistics declined.
Key Events
U.S. Experts Warn: Gas Prices Eye $5/Gallon Mark Without Ceasefire
On Wednesday ET, President Trump’s national address rattled markets as he vowed intensified strikes against Iran within the next two to three weeks, triggering a rapid spike in oil. Experts warn this comes just ahead of the U.S. summer driving season, potentially pushing retail gasoline to record highs.
Patrick De Haan noted that without a viable plan to reopen the Strait of Hormuz, average U.S. gas prices could breach $5 per gallon within a month. Tom Kloza of Gulf Oil reported that wholesale markets already surged on Thursday, with prices jumping 17–19 cents across the Great Lakes, Northeast, and Gulf Coast regions.
Wall Street Pivot: Fund Managers Flock to Defensive Strategies
Global equities continued their rollercoaster ride this week. Trump’s Wednesday night remarks reversed a three-day rally in Asian and U.S. markets. Concurrently, oil prices exploded on Thursday; WTI crude surged nearly 12% to $112/bbl, surpassing Brent ($109/bbl) for the first time.
David Royal, CFO/CIO at Thrivent, stated that the ultimate market trajectory remains unclear. He is currently rotating out of growth stocks into value plays and monitoring blue-chip pullbacks for entry points, noting that peak uncertainty often signals a market bottom.
Beyond Meta and Tesla: SpaceX Eyes $2 Trillion IPO Valuation
SpaceX has reportedly raised its IPO valuation target to over $2 trillion, setting the stage for one of the largest listings in history.
Sources say the company and its advisors are pitching this target to potential investors. A $2 trillion valuation would place SpaceX ahead of nearly every S&P 500 firm—including Meta and Tesla—trailing only Nvidia, Apple, Alphabet, Microsoft, and Amazon.
Institutional Perspectives
UBS: Gold prices are expected to hit new highs this year despite recent volatility. UBS forecasts an average gold price of $5,000/oz for 2026, viewing pullbacks as buying opportunities.
Daiwa Securities: If Mid-East tensions ease, the 10Y Treasury yield could retreat from 4.30% to approximately 4.20%. Focus would then shift to securing the Strait of Hormuz and diplomatic repairs between Iran and Gulf nations.
Capital Economics: Rising energy prices are triggering a wave of "pass-through" inflation. Higher fuel costs are expected to drive up prices for electricity, food, and transport, particularly impacting energy-intensive sectors like fertilizers and refined metals.
CSC Financial: The firm remains bullish on the rapid deployment of AI Agents in 2026. Key drivers include "Agent Harness" (structured application of model capabilities) and self-evolving iteration, suggesting current pullbacks offer attractive entry points.