APAC Market Wrap — Apr 14

China Equity Markets: The Shanghai Composite remained flat, edging up 0.01%, while the Shenzhen Component and ChiNext Index fell 0.97% and 1.22%, respectively. The pharmaceutical sector rallied against the broader trend, while lithium battery concepts saw a collective correction.

 

Hong Kong Equity Markets: Hong Kong stocks exhibited volatility today, with the HSI rising 0.29% to 25,947.32 and the Tech Index climbing 1.23% to 4,911.79. Market performance was sharply bifurcated; pharmaceutical and aviation stocks provided major support, while optical communications and AI applications dragged on the indices.

 

Japan: The Nikkei 225 rose 0.44% to 58,134.24. Info-communications and banking saw modest gains, whereas non-ferrous metals and mining faced heavy selling.

 

South Korea: The KOSPI surged 2.74% to 6,091.39, led by a broad rally in IT services, computing, and bio-engineering.

 

Australia: The S&P/ASX 200 edged up 0.09%. Agriculture and aerospace outperformed, while energy and utilities sectors declined.

 

Southeast Asia: Singapore’s STI gained 0.27% to 5,021.20. In Malaysia, the KLCI fell 0.28% to 1,683.42, as tech gains were offset by a slump in utilities and healthcare.

Key Events

ASML Posts Q1 Beat; CEO Expects Another "Growth Year"

 

ASML reported Q1 revenue of €8.77 billion and a gross margin of 53%, both exceeding institutional estimates. For the full year 2026, the company raised its sales guidance to a range of €36 billion to €40 billion, signaling strong demand despite ongoing export control uncertainties.

 

U.S. Oil Exports Surge as Hormuz Blockade Persists

 

With Middle East crude still obstructed at the Strait of Hormuz, U.S. exports are filling the void. Data shows 171 tankers are currently heading to the U.S. Gulf Coast, nearly 55% above the monthly average. Kpler estimates U.S. April crude exports will hit 5.2 million bpd, a one-third increase from March.

 

South Korean Memory Industry Faces Critical Risk from Israeli Bromine

 

Beyond helium shortages, the semiconductor industry faces a "deadly risk" regarding bromine supply. South Korea’s Samsung and SK Hynix rely on Israel for 97.5% of their bromine imports, a key raw material for etching gases.

 

With global spare capacity virtually non-existent, any disruption in Israel could paralyze global DRAM and NAND production.

Institutional Views

CITIC Securities: Hong Kong Stocks Poised for Valuation Expansion in April-May

 

CITIC analysts suggest that with the earnings season concluding and geopolitical tensions showing signs of stabilization, Hong Kong stocks are moving from "extreme sentiment" back to "fundamental rationality." A potential return of foreign capital and policy catalysts from the "15th Five-Year Plan" could drive a valuation recovery through May.

 

Investinglive: Gold Bias Shifts Bullish Amid Fragile Diplomacy

 

Short-term sentiment for gold has turned more bullish as traders reprice hawkish expectations. While the ceasefire remains in effect, the risk of a breakdown in U.S.-Iran negotiations in Islamabad remains high. Any resumption of hostilities would likely trigger a rapid reversal in market sentiment.