APAC Market Wrap — Apr 16

 

China Equity Markets: The mainland markets surged as computing power themes maintained strong momentum. The Shanghai Composite rose 0.7%, while the Shenzhen Component and ChiNext Index rallied 2.05% and 3.17%, respectively. Gains were broad-based across the computing hardware value chain.

 

Hong Kong Equity Markets: Hong Kong indices closed sharply higher amid robust turnover. The HSI gained 1.72% to 26,394.26, while the Hang Seng Tech Index jumped 3.67% to cross the 5,000 mark. Lithium batteries, memory chips, optical communications, and AI applications led the rally.

 

Japan: The Nikkei 225 surged 2.38% to 59,518.34. Electrical equipment and textiles performed well, while mining and land transportation saw significant pullbacks.

 

South Korea: The KOSPI gained 2.21% to 6,226.05. Autos and department stores led the upside, while telecommunications lagged.

 

Australia: The S&P/ASX 200 edged down 0.26% to 8,955.0. Interactive media and healthcare rose, while banks and construction materials trended lower.

 

Southeast Asia: Singapore’s STI slipped 0.27% to 5,007.83. Malaysia’s KLCI added 0.37% to 1,689.71, supported by technology and construction sectors.

Key Events

TSMC: "AI Demand is Extremely Strong," Supply Crunch to Persist Through 2027

 

In its Thursday earnings call, TSMC CEO C.C. Wei and CFO Wendell Huang reported Q1 revenue of $35.9 billion, slightly exceeding guidance.

 

The company maintained its 2026 CAPEX guidance of $52B–$56B but expects spending to hit the upper end of that range—a potential record high. Looking ahead, TSMC expects Q2 revenue to grow 32% year-over-year, with full-year 2026 revenue projected to increase by over 30%.

 

Energy Pivot: South Korea Accelerates Renewable Shift Amid Middle East Conflict

 

Korea’s Minister of Environment and Energy, Kim Sung-hwan, stated that the ongoing war is a "major turning point" for the nation’s energy strategy.

 

Seoul aims to increase renewable capacity to 100 GW by 2030 (up from the current 37 GW). To bridge the immediate gap, the government is extending coal power and restarting nuclear reactors while fast-tracking solar and wind projects.

 

Retail Rotation: Investors Swap Nvidia for Tesla?

 

Vanda Research reports a notable shift in retail sentiment as individual investors "buy the dip" in Tesla following Elon Musk's announcement of the successful AI5 chip tape-out.

 

Tesla shares surged nearly 8% on Wednesday. Conversely, some retail capital appears to be rotating out of AI heavyweight Nvidia to fund these positions.

Institutional Views

Investinglive: Gold Bias Remains Bullish as Islamabad Talks Loom

 

Gold saw a volatility spike following Israeli strikes in Lebanon, but the short-term bias remains bullish as the U.S.-Iran ceasefire holds.

 

Market attention is now focused on the upcoming first round of negotiations in Islamabad; a failure to reach a formal agreement could see safe-haven demand return instantly.

 

Jefferies: Russia and U.S. Emerge as Relative "Winners" of Middle East Conflict

 

Economist Mohit Kumar suggests the U.S. economy is the most resilient to war-driven energy price spikes.

 

Geopolitically, Russia has gained leverage, and Iran may see sanctions relief. Conversely, Gulf nations and Asia face the steepest economic losses due to supply chain disruptions, while Europe’s geopolitical influence continues to wane.