APAC Market Wrap - Apr 21
China Markets: The Shanghai Composite edged up 0.07%, the Shenzhen Component rose 0.10%, and the Chinext Index gained 0.31%.
Green energy and theatrical media sectors outperformed, while liquid-cooling server concepts broadly retreated.
Hong Kong Markets: Benchmarks closed mixed. The Hang Seng Index rose 0.48% to 26,487.48, and the H-Shares Index climbed 0.50% to 8,943.54.
Conversely, the Hang Seng Tech Index slipped 0.08% to 5,061.50. New-style tea beverages, coal, and banking stocks led the gains, while AI and healthcare names lagged.
Japan: The Nikkei 225 rose 0.89% to 59,349.17. Non-ferrous metals and info-communications trended higher, while transport equipment and pharmaceuticals saw significant selling pressure.
South Korea: The KOSPI surged 2.72% to 6,388.47. Electrical products and electronic equipment led the rally, while healthcare and biotech sectors traded lower.
Australia: The S&P/ASX 200 dipped 0.04% to 8,949.4. Aerospace and alternative energy gained, while residential construction and oil & gas declined.
Singapore: The STI rose 0.22% to 5,014.96. Personal services and semiconductors posted modest gains, while waste management and alcoholic beverages softened.
Malaysia: The FTSE KLCI gained 0.77% to 1,715.33. Technology and utilities outperformed, while healthcare and industrial products broadly declined.
Key Events
Musk Retains Control as SpaceX IPO Documents Reveal Dual-Class Structure
Leaked excerpts from SpaceX’s confidential registration statement provide fresh clarity on the firm's governance ahead of its highly anticipated IPO.
The company plans to consolidate control under founder Elon Musk via a dual-class share structure. Class B shares will carry 10 votes each—concentrating power among Musk and a tight circle of insiders—while Class A shares sold to the public will offer a standard one-vote-per-share ratio.
JPMorgan Hikes S&P 500 Year-End Target to 7,600
Citing AI-driven earnings growth and hopes for a U.S.-Iran de-escalation, JPMorgan raised its S&P 500 year-end target to 7,600.
This revised outlook implies a 6.9% upside from Monday's close of 7,109.14. Notably, the bank had cut its target from 7,500 to 7,200 just last month amid geopolitical volatility. The firm also boosted its 2026 EPS forecast to $330 (from $315) and its 2027 target to $385.
"Age of Clean Growth": Global Renewables Surpass Coal for First Time
The Global Electricity Review by energy think tank Ember reveals that renewable generation officially overtook coal in 2025, driven by a 30% surge in solar output.
Renewables—led by wind and solar—accounted for nearly 34% of global power supply (10,730 TWh). Solar added a record 636 TWh, marking its fastest growth rate in nearly eight years.
Institutional Views
Goldman Sachs: BoJ July Rate Hike Remains on the Table
Analyst Akira Otani suggests that while the exact timing is uncertain, a July rate hike is plausible as critical data regarding high oil prices, wages, and inflation will be finalized by then.
While the BoJ may hold steady this month, it is expected to trim growth forecasts and raise FY2026 inflation projections to reflect Middle East tensions.
Capital Economics: De-escalation Could Further Propel Tech
According to Capital Economics, tech equities may see further upside if tensions surrounding the Strait of Hormuz subside.
While investor optimism remains surprisingly robust, the firm warns that a sustained oil rally could trigger renewed monetary tightening, creating a headwind for the broader market.