APAC Market Wrap - May 12

China: Major indices closed lower, with the Shanghai Composite slipping 0.25% to 4,214.49 and the Shenzhen Component falling 0.47% to 15,824.92. The ChiNext Index bucked the trend, edging up 0.15% to 3,934.88.

 

Strength was seen in semiconductor equipment, UHV (Ultra-High Voltage), power-computing synergy, and CPO concepts. Conversely, rare earths, innovative drugs, AI applications, lithium batteries, and photovoltaics underperformed.

 

Hong Kong: The market faced broad pressure as all three major indices retreated. The Hang Seng Index fell 0.22% to 26,347.91, the Hang Seng Tech Index dropped 0.70% to 5,070.61, and the H-Share Index finished marginally lower at 8,882.37.

 

Tech giants were mixed; Lenovo fell over 3%, while Tencent and Bilibili dropped over 1%. Oil majors were active, with PetroChina gaining over 3%. Chipmakers saw a correction, and pork producers like Muyuan Foods weakened.

 

Japan: The Nikkei 225 rose 0.52% to 62,742.57. Healthcare, precision instruments, and retail sectors led the gains, while non-ferrous metals, electric power, and gas sectors trended lower.

 

South Korea: The KOSPI tumbled 2.29% to 7,643.15. While pharmaceutical and biotech sectors led the gainers, heavyweight semiconductor, automotive, and electronics sectors dragged the index down.

 

Australia: The S&P/ASX 200 fell 0.85% to 8,687.20. Healthcare, utilities, and consumer staples posted gains, whereas energy, financials, and industrials closed lower.

 

Singapore: The Straits Times Index (STI) dipped 0.18% to 4,918.52. Real estate and telecommunications showed modest activity, while financials and technology faced slight pullbacks.

 

Malaysia: The FTSE Bursa Malaysia KLCI declined 0.32% to 1,745.63. Technology and healthcare were slightly active, but banking, plantations, and energy sectors saw weakness.

Key Events

Global Investors Flood Asian Tech Stocks; Analysts Warn of "Double Risk"

 

South Korea’s KOSPI has surged nearly 80% year-to-date, hitting a fresh record high on Monday. Japan and Taiwan are seeing similar massive inflows.

 

According to Morgan Stanley, global hedge fund buying in these three markets reached a 10-year high last week. Net exposure to Japan, Korea, and Taiwan now accounts for approximately 19% of global holdings, driven largely by the AI-led semiconductor boom.

 

Nvidia Adds an "Oracle" in Market Cap in Just 4 Days

 

Nvidia has reclaimed its aggressive upward momentum, further solidifying its status as the world’s most valuable company.

 

Over the last four trading sessions, Nvidia’s shares jumped 14%, adding $591 billion in market value—surpassing the total market cap of Oracle ($557 billion).

 

Bernstein analyst Stacy Rasgon noted that robust Capex commitments from major cloud service providers suggest that demand for GPUs shows no signs of slowing.

Institutional Perspectives

HSBC Research on S&P 500: HSBC has raised its year-end target for the S&P 500 to 7,650 from 7,500.

 

The revision follows a solid Q1 earnings season and stabilizing tech sentiment. The bank projects 2026 EPS to grow 20% to $325, with the "Magnificent Seven" and broader tech sectors remaining the primary drivers.

 

Daishin Securities on Korean Exports: Analyst Lee Kyoung-min expects South Korea’s chip exports to hit a record high in May.

 

Government data for the first ten days of the month shows chip exports surged nearly 150% year-over-year to a record $8.54 billion, benefiting from the global AI infrastructure investment cycle.