APAC Market Wrap - Jul 30
China A-Shares
At the close, the Shanghai Composite Index fell 0.62% to 3,804.69 points, the Shenzhen Component Index dropped 2.73% to 13,285.80 points, and the ChiNext Index tumbled 3.97% to 3,244.62 points.
Total turnover across the Shanghai, Shenzhen, and Beijing stock exchanges reached RMB 2.34 trillion.
Technology growth sectors faced severe selling pressure throughout the day as concerns over global AI return on investment dampened momentum, sparking profit-taking in hardware computing power, semiconductor chips, and optical transceivers. However, relative strength in consumer, property, and dividend-yielding stocks helped cushion the broader benchmarks.
By sector, liquor, automobiles, education, and consumer staples led the gains, while semiconductors, memory chips, co-packaged optics (CPO), and glass substrate underperformed significantly.
Hong Kong Stocks
At the close, the Hang Seng Index gained 0.20% to 25,858.88 points, while the Hang Seng Tech Index fell 1.25% to 4,803.77 points.
The market demonstrated relative resilience as active trading in consumer staples, automobiles, and education supported the benchmark, though sharp pullbacks in AI concepts and semiconductor suppliers capped upside potential for the broader tech space. Total market turnover reached HK$ 304.89 billion.
By sector, consumer staples, traditional internet technology, and automobiles led the market, whereas memory concepts, CPO suppliers, and AI model concepts experienced pullbacks.
Japan Stocks
The Nikkei 225 Index closed up 0.71% at 61,867.43 points.
Boosting market sentiment, robust profit forecasts from chip-equipment giant Advantest lifted semiconductor-related counters, offsetting weakness in banking stocks that pulled down the broader Topix.
Sector-wise, semiconductors and electronic manufacturing led the advance, while banking and broader financial stocks trailed.
South Korea Stocks
The KOSPI Index fell 1.23% to close at 5,593.00 points, capping a highly volatile session that saw the benchmark swing between a 5.5% surge and a 2.1% loss.
Persistent volatility across global memory chip suppliers and uncertainty surrounding global rate policy paths continued to trigger rapid sector rotation and institutional repositioning.
Sector-wise, memory chips and semiconductor equipment led the slide, while selective defensive names and covered call strategies attracted capital inflows.
Australia Stocks
The S&P/ASX 200 Index (.XJO) closed down 0.78% at 8,967.70 points.
Tracking overnight weakness on Wall Street and broader caution regarding interest rate outlooks, Australian equities faced widespread profit-taking.
Sector-wise, tech and consumer discretionary led losses, while energy and utilities provided partial support.
Singapore Stocks
The Straits Times Index (.STI) slipped 0.77% to close at 5,669.14 points.
Heavyweight banking stocks led a broad-based pullback as investors digested global inflation and rate path uncertainties following the Fed's latest policy hold.
By sector, financials (DBS, OCBC, UOB) and industrial manufacturing led losses, while telecommunications and select defensive consumer names provided modest support.
Malaysia Stocks
The FTSE Bursa Malaysia KLCI rose 0.28% to finish at its intraday high of 1,720.40 points.
Late-session buying in select blue-chip heavyweights lifted the benchmark index, allowing Malaysian equities to bypass the tech-led volatility seen in neighboring markets.
Sector-wise, financial heavyweights and industrial products held steady to lead gains, while select small-caps and real estate names experienced mild consolidation.
Key Events
Global AI "Picks and Shovels" Suppliers Face Valuation Pressure Amid Tech Spending Scrutiny
Asia's semiconductor and AI supply chain stocks faced heightened volatility on Thursday following earnings reports from major US hyperscalers that triggered questions regarding AI capital expenditure returns.
Mainland China's top AI hardware suppliers—including Innolight, Eoptolink, and Cambricon Technologies—experienced significant pullbacks, highlighting how closely regional tech suppliers are intertwined with global AI spending sentiment.
Middle East Tensions Ease as Pause in Strikes Drags Oil Prices Lower
Global oil prices tumbled significantly after reports confirmed paused strikes and ongoing negotiations between US and Middle Eastern officials aimed at normalizing shipping flows through the Strait of Hormuz.
WTI crude fell below $82 a barrel while Brent crude slipped near $88, delivering its largest single-session drop in months. The easing geopolitical risk premium helped soften inflation concerns across Asia, though lower crude prices weighed on regional energy producers.
Institutional Views
Everbright Securities: Asian AI Supply Chain Remains Tied to Global Tech Earnings Sentiment
In a research note released Thursday, Everbright Securities pointed out that recent financial results from several major global tech spenders have temporarily dampened market sentiment surrounding tech sector growth momentum.
Because Asian hardware manufacturers serve as core "picks and shovels" suppliers to global data centers, their valuations reflect global sentiment closely in the near term.
Analysts advise investors to monitor upcoming third-quarter capital expenditure guidance and earnings execution while navigating short-term market dispersion.