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Quick Summary Asian stocks outperformed the US , avoiding Wall Street’s AI-driven sell-off China and South Korea rebounded , led by semiconductor names Gold and silver retreated  after recent record highs Asia-Pacific equities are  up 12% YTD , vs a slight decline in the S&P 500 Asia Stays Resilient Despite US Tech Angst Asian equities largely shrugged off a US market slide triggered by concerns that  artificial intelligence could erode profits across multiple industries . The  MSCI Asia-Pacific Index  swung between gains and losses, with: Japan’s Topix +0.2%  (after reopening from holiday) South Korea +1.1% , recovering early losses Shanghai Composite +0.6% Hang Seng -1.8% Key point:  Asia has avoided the intense AI-driven rotation hitting US software and tech stocks. Why Asia Is Outperforming Asia is seen as a  beneficiary of AI supply-chain demand , particularly in semiconductors Investors are rotating into  chipmakers in South Korea a...

Asian equities advanced for a third straight session on Wednesday, mirroring gains on Wall Street as deteriorating U.S. consumer data strengthened expectations for a Federal Reserve rate cut next month. Benchmarks in Japan, South Korea and Australia all opened higher after the S&P 500 climbed 0.9% and the Nasdaq 100 added 0.6%. Chinese equities will be closely watched after Alibaba Group’s U.S.-listed shares declined following its earnings release. Treasuries eased after sharp gains in the prior session, which were driven by reports placing White House National Economic Council director Kevin Hassett as the leading candidate to become the next Fed chair. The dollar slipped to a one-week low, according to a Bloomberg measure. Cooling U.S. Data Reinforces Rate-Cut Narrative Equities regained momentum as U.S. consumer confidence posted its sharpest drop since April, while September retail sales picked up only modestly. The delayed batch of economic data, caused by a government shutdow...

  Key Takeaways New tariffs:  U.S. President Donald Trump announced an  additional 10% levy on Canadian goods , escalating trade tensions. Canada’s counterplay:  Prime Minister  Mark Carney  is leading an  Asia-focused trade diversification drive , targeting new agreements with  ASEAN ,  China , and  India . Economic strategy:  Ottawa aims to  double exports beyond the U.S. within a decade , reducing reliance on its southern neighbour, which currently buys  ~75% of Canada’s exports . Infrastructure focus:  Western Canada — especially  Prince Rupert Port  — emerges as a  key export hub  for commodities and energy shipments to Asia. Carney’s Asia Mission: A Reset in Foreign Trade The timing of Carney’s  first Asia tour as prime minister  coincides with Trump’s renewed tariff salvo. At the  ASEAN Summit in Malaysia , Carney worked to finalise a  Canada–ASEAN free trade agreement , ...

Broad-Based Tariff Surge Effective in 7 Days US President Donald Trump signed an executive order imposing steep new tariffs on  69 trading partners , with rates ranging from  10% to 50% , effective Aug 7. The move comes ahead of the long-anticipated tariff deadline and signals an aggressive stance on trade realignment. Canada:  35% duty on fentanyl-linked goods (up from 25%) Brazil:  50% on a broad range of products India:  25% amid stalled agriculture talks Taiwan:  20% Switzerland:  39% Other nations:  10%-41%, depending on trade balances and security considerations Canada Faces the Heaviest Blow Among Allies Canada, Washington’s second-largest trading partner, received the harshest hike outside of Brazil. The White House cited Ottawa’s “failure to cooperate” on fentanyl-related enforcement. Mexico, in contrast, secured a  90-day reprieve  after last-minute talks, avoiding a planned 30% duty on most goods compliant with USMCA rules of ...

Singapore 's Deputy Prime Minister,  Gan Kim Yong , has issued a stark warning about the potential ripple effects of escalating tariffs, particularly those imposed by the  U.S. under President Donald Trump , on global economic growth. His comments reflect growing concerns across  Asia , a region highly reliant on trade. Key Highlights: Tariff Concerns : Gan expressed  anxiety  over the  U.S. tariffs  on its  three largest trading partners  —  China ,  Canada , and  Mexico  — and the prospect of further tariff measures. He cautioned that these actions could lead to a  cascade of retaliatory tariffs , significantly disrupting  global supply chains  and hindering trade and investment flows. Global Economic Impact : According to Gan, the rise in tariffs and the ongoing  trade wars  could severely  slow down global economic growth , even for countries that are not directly affected by these tariffs...

Local institutional investors sustained their buying momentum on  Bursa Malaysia  for the  ninth consecutive week , recording net equity purchases of  RM1.05 billion  last week, up from  RM995.5 million  the prior week, according to MIDF Research. Key Insights Foreign Investors : Continued to exit the market with a  net outflow of RM1.07 billion , marking another week of selling. Sector Trends : Highest Net Foreign Inflows : Property (RM42.6M), Technology (RM40.2M), Plantation (RM29.4M). Highest Net Foreign Outflows : Financial Services (-RM500.5M), Healthcare (-RM168.9M), Utilities (-RM160.5M). Retail Investors Return to Buying After four weeks of net selling, local retail investors turned net buyers with  RM13.8 million  in net purchases. Regional Context Asia-Wide Trend : Foreign investors recorded  US$4.7 billion  in net outflows across eight Asian markets, a 2.6x increase from the previous week. Key Contributors : Taiwan :...

 Asia is entering its busiest week for earnings , with Chinese and Hong Kong-listed banks in the spotlight as investors look for signs of the potential impact from Beijing's stimulus measures . A total of 544 firms from the MSCI Asia Pacific Index will report their earnings this week, including major players like the Industrial and Commercial Bank of China Ltd , according to Bloomberg data. Investors will pay close attention to Chinese lenders' results , looking for any indications of increased credit demand , which could signal a recovery in consumer confidence . Chinese banks have faced challenges from slowing profit growth and narrowing interest margins , making their outlook critical for understanding the broader economic recovery. In Hong Kong, HSBC Holdings Plc will also be closely watched after its recent corporate structure revamp , which has attracted investor interest. This week’s earnings results are expected to provide key insights into the region’s economic he...

The International Monetary Fund (IMF) has reduced its global growth forecast for 2025, citing increasing risks from geopolitical tensions and trade protectionism . Global output is now expected to expand by 3.2% , which is 0.1 percentage point lower than the IMF's previous estimate in July. Meanwhile, in North America, the Bank of Canada took bold action, cutting its benchmark interest rate by 50 basis points to 3.75%, the largest cut since March 2020, signaling the end of the post-pandemic era of high inflation. The move aims to boost growth as inflation expectations trend closer to the target of 2% . In China , banks also lowered lending rates following easing measures by the central bank, part of an effort to revive economic growth and mitigate the ongoing housing market slump . However, South Korea's economy saw minimal growth last quarter, highlighting the challenges posed by weakening exports and rising geopolitical tensions. Key risks also loom globally, includin...

  China’s deflationary problems deepened in September, sparking concerns over market volatility as officials announced further aid but refrained from putting a clear price tag on stimulus. Meanwhile, Boeing’s crisis continues with the planemaker announcing significant workforce cuts, and Singapore has emerged as a new travel hotspot for China’s tiger moms . Here’s what you need to know. China’s Deflation Deepens Chinese stocks are bracing for a volatile start to the week following a disappointing Finance Ministry briefing over the weekend. While officials promised more support for the struggling property sector and local governments, no major fiscal stimulus figures were released. Markets had hoped for more robust measures to combat entrenched deflation , which worsened last month. Boeing Faces More Troubles In the US, Boeing is in the spotlight as the company plans to cut 17,000 jobs and delays its much-anticipated 777X jetliner . Boeing’s ongoing challenges reflect deeper i...

The European Central Bank (ECB) is poised to deepen its global monetary easing efforts with an interest-rate cut , which had been all but ruled out just a month ago. Economists predict that the third quarter-point reduction in this cycle will be part of a broader strategy to counter the sluggish eurozone economy , which is grappling with the impact of high borrowing costs . The ECB’s move is expected to signal a shift toward a more aggressive easing strategy aimed at stimulating growth, with global financial markets anticipating a rate cut after recent survey data highlighted a contraction in the private sector. ECB President Christine Lagarde is expected to address these changes during a press conference on Thursday following the meeting near Ljubljana, Slovenia. The focus will be on how the ECB plans to move forward with further cuts and what significant developments occurred since the September meeting. Initially, officials had nearly ruled out an October cut. However, Slovakian ...

Saudi Arabia raised its main oil prices for Asian buyers as the crude market faces increased volatility due to escalating conflicts in the Middle East. Saudi Aramco , the state oil producer, increased the official selling price (OSP) of its Arab Light crude by 90 cents to a premium of US$2.20 per barrel against the regional benchmark for Asian buyers. This increase exceeded market expectations, which anticipated a 65-cent rise . In contrast, Aramco cut oil prices for the US and Europe . Oil prices have surged in October following Iran’s missile strikes on Israel , which came in retaliation for attacks in Lebanon that severely impacted Hezbollah’s leadership. Brent crude has jumped more than 8% this week , trading around US$78 per barrel , as fears of a potential Israeli reprisal linger. Despite the heightened geopolitical tensions, oil markets had previously focused on concerns about weak demand , particularly from China. In response, OPEC+ , led by Saudi Arabia and Russia , last ...

 Oil Surges, HSBC Tightens, and Shein Eyes IPO: 5 Key Market Movers to Start Your Day in Asia Rising Tensions : Oil prices surged over 5%, with West Texas Intermediate (WTI) settling above $73 per barrel , as markets brace for the possibility that Israel’s retaliation against Iran could target critical oil infrastructure . President Joe Biden confirmed discussions about potential support for strikes on Iranian oil facilities, raising concerns of global energy disruptions . HSBC Cuts Costs : HSBC is canceling events and cutting back on travel expenses as the bank’s new CEO, Georges Elhedery , focuses on reducing costs. The bank recently scrapped a summit in India and introduced restrictions on internal trips, aiming to trim $2 billion in expenses ahead of its first quarterly results under the new leadership. Shein Eyes IPO : Shein , the online fashion giant, is preparing for informal meetings with investors ahead of a potential London IPO , according to sources. The company awa...

China has ramped up stimulus efforts to prevent its economy from slipping into a deflationary spiral , with measures including interest rate cuts, eased home-buying rules, and cash handouts. The People’s Bank of China slashed rates on one-year loans and the government rolled out subsidies to support jobless graduates. These moves are aimed at reviving growth in the world's second-largest economy, but analysts warn this might only be a temporary fix. Globally, here's a roundup of key economic trends and developments: Asia China : Despite the stimulus, China is expected to miss its 2024 growth target as the property slump continues to weigh heavily on economic momentum. The People's Bank of China cut its medium-term lending rate to 2% , marking the largest reduction on record. India : Gold imports surged ahead of the festive season, boosted by tax cuts, signaling strong demand in the world’s second-largest gold consumer. US US Core Inflation : The Federal Reserve's ...

DBS Group Holdings Ltd plans to double its wealth management fees by 2027 as wealthy investors increasingly move their assets to Asia . The bank’s income from servicing high-net-worth clients surpassed S$2 billion last year, and it expects to achieve the same growth in just half the time, according to Shee Tse Koon , head of consumer and wealth banking at DBS. The shift of global wealth to Asia has significantly boosted DBS’s fortunes. The bank, now the third-largest private bank in Asia (excluding China), is positioned alongside UBS Group AG and HSBC Holdings plc . Wealthy clients at DBS typically invest to enhance returns and seek assistance with trust and legacy planning . With total client assets reaching S$396 billion by June, DBS anticipates that figure will exceed S$500 billion by 2027. The bank expects a fourfold increase in clients investing and purchasing insurance products. DBS also manages about a third of Singapore's 1,650 single family offices , which have be...

After more than two years of currency pressures, Asia's central banks are set to receive some relief as the US Federal Reserve (Fed) is poised to cut interest rates by a quarter point on Wednesday. However, the path ahead for the region's monetary policy remains uncertain and potentially challenging. Lower rates in the US provide room for officials in Jakarta, Seoul, Mumbai , and other capitals to consider easing their own rates. The anticipation of the Fed's rate cut has already attracted investors to emerging Asian debt and equities, boosting currencies across the region. Uncertain Path Ahead for Asia's Central Banks The critical question now is how much these central banks need to cut in the coming months, or whether they need to cut at all. Countries like India and the Philippines face inflationary risks, while South Korea might prioritize financial stability. “It would be an error to think the region’s policymakers are chomping at the bit for their chance to c...

The Federal Reserve's anticipated shift to interest-rate cuts this week is expected to bolster emerging Asian market assets , potentially extending their recent lead over global favorites like Japan and chip stocks. Smaller Southeast Asian markets are likely to continue outperforming their larger counterparts, although a significant rise in the yen could introduce volatility into the Japanese market and high-performing chip stocks. The fear of an unwind in the yen carry trade could have global repercussions. Investors remain divided on whether the Fed will initiate its easing cycle with a standard 25 basis point cut or opt for a larger half-point reduction . A more substantial cut could raise concerns about the US economy's health, outweighing any positive stimulus effects. Key Market Expectations Watching the Yen The yen's trajectory is closely linked to expectations around Fed rate cuts. The currency surged past the 140 per dollar mark on Monday, reaching its stro...

Asia is "the world's most dynamic region" but structural reforms are key given its increasing importance to the global economy, International Monetary Fund chief Christine Lagarde said in New Delhi on Saturday. IMF chief Christine Lagarde spoke in New Delhi on Saturday Asia already accounts for 40 percent of the world economy and stands to deliver nearly two-thirds of global growth over the next four years, Lagarde, the IMF managing director, told the Advancing Asia conference in the Indian capital. "Given this vital economic role, making the most of Asia's dynamism is of great interest to the entire world," Lagarde, on stage with Indian Prime Minister Narendra Modi, said. "Increased interconnectedness means that Asia now affects the world more than ever before," she said. "By the same token, Asia is now more deeply affected by global economic developments than ever before -- and must respond to them." With the global economy f...