MONEY MASTER

Global markets slipped back into  risk-off mode  as renewed hostilities between the US and Iran unsettled investors, overshadowing positive economic data and reinforcing geopolitical-driven volatility. Asian Stocks Slide Amid Renewed Tensions The  MSCI Asia-Pacific ex-Japan Index  fell  0.8% , reflecting broad regional weakness: Nikkei 225   -1.3% Kospi   -2.0% The decline follows a  sell-off on Wall Street , where the  S&P 500  dropped  0.7% . Oil and Geopolitics Drive Market Sentiment Markets were shaken after  fresh exchanges of fire between the US and Iran , raising concerns over: Energy supply disruptions Prolonged instability in the  Middle East While Brent crude initially surged, it later eased to around  US$97 per barrel , reflecting  conflicting signals on ceasefire progress . Economic Data Takes a Back Seat Stronger US data failed to lift sentiment: ISM services PMI improved , indicating resilient d...

A sharp rally in US AI software stocks is reinforcing investor confidence in the  commercialisation phase of artificial intelligence , with institutional capital positioning for further upside — particularly in  Microsoft . AI Software Stocks Surge on Earnings Strength The sector saw strong gains following robust earnings, highlighting  growing monetisation of AI investments : Datadog   +35% Snowflake   +10% MongoDB   +12% Cloudflare  surged The rally signals a shift from  AI infrastructure spending toward real revenue generation , boosting sentiment across software names. Large Options Trade Signals Bullish Outlook on Microsoft Institutional investors executed a significant  bull call spread strategy  on Microsoft: Bought  26,160 contracts of $500 calls (Nov 2026) Sold  26,160 contracts of $575 calls Net premium: ~US$26.8 million With Microsoft trading near  US$425 , the structure implies expectations for  gradual up...

Taiwan Semiconductor Manufacturing Co  continues to benefit from the artificial intelligence wave, posting  strong double-digit sales growth  as global tech giants accelerate investment in AI infrastructure. Strong Monthly Sales Highlight AI Momentum TSMC reported  April revenue of NT$410.7 billion (US$13.1 billion) , representing a  17.5% year-on-year increase . The performance reflects  sustained demand from hyperscalers , which are aggressively expanding AI capabilities. Analysts estimate  Q2 revenue growth of around 35% , indicating continued strength through mid-2026. AI Capex Boom Driving Semiconductor Demand The surge in demand is supported by large-scale spending commitments from leading tech companies, including: Nvidia Advanced Micro Devices Alphabet Amazon Meta Platforms Microsoft These firms are collectively allocating about  US$725 billion toward AI investments this year , significantly boosting demand for  advanced semiconductor...

Amazon (AMZN.US)  is showing  strong bullish momentum , with technical indicators suggesting the rally may have further room to run following a sharp rebound from recent lows. Strong Rebound From Key Support Levels Amazon shares have surged in recent sessions, climbing  over 11% this week , marking its  strongest weekly performance since early 2023 . The rally was triggered by a  double bottom formation near US$200 , a key psychological and technical support level. This pattern was reinforced by bullish candlestick signals, indicating a  potential trend reversal . The stock is currently trading around  US$238 , still about  10% below its 52-week high , leaving room for upside. Bullish Technical Patterns Emerging Several positive technical signals are now in play: Inverse head-and-shoulders pattern breakout Bullish island reversal , reclaiming the  200-day moving average Break above a  bear flag formation  on the weekly chart These p...

Nvidia (NVDA.US)  is now trading at its  lowest price-to-earnings (P/E) ratio in seven years , as geopolitical tensions and concerns over AI returns weigh heavily on investor sentiment. Valuation Compression Signals Market Caution Nvidia’s forward  P/E has dropped to ~19.6x , falling below the  S&P 500 average (~20x)  — an unusual shift for a high-growth technology leader. The decline follows a  ~20% drop from its October peak , wiping out over  US$800 billion in market value , despite strong fundamentals. War and Inflation Fears Drive Selloff The broader market downturn, triggered by the  Middle East conflict , has raised concerns that: Oil prices will remain elevated Inflation could reaccelerate Central banks may  delay rate cuts or tighten policy These macro risks have pressured high-growth tech stocks, including Nvidia. AI Spending Concerns Weigh on Outlook Investor sentiment has also been hit by doubts around  AI monetisation ti...

Shares of  NVIDIA Corp  fell in premarket trading as escalating Middle East tensions raised concerns about energy costs and broader semiconductor supply chain risks. Key Takeaways Nvidia fell 1.3% in premarket; down 4.7% YTD Chip stocks broadly weaker amid oil shock fears Main risk is rising energy costs, not direct production shutdowns Asian semiconductor suppliers hit hardest Chip Sector Under Pressure Advanced Micro Devices Inc.  and  Broadcom Inc.  both declined in premarket trading. Taiwan Semiconductor Manufacturing Co.  dropped over 4% in Taiwan trading. Key Point: The immediate threat is not factory shutdowns — it’s higher energy and transportation costs squeezing margins. Semiconductor fabrication facilities are extremely energy intensive. Sustained increases in electricity and fuel costs could materially impact production economics. Asia Bears the Brunt Asian chip suppliers have fallen sharply due to heavy reliance on Middle East energy flows thro...

Wall Street has been aggressively selling software stocks on fears that artificial intelligence could disrupt traditional business models. Retail investors are doing the opposite. As institutional money exits, individual traders are stepping in at near-record levels. The Setup S&P Composite 1500 Software & Services Index  has dropped almost  20% year-to-date . Yet retail trading flows into software names are approaching record highs, according to  JPMorgan Chase & Co.  data. Most popular retail picks: Microsoft Corp. ServiceNow Inc. AppLovin Corp. Meanwhile, AI concerns have pressured names like  Salesforce Inc.  and  Adobe Inc. . Even  Nvidia Corp.  saw record retail dip-buying after its recent pullback. Money Master Take This isn’t just about “buying the dip.” It’s about a clash between structural fear and tactical opportunity. 1️⃣ Retail Is Trading Price Action, Not AI Disruption Risk Institutional selling is driven by: Margin ...

From Aversion to Attraction After years of regulatory crackdowns and property market turmoil, global investors are returning to China. A  world-beating US$2.7 trillion equity rally  and advances in high-tech industries have made Chinese assets hard to ignore. Goldman Sachs noted hedge funds were the most active in onshore equities in recent years, reversing the “uninvestable” label that haunted China since 2021. Rising Inflows Across Asset Classes Foreigners increased holdings of  stocks, bonds, loans, and deposits  simultaneously in 1H 2025 — the first such occurrence since 2021. Net inflows through June already surpassed  2024’s total by 60% , according to PBOC data. August also saw continued net foreign purchases of onshore stocks and bonds, reinforcing momentum. In total, global funds remain  underweight by 1.3 percentage points , signaling further room for exposure. Tech and AI Drive Sentiment China’s  tech sector is the key catalyst : Alibaba ...

 Key Takeaways Washington and Beijing agreed on a  framework deal  allowing TikTok to continue in the US. The arrangement includes a  divestment of TikTok US from ByteDance , though China will retain control of the core algorithm. A  planned call between US and Chinese leaders  later this week is expected to finalize the deal. Data privacy and national security remain unresolved concerns, particularly around potential  backdoor access  to US user data. The agreement is part of broader  US-China trade and tech negotiations , highlighting AI and data security as central themes. Deal Overview The US and China have established a framework that lets TikTok continue operations in the US under US-controlled ownership, separating it from Chinese parent ByteDance. Beijing has signaled it will not sell the company’s algorithm — seen as the platform’s “secret sauce.” Instead, the deal focuses on corporate restructuring rather than full technology transf...

RHB Investment Bank is staying bullish on Malaysia’s tech sector , maintaining its  OVERWEIGHT rating  as recovery momentum builds and valuations remain attractive. The sector is now trading at  below 20x forward P/E , well under its 5-year average—opening the door for a potential  re-rating . Why RHB Is Optimistic: Earnings Strength : Across the supply chain, companies are showing stronger revenue and giving  positive forward guidance . Engineering Support Services  report robust  order books , often a leading signal for  automated test equipment (ATE)  and  OSAT providers . EMS players  (Electronics Manufacturing Services) see  healthy visibility , backed by new project wins and customer interest. New tech rollouts, product launches, and demand recovery  are expected to boost the sector through 2H25. Malaysia’s Strategic Advantage: Short-term boost from  order diversion  and long-term gain from  manufactur...

Malaysia’s technology sector continues to face  earnings headwinds , with analysts warning that  US tariff uncertainty  and  cost pressures  could further dampen performance over the next six months. What’s Happening? According to  Hong Leong Investment Bank (HLIB) , tech stocks remain vulnerable even after a  21% decline  in the  Bursa Malaysia Technology Index  so far this year — significantly underperforming the broader  FBM KLCI , which is down about 7%. The  US recently announced a 25% blanket import tariff  on all Malaysian goods — catching the Malaysian government off guard. President Donald Trump has, however, left the door open for negotiations until the  Aug 1 deadline . Key Concerns for Tech Firms US tariff uncertainty  is clouding visibility on long-term demand. Rush orders  currently supporting production may taper off once inventory levels normalize. Companies face  rising costs : Higher...

The  S&P 500 closed Q2 2025 at a record high , capping its strongest quarterly performance since Q4 2023 with a  +25% rally from April lows , led by continued tech sector strength and growing optimism over Fed rate cuts. However, markets are also facing  elevated valuation risks , geopolitical volatility, and upcoming macro data that may determine whether this momentum can persist. Market Highlights S&P 500  topped the  6,200 level , led by megacap techs (Apple +X%, Oracle +Y% on $30B cloud deal). Treasuries  posted their best 1H performance in five years;  yields softened  on dovish Fed expectations. USD weakened  for the fifth consecutive month — its longest decline since 2017. Global equities  remain resilient despite tariff threats and geopolitical shocks. Gold and crude diverged : Gold up on haven demand; crude down amid OPEC+ output expectations. Analyst Insights: Positioning for H2 2025 Fed Pivot Still Central to Market Na...

  Key Takeaways: Positive Outlook for Chinese Stocks : Morgan Stanley has raised its targets for Chinese stocks for the second time in over a month, citing a  positive earnings outlook . The  MSCI China Index  is poised for its  first earnings beat in 13 quarters , signaling a potential shift toward stronger performance. Valuation Boost : Morgan Stanley’s strategists argue that  China deserves a valuation similar to MSCI Emerging Markets  and has cut its long-standing valuation discount. This is seen as a sign that China's market is emerging from years of underperformance. Tech Sector Driving Gains : The rally in  Chinese tech stocks , driven by optimism surrounding  AI  developments (particularly  DeepSeek's AI model ) and  President Xi Jinping's positive stance toward tech , is a key factor behind the strong performance. The  Hang Seng Tech Index  saw a rebound, rising 1.6%. Strong Earnings Reports : Earnings for to...

Citigroup  has shifted its outlook on global equities, downgrading  U.S. stocks  to  neutral  from  overweight , while upgrading  China tech stocks  to  overweight , citing several key factors that make Chinese technology stocks an attractive investment. Key Takeaways: U.S. Stocks Downgraded : Citi strategists, led by  Dirk Willer , noted that  U.S. exceptionalism  seems to be “pausing.” The  S&P 500  breaking its  200-day moving average  and the poor performance of  big tech stocks have signaled bearish momentum for U.S. equities. The “Magnificent Seven” tech giants lost a collective  $759 billion  in market cap on Monday, marking the  largest one-day loss  in history. Short-Term Caution : While Citi maintains a  neutral stance  on U.S. stocks for the next  three to six months , they remain cautious about the  AI bubble  and expect  negative U.S. da...