Market Overview - The Hong Kong stock market sentiment continues to improve, maintaining an upward trend from the previous day's rebound, with a net inflow of HKD 1.171 billion from southbound funds[9] - Major technology stocks saw a collective narrowing of gains in the afternoon, with Alibaba up 2% while Meituan turned negative and Xiaomi fell 1.44%[9] - The Hang Seng Index closed at 26,027.55, reflecting a weekly increase of 3.09% and a year-to-date increase of 29.87%[3] U.S. Market Performance - On October 21, the Dow Jones Industrial Average rose by 0.47%, reaching a new historical high, while the S&P 500 remained flat and the Nasdaq fell by 0.16%[9] - Notable performances included General Motors, which surged nearly 15%, marking its best single-day performance in five years, and Raytheon Technologies, which rose nearly 8%[9] - Beyond Meat experienced a dramatic increase of over 146%, with a cumulative rise of approximately 600% over three trading days[9] Sector Highlights - Semiconductor stocks, insurance stocks, and heavy machinery stocks maintained a generally upward trend despite narrowing gains in the afternoon[9] - Financial stocks, particularly Chinese securities firms and domestic insurance stocks, showed significant activity, with China Life rising over 6% and CICC up over 3%[9] - Gold and silver prices experienced a significant pullback, leading to declines in related stocks, with China Silver Group dropping over 6%[9] Key Index Performance - The Shanghai Composite Index closed at 3,916.33, up 1.36% for the day and 14.94% year-to-date[3] - The Hang Seng Tech Index closed at 6,007.94, reflecting a year-to-date increase of 33.49%[3] - The Nikkei 225 index rose by 0.27%, reaching a new closing historical high[9]

Market Overview - The Hong Kong stock market indices opened higher, showing a rebound with the Hang Seng Index at 25,858.83, up 2.42% year-to-date[3] - The net outflow of southbound funds from Hong Kong stocks was HKD 2.67 billion on October 20[9] Stock Performance - Major tech stocks in Hong Kong saw significant gains: NetEase up over 5%, Alibaba up 4.86%, and Tencent up 3.2%[9] - The aviation sector led the gains, with China Eastern Airlines rising nearly 10%, marking a four-day increase of over 25%[9] U.S. Market Highlights - U.S. markets closed with all three major indices up over 1%, with the Nasdaq gaining 1.37% and the S&P 500 up 1.07%[3] - Apple reached a market cap of USD 3.89 trillion, with its stock rising approximately 4%[9] Semiconductor Sector - Semiconductor stocks were active, with Micron Technology rising over 2% and TSMC up more than 2.5%[9] - Nvidia's CEO celebrated the production of the first Blackwell chip in the U.S., indicating strong growth in the semiconductor industry[9] Gold and Commodities - Gold stocks experienced a collective pullback, with Zhenfeng Gold down 10% and Chifeng Jilong Gold down over 6%[9] - Concerns were raised about gold demand potentially weakening if retail participation remains low[9] Economic Indicators - China's Q3 GDP was reported at CNY 3.545 trillion, growing 4.8% year-on-year, slightly above the expected 4.7%[13] - Japan's Nikkei 225 index closed up 3.4%, reaching a historical high, driven by political stability and economic recovery signals[13]

Group 1: US Market Overview - The US market is experiencing a "data vacuum" period with policy expectations trading, as Powell hinted at a potential halt in balance sheet reduction in the coming months[5] - The VIX index surged significantly, indicating heightened market volatility, while the financial sector was the worst performer due to regional bank failures[11] - Gold prices reached historic highs, breaking the $4200 per ounce mark, driven by multiple factors including interest rate cuts and geopolitical tensions[12] Group 2: Global Economic Trends - China's government is enhancing counter-cyclical adjustments and expanding domestic demand to navigate complex external environments, leading to a structural market characterized by risk aversion[5] - Japan's political instability has suppressed interest rate hike expectations, causing significant fluctuations in stock, bond, and currency markets[13] - In Europe, political uncertainties are dampening growth expectations, with the ECB emphasizing its readiness to address potential market turmoil[15] Group 3: Investment Strategies - A multi-asset FOF portfolio is recommended, with allocations of 60% in equities, 30% in fixed income, and 10% in commodities, achieving an annualized return of 28%[37] - Investors are advised to maintain a balanced approach, focusing on US Treasuries for medium to long-term opportunities and allocating a portion to gold due to expected price support from various factors[44] - For stable returns in a volatile market, mixed equity and bond funds are suggested to balance capital appreciation potential[44]

Market Overview - The Nikkei 225 index closed at 48,580.44, up 1.77% for the day and 21.77% year-to-date[3] - The Shanghai Composite Index closed at 3,933.97, up 1.32% for the day and 15.46% year-to-date[3] - The Hang Seng Index closed at 26,752.59, down 0.29% for the day but up 33.49% year-to-date[3] Stock Performance - Major tech stocks in Hong Kong showed mixed results, with Kuaishou up 3.56% and Alibaba down 2.4%[9] - Semiconductor stocks in Hong Kong faced declines, with SMIC down nearly 7% due to high static P/E ratios[9] - In the U.S., the Dow Jones fell 0.52%, while the Nasdaq dropped 0.08%[9] Sector Highlights - Copper prices surged due to supply shortages and advancements in computing power, leading to significant gains in copper mining stocks, with China Molybdenum up over 21%[9] - New consumption stocks performed well, with Mixue Group rising nearly 7%[9] - Airline stocks rebounded, with China Eastern Airlines up nearly 8%[9] Regulatory News - On October 9, the Chinese Ministry of Commerce announced export controls on rare earths, lithium batteries, and superhard materials[14]

Market Overview - Spot gold has reached a new high, surpassing $4040 per ounce, with silver also rising over 2% to nearly $49 per ounce[9] - The Hang Seng Index closed at 26829.46, down 0.48% for the day, while the Hang Seng Tech Index fell 0.55%[3] - The Nasdaq Composite Index rose 1.12%, marking a new closing high, while the S&P 500 increased by 0.58%[9] Stock Performance - In the U.S. market, AMD surged over 11%, with a three-day cumulative increase of 43%[9] - Major tech stocks like NVIDIA and Amazon saw gains of over 2% and 1% respectively[9] - Chinese concept stocks showed mixed results, with NIO up 4.67% and Alibaba down 0.1%[14] Economic Indicators - The U.S. budget surplus for September was reported at $164 billion, with projected deficits of $1.809 trillion for FY 2025[12] - Japan's foreign investment in the stock market saw a net outflow of 3.7 trillion yen in September, the largest in six months[12] - The Japanese nominal wage growth rate for August was 1.5%, the lowest in three months, while real wages fell by 1.4%[12]

Market Overview - The U.S. stock market saw a collective decline on October 7, with the Dow Jones down 0.2%, Nasdaq down 0.67%, and S&P 500 down 0.38%[8] - Major tech stocks mostly fell, with Tesla dropping over 4% and Google down over 1%[8] - AMD shares rose nearly 4% after announcing a 6 GW computing power agreement with OpenAI, with the first 1 GW deployment planned for the second half of 2026[8] International Indices Performance - The FTSE Singapore Straits Index closed at 4472.26, up 1.14% for the day and 17.82% year-to-date[2] - The German DAX index increased by 0.03% year-to-date, reaching 24385.78[2] - The Nikkei 225 index rose 0.01% and has a year-to-date increase of 20.19%[2] Sector Highlights - Semiconductor stocks faced significant declines, with KLA down over 4% and ASML nearly 4%[8] - Cryptocurrency-related stocks also fell, with Strategy down over 8% and Coinbase down over 2%[8] - Bitcoin mining stocks saw gains due to rising Bitcoin prices, with CleanSpark up over 3% and Hive Digital up over 11%[8] Notable Company Developments - Dell raised its sales and profit growth forecast for the next two years, expecting a 7% to 9% increase by fiscal year 2030[8] - IBM shares rose 1.54% following a partnership with Anthropic for enterprise-level AI software[8] - Trilogy Metals surged over 210% after the U.S. government announced a plan to acquire 10% of the company as part of a $35.6 million investment[8]

Market Overview - The Hang Seng Index closed at 26,623, up 1.89% for the day and 32.72% year-to-date[3] - The Hang Seng Tech Index rose 2.08% to 6,324, with a year-to-date increase of 41.54%[3] - The Shanghai Composite Index increased by 0.90% to 3,863, with a year-to-date gain of 15.24%[3] Sector Performance - Major technology stocks rebounded, with Alibaba and Kuaishou rising over 4%, and JD.com increasing over 3%[9] - Financial stocks surged, with Huatai Securities and GF Securities up over 12%, and CITIC Securities up over 11%[9] - Gold stocks collectively rose, with Zhaojin Mining and Tongguan Gold increasing over 6%[9] Economic Indicators - The People's Bank of China emphasized the implementation of a moderately loose monetary policy, encouraging financial institutions to increase credit[9] - Gold prices reached a new high, surpassing $3,810, driven by central bank demand and expectations of interest rate cuts from the Federal Reserve[9] U.S. Market Insights - U.S. major indices collectively rose, but concerns over tariffs and potential government shutdown limited gains[9] - The Nasdaq China Golden Dragon Index increased by 2.03%, with notable gains in Chinese concept stocks like Pinduoduo and Bilibili[9] Japanese Market Trends - The Nikkei 225 index fell 0.7%, continuing a decline from last week's record high, influenced by ex-dividend factors and a stronger yen[10] - Sony Financial surged 16% following its spin-off from Sony Group, while Toyota saw a decline of 3.35% despite an increase in global sales[10]

Economic Overview - The US second quarter GDP was revised up to an annualized growth rate of 3.8%, significantly higher than the previous estimate of 3.3%, driven by strong consumer spending and a decline in imports[14] - Initial jobless claims in the US fell to 218,000, the lowest level since July, indicating resilience in the labor market[14] - The core PCE price index rose by 2.9% year-on-year in August, suggesting persistent inflation pressures[14] Market Reactions - US stock markets experienced a decline in the first three trading days of the week, but improved sentiment on Friday resulted in a mixed performance, with Intel shares rising nearly 20% due to potential investment news[12] - The 10-year US Treasury yield increased to 4.18%, reflecting the impact of strong economic data on bond markets[12] Policy Developments - The Trump administration announced new tariffs ranging from 25% to 100% on imports of building materials, furniture, and patented drugs, effective October 1[11] - The People's Bank of China emphasized the implementation of a moderately loose monetary policy and proposed new tools to stabilize capital markets[13] Sector Performance - In China, industrial profits for large enterprises increased by 0.9% year-on-year in the first eight months, with August showing a significant turnaround with a 20.4% increase[13] - The A-share and Hong Kong markets showed structural opportunities, particularly in technology and growth sectors, despite overall cautious trading ahead of the National Day holiday[15] Global Market Trends - Global stock indices displayed mixed performance, with European and Japanese markets showing strength while US and Chinese markets faced corrections[9] - Commodity prices generally rose, with natural gas and oil prices rebounding due to geopolitical factors and supply-demand expectations[9] Investment Strategy - A multi-asset FOF portfolio is recommended with a 60% allocation to equities, 30% to fixed income, and 10% to commodities, achieving an annualized return of 41.55%[8] - Investors are advised to focus on 10-year US Treasuries as a stable investment during the current interest rate cycle[47]

Investment Rating - The report assigns a rating of "Accumulate" for Nvidia (NVDA.O) with a target price based on a favorable fundamental outlook [6]. Core Insights - Nvidia's CEO Jensen Huang expresses optimism about the continuous growth of global AI capital expenditures, estimating that approximately $5 trillion annually is needed to support AI systems capable of generating $10 trillion in GDP value [2]. - Huang emphasizes that Nvidia's competitive advantage lies in its total cost of ownership (TCO), asserting that even if competitors offer ASIC chips for free, the overall operational costs of their systems cannot match Nvidia's solutions [3]. - The strategic partnership with OpenAI is highlighted, with Nvidia planning to invest up to $100 billion to support OpenAI's growth, which Huang believes positions OpenAI to become the next trillion-dollar company [4]. Summary by Sections AI Capital Expenditure Growth - Huang maintains a positive outlook on AI capital expenditures, indicating that substantial investments are essential for AI infrastructure to meet the projected economic contributions [2]. Nvidia's Competitive Edge - The report discusses how Nvidia's positioning has evolved from a "chip company" to an "AI infrastructure provider," supported by three core pillars: the shift from general computing to accelerated computing, exponential growth in AI inference demand, and superior energy efficiency through hardware-software synergy [3][11]. Strategic Investments and Ecosystem - Nvidia's investments in companies like OpenAI are framed as independent financial decisions aimed at sharing the growth of the AI ecosystem, rather than being tied to chip sales [15]. - The report notes Nvidia's shift towards an open AI infrastructure platform, allowing collaboration with industry partners to enhance performance and design [15].

Market Overview - The initial jobless claims in the U.S. reached 263,000, exceeding market expectations of 235,000, marking the highest level in nearly four years[11] - The U.S. CPI for August increased by 2.9% year-on-year, aligning with expectations, while the month-on-month growth was 0.4%, surpassing the anticipated 0.3%[14] - The Dow Jones Industrial Average closed at 46,108.00, up 1.36% for the day and 8.30% year-to-date[5] Stock Market Performance - The Hang Seng Index closed at 26,086.32, down 0.43%, while the Hang Seng Tech Index fell by 0.24% to 5,888.77[11] - Major tech stocks in Hong Kong saw declines, with Meituan dropping 6% to a new low, while Alibaba and NetEase experienced slight increases[11] - In the U.S., major indices reached historical highs, with the Nasdaq gaining 0.72% to close at 22,043.07[11] Sector Highlights - Biopharmaceutical stocks in Hong Kong faced significant losses, with Genscript Biotech plunging 19.66% and Hansoh Pharmaceutical dropping nearly 9% due to regulatory concerns[11] - Semiconductor stocks showed strong performance, with InnoCare Technologies rising over 9% as it partnered with Nvidia to enhance data center operations[11] - Media stocks surged, with Warner Bros. Discovery soaring 28% amid acquisition rumors[11] Economic Indicators - The probability of a 50 basis point rate cut by the Federal Reserve in September rose to 10.9%, while the likelihood of a 25 basis point cut stood at 89.1%[14] - Japan's Producer Price Index (PPI) rose by 2.7% year-on-year, driven primarily by increasing food prices, particularly rice[14] - 96% of economists expect the Bank of Japan to maintain its key interest rate at 0.50% during the upcoming meeting[14]