Market Overview - Major industry ETFs in the US stock market experienced an overall increase, with the biotechnology index ETF rising over 2%, and the semiconductor ETF increasing by more than 1% [1] Biotechnology Sector - The biotechnology index ETF is priced at 132.10, reflecting an increase of 2.77 (+2.14%) with a trading volume of 63,515 shares and a total market value of 10.489 billion [2] Semiconductor Sector - The semiconductor ETF is currently priced at 286.79, showing an increase of 3.31 (+1.17%) with a trading volume of 314,300 shares and a total market value of 33.90 billion, which is up 18.42% year-to-date [2] Global Technology Sector - The global technology stock index ETF is priced at 93.68, with an increase of 0.76 (+0.82%) and a trading volume of 5,242 shares, reflecting a year-to-date increase of 10.75% with a total market value of 1.312 billion [2] Airline Industry - The global airline industry ETF is priced at 24.13, with an increase of 0.19 (+0.79%) and a trading volume of 19,832 shares, but it has a total market value of 76.095 million, down 4.81% year-to-date [2] Healthcare Sector - The healthcare ETF is priced at 135.87, showing an increase of 0.90 (+0.67%) with a trading volume of 447,400 shares and a total market value of 26.001 billion, down 0.38% year-to-date [2] Technology Industry - The technology sector ETF is priced at 257.92, with an increase of 1.63 (+0.64%) and a trading volume of 158,900 shares, reflecting a total market value of 82.034 billion, up 11.30% year-to-date [2] Regional Banks - The regional bank ETF is priced at 63.48, showing an increase of 0.33 (+0.53%) with a trading volume of 353,000 shares and a total market value of 5.298 billion, up 6.62% year-to-date [2] Banking Sector - The banking ETF is priced at 58.74, with an increase of 0.28 (+0.48%) and a trading volume of 31,939 shares, reflecting a total market value of 4.547 billion, up 7.38% year-to-date [2] Consumer Discretionary - The consumer discretionary ETF is priced at 218.65, showing an increase of 0.99 (+0.45%) with a trading volume of 61,987 shares and a total market value of 27.463 billion, down 2.06% year-to-date [2] Financial Sector - The financial sector ETF is priced at 52.38, with an increase of 0.17 (+0.33%) and a trading volume of 1.314 million shares, reflecting a total market value of 58.301 billion, up 9.15% year-to-date [2] Utility Sector - The utility ETF is priced at 81.24, showing an increase of 0.10 (+0.12%) with a trading volume of 557,800 shares and a total market value of 11.794 billion, up 8.85% year-to-date [2] Energy Sector - The energy ETF is priced at 88.25, with a decrease of 0.26 (-0.29%) and a trading volume of 815,100 shares, reflecting a total market value of 22.100 billion, up 4.67% year-to-date [2]

Core Viewpoint - The Hong Kong stock market shows resilience with the Hang Seng Index up 0.78%, driven by strong performance in technology and consumer sectors, despite rising global macro risks and trade tensions [1] Market Performance - As of July 8, the Hang Seng Index increased by 0.78%, the Hang Seng Technology Index rose by 1.29%, and the Hang Seng China Enterprises Index gained 0.84% [1] - Popular ETFs such as the Hang Seng Technology Index ETF (513180) and the Hong Kong Consumer ETF (513230) saw increases of nearly 2% and 1.5%, respectively [1] Economic Outlook - Global macro risks are rising, influenced by trade tensions, particularly threats from Trump regarding tariffs on Japan, and ongoing geopolitical risks in the Middle East [1] - The U.S. job market remains strong, leading to a cooling of interest rate cut expectations from the Federal Reserve [1] - China's economic sentiment showed an overall recovery in June, indicating potential for growth [1] Investment Recommendations - The technology sector is highlighted as having significant investment opportunities due to strong policy support, leading profit growth, and relatively low historical valuations [1] - The consumer sector is expected to see improved performance driven by domestic consumption policies, with a focus on the pharmaceutical and discretionary consumption industries [1] - High dividend stocks are recommended for stable returns amidst domestic and international uncertainties [1] Focus Areas - Hong Kong Consumer ETF (513230) is noted for packaging e-commerce and new consumption, covering areas that are relatively scarce compared to A-shares [1] - Hang Seng Technology Index ETF (513180) includes core AI assets and leading technology firms that are also less represented in A-shares [1]

Market Overview - Major industry ETFs in the US stock market mostly declined, with the Consumer Discretionary ETF dropping over 1%, the Semiconductor ETF falling nearly 1%, and the Biotechnology Index ETF decreasing by 0.7% [1] ETF Performance - Consumer Discretionary ETF (US XLY) current price: $218.19, down by $3.02 (-1.37%), with a trading volume of 115,000 shares and a total market value of $27.405 billion, year-to-date performance down by 2.27% [2] - Semiconductor ETF (US SMH) current price: $281.22, down by $2.40 (-0.85%), with a trading volume of 229,900 shares and a total market value of $3.324 billion, year-to-date performance up by 16.13% [2] - Biotechnology Index ETF (US IBB) current price: $129.11, down by $0.89 (-0.68%), with a trading volume of 22,713 shares and a total market value of $10.251 billion, year-to-date performance down by 2.26% [2] - Energy ETF (US XLE) current price: $86.56, down by $0.47 (-0.54%), with a trading volume of 1.4898 million shares and a total market value of $21.677 billion, year-to-date performance up by 2.67% [2] - Technology Sector ETF (US XLK) current price: $255.63, down by $1.33 (-0.52%), with a trading volume of 203,700 shares and a total market value of $81.304 billion, year-to-date performance up by 10.31% [2] - Healthcare ETF (US XLV) current price: $134.89, down by $0.61 (-0.45%), with a trading volume of 353,700 shares and a total market value of $25.813 billion, year-to-date performance down by 1.10% [2] - Global Technology ETF (US IXN) current price: $92.93, down by $0.40 (-0.43%), with a trading volume of 7,225 shares and a total market value of $1.301 billion, year-to-date performance up by 9.86% [2] - Consumer Staples ETF (US XLP) current price: $81.87, down by $0.31 (-0.38%), with a trading volume of 847,500 shares and a total market value of $13.854 billion, year-to-date performance up by 5.42% [2] - Internet ETF (US FDN) current price: $268.40, down by $0.62 (-0.23%), with a trading volume of 5,447 shares and a total market value of $178.22 billion, year-to-date performance up by 10.38% [2] - Utilities ETF (US XLU) current price: $81.75, down by $0.09 (-0.11%), with a trading volume of 672,400 shares and a total market value of $11.868 billion, year-to-date performance up by 9.53% [2] - Global Airlines ETF (US JETS) current price: $24.13, up by $0.01 (+0.03%), with a trading volume of 31,918 shares and a total market value of $76.0004 million, year-to-date performance down by 4.82% [2] - Banking ETF (US KBE) current price: $58.86, up by $0.04 (+0.07%), with a trading volume of 62,373 shares and a total market value of $4.556 billion, year-to-date performance up by 7.60% [2] - Financials ETF (US XLF) current price: $53.24, up by $0.05 (+0.09%), with a trading volume of 1.5935 million shares and a total market value of $59.259 billion, year-to-date performance up by 10.94% [2] - Regional Banks ETF (US KRE) current price: $63.36, up by $0.13 (+0.21%), with a trading volume of 282,500 shares and a total market value of $5.288 billion, year-to-date performance up by 6.41% [2]

Group 1 - The Hong Kong stock market has shown strong performance in the first half of the year, with the Hang Seng Index and Hang Seng Tech Index recording semi-annual returns of 20% and 18.7% respectively, ranking among the top global indices [1] - The rebound in the Hong Kong stock market is primarily driven by a decrease in risk premium, while contributions from risk-free interest rates and fundamental earnings improvement are relatively limited [1] - Current favorable conditions for the Hong Kong stock market include a reduction in external environmental disturbances, a shift in Trump's policy focus from tariffs to tax cuts, and a supportive liquidity environment for capital allocation [1] Group 2 - The technology sector is highlighted as having significant investment value, with foreign capital showing sustained confidence through increased allocations to the information technology sector [2] - The adjustment in the technology sector's valuation narrative has led to a moderate level of crowding, indicating potential for upward elasticity and positioning it as a key driver for the next market rally [2] - There is a notable rotation of southbound capital across various sectors, with recent focus shifting towards healthcare and financial sectors, reflecting market interest in high-growth sectors and defensive value in high-dividend stocks [2] Group 3 - The short-selling landscape shows high levels of short interest in cyclical and consumer sectors, while the technology sector is experiencing a convergence of long and short positions [3] - The consumer sector is witnessing a clear divergence, with essential consumption remaining stable while discretionary consumption has seen increased short-selling activity [3] - The concentration of short-selling in the information technology sector is decreasing, supported by continued foreign investment and appropriate allocation from southbound capital [3]

Group 1 - The Hong Kong stock market experienced a decline, with the Hang Seng Index falling by 1.52% to 23916.06 points, losing the 24000-point mark [4][16] - Among the sectors, healthcare, materials, and industrial sectors showed the highest gains, increasing by 5.49%, 3.24%, and 2.72% respectively, while information technology, consumer discretionary, and financial sectors faced declines of 1.82%, 1.36%, and 0.28% [7][27] - The average daily trading volume on the Hong Kong Stock Exchange was HKD 2455.12 billion, a decrease of HKD 33.71 billion from the previous week [16][27] Group 2 - As of July 4, the price-to-earnings (PE) and price-to-book (PB) ratios for the Hang Seng Index were 10.65 times and 1.12 times, respectively, both down by 1.28% from the previous week, placing them at the 73% and 75% percentile levels since 2019 [18][21] - The risk premium for the Hang Seng Index was calculated at 5.04%, which is -1.84 standard deviations from the 3-year rolling mean, indicating a low-risk appetite in the market [21][24] - The report suggests that the technology sector remains a high investment opportunity due to strong policy support and growth potential, while the consumer sector is expected to improve performance driven by domestic consumption policies [40][41]

Group 1 - The Hong Kong stock market experienced a decline, with the Hang Seng Index falling by 1.52% to 23916.06 points, losing the 24000-point mark [4][16] - Among the sectors, healthcare, materials, and industrial sectors saw the highest gains, with increases of 5.49%, 3.24%, and 2.72% respectively, while information technology, consumer discretionary, and financial sectors faced declines [7][27] - The average daily trading volume on the Hong Kong Stock Exchange was HKD 2455.12 billion, a decrease of HKD 33.71 billion from the previous week [16][27] Group 2 - As of July 4, the PE and PB ratios for the Hang Seng Index were 10.65 times and 1.12 times, respectively, both down by 1.28% from the previous week, placing them at the 73% and 75% percentile levels since 2019 [18][24] - The risk premium for the Hang Seng Index was calculated at 5.04%, which is -1.84 standard deviations from the 3-year rolling mean, indicating a low-risk appetite in the market [21][24] - The report suggests that the technology sector remains a high investment opportunity due to strong policy support and growth potential, while the consumer sector is expected to improve performance driven by domestic consumption policies [40][41] Group 3 - The report highlights that the A-share market performed better than the Hong Kong market, with the AH share premium index rising to 130.88, at the 46% percentile level since 2014 [27][40] - The healthcare sector is expected to benefit from new policies supporting innovative drug development, which may enhance the performance of related stocks [11][40] - The report emphasizes the importance of high-dividend stocks in providing stable returns amid global uncertainties, particularly in the energy and financial sectors [40][41]

Group 1 - Major industry ETFs in the US stock market experienced an overall increase, with regional bank ETFs rising by 1.59%, global airline ETFs by 1.51%, and bank ETFs by 1.27% [1][2] Group 2 - Regional bank ETF (KRE) is currently priced at $63.51, with a gain of $0.99 (+1.59%) and a total market value of $5.3 billion, reflecting a year-to-date increase of 6.66% [2] - Global airline ETF (JETS) is priced at $24.15, up by $0.36 (+1.51%), with a market value of $760.725 million, showing a year-to-date decline of 4.73% [2] - Bank ETF (KBE) is trading at $59.00, gaining $0.74 (+1.27%), with a market capitalization of $4.567 billion and a year-to-date increase of 7.86% [2]

Market Overview - Major industry ETFs in the US experienced a decline, with the global airline industry ETF down by 0.9%, the healthcare ETF down by 0.72%, and the utilities ETF down by 0.67% [1] Industry Performance - The global airline industry ETF is priced at $23.22, reflecting a decrease of $0.21 or 0.90% with a trading volume of 43,489 shares and a total market value of $73.14 million, showing an 8.40% decline year-to-date [2] - The healthcare ETF is priced at $135.73, down by $0.98 or 0.72%, with a trading volume of 676,100 shares and a total market value of $259.74 billion, indicating a year-to-date decrease of 0.48% [2] - The utilities ETF is priced at $81.39, down by $0.55 or 0.67%, with a trading volume of 942,700 shares and a total market value of $11.81 billion, reflecting a year-to-date increase of 9.05% [2] - The financial sector ETF is priced at $52.48, down by $0.18 or 0.34%, with a trading volume of 2.23 million shares and a total market value of $584.13 billion, showing a year-to-date increase of 9.35% [2] - The technology sector ETF is priced at $250.50, down by $0.47 or 0.19%, with a trading volume of 254,600 shares and a total market value of $796.73 billion, indicating a year-to-date increase of 8.10% [2] - The energy sector ETF is priced at $85.78, up by $0.32 or 0.37%, with a trading volume of 1.09 million shares and a total market value of $21.48 billion, reflecting a year-to-date increase of 1.74% [2]

Market Overview - Major industry ETFs mostly declined, with the Consumer Discretionary ETF down approximately 1%, the Biotechnology Index ETF down 0.55%, and the Energy ETF down 0.5% [1] Industry Performance - Consumer Discretionary ETF (US XLY) current price: $215.37, down $1.96 (-0.90%), with a trading volume of 86,452 shares and a total market value of $27.051 billion, down 3.53% year-to-date [2] - Biotechnology Index ETF (US IBB) current price: $125.81, down $0.70 (-0.55%), with a trading volume of 54,019 shares and a total market value of $9.989 billion, down 4.76% year-to-date [2] - Energy ETF (US XLE) current price: $84.39, down $0.42 (-0.50%), with a trading volume of 1.0193 million shares and a total market value of $21.133 billion, up 0.09% year-to-date [2] - Semiconductor ETF (US SMH) current price: $277.65, down $1.23 (-0.44%), with a trading volume of 248,700 shares and a total market value of $3.282 billion, up 14.65% year-to-date [2] - Internet Index ETF (US FDN) current price: $268.48, down $0.85 (-0.31%), with a trading volume of 2,192 shares and a total market value of $17.827 billion, up 10.41% year-to-date [2] - Global Technology ETF (US IXN) current price: $92.09, down $0.25 (-0.27%), with a trading volume of 3,645 shares and a total market value of $1.289 billion, up 8.87% year-to-date [2] - Banking ETF (US KBE) current price: $55.67, down $0.09 (-0.16%), with a trading volume of 32,613 shares and a total market value of $4.309 billion, up 1.77% year-to-date [2] - Technology Sector ETF (US XLK) current price: $252.89, down $0.34 (-0.13%), with a trading volume of 158,800 shares and a total market value of $804.33 billion, up 9.13% year-to-date [2] - Healthcare ETF (US XLV) current price: $134.61, down $0.18 (-0.13%), with a trading volume of 326,900 shares and a total market value of $25.760 billion, down 1.30% year-to-date [2] - Financials ETF (US XLF) current price: $52.31, down $0.06 (-0.11%), with a trading volume of 890,000 shares and a total market value of $58.223 billion, up 9.00% year-to-date [2] - Global Airlines ETF (US JETS) current price: $22.95, down $0.02 (-0.09%), with a trading volume of 42,334 shares and a total market value of $72.293 million, down 9.47% year-to-date [2] - Utilities ETF (US XLU) current price: $81.60, down $0.06 (-0.07%), with a trading volume of 595,900 shares and a total market value of $11.846 billion, up 9.33% year-to-date [2] - Regional Banks ETF (US KRE) current price: $59.42, up $0.03 (+0.05%), with a trading volume of 263,600 shares and a total market value of $4.959 billion, down 0.20% year-to-date [2] - Consumer Staples ETF (US XLP) current price: $81.33, up $0.36 (+0.44%), with a trading volume of 459,700 shares and a total market value of $137.63 million [2]

Investment Rating - The report does not explicitly provide an investment rating for the Southeast Asia Staples and Discretionary sectors, but it highlights various performance metrics and trends across different countries in the region. Core Insights - Commodity prices have generally fallen across most regions, contributing to a decrease in inflation rates in several Southeast Asian countries [2][9] - Economic growth in Southeast Asia is expected to maintain a moderate pace in the second half of 2025, with overall growth rates projected between 4% and 5% [3] - Consumer confidence varies significantly across the region, with Indonesia experiencing a notable decline in consumer sentiment [20] Economic Overview - In May 2025, Thailand's CPI decreased by 0.57%, marking two consecutive months of deflation, primarily driven by lower food and energy prices [2][23] - Malaysia's inflation rate fell to 1.2%, the lowest in 51 months, while Vietnam's CPI increased by 3.24%, indicating moderate inflation [2][9] - The overall economic activity in Indonesia showed signs of slowing, with GDP growth in 1Q25 at 4.87%, the lowest since 3Q21 [15] Consumer Sector Performance - In May 2025, Indonesia's essential and discretionary consumption sectors saw increases of 6.55% and 6.17%, respectively, outperforming the index [4] - The consumer confidence index in Indonesia dropped to 117.50, the lowest since September 2022, reflecting concerns about job availability and economic conditions [20] - Singapore's food and beverage sales reached SGD 9.5 billion in May 2025, marking a year-on-year growth of 1.9% [34] Market Trends - The report indicates that most consumer sectors in May 2025 experienced valuation increases, with Indonesia's essential and discretionary consumption PE historical percentiles at 5% and 17%, respectively [4] - The stock market performance in May showed mixed results, with Indonesia's essential consumption sector outperforming the index, while Thailand's discretionary consumption sector lagged [4][14] - Vietnam's essential and discretionary consumption sectors underperformed the index, with growth rates of 2.64% and 3.72%, respectively [4] Inflation and Pricing Trends - In May 2025, Indonesia's CPI rose by 1.60% year-on-year, with core inflation dropping to 2.40%, providing room for monetary policy adjustments [18] - Thailand's consumer price index showed a significant decline, while Singapore's core inflation remained low at 0.6% [31][23] - Vietnam's CPI increased by 3.24% in May, driven by rising costs in housing, utilities, and food services [39]