Iran's potential reopening of the Strait of Hormuz has boosted market risk appetite, leading to nearly all Asia-Pacific stock markets closing higher on Thursday (April 16) as investor sentiment turned positive.
The FTSE Straits Times Index in Singapore closed down 0.27% or 13.37 points at 5007.83 points due to arbitrage activities.
The stock markets in Japan and South Korea led the Asia-Pacific region with gains of over 2%, closing up 2.38% and 2.21%, respectively.
China's GDP grew by 5% year-on-year in the first quarter of this year, exceeding market expectations and driving up the stock markets in Hong Kong, Shenzhen, and Shanghai; the Hong Kong stock market rose by 1.72%, Shenzhen by 1.8%, while the Shanghai stock market saw a relatively smaller increase of 0.7%.
The Taiwan stock market closed up 1.12% to a historical high, while the Sydney stock market slightly fell by 0.08%.
Wang Binni, head of technical analysis training at Taiyuan Technology, told Lianhe Zaobao that the slight retreat of the US dollar index (DXY) indicates a slight easing of market concerns over the turmoil in the Middle East. Although the sentiment of &#34;selling America&#34; still exists, during the peak of the Middle East crisis, the market consistently bought US dollars and US Treasuries as safe assets, and once signs of easing emerged, it sold off, causing the index to retreat.
Chen Wenbin, a wealth manager at Phillip Capital, pointed out in an interview that the improvement in investor sentiment mainly restored focus on technology and industrial companies located in Hong Kong, Japan, and Taiwan.
&#34;The Hang Seng Index, primarily composed of financial stocks and real estate investment trusts (REITs), has lagged in performance and is expected to continue consolidating.&#34;
Wang Binni stated, &#34;The Hang Seng Index is very close to its historical high, so profit-taking is entirely natural. The next catalyst for the market will be the corporate earnings reports for the first quarter.&#34;
<h3>Analyst: US and Asia-Pacific stocks are at historical highs; adjustments may occur if they do not continue to rise</h3>
Wang Binni also noted that not only the Hang Seng Index but also US and Asia-Pacific stock markets are at a crossroads at historical highs; if they cannot continue to rise, adjustments will occur.
&#34;For the stock market to continue rising, there must be strong catalysts, which return to the fundamental factors of the stock market, such as economic growth and corporate performance, as well as interest rate trends. Additionally, uncertain factors like war must achieve substantial breakthroughs to support the continued upward momentum of the stock market.&#34;
<h4>Extended Reading</h4>
OCBC: Middle East exposure only 2% to 3%, closely monitoring stagflation risks

 Retail investors heavily absorb institutional sell-offs; DBS becomes the hottest stock in the first quarter


As for corporate performance, Wang Binni believes that local bank stocks will perform better in the first quarter compared to the fourth quarter of last year, however, she does not think it will meet market expectations.
She said, &#34;The issue is that performance expectations have already been priced in, and if the performance does not meet expectations, there will be a round of sell-offs. In the short term, the support level for the stock market is at 4,950 points, and the resistance level is at 5,130 points.&#34;
Chen Wenbin said, &#34;Monetary Authority of Singapore tightening monetary policy will alleviate inflation risks for import-dependent companies, however, it is important to pay attention to export-oriented sectors, such as consumer electronics and contract manufacturing companies' profit margins, as a strong Singapore dollar is unfavorable for regional competitiveness.&#34;
The local stock market had a total trading volume of 2.07 billion shares and a turnover of SGD 2.3 billion; 397 stocks rose, while 219 stocks fell.
Among the 30 constituent stocks, most rose, with 19 stocks up, 10 stocks down, and one unchanged.
The biggest gainer, Mapletree Logistics Trust, rose 1.61%, closing at SGD 1.26. Other rising stocks had gains ranging from 0.26% to 1.57%.
Singtel led the decline among blue-chip stocks, closing down 1.83% to SGD 4.83, while other declining constituent stocks fell between 0.19% and 1.43%.
In individual stock news, Ascent Bridge Limited announced after the market closed that it has completed the transfer of 30% equity to Nyonya Heritage regarding the divestment of its wholly-owned subsidiary MTBL Cultural Centre. If the full divestment process cannot be completed by May 31 this year for any reason, Nyonya Heritage will return the transferred 30% equity. The company's stock price closed down 15.34% to SGD 0.149
Frasers Logistics &amp; Commercial Trust's manager announced after the market closed that it has signed a sale and purchase agreement with unrelated company VDG Property Development 10 B.V. to acquire a freehold logistics property in the Netherlands. The total acquisition price is €43 million (approximately SGD 64.1 million), which is 3.3% lower than the independent valuation of €44.45 million in February this year.
The trust's share price closed at SGD 0.97, up 1.57%

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News of Iran potentially reopening the Strait of Hormuz boosted the Asia-Pacific stock markets, which almost all closed higher on Thursday. The FTSE Straits Times Index fell 0.27% to 5007.83 points due to arbitrage activities. The Japanese and South Korean stock markets rose by 2.38% and 2.21%, respectively. China's GDP grew by 5% year-on-year in the first quarter, driving up the stock markets in Hong Kong, Shenzhen, and Shanghai. The Taiwanese stock market reached a historic high, while the Sydney stock market dipped slightly by 0.08%. Concerns about the situation in the Middle East have eased, improving investor sentiment and focusing on companies in the technology and industrial sectors

Zaobao

Hang Seng Index

Hang Seng China Enterprises Index

Shenzhen Index

Hang Seng Composite Index

FTSE Straits Times Index

ISHARESHSI

PREMIA TW50

TRMSCIKOREA

Good news from the Middle East boosts Asian stocks, while the Hang Seng Index falls by 13.37 points due to arbitrage activities | Lianhe Zaobao