For Institutions
About
In 2025, South-east Asia's capital markets experienced a reset after two years of volatility, driven by falling interest rates and a weaker dollar. The IPO markets in Hong Kong and India reopened, stabilizing sentiment. AI investment dominated, capturing about half of total funding, with a few companies raising 80% of it through large rounds. This highlights the advantage of major players in the AI sector as the region prepares for the next growth phase.
Asian stock markets are reacting negatively to dollar rallies, with China and Hong Kong being the most affected. U.S. yields have mixed effects depending on market composition, benefiting bank-heavy Singapore and Indonesia while tech-heavy Korea and Taiwan suffer. Oil prices impact Korea significantly due to its oil processing sector, while Malaysia shows mixed effects. Interestingly, ASEAN markets now benefit from weaker Chinese manufacturing, a shift from pre-pandemic trends. This analysis comes from HSBC's head of APAC equity strategy, Herald van der Linde, highlighting the complex interplay of macroeconomic factors.
Next week's memo includes the release of economic data from multiple countries: January 19th is a holiday in the United States, Australia’s TD-MI inflation index, Japan's core machinery orders, industrial output data, the UK Rightmove house asking price index, China's GDP and total retail sales of consumer goods, Eurozone HICP data, and Canada's CPI
Foreign direct investment (FDI) in Indonesia rose 4.3% year-on-year to IDR 256.3 trillion in Q4 2025, marking a recovery from an 8.9% decline in Q3. For the full year, FDI increased by 0.1% to IDR 900.9 trillion, with the base metals industry attracting the most inflows. Singapore, Hong Kong, and China were the top investors. The government aims to leverage the sovereign wealth fund Danantara to boost new investments amid ongoing global economic challenges.
The three major indices of the Hong Kong stock market all closed higher today, with the Hang Seng Index rising by 0.56%, the Hang Seng TECH Index up by 0.66%, and the National Enterprises Index rebounding moderately. The internet content and information sector performed prominently, with Kuaishou and Alibaba leading the gains, as funds flowed into high-growth industries such as technology and pharmaceuticals. Individual stocks like Alibaba Health and Lion Group Holdings performed outstandingly, while the market's short-term fluctuations focus on macroeconomic and liquidity changes. Investors are advised to continuously monitor policy and profit trends
