South Korea’s KOSPI Plunges as Apple Price Hikes and OpenAI IPO Delay Shake AI Chip Stocks 
Japan Targets 1%+ Real Economic Growth With ¥370 Trillion Investment Plan 
Iran Attack in Strait of Hormuz Pushes Oil Prices Higher 
Wall Street Ends Mixed as Micron Surges, Apple Drops After Price Hikes 
Asian Stocks Sink as Apple Price Hikes Spark AI Valuation Fears, South Korea and Japan Lead Selloff 
Asian Currencies Trade Mixed as Yen Hovers Near 40-Year Low, Dollar Holds Firm on Fed Outlook 
Canada Grants C$7 Million to Greenland Molybdenum Mine to Strengthen Critical Minerals Supply 
Gold Price Falls as Fed Rate Hike Fears and U.S.-Iran Tensions Weigh on Bullion 
Trump Threatens 100% Tariffs on Countries Imposing Digital Services Taxes on U.S. Tech Firms 
World Bank Approves $1.1 Billion Emergency Funding for Bangladesh Amid Food and Energy Price Pressures 
US Dollar Slips After PCE Inflation Data as Fed Rate Hike Expectations Stay Elevated 
Oil Prices Rise as US-Iran Tensions Threaten Strait of Hormuz Oil Shipments 
Oil Prices Drop as Middle East Supply Recovery Eases Market Concerns 
Gold Price Ends Lower for Fourth Week Despite Rebound as Fed Rate Hike Bets Strengthen 
Asian Currencies Stay Range-Bound as Investors Eye China Data, RBNZ Outlook and U.S.-Iran Ceasefire 
China Factory PMI Seen Returning to Growth in June as AI Export Demand Supports Economy 
Economic pessimism has set in – but there are reasons for Australians to be hopeful 
Chinese Stocks Rally Amid Stimulus Hopes, But Gains Begin to Cool
Chinese stocks surged to two-year highs in early October, driven by optimism surrounding Beijing's financial stimulus measures. The Shanghai Shenzhen CSI 300 and Shanghai Composite Index climbed between 16% and 20% since late September, fueled by expectations of more economic support from the Chinese government.
UBS Analysts Remain Optimistic Despite Cooling Momentum
Despite recent cooling in the market, UBS analysts continue to support an Overweight rating on Chinese stocks, noting that while valuations are no longer as low as a month ago, there is still value to be found. The brokerage highlighted the positive trajectory of Beijing’s fiscal policies, although implementation appears slower than expected.
Beijing’s Fiscal Stimulus Plans
China’s Ministry of Finance recently introduced a range of fiscal measures, including increased debt issuance, property market relief, and financial support for local governments. However, investors were left wanting more details on the timing and scope of these actions, particularly those aimed at boosting domestic consumption.
Investor Sentiment Shift: India vs. China
Interestingly, UBS pointed out that China’s rally has coincided with capital outflows from India, suggesting a shift in investor sentiment. UBS maintains an Underweight rating on India among emerging markets, hinting at potential ongoing capital reallocation to Chinese assets.
Outlook
While recent market gains have slowed, UBS expects further clarification on China’s fiscal policies in the coming months, which could provide additional support to local equities.
