South Korea’s Weak Won Struggles as Retail Investors Pour Money Into U.S. Stocks 
Dollar Steadies Ahead of ECB and BoE Decisions as Markets Turn Risk-Off 
Asian Stocks Slip as Tech Rout Deepens, Japan Steadies Ahead of Election 
Trump Signs Executive Order Threatening 25% Tariffs on Countries Trading With Iran 
Australia’s December Trade Surplus Expands but Falls Short of Expectations 
Oil Prices Slip as U.S.–Iran Talks Ease Supply Disruption Fears 
Japanese Pharmaceutical Stocks Slide as TrumpRx.gov Launch Sparks Market Concerns 
Thailand Inflation Remains Negative for 10th Straight Month in January 
Asian Markets Slip as AI Spending Fears Shake Tech, Wall Street Futures Rebound 
Trump Lifts 25% Tariff on Indian Goods in Strategic U.S.–India Trade and Energy Deal 
Vietnam’s Trade Surplus With US Jumps as Exports Surge and China Imports Hit Record 
U.S.-India Trade Framework Signals Major Shift in Tariffs, Energy, and Supply Chains 
Bank of Japan Signals Readiness for Near-Term Rate Hike as Inflation Nears Target 
Gold and Silver Prices Rebound After Volatile Week Triggered by Fed Nomination 
U.S. Stock Futures Edge Higher as Tech Rout Deepens on AI Concerns and Earnings 
RBI Holds Repo Rate at 5.25% as India’s Growth Outlook Strengthens After U.S. Trade Deal 
Oil Prices Slide on US-Iran Talks, Dollar Strength and Profit-Taking Pressure 
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.
