Financial Daily: AI panic eases, US stocks rebound! Global stock markets diverge, with Japan and South Korea surging while Hong Kong stocks remain under pressure

- Focus

– Fed Governor Waller stated that AI is not expected to cause major disruptions in the job market.

– The White House spokesperson said Trump's preferred approach to Iran remains diplomacy, but force will be used if necessary.

– Bank of England Governor Bailey mentioned there might be a rate cut in March.

Content compiled by the 'Harbor Family Office' under Henry Group. It does not constitute any investment or trading advice. Stay tuned.

- Stock Market

[US Market] Market sentiment has eased somewhat, with all three major US stock indexes closing higher.

Anthropic launched a new product during its live stream and emphasized that the purpose of its AI model is to help businesses grow rather than replace existing operations. The market interpreted this as cooperation rather than replacement, which alleviated some of the spreading panic. Tech stocks rebounded, and all three major US stock indexes closed higher.

At the close, the S&P 500 Index rose 0.77% to 6,890.07 points; the Nasdaq Composite Index rose 1.05% to 22,863.682 points; the Dow Jones Industrial Average rose 0.76% to 49,174.50 points. The VIX volatility index fell nearly 7%.

The US tech seven giants index rose 1.10%, with Tesla up 2.39%, Apple up 2.24%, Amazon up 1.60%, Microsoft up 1.18%, and Alphabet A down 0.19%. The Nasdaq Golden Dragon China Index rose 1.37% to 7,581.04 points. Among popular Chinese stocks, GDS Holdings, 21Vianet, and XPeng rose more than 6.5%.

[European Market] Major European indices generally trended higher on Tuesday.

Major European indices generally trended higher on Tuesday. At the close, the pan-European STOXX 600 Index rose 0.23% to 629.14 points; the pan-European STOXX 50 Index rose 0.04% to 6,116.60 points.

Germany's DAX 30 Index rose 0.02% to 23,986.25 points; France's CAC 40 Index rose 0.26% to 8,519.21 points; the UK's FTSE 100 Index fell 0.04% to 10,680.59 points.

[Asian Markets] Japanese and South Korean stock markets strengthened on Tuesday, with the South Korean index rising over 2%.

On Tuesday, Japanese and South Korean stock markets strengthened. By the close, the Nikkei 225 index gained 0.87% to 57,321.09 points, while Japan's TOPIX index rose 0.20% to 3,815.98 points. The South Korean KOSPI index surged 2.11% to 5,969.64 points.

[Hong Kong Market] Hong Kong's three major indexes closed lower, with the Hang Seng Tech Index falling more than 2%.

On Tuesday, Hong Kong stocks were weighed down by sentiment from the U.S. market, with large-cap tech shares leading declines. All three major indexes opened lower and remained sluggish throughout the day, with the Hang Seng Tech Index dropping over 2%. By the close, the Hang Seng Index fell 1.82% to 26,590.32 points, the Hang Seng Tech Index dropped 2.13% to 5,270.70 points, and the Hang Seng China Enterprises Index declined 2.06% to 9,007.86 points. In terms of sectors, major tech stocks generally weakened, with Tencent falling over 3%, and Baidu Group and Alibaba both declining more than 2.5%. Robotic concept stocks plummeted, with Woan Robotics closing down around 12% and Yuejiang down about 11%.

[A-Share Market] A-shares showed strong performance on the first trading day after the New Year holiday, with all three major indexes closing higher.

After the New Year holiday, A-shares started the first trading day with gains. The three major indexes opened higher and fluctuated at elevated levels before closing in positive territory. By the close, the Shanghai Composite Index increased 0.87% to 4,117.41 points.%The Shenzhen Component Index rose 1.36% to 14,291.57 points, and the ChiNext Index gained 0.99% to 3,308.26 points. Sector-wise, precious metals and oil & gas sectors surged due to heightened geopolitical tensions between the U.S. and Iran and increasing market risk aversion. PetroChina Resources soared 20%, while Hunan Silver, CNPC Engineering, and COSL all hit their daily limit up. The chemical sector also performed well, with Meibang Co., Redwall Co., and Jinpu Titanium Industry among those hitting their daily limit up. Cultured diamonds and fiberglass concepts also strengthened. Meanwhile, the film sector saw significant declines, with Light Media and China Film among those hitting their daily limit down.

– Bonds

[U.S. Bonds] U.S. Treasury prices retreated, with yields rising.

As investor risk aversion eased, U.S. Treasury prices fell and yields rose. In late New York trading, the yield on the 10-year U.S. Treasury note increased by 1.76 basis points to 4.0385%, while the yield on the two-year Treasury note climbed by 2.09 basis points to 3.4590%.

[Non-U.S. Bond Markets] Yields on 10-year European government bonds generally edged lower.

On Tuesday, the yields on 10-year European bonds generally edged lower. At the close of the European session, the yield on Germany's 10-year bond fell by approximately 0.4 basis points to 2.707%, while the yield on the UK's 10-year bond dropped by about 0.7 basis points to 4.307%.

[China Bond Market] On Tuesday, government bond futures advanced across the board.

On Tuesday, government bond futures advanced comprehensively. At the close, the 30-year main contract rose 0.20%, the 10-year main contract increased by 0.02%, the 5-year main contract gained 0.07%, and the 2-year main contract rose by 0.02%.

– Foreign exchange

[US Dollar] The US dollar index rebounded and moved higher, nearing a four-week high.

The US dollar index rebounded and moved upward, nearing a four-week high. At the close of the New York session, the ICE US dollar index rose by 0.14% to 97.843 points, while the Bloomberg US dollar index climbed 0.03% to 1,189.77 points.

[Non-US Currencies] The US dollar showed mixed performance against most major currencies; the Japanese yen fell more than 0.7%.

The US dollar exhibited mixed results against major global currencies, with the Japanese yen falling over 0.7%. The US dollar rose 0.73% against the yen to 155.78 yen. The euro fell 0.11% against the US dollar to 1.1771 dollars, while the euro gained 0.66% against the yen, trading at 183.49 yen.

[Chinese Yuan] The US dollar against offshore Chinese yuan stood at 6.8793 yuan.

At the close of the New York session, the US dollar against offshore Chinese yuan was down 86 points from the previous trading day’s close, standing at 6.8793 yuan. The onshore yuan against the US dollar rose 265 points from the previous trading day’s closing price, reaching 6.8849 yuan, marking its highest level since April 20, 2023.

[Cryptocurrency] Market risk aversion eased, Bitcoin rebounds in a V-shaped move.

As market risk aversion gradually eased on Tuesday, Bitcoin rebounded in a V-shaped pattern and subsequently closed near the previous trading day's New York session closing price, below $64,500.

– Product

[Energy] Crude oil futures prices continued to decline.

Oil prices continued to fall, with Brent crude futures dropping around 1% during the US stock market's closing session, settling at $70.77 per barrel, while US crude futures also fell about 1%, settling at $65.63 per barrel.

[Precious Metals] Gold prices retreated from highs, falling more than 2% intraday.

Precious Metals:Gold prices retreated from their highs as some investors chose to take profits, with spot gold falling over 2% intraday. By the New York closing session, spot gold was down about 1.5%, at $5,149.92 per ounce; US gold futures fell approximately 1.1%, to $5,166.90 per ounce.

Metals Futures Market:US silver futures rose for the fifth consecutive trading day, while spot silver declined. By the New York closing session, spot silver was down about 1.1%, at $87.208 per ounce; US silver futures increased by 0.57%, to $87.695 per ounce. US copper futures climbed 2.05%, to $5.9610 per pound; spot platinum rose 1%, and spot palladium gained 2.32%.

[Disclaimer]

The content above is provided by Harbor Family Office (hereinafter referred to as "Harbor Family Office"), sourced from market information gathered from various channels. Neither Harbor Family Office nor its group members participated in preparing the content, nor did they explicitly or implicitly endorse or approve it. This article is for reference only and does not constitute any investment or trading advice. Investment involves risks. Readers should independently evaluate and judge this information and are advised to consult professionals before making any investment or trading decisions. Without authorization, no one may reproduce, copy, or publish the content in whole or in part to the public in any manner. Copyright belongs to Harbor Family Office and relevant providers.

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