Asian Markets Rally Following U.S. Small-Cap Stock Surge: Asian markets saw a notable rise after Wall Street closed with gains,
as investors shifted their focus from major tech companies to stocks more sensitive to economic data,
including small-cap companies.

These movements highlight the dynamic nature of global markets and their current trends.

Content
Performance of Asian Markets
Anticipation of Chinese Economic Data

Movements of the Japanese Yen
Developments in the Semiconductor Market
Shifts in U.S. Investor Trends

Continued Momentum in U.S. Markets

Updates on Commodity and Cryptocurrency Markets

Performance of Asian Markets

Hong Kong, China, and Australian stocks recorded gains, while Japanese stocks experienced volatility.
At the same time, U.S. stock futures fell slightly after the S&P 500 rose by 0.5% on Wednesday.
In contrast, the Russell 2000 small-cap index reached its highest level in nearly three years,

while the Nasdaq 100 only saw a modest increase of 0.1%.

Anticipation of Chinese Economic Data

Investors are eagerly awaiting Chinese economic data,
with figures set to be released on Friday expected to show
4.5% growth in the third quarter compared to last year,
according to a Bloomberg survey.
If this forecast holds, it would mark the slowest growth rate in six quarters.

Chinese President Xi Jinping has called on officials to make every

effort in the year’s final quarter to achieve the annual growth target of approximately 5%.
However, a series of press conferences this month,
which failed to provide details on new incentives,
has raised concerns that more than current efforts may be needed to drive growth.
The following key event will be a press conference by the Housing Minister on Thursday.

Movements of the Japanese Yen

In Australia, bond yields rose after the unemployment rate dropped to 4.1% in September,
contrary to Bloomberg’s economist survey, which had expected the rate to remain stable.
The U.S. 10-year Treasury yield also increased to 4%,

while the dollar index remained close to its highest since early August.

The Japanese yen stabilized on Thursday morning after declining against the dollar in the previous session.
Meanwhile, Japan’s exports unexpectedly dropped in September, raising some economic concerns.

Developments in the Semiconductor Market

Taiwan Semiconductor Manufacturing Company (TSMC) is scheduled to release its earnings on Thursday,
and the company’s results will be closely watched for any signs of slowing chip demand.
This is especially true after ASML reported disappointing
order figures and lowered its revenue forecasts for 2025 earlier in the week.

Shifts in U.S. Investor Trends

The gains in U.S. small-cap stocks on Wednesday indicate a shift by investors away from large tech companies,
which have significantly benefited from the AI boom, towards stocks that thrive under stable economic conditions.

David Russell of TradeStation stated,
“There may be a tendency among investors to move away from large tech companies,
which may not have sufficient catalysts to sustain their rise.”

He added, “With elections approaching and economic balance returning,
the long-anticipated shift from large companies to other firms may be closer than ever.”

Continued Momentum in U.S. Market

Traders continue to monitor U.S. corporate earnings.
Morgan Stanley’s shares jumped 6.5% after its trading
and banking divisions posted revenues that exceeded expectations,
leading to a 32% increase in third-quarter profits.
United Airlines Holdings also saw its shares rise by 12% after reporting earnings that surpassed expectations.

The S&P 500 has already recorded 46 closing records this year,
and according to Goldman Sachs’ trading desk,
this momentum is expected to continue in the final months of 2024.

Scott Rubner, General Manager of Global Markets at Goldman Sachs,
expects the index to reach above 6,000 points by the end of the year.
Based on historical data dating back to 1928,
the average returns for the S&P 500 from October 15 to December 31 stood at 5.17%,
rising to nearly 7% in election years, indicating a potential level of 6,270 points by the end of the year.

In a client note on Tuesday, Rubner added,
“The selling wave in the stock market has paused,
and signs of a year-end rally are emerging as clients shift
from hedging against negative scenarios to focusing on positive outcomes,
with institutional investors now being forced into the market.”
He noted that professional investors are increasingly concerned about underperforming relative to benchmarks.

Updates on Commodity and Cryptocurrency Markets

West Texas Intermediate crude rose after a four-day decline ending Wednesday in the commodity markets.
Gold remained stable after two consecutive sessions of gains.
Meanwhile, Bitcoin stabilized on Thursday morning after rising 1.7% on Wednesday,
reaching its highest level since July.

Asian Markets Rally Following U.S. Small-Cap Stock Surge

Asian Markets Rally Following U.S. Small-Cap Stock Surge

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