Investment Insights

CIO Viewpoints

 2026 Asia Equities: Abundant Pontential

Daily Insights

Focus of the Day

  • Asian Pacific equities rallied while approaching over-bought levels

Other Commentaries

  • US December manufacturing posted its weakest performance in a year; Ueda's remarks reinforced expectations for further BOJ rate hikes; Hong Kong IPO fundraising could reach HKD 350 billion this year

Market Analysis

FX Markets Analysis

Latest Technical Highlights

AUD - Uptrend↗

Support / Resistance

vs HKD 5.1348 / 5.3682

vs USD 0.66 / 0.69

Minutes from the RBA's December meeting showed a hawkish tone, the market generally expects the RBA to raise interest rates this year. While the Fed's rate-cutting cycle is expected to continue, the divergence in monetary policy supports the AUD's upward with key technical resistance near 0.69 level.

 

Legends

Uptrend ↗  Sideways →  Downtrend ↘

*Pertaining to historical technical trend analysis only and do not reflect any forecasts or any forward looking views

Provided by Hang Seng Investment Services Limited

Stock Markets View

  • US equities are consolidating at high levels, with performance among the “Magnificent Seven” showing signs of divergence. While solid corporate earnings and potential rate cuts are expected to support the market this year, near-term direction may remain unclear ahead of mid-January earnings season
  • Fiscal spending is increasing across multiple European countries, fueling expectations of further economic recovery in the region. With relatively low valuations, European equities could attract increased capital flows
  • Economic stimulus measures across Asia, combined with a potentially weaker USD as the Fed pivots toward rate cuts, are expected to benefit the region’s equities, which offer diversified investment themes
  • Recent geopolitical tensions in emerging Latin America could inject near-term volatility into local equity markets. However, a structurally weaker USD outlook remains a medium- to long-term tailwind for the region
  • The strong debut of a Chinese GPU stock on the HKEX buoyed the semiconductor and tech sectors. Concurrently, the launch of a new national subsidy program for consumer goods trade-ins has lifted the consumer sector and overall market sentiment
Legends

Positive - Expect that the particular asset class potentially may perform well relative to the relevant major global benchmark(s) in the long run
Neutral - Expect that the particular asset class potentially may perform in line relative to the relevant major global benchmark(s) in the long run
Cautious - Expect that the particular asset class potentially may not perform well or in line relative to the relevant major global benchmark(s) in the long run

Provided by Hang Seng Investment Services Limited

Bond Markets View

  • Recent FOMC minutes revealed internal divergence on the rate-cut path, though market easing expectations remain intact. The 10-year yield continues to hover around 4.2%
  • Long-end US yields rose to recent highs, pressuring US investment-grade corporate bonds, which declined 0.28% week-over-week. Overall spreads widened marginally by 1 bp
  • Strong retail sales growth in Thailand during October, supported by government policies, has helped keep Asian investment-grade bond spreads stable
  • Trading activity was subdued amid a holiday-shortened week. Supported by sustained risk appetite, US high-yield spreads tightened modestly
  • China’s new-home prices stabilized in December, while secondary market prices remained soft, reflecting uneven demand recovery. Supportive policies are helping sentiment, though property credit repair will require time
  • Developments in Venezuela could drive near-term oil price volatility. Emerging market USD bonds softened slightly due to geopolitical tensions but overall remain range-bound
Legends

Positive - Expect that the particular asset class potentially may perform well relative to the relevant major global benchmark(s) in the long run
Neutral - Expect that the particular asset class potentially may perform in line relative to the relevant major global benchmark(s) in the long run
Cautious - Expect that the particular asset class potentially may not perform well or in line relative to the relevant major global benchmark(s) in the long run

Provided by Hang Seng Investment Services Limited

Featured Videos

Financial Breakfast

Why did gold and copper prices hit record highs? (Cantonese version) #AI_Mark #Investment #CIO Insights #Commodity Markets #Gold #Financial Breakfast

2026 Market Outlook (Cantonese version)

Belle Liang & Mark Wan

Gold (Cantonese version)

Belle Liang & Cally Cheng

Latest Market Focus

CIO answered the top 4 questions from investors (Chinese Only)

2026 Asian Equity Outlook (Chinese only)

FX & Gold market outlook 2026 (Chinese Only)

2026 US Stock Market Outlook (Chinese only)

HK stock market outlook in 2026 (Chinese only)

Exploring yield opportunities in emerging markets (Chinese only)

A-shares set to break out after consolidation (Chinese only)

US Healthcare Sector in Focus Again (Chinese only)

What to do with bonds under uncertain rate cut (Chinese only)

Gold: Healthy correction or reversal? (Chinese Only)

Market Calendar

Central Bank Release Calendar

Track the proposed dates of publishing major central bank rate at a glance.

Economics Calendar

View the key upcoming events in global markets

Activate Investment Account

Want to trade different investment products anytime, anywhere? Activate your investment account now.

Investment Product At A Glance

From stocks, bonds to ETFs, discover various options that can help you grow your wealth. 

Latest Offers

Discover our latest investment offers tailored to help you make the most of your investments.

Investment Academy

Gain knowledge on diverse investment products to make informed decisions.

Other Related Links

Need help?

Visit our branches

Footnote

Disclaimer

Information provided on these webpages is for general information and reference only and does not constitute nor is it intended to be construed as any professional advice, offer, solicitation, or recommendation to deal in any securities or investments. Investors should note that all investments involve risks (including the possibility of loss of the capital invested), prices of securities, foreign exchange, commodity and investment products may go up as well as down and past performance is not indicative of future performance. Investors should read the relevant investment offering documents and terms and conditions (including the full text of the risk factors stated therein) in detail before making any investment decision.

a. (For information produced by Hang Seng Bank Limited or its affiliates) The information is provided by Hang Seng Bank Limited or its affiliates ("Hang Seng") for general information and reference only and does not constitute nor is it intended to be construed as any professional advice, offer, solicitation, or recommendation to deal in any of the securities or investments mentioned herein. The information provided is based on sources which Hang Seng believes to be reliable but has not been independently verified. Any projections and opinions expressed herein are expressed solely as general market commentary and do not constitute solicitation, recommendation, investment advice, or guaranteed return. They represent the views of Hang Seng or the analyst(s) who prepare(s) the information at the time of publication and are subject to changes without notice. No guarantee, representation, warranty or undertaking, express or implied, is made as to the fairness, accuracy, timeliness, completeness or correctness of any general financial and market information, news services and market analysis, projections and/or opinions (“Market Information”) provided on these webpages and the basis upon which any such Market Information have been made, and no liability or responsibility is accepted by Hang Seng in relation to the use of or reliance on any such Market Information whatsoever provided on these webpages. Investors must make their own assessment of the relevance, accuracy and adequacy of the information, projections and/or opinions provided on these webpages and make such independent research/investigations as they may consider necessary or appropriate for the purpose of such assessment. Hang Seng does not make any representation or recommendation or assessment as to whether or not any of the investment(s) mentioned herein is/are suitable or applicable to any persons and thus shall not be held responsible in this regard. Investors should make investment decision(s) based on his/her own financial situation, investment experience, investment objectives, and specific needs; and if necessary, should seek independent professional advice before making any investment decision(s).

All investments involve risks. Investors should note that prices of securities, foreign exchange, commodity and investment products may go up as well as down and past performance is not indicative of future performance. Investors should read the relevant investment offering documents and terms and conditions (including the full text of the risk factors therein) in detail before making any investment decisions.

The research analyst(s) who prepared the information certifies(y) that the views expressed herein accurately reflect the research analyst's(s') personal views and that no part of his/her/their compensation was, is or will be directly or indirectly related to the specific recommendation(s) or views contained in the information provided on these webpages.

b. (For information produced by third-party information providers) Hang Seng Bank Limited and its affiliates (“Hang Seng”) neither endorses nor is responsible for the accuracy or reliability of, and under no circumstances will Hang Seng be liable for any loss or damage caused by any opinion or statement made in the information produced and provided by third-party information providers. The information is for general information and reference only and does not constitute nor is it intended to be construed as any professional advice, offer, solicitation or recommendation to deal in any of the securities or investments mentioned herein. Any projections and opinions expressed herein are expressed solely as general market commentary and do not constitute solicitation, recommendation, investment advice, or guaranteed return. The opinions expressed are those of the featured speaker(s), and do not represent Hang Seng's views. The opinions given by the featured speaker(s) are subject to changes without notice and should not be construed as a solicitation, recommendation, or advice on any individual holdings or market sectors. No guarantee, representation, warranty or undertaking, express or implied, is made as to the fairness, accuracy, timeliness, completeness or correctness of any third party information, projections and/or opinions provided on these webpages and the basis upon which any such third party projections and/or opinions have been made, and no liability or responsibility is accepted by Hang Seng in relation to the use of on any such third party information, projections and/or opinions whatsoever provided on these webpages. Investors must make their own assessment of the relevance, accuracy and adequacy of the information, projections and/or opinions provided on these webpages and make such independent research/investigations as they may consider necessary or appropriate for the purpose of such assessment. Hang Seng does not make any representation, solicitation, recommendation, or assessment as to whether or not any of the investment(s) mentioned herein is/are suitable or applicable to any persons and thus shall not be held responsible in this regard. Investors should make investment decision(s) based on his/her own financial situation, investment experience, investment objectives, and specific needs; and if necessary, should seek independent professional advice before making any investment decision(s).

All investments involve risks. Investors should note that prices of securities, foreign exchange, commodity and investment products may go up as well as down and past performance is not indicative of future performance. Investors should read the relevant investment offering documents and terms and conditions (including the full text of the risk factors therein) in detail before making any investment decisions.

These webpages have not been reviewed by the Securities and Futures Commission of Hong Kong or any regulatory authority in Hong Kong.

It is prohibited to reproduce, store in a retrieval system, or transmit, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise any part of the information provided on these webpages. The information provided on these webpages is solely for personal and non-commercial use and for general information and reference only. Re-distribution of any part of the information in any means or use of the information for any other purposes is strictly prohibited.