01｜China’s industrial profits grow 14.4%
Profits at China’s industrial enterprises above designated size rose 14.4% year over year in September and 15.5% in the first nine months. Profits in electronics manufacturing increased by more than 100%, while the automotive, furniture, and other industries remained under pressure. Diverging industry performance is worth watching.
02｜South Korea’s GDP beats expectations, with semiconductors becoming a growth engine
South Korea’s GDP grew 1.0% quarter over quarter in the third quarter, above the expected 0.7%. AI chip exports and equipment investment were the main drivers, while household consumption remained weak.
03｜South Korean stocks surge 3.09%
The KOSPI closed near 5,638 points. Samsung Electronics rose about 4%, while SK Hynix gained around 5%. The semiconductor sector rebounded significantly. SK Hynix’s earnings report tomorrow will be worth watching closely.
04｜Japanese stocks rebound 1.73%
The Nikkei 225 closed near 63,268. Semiconductor, AI, and related tech stocks recovered, while the market continued to await policy signals from the Bank of Japan and the Fed.
05｜Mainland Chinese and Hong Kong stocks fall in tandem
The Shanghai Composite fell 1.33%, the Shenzhen Component fell 2.50%, and the Hang Seng Index fell 0.73%. Industrial profits improved, but tech stocks remained under pressure, highlighting the clear divergence across Asian markets.
06｜Israel’s general election gets underway
Israel’s parliamentary election is being held today, with Netanyahu facing fierce competition. The result could influence expectations for Middle East policy, with particular attention on risk premiums for oil and gold. Voting is still underway.
07｜HSBC profits rise, but shares fall sharply
HSBC’s third-quarter pre-tax profit rose 32% year over year, but revenue missed expectations and growth in wealth management slowed. The stock fell significantly intraday as the market focused more on future growth than current profits.
08｜Nvidia invests $3 billion in Meta
Nvidia announced an investment in Meta’s equity financing and an expansion of their collaboration on AI models and assistants. Capital and technology ties in the AI industry are growing closer, though the actual returns on cross-investments remain to be proven.
09｜Coca-Cola raises full-year earnings outlook
Coca-Cola’s third-quarter revenue was $13.4 billion, up 7% year over year, while global sales volume grew 5%. The company raised its full-year earnings guidance, demonstrating the resilience of consumer demand for its brands.
10｜UPS beats earnings expectations and raises full-year guidance
UPS reported third-quarter revenue of $22.9 billion, up 6.7% year over year, and raised its full-year revenue, profit, and cash flow outlook. Changes in the logistics industry’s operating conditions are worth watching.
11｜PayPal beats profit expectations as revenue growth slows
PayPal’s adjusted earnings per share of $1.45 beat market expectations, but revenue came in below forecasts. The company raised its full-year earnings target. The quality of growth in its payments business is drawing market attention.
12｜Boeing’s order backlog hits a record
Boeing reported third-quarter revenue of about $24.2 billion, with its order backlog reaching $745 billion at quarter-end. Cash flow improved somewhat, but its commercial aircraft business still needs further recovery.
13｜Crude oil remains volatile at elevated levels
At 17:18 Beijing time, Brent crude was trading at $116.26 per barrel. Middle East diplomatic talks and supply security risks are intertwined, leaving the near-term direction of oil prices uncertain.
14｜Gold comes under renewed pressure, with $4,000 in focus
At 18:42 Beijing time, spot gold was around $4,000.52 per ounce. A stronger dollar and expectations of high interest rates are limiting a rebound, as markets await the Fed’s meeting outcome.
15｜BTC and U.S. tech stocks move in different directions
At 19:32 Beijing time, BTC was around $79,700. U.S. spot BTC ETFs saw net inflows of about $110.3 million on October 26, while ETH ETFs recorded net outflows of about $88.6 million. Capital flows remain divergent across crypto assets.
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📊 Market overview
Overall risk appetite: structurally divergent.
South Korean and Japanese stocks rebounded sharply, while mainland Chinese and Hong Kong tech stocks came under pressure. European bank stocks were relatively weak.
Crude oil fluctuated at elevated levels, gold hovered around $4,000, and BTC continued to search for direction near $80,000.
The three most important things to watch this week:
The Fed’s rate decision in the early hours of October 29.
Earnings from U.S. tech giants and AI capital spending.
Israel’s election and risks to Middle East oil supplies.
Assets to watch: NVDA, AMD, MU, SOXX, gold, Brent, BTC, ETH, SOL.