For the week of Oct 16, global equities were driven by a rotation out of AI-linked technology and into defensive and value sectors as hotter-than-expected U.S. inflation revived rate-hike worries. In the U.S., semiconductor and AI-infrastructure stocks sold off on financing and return concerns while the Dow held up and Treasury yields eased. In China/Hong Kong, mainland markets underperformed as chip and AI shares fell, even as surging exports underscored strong overseas tech demand. In Singapore, the market edged higher as the MAS surprised with a policy hold and local banks steadied.
(Refer to
the major indices' weekly performance tables below.)
| Symbol | Index Name | Close (Wk) | Change | Chg % | YTD % |
|---|---|---|---|---|---|
| $DJI | Dow Jones | 52,002.41 | +347.46 | +0.67% | +8.20% |
| $STI | Straits Times | 5,415.53 | +13.64 | +0.25% | +16.56% |
| $KLCI | KLCI | 1,607.76 | -0.69 | -0.04% | -4.31% |
| $HSI | Hang Seng | 24,186.83 | -24.52 | -0.10% | -5.63% |
| $SPX | S&P 500 | 7,659.44 | -152.10 | -1.95% | +11.89% |
| $SSE | Shanghai | 3,716.28 | -97.51 | -2.56% | -6.36% |
| $RUT | Russell 2000 | 2,721.37 | -85.61 | -3.05% | +9.65% |
| $CSI300 | CSI 300 | 4,170.61 | -146.64 | -3.40% | -9.92% |
| $N225 | Nikkei 225 | 65,324.29 | -3,706.63 | -5.37% | +29.77% |
| $NDX | Nasdaq 100 | 29,187.55 | -1,695.60 | -5.49% | +15.59% |
πΊπΈ United States
Market Overview
U.S. equities
posted their worst week since June as an AI-led sell-off hit growth stocks. The
Nasdaq 100 (NDX) fell 5.49% and the S&P 500 (SPX) lost 1.95%, while the Dow
Jones Industrial Average (DJI) rose 0.67%. The small-cap Russell 2000 (RUT)
declined 3.05%, and the Russell 1000 Value Index beat its growth counterpart by
more than 550 basis points as hotter inflation data and the start of
third-quarter earnings season reinforced the rotation.
Index Weekly Performance
-
Dow Jones Industrial Average (DJI): +0.67%
-
S&P 500 (SPX): -1.95%
-
Nasdaq 100 (NDX): -5.49%
Key Highlights and Outlook
1️⃣ AI
Financing Fears Trigger Sell-Off
Semiconductor
and memory stocks came under pressure as investors scrutinised financing needs,
valuations and returns on AI infrastructure spending. The SOX index fell for
eight straight sessions from Oct 7 to Oct 16, and CoreWeave's credit-default
swaps hit a record high. Micron and Intel slid further on Friday.
2️⃣
Inflation Surprises to the Upside
September CPI
rose 3.7% year over year, above the 3.6% consensus, with core CPI at 2.6% and
gasoline prices up 9.1% month over month. Producer prices were hotter still,
rising 6.3% year over year versus an expected 5.4%, the largest annual gain
since December 2022.
3️⃣
Fed Stays Noncommittal, Yields Retreat
Fed Chair
Kevin Warsh offered little clarity on the October meeting, saying the central
bank is no longer in the business of prejudging outcomes. CME FedWatch showed
roughly a 17% chance of a hike, little changed on the week. The 10-year
Treasury yield eased to about 5.09% from 5.24% as tech weakness drew demand for
bonds.
4️⃣
Consumer Spending Firm, Labour Steady
September
retail sales rose 0.8%, ahead of expectations, though a 6.4% jump in gas
station receipts drove much of the gain. Control-group sales rose just 0.1%
against an expected 0.3%. Initial jobless claims held at 199,000, the fifth
straight reading below 200,000.
5️⃣
Energy and Defensives Take Leadership
Escalating
Middle East tensions supported oil prices, giving the energy sector a tailwind.
Defensive areas such as consumer staples and health care also gained as
investors moved toward quality. Investment-grade bonds advanced, while high
yield turned sharply risk-off after Wednesday's CPI report.
6️⃣
Earnings Growth Underpins the Backdrop
Third-quarter
S&P 500 earnings growth is expected at about 29%, with 10 of 11 sectors
forecast to grow, and the SPX is up 11.89% year to date. The Atlanta Fed's
GDPNow tracks 3.6% annualised growth. Most mega-cap tech results fall between
Oct 28 and Nov 2, a test of AI spending returns.
S&P 500 Sectors in Focus
Consumer
Staples, Energy, Health Care and Materials posted the strongest weekly gains,
with Utilities, Financials and Real Estate also finishing higher. Technology
was the clear laggard and fell sharply as semiconductor and AI-infrastructure
stocks sold off. Industrials, Consumer Discretionary and Communication Services
also ended lower. Energy and Technology remain the year-to-date leaders despite
the reversal.
(Refer to
the SPX sector ETF weekly performance table below.)
| Symbol | Sector | Close (Wk) | Change | Chg % | YTD % |
|---|---|---|---|---|---|
| SPY ★ | S&P 500 ETF | 763.25 | -15.32 | -1.97% | +11.93% |
| XLP | Consumer Staples | 87.62 | +4.19 | +5.02% | +12.80% |
| XLE | Energy | 68.24 | +3.16 | +4.86% | +52.63% |
| XLV | Health Care | 176.71 | +5.90 | +3.45% | +14.15% |
| XLB | Materials | 50.92 | +1.49 | +3.01% | +12.28% |
| XLU | Utilities | 42.21 | +0.80 | +1.93% | -1.12% |
| XLF | Financials | 55.52 | +0.79 | +1.44% | +1.37% |
| XLRE | Real Estate | 42.16 | +0.55 | +1.32% | +4.49% |
| XLC | Comm. Services | 110.32 | -0.06 | -0.05% | -6.29% |
| XLY | Consumer Discret. | 112.46 | -0.39 | -0.35% | -5.82% |
| XLI | Industrials | 167.76 | -1.49 | -0.88% | +8.15% |
| XLK | Technology | 183.47 | -15.31 | -7.70% | +27.44% |
Technical Snapshot
The SPX closed
the week down 1.95% to 7,659.44 , its largest weekly loss since June, while the NDX
dropped to 29,187.55, both SPX and NDX fell back into their sideway consolidation weekly range. The DJI index held at 52,002.41, appears on the opposite movement to SPX and NDX, it actually rebounded for 2nd week. With AI-financing worries and the Oct 28 Fed decision ahead,
the chart structure remains a sideways consolidation for the SPX, which has
traded largely flat since August.
π Weekly charts:
π¨π³ China / Hong Kong
Market Overview
Chinese
equities declined, with mainland markets underperforming Hong Kong as selling
in previously strong semiconductor and AI-related shares weighed on benchmarks.
The CSI 300 fell 3.40%, the Shanghai Composite (SSE) declined 2.56%, and the
Hang Seng Index (HSI) edged down 0.10%. Financials held up better than
technology, and mainland shares recovered modestly on Friday on share buybacks,
upbeat profit forecasts and gains in property.
(Refer to
the major indices' weekly performance tables above.)
Index Weekly Performance
-
CSI 300: -3.40%
-
Shanghai Composite (SSE): -2.56%
-
Hang Seng Index (HSI): -0.10%
Key Highlights and Outlook
1️⃣
Chip and AI Shares Drag Markets
Semiconductor
and other AI-related shares led the declines on renewed concerns about the
scale and returns of AI spending, while stronger U.S. inflation revived
interest-rate worries. In Hong Kong, Hua Hong Semiconductor fell 20.73%, Lenovo
14.56% and SMIC 9.11%. Analysts also cited mutual fund redemptions as added
pressure.
2️⃣
September Exports Accelerate to Record
Exports rose
36.3% year on year in September, up from 25.0% in August and above forecasts,
while imports grew 31.0%. The monthly trade surplus widened to a record USD
133.5 billion. Strong overseas demand for technology-related goods, including
semiconductors and data-processing equipment, supported the gain.
3️⃣
Producer Inflation Jumps, Consumer Prices Lag
PPI rose 5.0%
year on year in September, the fastest pace since June 2022, as energy and raw
material costs climbed. CPI edged up to 0.9% from 0.8%, with core inflation
unchanged at 1.0%. The data point to stronger producer-level price pressure
without a comparable rise in consumer prices.
4️⃣
Maybank Securities Favours Defensive Resilience
Maybank Securities expects China's growth to stay subdued, with weak consumer demand and limited prospects for broad stimulus. It favours policy beneficiaries Lenovo(992.HK) and Zhongji Innolight (3308.HK), and defensive high-yield names China Mobile(941.HK) and PetroChina(857.HK) . This week, China Mobile and PetroChina gained while Lenovo fell 14.56%.
5️⃣
Healthcare Splits After October Profit-Taking
The Hang Seng
Healthcare Index fell 10.6% during 1-15 October, mainly on profit-taking, with
Insilico, XtalPi, Akeso and WuXi Biologics the major laggards. This week WuXi
Biologics fell 10.49% and WuXi AppTec 5.67%, while BeOne Medicines rose 7.35%
and JD Health 6.87%.
Technical Snapshot
The HSI closed
at 24,186.83, down 0.10% on the week and 5.63% lower year to date, while the
SSE slipped to 3,716.28. Mainland benchmarks underperformed as the CSI 300 lost
3.40%, with semiconductor and AI-linked names leading the weakness and
financials holding firmer. With third-quarter GDP and September activity data
due on Oct 19, near-term direction will hinge on those figures and on whether
AI-related selling eases.
Hang Seng Index Weekly Gainers
48 of 95 Hang
Seng Index constituents gained on the week, and two closed unchanged. Consumer
and healthcare names led, with Shenzhou International (+7.36%), BeOne Medicines
(+7.35%), ANTA Sports (+7.30%), JD Health (+6.87%) and Meituan (+5.87%) topping
the list. HSBC added 3.10%, while CCB and ICBC rose 1.34% and 1.20%.
(Refer to
the Hang Seng Index constituents' weekly performance table below.)
| Code | Company | Close (Wk) | Wk % | YTD % |
|---|---|---|---|---|
| HSI ★ | HSI ★ | 24,186.83 | -0.10% | -5.63% |
| 2313 | Shenzhou Intl | 37.34 | +7.36% | -38.99% |
| 6160 | BeOne Medicines | 225.00 | +7.35% | +25.49% |
| 2020 | ANTA Sports | 77.95 | +7.30% | -3.23% |
| 6618 | JD Health | 38.56 | +6.87% | -30.52% |
| 3690 | MeituanHMTD | 75.70 | +5.87% | -26.72% |
| 1099 | Sinopharm | 15.72 | +5.72% | -19.14% |
| 9901 | New Oriental | 48.14 | +5.71% | +13.97% |
| 241 | AliHealth | 3.00 | +5.07% | -40.50% |
| 316 | OOIL | 160.60 | +4.97% | +28.07% |
| 27 | Galaxy Ent. | 33.54 | +4.42% | -12.47% |
| 2331 | Li Ning | 13.28 | +4.08% | -28.87% |
| 1876 | Budweiser APAC | 6.08 | +4.02% | -19.89% |
| 291 | CR Beer | 19.83 | +3.66% | -24.37% |
| 1519 | J&T Global Express | 9.30 | +3.51% | -11.00% |
| 9961 | Trip.comHTGD | 315.00 | +3.48% | -43.14% |
| 5 | HSBCHSHD | 149.70 | +3.10% | +22.30% |
| 2319 | China Mengniu Dairy | 18.80 | +3.07% | +26.09% |
| 1299 | AIA Group | 73.30 | +2.88% | -8.26% |
| 1209 | CR Mixc | 39.68 | +2.80% | -7.59% |
| 1038 | CK Infra | 67.95 | +2.72% | +17.97% |
| 1810 | XiaomiHXXD | 26.66 | +2.70% | -32.16% |
| 669 | Techtronic | 130.80 | +2.59% | +45.49% |
| 823 | Link REIT | 38.20 | +2.36% | +9.96% |
| 9999 | NetEase | 197.70 | +2.17% | -7.88% |
| 66 | MTR Corp | 32.38 | +2.08% | +8.66% |
| 1109 | CR Land | 31.06 | +2.04% | +14.19% |
| 3968 | CM Bank | 53.25 | +2.01% | +0.85% |
| 9988 | AlibabaHBBD | 108.80 | +1.68% | -23.81% |
| 857 | PetroChinaHPCD | 9.99 | +1.68% | +19.27% |
| 2688 | ENN Energy | 50.15 | +1.52% | -27.53% |
| 939 | CCB | 9.87 | +1.34% | +28.28% |
| 1044 | Hengan | 19.80 | +1.28% | -29.03% |
| 267 | CITIC | 12.87 | +1.26% | +6.72% |
| 1398 | ICBC | 7.59 | +1.20% | +20.67% |
| 3 | HK & China Gas | 7.21 | +1.12% | +2.92% |
| 12 | Henderson Land | 27.20 | +1.12% | -3.34% |
| 941 | China MobileHCMD | 80.95 | +1.06% | -0.92% |
| 2388 | BOC Hong Kong | 50.15 | +0.95% | +27.22% |
| 3692 | Hansoh | 31.74 | +0.63% | -12.03% |
| 9618 | JD.comHJDD | 106.10 | +0.47% | -4.93% |
| 2057 | ZTO Express | 158.30 | +0.44% | -2.46% |
| 300 | Midea | 93.95 | +0.32% | +10.59% |
| 1928 | Sands China | 11.49 | +0.26% | -41.38% |
| 883 | CNOOC | 23.96 | +0.25% | +12.49% |
| 6 | Power Assets | 60.55 | +0.25% | +9.79% |
| 3988 | Bank of ChinaHBND | 6.14 | +0.24% | +37.67% |
| 2015 | Li Auto | 44.76 | +0.22% | -30.98% |
| 2 | CLP Holdings | 77.15 | +0.19% | +10.85% |
| 1929 | Chow Tai Fook | 11.18 | +0.00% | -9.77% |
| 322 | Tingyi | 12.37 | +0.00% | +4.92% |
Hang Seng Index Weekly
Decliners
45 of 95
constituents declined. Semiconductor and technology hardware names bore the
brunt, led by Hua Hong Semiconductor (-20.73%), Lenovo (-14.56%) and SMIC
(-9.11%). WuXi Biologics (-10.49%), CATL (-10.30%), China Life (-9.71%) and
Weichai Power (-9.15%) also fell sharply, while Tencent lost 1.65%.
(Refer to
the Hang Seng Index constituents' weekly performance table below.)
| Code | Company | Close (Wk) | Wk % | YTD % |
|---|---|---|---|---|
| HSI ★ | HSI ★ | 24,186.83 | -0.10% | -5.63% |
| 2618 | JD Logistics | 10.27 | -0.39% | -10.07% |
| 836 | CR Power | 19.83 | -0.50% | +14.56% |
| 728 | China Telecom | 4.66 | -0.53% | -13.54% |
| 868 | Xinyi Glass | 8.11 | -0.67% | -1.93% |
| 688 | COLI | 13.17 | -0.75% | +7.51% |
| 386 | Sinopec | 4.50 | -0.77% | -3.64% |
| 968 | Xinyi Solar | 1.92 | -0.78% | -35.35% |
| 175 | GeelyHGMD | 15.01 | -0.79% | -16.15% |
| 1997 | Wharf REIC | 30.46 | -0.85% | +23.92% |
| 388 | HKEX | 374.60 | -0.85% | -8.10% |
| 762 | China Unicom | 5.62 | -0.88% | -27.83% |
| 9633 | Nongfu Spring | 41.20 | -1.01% | -12.04% |
| 1 | CK Hutchison | 65.90 | -1.13% | +24.46% |
| 6690 | Haier | 20.12 | -1.47% | -17.13% |
| 1113 | CK Asset | 44.50 | -1.55% | +13.17% |
| 16 | Sun Hung Kai | 107.20 | -1.56% | +13.20% |
| 700 | TencentHTCD | 417.80 | -1.65% | -30.25% |
| 288 | WH Group | 6.46 | -1.97% | -25.55% |
| 6862 | Haidilao | 9.37 | -2.14% | -34.28% |
| 1093 | CSPC Pharma | 8.88 | -2.26% | +5.34% |
| 1211 | BYDHYDD | 73.75 | -2.45% | -22.65% |
| 1024 | KuaishouHKUD | 29.30 | -2.66% | -54.18% |
| 1177 | Sino Biopharm | 5.25 | -2.96% | -15.05% |
| 2899 | Zijin Mining | 31.96 | -2.98% | -10.38% |
| 101 | Hang Lung Prop. | 6.40 | -3.25% | -25.67% |
| 2318 | Ping AnHPAD | 50.05 | -3.47% | -23.18% |
| 1088 | China Shenhua | 42.54 | -3.80% | +9.64% |
| 1801 | Innovent Bio | 89.05 | -3.89% | +16.79% |
| 9888 | BaiduHBUD | 79.45 | -4.28% | -39.58% |
| 2382 | Sunny Optical | 57.70 | -4.63% | -11.98% |
| 285 | BYD Electronic | 22.04 | -4.84% | -34.48% |
| 3993 | CMOC Group | 14.61 | -5.19% | -24.06% |
| 6181 | Laopu GoldHLPD | 318.60 | -5.46% | -48.45% |
| 960 | Longfor | 5.04 | -5.61% | -41.06% |
| 2359 | WuXi AppTec | 196.20 | -5.67% | +98.78% |
| 2600 | Aluminum Corp China | 7.27 | -6.31% | -40.26% |
| 9992 | Pop MartHPPD | 142.20 | -6.63% | -24.24% |
| 1378 | China Hongqiao | 19.64 | -7.10% | -39.79% |
| 981 | SMICHSMD | 52.40 | -9.11% | -26.66% |
| 2338 | Weichai Power | 25.42 | -9.15% | +34.85% |
| 2628 | China Life | 23.62 | -9.71% | -13.73% |
| 3750 | CATLHCCD | 440.80 | -10.30% | -12.80% |
| 2269 | WuXi Bio | 48.20 | -10.49% | +53.31% |
| 992 | Lenovo | 28.06 | -14.56% | +203.02% |
| 1347 | Hua Hong Semi | 74.95 | -20.73% | +0.87% |
π Weekly charts:
πΈπ¬ Singapore
Market Overview
The Straits
Times Index (STI) edged up 0.25% as the MAS surprised with a policy hold and
bank shares steadied. UOB rose 4.13% and DBS 1.02%, while OCBC was flat.
Seatrium, UOL and Keppel led the decliners, and several REITs also weakened.
Index Weekly Performance
-
Straits Times Index (STI): +0.25%
Key Highlights and Outlook
1️⃣
MAS Holds Policy, Raises Growth View
The MAS
unexpectedly kept the S$NEER slope at +125 bps per annum despite expectations
for slight tightening. Maybank Securities noted that third-quarter GDP grew
5.4%, led by AI-driven manufacturing, trade and construction, and raised its
2026 GDP forecast to 5.6%.
2️⃣
Banks Steady After Recent Weakness
Maybank
Securities noted Singapore banks had fallen 5% over six weeks on margin-squeeze
and bond mark-to-market fears, but sees the yield impact as manageable and
earnings as resilient. It stays positive on the sector, with OCBC the top pick
and DBS the top technical pick.
3️⃣
Seatrium, UOL and Keppel Lead Losses
Seatrium fell
7.50%, UOL 4.40% and Keppel 3.99%, while Venture slipped 2.64%. REITs also
weakened, including Mapletree PACT (-3.36%) and Keppel DC REIT (-2.82%).
Outside the index, one broker attributed CSE Global's sharp drop to contagion
from global AI and data-centre demand pessimism rather than company-specific
news.
4️⃣
Deluge Debuts as AI-Themed SDRs Launch
Deluge listed
on the SGX mainboard after its IPO was 3.86 times subscribed, with the public
offer nearly 12 times covered at S$0.60 a share. SGX also launched five
AI-themed SDRs on Friday, including TSMC and SK Hynix, tradable in Singapore
dollars.
Technical Snapshot
The STI closed
at 5,415.53, up 0.25% on the week and 16.56% year to date. Daily closes held in
a narrow band between 5,403.50 and 5,430.50, as bank strength offset weakness
in several REITs and property names. Immediate technical support around 5362 and resistance at around 5455 for near term, watch STI beyond these levls for clearer direction coming week. Absent a fresh
catalyst, the outlook rests on whether the AI-led global sell-off and U.S.
yields stabilise, with Singapore's September CPI due on Oct 22.
(Refer to
the STI weekly performance table below.)
| Code | Company | Close (Wk) | Wk % | YTD % |
|---|---|---|---|---|
| STI ★ | STI ★ | 5,415.53 | +0.25% | +16.56% |
| U11 | UOB | 41.61 | +4.13% | +18.68% |
| D01 | DFI Retail USD | 3.29 | +3.79% | -16.71% |
| BS6 | YZJ Ship SGD | 5.21 | +2.16% | +49.71% |
| H78 | HK Land USD | 8.25 | +1.85% | +18.71% |
| BUOU | Frasers L&C Tr | 0.89 | +1.72% | -11.06% |
| S68 | SGX | 21.00 | +1.30% | +23.82% |
| D05 | DBS | 74.11 | +1.02% | +31.49% |
| U96 | Sembcorp Ind | 5.92 | +0.34% | -1.66% |
| M44U | Mapletree Log Tr | 1.08 | +0.00% | -18.18% |
| O39 | OCBC | 29.00 | +0.00% | +46.76% |
| S63 | ST Engineering | 10.39 | -0.29% | +23.40% |
| C38U | CapLand IntCom Tr | 2.23 | -0.45% | -6.69% |
| J69U | Frasers CT | 2.06 | -0.48% | -11.59% |
| C6L | SIA | 6.53 | -0.61% | +2.03% |
| G13 | Genting Sing | 0.61 | -0.81% | -15.86% |
| C09 | CityDev | 7.04 | -0.85% | -12.00% |
| A17U | CapAscendas REIT | 2.17 | -0.91% | -23.32% |
| Y92 | ThaiBev | 0.42 | -1.16% | -7.61% |
| Z74 | Singtel | 4.18 | -1.42% | -8.13% |
| J36 | JMH USD | 55.58 | -2.03% | -18.73% |
| ME8U | Mapletree Ind Tr | 1.79 | -2.19% | -13.94% |
| 9CI | CapLand Invest | 2.38 | -2.46% | -12.18% |
| V03 | Venture | 15.86 | -2.64% | +4.76% |
| AJBU | Keppel DC REIT | 2.07 | -2.82% | -8.00% |
| F34 | Wilmar | 3.44 | -3.10% | +11.69% |
| N2IU | Mapletree PACT | 1.15 | -3.36% | -21.77% |
| BN4 | Keppel | 10.10 | -3.99% | -2.42% |
| S58 | SATS | 3.58 | -4.02% | -6.04% |
| U14 | UOL | 7.61 | -4.40% | -12.93% |
| 5E2 | Seatrium | 1.85 | -7.50% | -14.35% |
π Weekly charts:
π
Week Ahead (19–23 Oct 2026)
U.S.:
Earnings accelerate, with GE Aerospace reporting on Oct 20 before the open,
Netflix after the close that day, Meta and Tesla after the close on Oct 21, and
Procter & Gamble before the open on Oct 22. September housing starts and
permits are due on Oct 20, followed by flash October PMIs and final University
of Michigan sentiment on Oct 23. Markets will watch whether tech results ease
or deepen AI-financing concerns, and how Treasury yields respond.
China/Hong
Kong: China releases third-quarter GDP and September retail sales,
industrial production and investment data on Oct 19, with a Reuters poll
pointing to growth of about 4.4% year on year. The loan prime rate fixing
follows on Oct 20, and the same poll expects rates to be held. Hong Kong
traders will watch whether the semiconductor and AI sell-off steadies after the
sharp falls in Hua Hong, SMIC and Lenovo.
Singapore/Regional:
Singapore releases September CPI on Oct 22, after August headline inflation of
2.3%. UOL and CapitaLand Development preview the 1,268-unit Thomson Reserve
from Oct 17, a gauge of new-launch demand after September home sales rose 16%
year on year. OCBC reports third-quarter results on Nov 6 and UOB its trading
update on Nov 4.
π️ Overarching
Watchpoint
Whether the
AI-led sell-off deepens into Meta and Tesla's results on Oct 21 will set the
tone for the Fed's Oct 27-28 meeting, where a rate hike remains possible after
hot CPI and PPI prints. A deeper sell-off would extend pressure on Asian
semiconductor names, while stabilisation could slow the rotation into
defensives.
Source: Some
content and data are excerpted from publicly available market reports.
Unfamiliar with a term? See the Glossary.
