Southeast Asian tech giants $Grab Holdings (GRAB.US)$ and $Sea (SE.US)$ recently announced results that exceeded expectations and achieved the goal of turning losses into profits year-on-year. Grab and Sea's stock prices both rose by more than 10% after announcing exciting third-quarter results. Grab, known as the "Didi" of Southeast Asia, saw its revenue in the third quarter increase by 17% year-on-year to US$716 million, exceeding analysts' expectations of US$697 million. During this period, Grab turned losses into profits, with net profit in the third quarter reaching US$15 million, compared with a loss of US$99 million in the same period last year. In addition, Grab also raised its full-year performance expectations, with strong revenue growth and higher profitability as its key driver

•Last week, LCU (+2.66% in USD), SQU (+3.01% USD) and SCY (+4.89% in SGD) gained while SRT (-3.38% in SGD) and SHD (-0.66% in SGD) fell. This happened amidst the backdrop of Trump winning the US presidency election as well as a 25bps Fed rate cut. • $CSOP LOW CARBON US$(LCU.SI)$ ’s rise is attributable to financials, IT and consumer discretionary by sectors and Japan, China and Australia by region. By individual firms, gains were led by TSMC, $Toyota Motor (7203.JP)$ and $Mitsubishi UFJ Financial Group (MUFG.US)$ . $Taiwan Semiconductor (TSM.US)$ gained after a top executive from TSMC said the value of Taiwan’s semiconductor output is projected to rise 22% to >$164 billion this year, driven by AI and robust economic growth. Toyota gained afte

• Last week, SQU (+1.97% in USD) and SCY (+0.57% in SGD) gained, while LCU (-2.50% in USD), SRT (-2.97% in SGD), and SHD (-1.10% in SGD) fell. • $CSOP LOW CARBON US$(LCU.SI)$ ‘s fall was attributable to IT, financials and consumer discretionary by sectors, and Japan, China and Taiwan by geographies. By individual firms, the decline was led by TSMC, Alibaba and Samsung Electronics. TSMC fell following suspension of its 2nm plant in Hsinchu for investigation of a death likely caused by electrocution and discovery that chips for a specific customer were delivered to Huawei. • $CSOP SEA TECH ETF US$(SQU.SI)$ ’s gains were led by Grab and Astra. Grab’s target price was raised +4% by UBS ASEAN bank analyst

 Last week, the Beige Book released painted a picture that activity has been much softer than hard data have indicated, which may alleviate market’s concerns about a pause in rate cuts. For instance, Hurricane Helene destroyed crops and paused business activity and tourism, and most districts saw a fall in manufacturing activity.  As for data releases last week, US jobs report was the main focus, and data revealed more positive growth outlook, with initial jobless claims dropping to 227k from 242k the previous week, suggesting a normalization back to late September levels.  However, JPM estimates that hurricanes Helene and Milton, along with the Boeing machinist strike, could reduce next week's October employment report by 80k.  Nevertheless, we expect CSOPUMM to continue to deliver st

• Last week, LCU (+0.35% in USD), SQU (+1.89% in USD), SRT (+0.75% in SGD), SHD (+1.30% in SGD) and SCY (+5.62% in SGD) gained. • LCU’s rise was due to financials, real estate and utilities by sector, and Australia, Taiwan and Indonesia by country. By individual firms, gains were predominantly led by Commonwealth Bank of Australia, MUFG, and Hon Hai Precision Industry. Commonwealth Bank of Australia and MUFG gained after US financials profited. • SQU’s rise was attributable to Delta Electronics, Cal Comp Electronics and Com7 PCL. Delta Electronics was raised from fully valued to hold by DBS Bank. • SRT’s rise was due to industrial, retail and multi asset by subsector and MINT, FCT and CLAR by individual REITs. FCT rose as it could post mild sequential rise in NPI for 2H24 ended September d

· Last week, data reflected better-than-expected domestic consumption and labor market. · Retail sales in September rose by 0.4%, surpassing the 0.3% consensus, and the control group increased by 0.7%, also beating the 0.3% consensus. As such, economists believe these figures indicate a stronger consumption growth rate in 2H24. · Initial claims dropped by 19k to 241k, lower than the 259k consensus, partially reversing the manufacturing-related increase in Midwest states the previous week. · With that, we expect CSOPUMM to continue to deliver stable yield in the near term. As of 20241018, the fund has gross yield of 5.13% and net yield at 4.85%. ^ Source: CSOP, Bloomberg, JP Morgan as of 20241018. ^ Gross yield is based on annualized yield of underlying holdings. 7-day net yield is calculat

• September FOMC meeting minutes revealed a split decision on rate cuts, with the majority favoring a 50 bp reduction. However, as last week's data came out more robust than anticipated, it is forecasted that the pace of rate cuts will be slower moving forward. • Last Thursday saw the release of weak labor market data, with initial claims rising to 258k (consensus: 230k) amidst disruptions arising from Hurricane Helene and Michigan’s layoffs. • Inflation print came out robust, with core CPI rising 0.3% (consensus: 0.2%) in September. Core goods prices rose more than expected, supported by higher vehicle and apparel prices, while core services prices were slightly softer, except a notable 0.7% increase in medical care services prices. • Nevertheless, we expect CSOPUMM to continue to deliver

【The US】 🔸 US trade deficit narrows sharply in August. The US trade deficit narrowed sharply in August as exports increased and imports fell, suggesting that trade could be a small drag on economic growth in the third quarter. The trade gap contracted 10.8 per cent to US$70.4 billion from a revised US$78.9 billion in July, the Commerce Department’s Bureau of Economic Analysis said on Tuesday. Trade has subtracted from gross domestic product for two straight quarters. Growth estimates for the third quarter are currently as high as a 3.2 per cent annualised rate. 🔸 NVIDIA (NVDA.US) kicks off AI summit in D.C., with two more in Asia to follow. Chip giant working with U.S. government to bring AI to climate change and healthcare 【China】 🔸 China explores cross-border uses for digital yuan in new

【China】 🔸 Chinese Stocks Surge on Return From Holidays as Euphoria Extends. Chinese stocks listed onshore jumped as trading resumed following a week-long holiday, with encouraging home sales and consumption data giving fresh impetus to a rally sparked by Beijing’s stimulus blitz. The benchmark CSI 300 Index and SSEC Index climbed almost 11% in early trading before paring its advance. The measure had gained for nine straight sessions through Sept. 30 before heading into the Golden Week break. $CSOP Star&Chinext50 S$(SCY.SI)$ $CSOP DIV ETF S$(SHD.SI)$ 【Asia-Pacific】 🔸 Nikon (7731 JT) Shares Jump After EssilorLuxottica Discloses 5.1% Stake. Nikon shares surge 7.9% in Tokyo, the most since Aug. 6, aft

- Last week, consumer spending in August rose by 0.1% m/m, suggesting robust Q3 growth, easing fears of a spending cut due to a low personal saving rate. - Core PCE deflator rose to 2.7% y/y in August, implying that inflation is moving towards the Fed's 2% target. This leaves room for the Fed to make another significant cut if the September payrolls report is disappointing. - Regarding labor markets, strong ADP employment report, with a rise of 143k in private payrolls for September (surpassing consensus of 125k), the highest monthly increase since June, and slight rise in initial claims to 225k (consensus: 221k), which remains lower than early September levels, indicates resilient labor markets. - Furthermore, ISM services index for September increased to its highest to 54.9 (consensus: 5

•      Last week, LCU (+0.21% in USD), SCY (+11.82% in SGD) and SHD (+30.27% in SGD) gained, while SQQ (-0.72% in SGD) and SRT (-0.36% in SGD) fell.  •      SCY and SHD rallied in the past week due to the China government’s larger-than-anticipated policy package to stimulate the economy and equity markets that was announced during its September Politburo meeting. •      LCU gained due to consumer discretionary and communication services by sectors and Mainland China and Hong Kong by geographies. By individual firms, gains were due to Meituan, Tencent and Alibaba Group. These firms gained alongside the China equity market rally. •      SQU fell because of Delta Electronics and Grab. •&nb

【The US】 🔸 ADP: Private Sector Jobs Bounce Back in September, Beating Forecasts. Private employers added a better-than-expected 143,000 jobs in September in a bounce back from sluggish summer hiring, payroll firm ADP said on Wednesday. The gains were broad-based with only the information technology showing a slight decrease. Increases occurred both at mid-sized and large employers. The leisure and hospitality sector led the way with a gain of 34,000 jobs, followed by construction with a 34,000 increase. 🔸 $Tesla (TSLA.US)$ sales and production up in Q3. Although some media reports suggested it fell short of analyst estimates, Tesla Q3 production was 469,796 units – versus 411,000 in Q2. Deliveries were up to 462,890 units – versus 444,000 in Q2. The rises followed two successive quarters o

【The US】 🔸 Powell Says Fed Not in a Hurry, Will Lower Rates “Over Time”. Federal Reserve Chair Jerome Powell said the central bank will lower interest rates “over time,” while again emphasizing that the overall US economy remains on solid footing. Powell also reiterated his confidence that inflation will continue moving toward the Fed’s 2% target, adding that economic conditions “set the table” for a further easing of price pressures. “Looking forward, if the economy evolves broadly as expected, policy will move over time toward a more neutral stance,” Powell said in a speech in Nashville at the annual meeting of the National Association for Business Economics. “But we are not on any preset course,” he said, noting that policy makers will continue to make decisions meeting by meeting based

【China】 🔸 China to cut existing mortgage rates by the end of October. China's central bank said on Sunday it would tell banks to lower mortgage rates for existing home loans before Oct. 31, as part of sweeping policies to support the country's beleaguered property market as the economy slows. Commercial banks should, in batches, reduce interest rates on existing mortgages to no less than 30 basis points (bps) below the Loan Prime Rate (LPR), the central bank's benchmark rate for mortgages, according to a statement released by the People's Bank of China (PBOC). 🔸 Major Chinese Cities Ease Homebuying Rules in Stimulus Push. The trading hub of Guangzhou became the first tier-1 city to remove all restrictions; Shanghai and Shenzhen also announced they were lowering minimum downpayment ratios f

·Last week, business activity in the United States experienced a marginal slowdown in its expansion during the early part of September. Concurrently, expectations took a downturn, and a measure of received prices escalated to the highest level seen in six months. ·Meanwhile, the deterioration in the labor market, which influenced the Federal Reserve's decision for a substantial rate cut, also had a significant impact on consumer sentiment in September, leading to a sharp decline in confidence. ·Sales of new homes experienced a decline in August, despite the average 30-year mortgage rate falling by nearly 30 basis points. Part of this decrease can be attributed to a correction following the surge in sales witnessed in July. ·Initial jobless claims continue to suggest a relatively low rate o

· The most significant development last week was the Fed’s first rate cut in over four years, where it cut rates by 50bps. It was followed by projections suggesting a slim majority favoring an additional 50 basis points of cuts in the remaining two policy meetings this year, despite market expectations of a more aggressive 70 basis points reduction. Fed Chair Powell warned against expecting continued large rate cuts. The median projections from officials' updated quarterly forecasts indicate a further half-point reduction by year-end, with median forecasts for the end of 2025 and 2026 at 3.375% and 2.875% respectively. · Retail sales in August slightly increased 0.1% (consensus: -0.2%), and the key control series was up 0.3%, in line with consensus. Given that back-to-school shopping histo

– Last week, LCU (+2.41% in USD), SQU (+3.30% in USD), SRT (+0.12% in SGD), and SHD (+1.06% in SGD) gained while SCY (-0.98% in SGD) fell. The gains were largely attributable to the 50bps Fed rate cut. – LCU’s gains were driven by consumer discretionary, financials and industrials by sector, and China, Australia and Taiwan by geographies. By individual firms, gains were led by Tencent, Toyota Motor, and TSMC. Toyota Motor was amongst the Japanese auto firms that rose due to the yen's depreciation against the dollar, which made their exports more affordable globally and boosted repatriated earnings. TSMC rose due to heightened demand for HBM chips and advanced N3E nodes, driven by the growing use of AI in hardware like the iPhone 16. $CSOP LOW CARBON