To The Moon

Chinese stock markets surged at the end, erasing year-to-date losses with double-digit returns.

🇺🇸 S&P 500 Index: 0.43% 📈

🇺🇸 Nasdaq Index: 0.39% 📈

🇪🇺 Stoxx 600 Index: -0.98% 📉

🇯🇵 Nikkei 225 Index: -4.80% 📉

🇭🇰 Hang Seng Index: 2.43% 📈

🇨🇳 CSI 300 Index: 8.49% 📈

🇸🇬 Straits Times Index: 0.33% 📈

The U.S. stock market rebounded, with the S&P 500 and Nasdaq Composite up 0.1%, reaching record highs, as Powell provided clearer indications in his speech. If the economy develops as expected, the Fed is likely to ease policies before the end of the year. Following significant rate cuts last month, the urgency for easing has diminished, reigniting optimism about potential Fed policy changes by year-end.

Asia-Pacific markets were buoyant, with the Hang Seng Index and CSI 300 Index rising 2.4% and 8.5%, respectively, as the central bank committed to more fiscal measures to achieve growth targets. This boosted market sentiment, and trading volumes surged to historical highs, reflecting rapid adjustments in market mood following President Xi's reaffirmation of this commitment last week.

Japan's retail sales grew by 2.8% year-on-year, exceeding expectations and up from 2.6% last month.

China's official manufacturing PMI remained in contraction since May but rose slightly to 49.8 in September, up from 49.1 last month, better than the expected 49.5. The services PMI fell to 50.0 from 50.3 in August, below the expected 50.4.

Upcoming Events:

Chairman Powell's speech, U.S. JOLTS job openings, S&P Global and ISM manufacturing PMI final values, EU CPI preliminary year-on-year and manufacturing PMI final values, and Japan's manufacturing PMI final value will be released on Tuesday.

On Wednesday, comments from Fed members will be closely watched.

On Thursday, U.S. unemployment claims, S&P Global and ISM services PMI final values, and Eurozone services PMI final values will attract investor attention.

By the end of the week, we will see the release of U.S. non-farm payrolls and unemployment rates.

Things to Know Today:

1. Chinese real estate developers surged under intense stimulus measures, with the Hang Seng China Mainland Property Index rising 6.4%. Since the central bank introduced its latest economic support measures last Tuesday, the index has increased by a total of 40%. Major cities are leading the trend, with sales accelerating, and some smaller players are raising prices, pleasing investors with more relaxed home-buying rules.

Chinese real estate developers

2. On Monday, southbound fund inflows hit the largest single-day total in six months, reaching $1.6 billion in local stock purchases. This reflects renewed confidence among mainland investors in the large-scale stimulus plan, pushing total purchases to exceed last year's buying frenzy. Alibaba $Alibaba(09988)$ , Hong Kong Exchanges $HKEX(00388)$ , and WuXi Biologics $WUXI BIO(02269)$  topped the trading volume list, with a net inflow of $1.9 billion last week.

WuXi Biologics

3. Tesla $Tesla Motors(TSLA)$  and its CEO Elon Musk announced a victory in a lawsuit accusing the company of misleading shareholders by exaggerating the effectiveness and safety of its autonomous driving technology to boost its stock price. However, the company still faces investigations from the U.S. Department of Justice and the Securities and Exchange Commission, as well as a lawsuit from the California Department of Motor Vehicles regarding its autonomous driving claims.

Tesla CEO Elon Musk

4. The CEO of Bursa Malaysia $Bursa Malaysia Bhd(BSMAF)$  expressed intentions to develop a "systematic" stock market value enhancement plan framework to attract global funds, setting targets for metrics such as price-to-earnings ratio, return on equity, and free float. This approach aims to emulate Japan, South Korea, and China in driving shareholder returns through corporate reforms to improve stagnant valuations.

Bursa Malaysia CEO

Key Points:

Fed Chairman Powell expressed more views on the future policy path in his remarks on Monday, indicating that the committee may continue to maintain a quarter-point rate cut, consistent with earlier quarterly economic forecasts, and stated that they will not "rush" as new data enhances confidence in sustained economic growth and consumer spending.

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