UOB Kay Hian Private Wealth Management
Date of Report: September 5, 2025

Global Markets Surge as Tech Titans Shine and Economic Shifts Drive Investor Strategy: UOB Kay Hian Wealth Daily 2025 Analysis

Market Overview: Fed Rate Cut Hopes, Tech Leadership, and Global Shifts

The global financial landscape continues to evolve rapidly as economic data, central bank policy, and corporate innovation drive market momentum. The S&P 500 soared 0.83% to a record high, buoyed by expectations of a Federal Reserve rate cut following softer-than-anticipated private payrolls. Meanwhile, China’s CSI 300 retreated sharply as regulators weigh new measures to stabilize equity markets after a significant rally.
Dramatic policy actions and high-profile business events marked the week, with the White House hosting top tech CEOs and OpenAI announcing major chip production plans. In Asia, trade tensions and shifting strategies among market leaders are shaping new investment opportunities.

Key Index and Asset Performance

Government Bond Yields, Precious Metals, Currencies, and Crude Oil

Major Policy and Political Developments

• The U.S. administration implemented a 15% tariff on most Japanese imports, including autos, as part of a new trade deal. Japan, in turn, pledged a \$550 billion U.S. investment fund. Mexico is contemplating tariffs on China and other non-partner countries.
• China considers measures to cool its surging stock market—potentially easing short-selling restrictions and curbing speculative trading—after a \$1.2 trillion rally.
• President Trump hosted a high-profile dinner with CEOs from Meta, Microsoft, Apple, Alphabet, Oracle, Micron, AMD, and OpenAI, underscoring the White House’s focus on technology as a strategic sector.

Technology Sector: AI, Chips, and Cloud Dominate Headlines

Meta Platforms (META)

• Shares rose 1.57% as Meta remains a core recommendation.
• CEO attended the presidential tech dinner, underlining Meta’s strategic industry role.

Microsoft (MSFT)

• Shares gained 0.52%. Microsoft is also a core recommendation.
• CEO attended the tech summit at the White House.

Amazon (AMZN)

• Led the M7 stocks with a 4.29% jump.
• Testing a new AI-powered workspace platform, Quick Suite.
• JetBlue will become the first airline to use Amazon’s Project Kuiper satellite network for in-flight Wi-Fi.
• Amazon remains a core recommendation.

OpenAI and Broadcom (AVGO)

• OpenAI set to begin mass production of proprietary AI chips in partnership with Broadcom.
• Broadcom secured \$10 billion in orders from this deal.
• Shares surged 4.1% post-earnings, with CEO projecting Q4 AI semiconductor revenue of \$6.2 billion, above consensus estimates.
• Broadcom is a core recommendation.

Micron (MU) & AMD

• Micron rose 4.62%.
• AMD edged lower by 0.21%.
• Both CEOs attended the White House dinner, reinforcing their roles in the AI supply chain.

Alphabet (GOOGL)

• Shares gained 0.71%.
• CEO attended the White House tech gathering.

Oracle (ORCL)

• Dipped 0.2% and is scheduled to report 1QFY26 results after-market on September 9.
• Implied earnings move is 8.8%. Last quarter, Oracle missed by 3.66%, with two misses and two beats in the past four quarters.

Nvidia (NVDA)

• Up 0.61%. Nvidia’s venture arm invested in quantum computing company Quantinuum, now valued at \$10 billion.
• Chinese tech firms such as Alibaba and ByteDance remain keen buyers of Nvidia chips, especially the H20 model, even as Chinese authorities pressure them not to buy. Nvidia is developing a more powerful chip, B30A, for the market.

Intel (INTC)

• Shares rose 2.54% as management highlighted 2026 as a pivotal year for its manufacturing technology.
• Advancement to the 14A process hinges on securing commitments from external customers.
• The company remains majority-owned due to an \$8.9 billion U.S. government stake, limiting near-term outside investment.

Americas: Regulation, M&A, and Strategic Moves

Nasdaq (NDAQ)

• Up 0.57%. Imposing stricter listing standards, increasing minimum public float, and expediting delisting for thinly traded companies to combat market manipulation.
• Companies operating primarily in China must now raise at least \$25 million in public offering proceeds to qualify for listing.

Lululemon (LULU)

• Stock plummeted 15.6% after hours. Cut full-year revenue and earnings outlook for the third consecutive time, citing a \$240 million hit from the end of the de minimis exemption.

Salesforce (CRM)

• Fell 4.85%. Announced a \$20 billion share buyback, but concerns persist after guiding Q3 revenue below expectations, indicating delayed returns from AI investments.

Tesla (TSLA)

• Rose 1.33%. UK car sales climbed 7.63% in August, outpacing the broader auto market. Battery electric vehicle sales jumped 15% in the UK, and 20% for BEVs overall according to New AutoMotive.

Boeing (BA)

• Down 0.7%. Defense segment plans to hire workers to replace striking IAM union members in St. Louis. Non-union employees have been maintaining production since the strike began on August 4.

ExxonMobil (XOM)

• Up 0.44%. Exploring sale of European chemical plants in the UK and Belgium, with a target of up to \$1 billion, as the sector faces pressure from US tariffs and Chinese competition.

Caterpillar (CAT)

• Up 1.23%. The US expressed concern after Norway’s \$2 trillion wealth fund divested from the company on ethical grounds related to the use of its products by Israeli authorities.

Vale (VALE)

• Up 0.49%. Announced a 67 billion reais (\$12.36 billion) investment in Minas Gerais state mining operations by 2030, with a focus on expanding filtering and dry stacking of iron ore tailings.

Greater China: Tech Tensions and Auto Price Wars

Alibaba (BABA, 9988.HK)

• U.S. listed (down 4.05%) and Hong Kong listed (down 3.21%). Alibaba remains a core recommendation.
• Despite government pressure, continues to seek Nvidia chips for AI projects, closely monitoring new chip developments.

Chinese Auto Sector

• Price wars intensified in 2Q25, squeezing margins across the supply chain.
• Geely, CATL, and Fuyao Glass maintained margins through strong product competitiveness.
• XPeng and Leapmotor expected to survive and thrive among younger companies.
• Top BUYs: CATL and Geely. Top SELLs: BYD and Li Auto.

BYD (1211.HK)

• Shares fell 3.24%. Slashed its 2025 sales target by up to 16% to 4.6 million vehicles, signaling the slowest growth in five years and a potential end to its rapid expansion era.

Sun Hung Kai Properties (0016.HK)

• Down 0.76%. Fiscal 2025 results showed a 0.5% rise in underlying net profit, supported by strong China development project margins and lower finance costs, despite weaker Hong Kong margins.
• Hong Kong offices outperformed the market. New investment properties in Hong Kong and Shanghai will drive recurring income growth from FY26.
• Management confirmed a 50% payout ratio. The target price is HK\$103.00, implying a 4.0% FY26 yield.

Cambricon (688256 CH)

• Sank 14.45% as the recent AI rally cooled. The drop contributed to a 6.1% fall in the SSE Science and Technology Innovation Board 50 Index, highlighting volatility after Cambricon’s market cap doubled this year.

Asia ex-China: Construction, Hotels, and Regional Growth

BRC Asia (BRC SP)

• Flat on the day. Poised to benefit from rising construction activity and steel demand in Singapore. Holds a record S\$2 billion orderbook, anchored by projects like Changi Airport T5.
• Strong multi-year earnings visibility and a projected FY26 dividend yield of 5.3%. Upgraded to BUY with a 43% higher target price of S\$4.69.

Thailand Hotel Sector

• Combined core profit for 2Q25 was Bt3,767 million (up 0.4% YoY, up 101.3% QoQ), mainly from MINT’s robust European hotel performance.
• 3Q25 outlook remains subdued, but hopes are pinned on a strong 4Q25 high travel season. MINT is the preferred pick due to a lower cost of debt. Maintain MARKET WEIGHT.

EMEA & Global: Pharmaceuticals, Autos, and Geopolitics

Sanofi (SAN FP)

• Dropped 8.31% after weak trial results for its experimental inflammation drug amlitelimab, aimed at atopic dermatitis. Its blockbuster drug Dupixent, treating the same condition, is set to lose patent protection in 2031.

Volvo (VOLVB SS)

• August sales fell 9% to 48,029 vehicles. Fully electric car sales dropped 28%, now representing 20% of sales. Electrified cars (including plug-ins) were down 17%, accounting for 43% of sales volumes. The company previously reported soft demand and increased tariff challenges.

Geopolitical Developments

• North Korean leader Kim Jong Un pledged continued support to China on sovereignty and development. Xi Jinping and Kim reaffirmed strategic cooperation and regular high-level communication.

Upcoming Events & IPO Calendar

• Goldman’s Asian Leaders Conference in Hong Kong (Sep 3-5)
• CoCreate 2025 Pitch Event in Las Vegas hosted by Alibaba (Sep 4-9)
• US August Labor Data (Sep 5), a critical read for global markets
• China August FX Reserves (Sep 7)

Conclusion: Navigating Opportunity Amid Volatility

The intersection of macroeconomic policy, rapid technological innovation, and evolving geopolitical dynamics continues to shape market opportunities for savvy investors. UOB Kay Hian Private Wealth Management maintains core recommendations on Meta, Microsoft, Broadcom, Amazon, Nvidia, and Alibaba, with tactical views on regional leaders such as CATL, Geely, and BRC Asia.
As global markets digest new data, policy shifts, and corporate strategies, investors should remain vigilant and nimble, leveraging diversified strategies to capture upside while managing risk in a dynamic environment.