UOB Kay Hian Private Wealth Management
September 8, 2025

Global Markets Weekly: Key Stock Moves, Sector Insights, and Macro Trends Shaping Investment Strategies

Stay ahead of market shifts with an in-depth analysis of major indices, company performance, sector outlooks, and exclusive broker recommendations in this week’s comprehensive market recap.

Market Overview: Indices, Rates, and Commodities Snapshot

Global equity markets exhibited mixed performances last week, marked by volatility in US megacaps, shifting sector leadership, and continued macroeconomic uncertainty. Notable moves included a pullback in the S&P 500 from record highs, a strong rally in Japanese equities, and resilience in Hong Kong and China indices.

Bond yields fell sharply, with the US 10-year down 8.6bps to 4.076%. Gold and silver futures surged, continuing their robust year-to-date rallies. Energy prices softened, with Brent and WTI both down over 1.8% in the session. The dollar index dropped 0.54%, extending its YTD decline.

Macro Headlines: Geopolitics, Central Banks, and Economic Data

• The US and EU are preparing fresh sanctions and secondary tariffs to cut off Russian energy trade, aiming to pressure Moscow into peace talks. Tensions have also led the US to impose a 50% tariff on Indian goods over India’s Russian energy dealings. Former President Trump emphasized strong ties with India despite the tariffs.
• US payrolls data disappointed, with August jobs rising by only 22,000 and unemployment hitting 4.3%—the highest since 2021. June revisions showed the first job losses since 2020. The market now fully expects a 25bps Fed rate cut at the September FOMC meeting.
• Japan’s Nikkei 225 climbed 1.2% after Prime Minister Shigeru Ishiba announced his resignation following a second election loss, sparking renewed debate over policy direction.

Key Sector and Company Moves: Deep Dive and Analyst Views

Technology & AI: Megacaps, New Entrants, and Regulatory Risks

• Nvidia (NVDA) retreated 2.7% as investors digested news of the US “AI GAIN Act,” which could restrict global competition for advanced chips by imposing export license requirements. Nvidia remains a core recommendation.
• Broadcom (AVGO) soared 9.41% on robust fiscal 3Q and 4Q guidance, beating expectations across all metrics.
• Meta (META) advanced 0.51%. The company announced plans for its first permanent AI-focused retail store in London, showcasing VR/AR products. At a White House tech dinner, Meta and Apple highlighted \$600b each in US investments, while Alphabet and Microsoft committed \$250b and \$80b annually, respectively. Meta and Microsoft are core recommendations.
• Alphabet (GOOGL) rose 1.16% despite Google being hit with a \$3.45b EU antitrust fine over adtech practices. This is the fourth major EU penalty in a decade, drawing US criticism.
• Apple (AAPL) slipped 0.04%. The highly anticipated iPhone 17 Air, set for launch, is expected to be thinner and lighter but may see limited appeal due to shorter battery life, fewer cameras, and premium pricing. Apple’s annual sales in India hit a record \$9b, up 13% YoY, driven by iPhone demand and increased local presence.
• Robinhood (HOOD) and Applovin (APP) shares jumped after S&P Global announced both will join the S&P 500 index before September 22. Applovin is rated a Trading Buy.
• Tesla (TSLA) surged 3.64%, leading the M7 group. CEO Elon Musk’s compensation plan could reach \$1 trillion if Tesla’s market value grows nearly eightfold over the next decade.
• Qualcomm (QCOM) & BMW (BMW GR) revealed an automated driving system, the Snapdragon Ride Pilot, debuting on BMW’s iX3 EV. Qualcomm projects automotive chip revenues to reach \$8b by FY2029.

Consumer & Retail: Lululemon and Starbucks in Focus

• Lululemon (LULU) tumbled 18.58% after flagging a weak holiday season, citing lackluster demand and higher tariffs. The company cut 2025 sales and profit forecasts, noting a hit from the US ending the \$800 de minimis duty-free exemption.
• Starbucks (SBUX) was valued at up to \$5b by bidders for its China operations, making it one of the largest China unit divestments by a global consumer company in recent years. Starbucks invited around 10 potential buyers to submit non-binding bids.

Semiconductors and Hardware

• ASML is investing €1.3b in Mistral AI’s €1.7b Series C, becoming its top shareholder and securing a board seat. This values Mistral at €10b, making it Europe’s most valuable AI firm.

Automotive & EV: Europe and China Face Off

• BYD Group, Xpeng, and Leapmotor are unveiling new electric vehicles at the Munich Auto Show, directly challenging German giants BMW and Mercedes on their home turf.
• BMW’s CEO criticized the EU’s planned combustion engine phase-out by 2035 as a “big mistake” but reaffirmed BMW’s guidance for over 2.5 million units sold in 2025.
• Airbus reported a 3% YoY drop in deliveries for January-August (434 jets), aiming for 820 by year-end. The company won 600 gross orders (504 net after cancellations) so far this year.

Financials & Banks: Restructurings and Leadership Transitions

• HSBC’s new CEO Georges Elhedery has reorganized the bank into four divisions and cut hundreds of jobs. Shares are up 44% since his appointment, but analysts expect flat performance due to rising expenses and credit pressures. HSBC remains a core recommendation.

Energy & Resources: Oil, Gas, and Renewables

• Petronas (Malaysia): 1H25 results highlighted resilience challenges, with production issues in MLNG causing material LNG export volume losses and expectations for structural declines in Sarawak gas. Reset plans and ongoing maintenance continue. FPSO players like Yinson and MISC are favored.
• PTT (Thailand): A recent cabinet reshuffle is seen as positive for PTT, particularly regarding GSP cost restructuring and retail expertise. Shares are seen as a laggard with attractive dividend yield and an interim dividend of Bt0.75/share. Target price: Bt37.00.
• Orsted cut its 2025 profit outlook due to lower-than-normal wind speeds, sending shares down 1.3%.

Asia Strategies: Singapore, Malaysia, Thailand

• Singapore: Dividend equities yielding 4%-6% look compelling versus 10-year government bonds. The top 10 non-bank, non-REIT picks are BRC, BAL, CSSC, CIVMEC, CD, DFI, GENS, VALUE, VMS, and WKS. End-2025 STI target is 4,602, implying 8% upside.
• Malaysia (Oil & Gas): Market weight maintained. Ongoing issues for Petronas but FPSO players are attractive.
• Thailand: PTT benefits from positive cabinet changes and ongoing sector reforms.

Greater China: Reserves, Batteries, and Solar Rally

• China’s central bank extended bullion purchases for a tenth consecutive month in August, with reserves rising to 74.02m oz (valued at \$253.84b).
• CATL: Hungarian battery production expected by early 2026, with a €7.3b investment. CATL’s EV battery market share grew to 38% in 2024 (from 36% YoY).
• Solar stocks surged after GCL Technology, Trina Solar, and Tongwei reported that industry headwinds may be abating.

IPO Calendar: Hong Kong Listings

Must-Watch Events: Upcoming Catalysts

• 14th NPCSC: 17th Session (Sep 8-12)
• French Confidence Vote, China Aug Exports, US Aug Used Car Prices (Sep 8)
• Taiwan Aug Exports, US Non-Farm Payrolls Annual Revision, Apple Product Launch, Oracle Earnings (Sep 9)
• SEMICON Taiwan (Sep 10-12)
• Supreme Court decision on Trump’s semiconductor tariffs, China Aug CPI/PPI, US Aug PPI, TSMC Monthly Sales (Sep 10)
• ECB Rate Decision, US Aug CPI, US Initial Jobless Claims, Piper Sandler’s Growth Frontiers Conference (Walmart), Adobe Earnings (Sep 11)

Conclusion: Broker’s Core Picks and Market Themes

UOB Kay Hian’s top equity recommendations include Nvidia, Broadcom, Meta, Microsoft, Apple, Robinhood, Applovin, and HSBC. Sector rotation and macro risks continue to drive market volatility, but select dividend and technology stocks offer attractive long-term value. Investors should monitor upcoming economic data, policy decisions, and sector catalysts closely.

Stay tuned for more updates and actionable insights in the next edition of Wealth Daily.