UOB Kay Hian Private Wealth Management
Date of Report: August 27, 2025

Global Markets Surge Amid Tariff Tensions, AI Expansion, and Key Earnings: In-Depth Analysis of Latest Financial Moves

Must-Know Market News: Macro Overview

Global financial markets displayed resilience despite renewed tariff threats and political maneuvers in the US. President Trump’s push to oust a Federal Reserve Governor and introduce “substantial” new tariffs saw US Treasury yields decline and Wall Street indices edge higher. Moves to undermine Fed independence typically dent confidence, yet the S&P 500 gained 0.41%. Hedge funds are shorting the VIX at levels not seen in three years, betting on continued market calm.

Major Indices & Macro Data

Bond Yields, Commodities, and Currencies

US Policy & Trade: Tariff Escalations, Fed Moves, and Diplomatic Updates

• Trump threatened 200% tariffs on Chinese rare earth magnets and further restrictions on chip exports for countries with digital taxes. Positive news emerged with China’s trade envoy Li Chenggang set to visit Washington.
• US enforced steep new tariffs on Indian-origin goods, hiking duties up to 50% on Russian oil purchases. Indian exporters expect a 20-30% fall in shipments to the US, hitting textiles, leather, and gems.
• Commerce Secretary Lutnick hinted at possible US government stakes in defense firms, referencing the near 10% investment in Intel and Lockheed Martin as a “government arm.”
• Trump’s administration is weighing sanctions on EU officials enforcing the Digital Services Act, including possible visa bans.

IPO Calendar: Hong Kong Highlights

Upcoming Must-Watch Events

• VMware Explore (Aug 25-28)
• Deutsche Bank Tech Conference in California (Aug 27-28) featuring MSFT & NVDA
• Key earnings: Nvidia, Snowflake, Trip.com, Innovent, Meituan, Anta, Shenzhou, China Life Insurance, China Overseas Land, CGN, NARI, Wuliangye Yibin, China National Nuclear Power, Shaanxi Coal
• Aug 28-29: Bitcoin Asia Conf HK
• Aug 29: End of “de minimis” duty exemption on low-value packages, China’s Top 100 Developer Real Estate Sales, Macau hotel occupancy, US Jul PCE & Personal Income/Spending, major earnings (Alibaba, CCB, ICBC, Agricultural Bank, BYD, Midea, Longfor, Shenhua, Cosco Shipping, GWM, China State Construction, Yangtze Power, Cambricon, Beijing-Shanghai HSR, Shanxi Xinghuacun)

Americas: Corporate Moves, Tech Expansion, and Healthcare Breakthroughs

Nvidia (NVDA)

• Fiscal 2Q revenue projected to surge 53% YoY to \$46bn, driven by robust AI chip demand.
• 3Q guidance at \$53bn (+51% YoY), with China contributing ~\$6bn and growing 12-15%.
• NVDA is a core recommendation, integrating Blackwell GPUs, ConnectX-7 NICs, and BlueField-3 DPUs within VMware Cloud Foundation for private cloud AI.

Trip.com (TCOM, 9961.HK)

• 2Q revenue expected to grow over 14% YoY, driven by strong travel demand, AI integration, and post-MakeMyTrip buyback potential.
• TCOM is a core recommendation.

Trump Media & Crypto.com

• Trump Media (DJT US, +5.23%) and Crypto.com to launch a \$1bn+ crypto treasury via SPAC merger with Yorkville Acquisition, accumulating CRO tokens and listing as MCGA on Nasdaq.

Apple (AAPL)

• Fall event set for September 9, launching new iPhones, Apple Watches, iPad Pros, and upgraded Vision Pro headset.
• Plans \$600bn US investment over four years to localize production and minimize China/India tariff exposure.
• Exploring acquisition of AI startups Mistral and Perplexity to boost AI capabilities.

Broadcom (AVGO) & VMware

• Advancing VMware Cloud Foundation as a top platform for private cloud AI, integrating Nvidia hardware for high-speed AI training.
• Launched Tanzu Data Intelligence, expanding open-source and cybersecurity offerings. Broadcom & Nvidia are core recommendations.

Meta Platforms (META)

• \$50bn Louisiana “Hyperion” data centre highlighted for its scale and self-supplied power infrastructure.
• Meta to launch California-focused super PAC for AI-friendly policy candidates, spending tens of millions ahead of 2026 governor race. Core recommendation.

Google (GOOGL)

• Unveiled AI-powered live translation and language learning in Google Translate, supporting 70+ languages. Initial beta for English, Spanish, French, Portuguese.

AMD (AMD) and IBM

• Announced partnership to co-develop quantum-centric supercomputing architectures, combining quantum and high-performance computing.

Snowflake (SNOW)

• Product revenue set to exceed estimates, driven by stable partner trends and demand for Cortex and data engineering products. Billings expected to rise 33% YoY (from 23% last year). Trading buy recommendation.

AT&T (T) & EchoStar (SATS)

• AT&T to acquire EchoStar’s wireless spectrum licenses for \$23bn, covering 400+ US markets. Deal accelerates 5G and fibre rollout, resolves FCC compliance queries.

Eli Lilly (LLY)

• Experimental GLP-1 pill orforglipron enabled type 2 diabetes patients to lose 10.5% body weight; 75% of high-dose recipients lowered A1C below 6.5%. Supports US marketing and potential launch next year.

UnitedHealth (UNH)

• DOJ criminal investigation expands to Optum Rx and physician payments, beyond Medicare fraud. Firm maintains confidence in its practices.

Exxon (XOM)

• Held talks with Russia’s Rosneft about Sakhalin-1 oil project under US Treasury license, seeking return to project exited post-Ukraine invasion.

Boeing (BA)

• FAA to conduct scenario-based “tabletop” exercises before lifting current 38-plane/month cap on 737 MAX production, aiming for completion by end-September.

Klarna

• Swedish fintech restarting US IPO next month, targeting \$13-14bn valuation. To raise close to \$1bn, down from \$50bn goal in 2021 and over \$15bn earlier this year.

Greater China: Strategic Summits, Tech Advancements, and Earnings Insights

Shanghai Cooperation Organisation Summit

• Xi hosts summit in Tianjin August 31–September 1, with over 20 leaders attending. Modi to visit China for border talks; Putin to attend WW2 parade in Beijing.

China AI & Robotics Push

• State Council guidelines to boost intelligent vehicles, robots, AI phones/computers, and AI chip support. NDRC to coordinate measures, promote AI legislation, and ensure job creation.

Alibaba (9988.HK, BABA US)

• Upgraded video generation model Tongyi Wanxiang Wan2.2-S2V, enabling movie-quality digital human videos from a single image and audio. Targeting competition with Google and Kuaishou. Core recommendation.

HSBC (0005.HK, HSBA LN)

• Fined HK\$4.2m (\$538,000) for failing to disclose investment banking ties in 4,200+ research reports from 2013–2021. Described as “historic matter,” systems since remediated. Core recommendation.

China Tourism Group (601888 CH)

• DCF-based target price raised 6% to Rmb75.30; current valuation deemed fair.

PetroChina (0857.HK)

• Proposed acquisition of three gas storage facilities from parent CNPC for RMB40.02bn (\$5.59bn), adding 10.97bn cubic metres capacity to boost efficiency and expand natural gas chain.

Ping An Insurance (2318.HK, 000001 CH)

• 1H net profit of RMB68.05bn, down 8.8% YoY, impacted by 30.2% fall in investment income and 3.9% slip in Ping An Bank profit to RMB24.87bn.

Zijin Mining (2899.HK)

• 1H25 attributable net profit: RMB23,291.8m, up 54.4% YoY, achieving 54% of full-year guidance.
• Gross margin: 23.8%; mining margin: 60.2%, driven by gold segment.

Prudential (PRU LN) & AIA (1299.HK)

• Prudential’s 1H new business profit rose 12% YoY to \$1.26bn, interim dividend up 13%. Diversifying into Asian markets amid China regulatory pressure. AIA shares declined 1.54%.

Shengjing Bank

• Received HK\$11.61bn (\$1.49bn) go-private offer from top shareholder, at HK\$1.32/share (15.8% premium to pre-suspension close, but 86.5% discount to end-2024 NAV).

Solar Makers: Jinko Solar, Trina Solar, Tongwei

• Jinko Solar (601778 CH): 1H25 loss RMB2.6bn vs RMB87m profit a year earlier.
• Trina Solar (688599 CH): 1H25 loss RMB2.9bn.
• Tongwei (600438 CH): 1H25 loss RMB5bn vs RMB3.1bn profit a year ago.

South Korea Tourism

• Visa-free Chinese group tours allowed from late September to June 2026. China-Korea flight capacity now at 105% of pre-pandemic levels, but low fares weigh on Chinese carriers’ profits.

Nongfu Spring (9633.HK)

• 1H profit rose 22% YoY to RMB7.6bn (\$1.1bn), highest since 2019, with revenue up 16% YoY to RMB25.6bn.
• Bottled water sales up 11% YoY to RMB9.4bn; shares up 38% YTD.

Cambricon (688256 CH)

• 1H net income RMB1.04bn, reversing RMB530.1m loss in 1H24; revenue surged to RMB2.88bn from RMB64.8m. EPS rose to RMB2.48 from a RMB1.27 loss.

Hesai Group (HSAI US)

• Received CSRC approval to issue and list up to 51.2m ordinary shares on HKEX, targeting \$300m raise for Hong Kong debut.

Asia ex. China: Legal Battles, Earnings, and Expansion Plans

Keppel (KEP SP) & Seatrium (STM SP)

• Keppel filed S\$68.4m (\$53m) arbitration claim against Seatrium over Brazil’s Operation Car Wash. Seatrium contests, stating payment obligation expired in February.

Malayan Banking (MAY MK)

• 2Q25 earnings supported by robust trading income; net profit in line, driven by strong non-interest income and cost discipline. HOLD maintained, target price RM10.52; valuation fair at 1.18x 2026F P/B, 10.5% ROE, 7% dividend yield.

Suzuki Motor (7269 JP)

• To invest INR700bn (\$8bn) in India over 5-6 years, expanding Maruti’s Gujarat plant to 1m-unit capacity and beginning EV exports to 100 countries.

EMEA & Other Markets: Regulatory Moves and Strategic Deals

Ryanair (RYA ID) & Booking Holdings (BKNG US)

• Deal allows Booking.com, KAYAK, Priceline, Agoda to resell Ryanair tickets, ending years of litigation. Ensures price transparency, direct updates, and closes all disputes.

EssilorLuxottica (EL FP) & Nikon (7731 JP)

• EssilorLuxottica considering raising Nikon stake to about 20% from 9%; talks ongoing with Japan’s government over sensitive technology. Nikon shares down 11% YTD, valued at \$3.3bn.

Disclaimers & Distribution

This report is prepared by UOB Kay Hian (Hong Kong) Limited for general circulation and does not constitute investment advice. Distribution is restricted by jurisdiction, including Hong Kong, Singapore, Indonesia, Malaysia, Thailand, UK, and the US.