UOB Kay Hian Private Wealth Management
Date of Report: September 11, 2025
Global Markets Surge Amid AI Breakthroughs, Tariff Shifts, and Key Earnings: A Full Investment Outlook

Market Overview: Indices, Commodities, and Currency Moves

Global equities advanced, led by the S&P 500’s record high, buoyed by cooling producer inflation and prospects of a rate cut. Technology and energy shares outperformed, with Oracle and Amazon making headlines for major industry moves. Meanwhile, Mexico’s tariff plans and regulatory changes in the US and EU set the stage for volatile sector shifts.

Precious Metals, Currencies, and Crude Oil

Major Company Developments and Investment Ideas

Oracle: AI-Driven Growth and Cloud Contracts

Oracle stunned markets with a 35.95% surge after unveiling multi-billion-dollar AI-related cloud contracts, including a \$300 billion deal with OpenAI. The company’s strategic involvement in SoftBank and OpenAI’s Stargate project presents significant future growth drivers. Oracle benefits from rising demand for scalable AI infrastructure and is strongly positioned in the tech sector.

Amazon & Meta: AR Glasses, Mobility, and Ad-Tech Expansion

Amazon accelerated its consumer and mobility initiatives, launching public robotaxi rides in Las Vegas—the first US deployment of a driverless vehicle. The rides are initially free, highlighting Amazon’s push into mobility. Additionally, Amazon targets a 2026/27 launch for consumer AR glasses, aiming to directly compete with Meta, which is set to reveal its next-generation AR glasses at Meta Connect. Both Amazon and Meta are core recommendations due to their innovation pace, competitive positioning, and diversification.

• Amazon (AMZN, -3.32%) – Robotaxi launch, AR glasses pipeline
• Meta (META, -1.79%) – AR glasses reveal, EU court win on supervisory fees

Energy Sector: Geopolitics and Core Recommendations

Energy shares (XLE, +1.75%) remained in strong demand, supported by a third consecutive day of crude oil gains. Geopolitical tensions, despite evidence of surplus supply, have driven oil prices higher. The XLE ETF is highlighted as a core recommendation for investors seeking robust sector exposure.

Alibaba & Meituan: AI-Powered Competition in China

Alibaba’s US-listed shares fell after announcing a \$3.17 billion zero-coupon convertible note offering due 2032, while Hong Kong-listed shares rose with the launch of “Street Stars”—an AI-powered local business ranking feature on Amap. This move intensifies competition with Meituan in instant retail, under regulatory scrutiny. Alibaba (9988.HK) is a core recommendation, with Meituan (3690.HK) listed as a trading buy.

Mexico: Tariff Shockwaves

Mexico is planning tariffs of up to 50% on vehicles and products from China and several Asian exporters ahead of trade talks with the US and Canada. The duties will affect auto parts, steel, and furniture, potentially disrupting supply chains and sector earnings.

Netflix & Amazon Ads: Ad-Tech Shakeup

Netflix and Amazon Ads announced a partnership that allows advertisers direct access to Netflix’s premium ad inventory via Amazon DSP. The integration spans major markets starting in Q4, impacting ad-tech competitors and opening new monetization channels for both giants.

Apple: Premium Pricing Strategy

Apple is acclimating customers to higher-priced iPhones, with the iPhone 17 Pro starting at \$1,099 and entry-level models at \$799—just \$100 higher than in 2017, despite inflation and steady tech upgrades. The company’s pricing strategy sustains margin strength and brand positioning.

Boeing: Labor Peace and Wage Uplift

Boeing ended a five-week strike in St. Louis with a tentative five-year contract offering a 24% wage increase and a \$4,000 ratification bonus. The deal supports near-term stability for Boeing’s defense segment.

JPMorgan, Fifth Third Bancorp & Barclays: Subprime Auto Lending Risks

Several banks braced for hundreds of millions in combined losses tied to subprime auto lender Tricolor Holdings. Fifth Third faces up to \$200 million in impairment charges due to alleged borrower fraud.

Pattern: US IPO Market Revival

E-commerce firm Pattern is aiming for a valuation up to \$2.6 billion in its US IPO, offering 21.4 million shares priced between \$13 and \$15, seeking as much as \$321 million. Investor appetite has rebounded after tariff-driven IPO market jitters earlier in the year.

Asia: Robust Growth, Sector Shifts, and IPO Calendar

TSMC: Leading the AI Chip Revolution

TSMC reported a stellar 34% year-on-year increase in August revenue to NT\$335.8 billion (US\$11.1 billion), fueled by booming demand for advanced AI chips. September-quarter sales are expected to rise another 25%, cementing TSMC as a global leader in AI infrastructure.

DiDi: Legal Settlement and Investor Relief

DiDi’s US ADRs rose after news of a class-action settlement regarding its 2021 IPO and alleged regulatory non-compliance. Both sides expect formal settlement approval in mid-October.

Nio: Capital Raise and Stock Decline

Nio’s shares plunged nearly 9% after a \$1 billion share offering at \$5.57 per ADS, representing over 8% of its market cap. The proceeds will fund increased EV production.

Summit Therapeutics & WuXi Biologics: Regulatory Pressure

Shares fell after reports of a draft Trump administration executive order to reduce reliance on China-linked medicines, boost US production, and tighten clinical trial data oversight.

China Pacific: Convertible Bond for Growth

China Pacific aims to raise up to HK\$15.6 billion (\$2 billion) via zero-coupon convertible bonds due September 2030, funding health care, elderly care, AI, and general corporate growth initiatives. Shares have climbed 28% year-to-date in Hong Kong.

Bank Negara Indonesia: Liquidity Strength and Earnings Outlook

Bank Negara Indonesia entered 2H25 with improved liquidity (LDR at 86.7%, CASA at 71%). Loan growth slowed to 6.3%, but 8–10% guidance is intact. Earnings face cost-of-funds pressure, but funding optimization and rate easing should drive recovery into 2026–27. The recommendation is maintained as BUY with a target price of Rp5,100.

Malaysia Telecommunications: Steady Earnings and Sector Picks

Telecom sector core earnings met expectations, except for Axiata and CelcomDigi. The quarter saw 2% qoq service revenue growth, strong enterprise pipeline, and resilient home fiber demand. Sector earnings trimmed by 6%; maintain MARKET WEIGHT. Top picks: CelcomDigi, TIME, and Axiata.

Pan-United Corporation: Market Leadership in Singapore

Pan-United, Singapore’s top ready-mix concrete supplier, benefits from low-carbon leadership, a solid project pipeline (including S\$430 million Changi T5 contract), and margin resilience. The company maintains a net cash position and offers a 3.8% 2026F yield. Recommendation is BUY, with a raised target price of S\$1.33 based on 17x 2026F PE.

Indorama Ventures: Tariff Tailwinds and Profit Growth

Indorama Ventures stands to gain US\$50 million in annual EBITDA from new US reciprocal tariffs on PET, effective September 8, 2025. Lower gas costs and higher volumes, plus Essel Propack’s contribution, boost expected net profit above Bt2.0 billion per quarter in 2H25. Further upside from land sales and asset monetization. Recommendation is BUY, with a target price of Bt27.00 (18x 2026F PE).

EMEA & Other Regions: Earnings, Restructuring, and Trade Dynamics

STOXX 600 & ECB Policy

The STOXX 600 dipped slightly, while the European Central Bank is expected to hold rates, with inflation on target and the possibility of future easing amid trade and political uncertainty.

Inditex: Fashion Giant Hits Profit Records

Inditex achieved record profits, with net profit rising 0.8% yoy to €2,791 million and sales up 1.6% to €18,357 million for the first half of FY2025-2026. Strong customer reception is noted for fall/winter collections.

Novo Nordisk: Restructuring to Compete Globally

Novo Nordisk announced a major restructuring, slashing 9,000 jobs to save 8 billion Danish crowns (\$1.25 billion) annually and fend off US competitor Eli Lilly. The company issued its third profit warning of the year, citing 9 billion crowns in one-off costs.

EU-US Trade Deal: Tariffs and Duty Adjustments

The EU secured a trade deal with the US, lowering duties while the US imposes a broad 15% tariff on EU goods. The deal awaits parliamentary approval and may impact cross-border industrial flows.

Upcoming Events and IPO Calendar

Hong Kong IPO Calendar

Investment Themes and Strategic Takeaways

• AI and cloud remain dominant growth drivers, benefiting Oracle, TSMC, Microsoft, and Alibaba.
• Mobility innovation, AR, and ad-tech integration position Amazon and Meta for further market leadership.
• Geopolitical risk is shaping energy, auto, and pharmaceutical sectors via tariffs and regulatory changes.
• Asia’s IPO pipeline and sector earnings offer tactical opportunities, with TSMC, Bank Negara Indonesia, and Pan-United highlighted.
• European corporates like Inditex and Novo Nordisk are navigating moderate growth and restructuring for competitive positioning.

Conclusion: Navigating a Dynamic Global Investment Landscape

With global indices at record highs, investors must track rapid shifts in AI, energy, consumer tech, and regulatory risk. UOB Kay Hian’s recommendations highlight diversified opportunities across regions and sectors, with a close eye on innovation, tariff regimes, and sector-specific catalysts. Stay tuned for key earnings and IPOs as volatility and opportunity intensify in the months ahead.