UOB Kay Hian Private Wealth Management
Date of Report: September 12, 2025

Global Markets Surge as AI, Rate Cut Bets, and Tech IPOs Dominate Investor Focus

UOB Kay Hian’s latest Private Wealth Management report delivers a comprehensive outlook on global equity, bond, and commodity markets as of September 12, 2025. From AI-driven rallies in the U.S. to record-breaking inflows in Hong Kong ETFs, and critical IPOs in both the West and East, this detailed analysis covers every notable movement, company update, and macroeconomic event shaping investor sentiment.

Wall Street Rallies on AI Momentum and Rate Cut Optimism

Markets soared on Thursday, with the S&P 500 climbing 0.85% to fresh highs, powered by AI leaders and mounting speculation over a potential Fed rate cut in the coming week. Tesla led the charge with a 6.04% surge, while Micron and Oracle saw significant moves amid the AI-fueled buying frenzy.

Federal Reserve Rate Cut Expectations Intensify

• Weekly jobless claims reached their highest level since 2021.
• Core CPI was in line at 0.3% MoM and 3.1% YoY, solidifying expectations for a Fed rate cut at the September 16-17 FOMC meeting.
• Markets have priced in a 25bps rate cut, with a 6.1% probability assigned to a 50bps cut.

Key Economic & Market Events This Week

• NPCSC 17th Session (Sep 8-12)
• SEMICON Taiwan (Sep 10-12)
• China August Vehicle Sales, Money Supply, Loans (Sep 12)
• China August Property, Retail, FDI, Unemployment (Sep 15)
• FOMC Rate Decision (Sep 16-17)

Tech Titans: AI Reshapes Market Leadership

Microsoft (MSFT)

• Microsoft shares gained 0.13%.
• Announced a preliminary agreement to restructure OpenAI into a public benefit corporation, with the existing nonprofit retaining control and a \$100b+ stake.
• MSFT plans to expand its computing infrastructure to train proprietary AI models.
• MSFT remains a core recommendation.

OpenAI

• Transitioning to a public benefit corporation with Microsoft partnership.
• MSFT to support expansion and in-house AI model training.

Micron (MU)

• Shares soared 7.55%, the largest gain in four months.
• Growth driven by AI demand in data centers, as highlighted by recent analyst reports.

Tesla (TSLA)

• Jumped 6.04% as part of the broader AI and tech rally.

Nvidia (NVDA)

• Core recommendation for the portfolio.
• CEO Jensen Huang to join President Trump’s UK state visit on September 17-18, alongside OpenAI’s Sam Altman.

Meta Platforms (META)

• Minor dip of 0.14%.
• FTC has ordered Meta’s Instagram, along with Google, OpenAI, Character.AI, Snap, and xAI, to disclose information on how their AI tools impact children.
• META remains a core recommendation.

Alphabet (GOOGL)

• Shares up 0.5%.
• Facing FTC inquiry into AI’s impact on children.

Alibaba (BABA, 9988.HK) & Baidu (BIDU, 9888.HK)

• BABA shares surged 8.0% (US) and 0.35% (HK); BIDU gained 3.92% (US), though fell 2.38% (HK).
• Both companies are using internally designed chips to train AI, partly replacing Nvidia hardware.
• BABA raised \$3.2b via convertible notes, the largest Chinese tech offering in 2025, supporting data center and international expansion.
• 9988.HK and NVDA are core recommendations.

Major Global Company Developments

Oracle (ORCL)

• Shares dropped 6.23% after a record 35.9% rally and nearing a \$1 trillion valuation.
• Pullback follows strong AI/cloud demand, a \$300b OpenAI deal, and a backlog approaching \$500b.

Adobe (ADBE)

• Shares rose 0.11% (2.6% after-market) after raising annual revenue/profit forecasts.
• Launched Firefly, an AI tool for generating videos and images from text.

FedEx (FDX)

• Shares up 5.11% ahead of 1QFY26 earnings (Sep 18, after-market).
• Earnings’ implied move is 8.0%.

Uber (UBER)

• Shares up 0.5% despite a U.S. Justice Department lawsuit alleging discrimination against people with physical disabilities.
• Uber maintains a zero-tolerance policy for violations.

Starbucks (SBUX)

• Shares fell 0.63% as its China operations attract final bids for a controlling stake from Carlyle, EQT, and HongShan.
• Binding bids due early October; deal expected by month-end, with Starbucks retaining a meaningful stake.

Boeing (BA)

• Shares fell 3.31%.
• 777-9 certification is behind schedule; first 777X delivery now expected in 2026, six years later than first planned.

AbbVie (ABBV)

• Shares up 4.05%, hitting a record high.
• Rinvoq immunology drug set for exclusivity until 2037, offsetting Humira sales decline.
• Rinvoq generated \$5.97b, over 10% of 2024 revenue.

Gemini (Crypto Exchange)

• Priced IPO above range, raising \$425m at \$28/share (vs. \$24-26 range).
• Valuation: \$3.33b; trading commences on Nasdaq under ticker GEMI.

Greater China: Capital Markets, Trade, and EVs in Spotlight

• US Treasury Secretary Scott Bessent and China Vice Premier He Lifeng to meet in Madrid on trade, TikTok, and anti-money laundering.
• Pop Mart’s mini Labubu prices fell 24% from peak, signaling waning speculative demand for Asian designer toys.
• Hong Kong stock ETFs saw record \$26b inflows YTD, driven by AI and retail interest.
• Global sales of fully electric and plug-in hybrid vehicles rose 15% YoY in August, with China’s EV growth slowing to 6%.
• China Evergrande’s liquidators received bids from state-owned companies for its property services arm; trading resumed after a halt.
• The yuan hit a 10-month high at 7.1160/USD as Chinese equities rallied.
• China prepares to address over \$1 trillion in unpaid local government arrears, with policy banks likely to lend to local authorities.

Asia ex-China: REITs, Property, and Regional Highlights

Singapore: US Office REITs Rebound

• Renewed M&A and CMBS issuance signal confidence in US office REITs.
• Office demand seen recovering in 2H25, aided by easing trade tensions and positive work-from-office trends.
• Buy PRIME (Target: US\$0.31) on leasing momentum; Hold KORE (Target: US\$0.26) for yields of 4.1% (2026) and 6.5% (2027).
• Maintain OVERWEIGHT sector rating.

Malaysia: Industrial and Johor Property Drive Growth

• 2Q25 property sector earnings broadly in line, with sector transaction value up 14% YoY and volume up 4% YoY.
• Overhang rose 19% YoY, mainly due to simultaneous project completions.
• Maintain OVERWEIGHT on property sector, buoyed by FDI inflows and strong industrial land/housing demand.
• Top picks: Sunway, Eco World, Mah Sing.

Indonesia: United Tractors (UNTR IJ)

• Shares rose 0.66% (up 23% in past three months), already reflecting expected 2H25 earnings rebound.
• Maintain HOLD; SOTP-based target price raised to Rp28,000 (from Rp26,000).

EMEA & Other International Markets

• European shares edged up, with the STOXX 600 rising 0.55% ahead of ECB policy and US inflation reports.
• Luxury sector led by Kering (+2.42%), which postponed its full acquisition of Valentino, easing debt pressure.
• Germany’s VDA and IG Metall called for EU to reconsider the 2035 ban on CO2 vehicles due to slow EV ramp-up and infrastructure issues.
• Novo Nordisk required all staff to return to office full-time to speed decisions and execution in obesity drug competition.
• SMG is preparing for an IPO around September 19, targeting up to \$5.6b valuation, with Pictet and BlackRock pre-committing CHF150m each.

Hong Kong IPO Calendar

Precious Metals, Currency, and Energy Markets

Government Bond Yields Snapshot

Conclusion: Market Outlook Remains Bullish, AI and IPOs Lead the Charge

Global markets remain buoyant amid AI-driven demand, robust IPO pipelines, and expectations of monetary easing. Investors are advised to monitor upcoming FOMC decisions, sector rotation trends, and IPO opportunities, especially in technology and healthcare. UOB Kay Hian continues to recommend leading AI and tech stocks while maintaining an overweight stance on select REITs and property plays in Asia.