Morning Wrap (28.01.2025)

13:32 28 มกราคม 2025
  • Asian stocks traded lower Tuesday, with Japan's Nikkei 225 falling 1.5% as chipmakers slumped on concerns over China's DeepSeek AI model. Chinese and South Korean markets remained closed for Lunar New Year, while Hong Kong edged up 0.3% in shortened trading.

  • DeepSeek R1 AI model sparked a global tech selloff after demonstrating ChatGPT-level performance using older hardware and lower costs. Nvidia saw its biggest-ever single-day loss, wiping out nearly $600 billion in market value. OpenAI's Sam Altman called the model "impressive" but maintained that more computing power remains crucial.

  • Japanese chipmaking stocks led losses with Advantest plunging 10%, while Tokyo Electron and Renesas fell 2-4%. SoftBank Group dropped 4.7%. Hong Kong-listed Chinese tech firms bucked the trend, rising 1-5% on optimism over domestic AI capabilities.

  • Thailand's car production fell 17.37% year-over-year in December to 104,878 units, marking the 17th consecutive month of contraction amid weak domestic sales and exports.

  • Trump administration prepares aggressive trade measures, with plans to impose up to 100% tariffs on foreign-made computer chips, particularly targeting Taiwan's TSMC. Additional tariffs planned on pharmaceuticals and steel to encourage domestic production. Canadian imports face potential Feb 1 deadline.

  • Dollar strengthened against major currencies on tariff concerns, with EUR/USD down 0.54% to 1.0441. USD/JPY rose 0.84% to 155.57. Markets await Federal Reserve meeting conclusion Wednesday and ECB decision later this week, with ECB expected to cut rates.

  • Oil prices stabilized with Brent at $76,54 and WTI at $73.51 after steep losses last week. Trump's national energy emergency declaration and calls for increased OPEC production weighed on sentiment, while Chinese economic concerns and DeepSeek's efficiency claims raised demand questions.

  • SAP raised its 2025 outlook, forecasting operating profit of €10.3-10.6 billion on accelerating cloud revenue growth. The company expects 26-28% cloud revenue growth to €21.6-21.9 billion, supported by strong ERP and RISE adoption.

  • Bank of Japan board nominee Junko Koeda, a Waseda University professor specializing in macroeconomics, previously supported the BOJ's exit from negative rates. 

  • Arizona advances bill allowing state investment in Bitcoin and establishing potential strategic crypto reserve. Bitcoin gains 1.3% to $102,820 with Ethereum up 1.15% to $3200.

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