EQUITIES: Asian Equities Edge Higher, SK Equities Outperform

Asian equities rebounded today, with markets in Hong Kong, South Korea, and Australia gaining despite Wall Street's extended losing streak. The Hang Seng China Enterprises Index climbed 1.6%, supported by China's announcement of ultra-long treasury bonds to boost major projects, while South Korea's Kospi surged nearly 2%, led by chipmakers SK Hynix (+6.4%) and Samsung Electronics (+2.4%).

• The CSI 300 traded within a narrow range after a steep 2.9% decline on Thursday, marking its worst yearly start since 2016. Investor sentiment remains cautious despite regulatory support, with concerns lingering over weak domestic demand and external pressures. China's 10-year government bond yield fell below 1.6% for the first time ever, highlighting broader economic concerns.
• The Kospi surged 2.10%, led by chipmakers SK Hynix (+6%) and Samsung Electronics (+2.4%) as investors sought bargains. Battery stocks such as LG Energy Solution (+4%) and POSCO Future M (+7%) also rallied, while auto stocks traded mixed. The small-cap focused Kosdaq is outperforming today, up 2.50%.
• Australian equities advanced, in line with broader regional gains with key contributors to the rally being resource stocks buoyed by firm commodity prices, the ASX 200 is trading 0.65% higher. New Zealand returned from an extended break today, with the NZX 50 falling 0.60%.
• Overnight, US equities were lower partly due to weak Tesla earnings, weighed on global sentiment. However US equity futures have edged higher throughout the session with Nasdaq 100 futures trading 0.36% higher now.
• Meanwhile, the dollar softened after hitting a two-year high, and the yen gained slightly following three consecutive days of losses. Japan's markets remained closed for a holiday. Despite recent volatility, investors are cautiously rebalancing portfolios for the new year, though sentiment in Chinese markets remains fragile amid ongoing policy and economic uncertainties.