Vietnam outperformed Japanese stocks and the S&P Biotech Index in chip stocks. | Overseas Major Asset Weekly Report

During the week of February 23 to March 1, influenced by the news of OPEC+ considering extending production cuts, crude oil led the global asset classes. The Vietnamese stock market stood out globally, while the Japanese stock market continued to hit new highs, reaching the 40,000-point mark.

This week, stock indices in Europe, America, and Japan all hit historical highs at one point. In particular, the three major U.S. stock indices rose for four consecutive months, with SPDR S&P 500 and the Dow posting the largest year-to-date gains since 2019; European stocks showed mixed trends, with the German stock market hitting historical highs for four consecutive months.

In other commodities, gold continued to rise, silver rebounded slightly, and iron ore led the decline in global asset classes.

In related cross-border ETF/LOF funds in China, SPDR S&P 500 Biotech LOF, Global Semiconductor LOF, and Nikkei ETF performed well; while Southeast Asia Tech ETF, Harvest Crude Oil LOF, and India Fund LOF lagged behind.

On the stock market front:

• Supported by the biotech and semiconductor sectors, the U.S. stock market hit new historical highs during the week. Despite subsequent fluctuations, SPDR S&P 500 and Nasdaq rebounded and maintained historical highs. Coupled with the heavyweight PCE growth not exceeding expectations, SPDR S&P 500 achieved its best start to the year in five years. This week, SPDR S&P 500 rose by 0.9%, the Dow fell by 0.1%, Nasdaq rose by 1.7%, Nasdaq 100 rose by 1.66%, and the Russell 2000 rose by 3%.
• With expectations of easing rising, the Nikkei 225 index broke through the historical high of the "bubble period" last week and continued to hit new highs this week, reaching the 40,000-point mark. Year-to-date, the Nikkei 225 index has risen by nearly 20%, and the Japanese TOPIX index has risen by nearly 14%. Additionally, this week, the Ho Chi Minh Index in Vietnam rose by 3.8%, and the India SENSEX30 Index rose by 0.8%.
• Although the Eurozone manufacturing PMI contracted for the 20th consecutive month in February, the rate of decline was the lowest in nearly a year, indicating a slowdown in the contraction of manufacturing activity in the Eurozone. Therefore, with the uptrend on Friday, the STOXX 600 slightly rose for the sixth consecutive week. Stock indices in various countries performed differently, with the German stock market rising by nearly 2% for four consecutive weeks, the Italian stock market rising by less than 1% for six consecutive weeks, while the French stock market, which rose for three consecutive weeks, and the Spanish stock market, which rebounded last week, both fell back. The British stock market, which had a slight decline last week, fell for two consecutive weeks.

On the bond market front:

• The economic data released on Friday, including the February ISM Manufacturing Index, strengthened expectations of a Fed rate cut, coupled with comments from the Fed's "most hawkish member" Waller, causing U.S. bond yields to decline. Due to the yield plunge on Friday, the two-year U.S. bond yield halted its month-long upward trend, marking the first weekly decline since the end of January.
• This week, overall European bond yields have risen, with the 10-year UK bond yield increasing by about 8 basis points, and the German bond yield rising by about 5 basis points, both rebounding after two consecutive weeks of gains at the end of last week.

Commodities

• Influenced by news of OPEC+ considering extending production cuts, US oil prices surged to $80, hitting a four-month high, but later retreated. This week, US oil prices rose by about 3.2%, Brent crude rose by about 3.4%, both rebounding after falling last week, marking the fifth consecutive week of gains in the past seven weeks, with only a decline last week in February. Since the outbreak of the Israel-Palestine conflict, crude oil has fallen for a total of 11 weeks in the past 21 weeks.
• Gold has risen for two consecutive weeks, closing the week with a 2.2% increase; iron ore continues to lead the decline in global major asset classes; London copper paused its two-week rise to close with a 0.7% decline.

Exchange Rates

• The US dollar index has slightly declined this week, failing to rebound after ending a seven-week streak of gains last week.