News

According to Iran's Labor News Agency (ILNA), Israeli media reports that senior officials in Tel Aviv and Washington are pressuring US President Trump to launch a new round of attacks on Iran, as the US Secretary of State acknowledges that diplomatic efforts to end the war with Iran have made little progress. A decision could be made within the next two months.

According to a breaking news report from Insider Wire, Republican Senator Dave McCormick opposes John Thune's re-election as Senate Republican Leader. Thune has previously stated that he will seek re-election as party leader even if the Republican Party loses control of the Senate in the midterm elections. Republican senators are scheduled to hold a closed-door vote on November 10 to elect the next caucus leader. If McCormick's opposition is confirmed, it will add new obstacles to Thune's re-election bid.

South Korea's Finance Minister stated that the $10 billion remittance to the US nuclear power project will only proceed after the commercial feasibility review is fully completed. The remittance to the US for the nuclear project is still in its preliminary stages and will be carefully reviewed.

Semiconductor stock valuations have declined significantly, but low price-to-earnings ratios do not necessarily mean cheap. The combined profits of the world's top ten semiconductor companies rose from approximately $75 billion in 2023 to $169 billion in 2024, and are projected to reach $289 billion in 2025, representing a year-on-year increase of approximately 71%, nearly 2.9 times the original amount in two years. Meanwhile, Yardeni data shows that as of November 6th, the forward price-to-earnings ratio of the S&P 500 semiconductor sector index fell to 13.1 times, lower than the S&P 500 index's 18.7 times. The semiconductor industry exhibits a clear cyclical pattern; historically, profit peaks in 2000, 2018, and 2021 were followed by declines. When profits are at a cyclical high, the price-to-earnings ratio appears cheap due to the inflated profit denominator; once profits return to normal, the current low valuation may quickly disappear.

According to platform quotes, Nvidia perpetual futures prices have fallen by about 3%.

The underlying reason for the recent sell-off in US stocks is market concerns that AI capital expenditure growth may have peaked. Amazon, Google, Meta, Microsoft, and Oracle are expected to slow their capital expenditure growth over the next two years, with the 2028 growth forecast dropping from 18% to 9% in the past two months. AI investment, which had accelerated for several years, is now facing uncertainty about a growth inflection point. This change may spread along the industry chain: reduced new investments by cloud vendors will directly impact the revenue and profit expectations of chip suppliers like Nvidia, as well as data center construction and power equipment companies. Meanwhile, except for Microsoft, the cash flow of other major cloud vendors has been squeezed by AI construction spending, and some companies have begun to raise funds through stock and bond issuances. Rising US interest rates and stricter data center approvals after the midterm elections have further increased investment uncertainty. Goldman Sachs estimates that potential state and local construction halts could affect 45% of planned data center capacity in the US.

The yield on Japan's 5-year government bond rose 7.0 basis points to 2.115%.

The Hong Kong-listed robotics sector led the gains, with Kailuoshi Technology (02729.HK) surging over 49%, Yunji (02670.HK) rising over 15%, and UBTECH (09880.HK) climbing over 12%.

Apple futures contracts fell more than 2.00% intraday, currently trading at 5847.00 yuan/ton.

South Korea's Minister of Trade, Industry and Energy stated that the current issues affecting Nvidia will not impact South Korea's existing GPU supply contracts with the company.

The Hang Seng Index (HSI) opened 143.85 points higher, or 0.59%, at 24,625.71 on Monday, November 9th; the Hang Seng Tech Index opened 41.75 points higher, or 1.02%, at 4,119.98 on Monday, November 9th; the Hang Seng China Enterprises Index opened 51.43 points higher, or 0.62%, at 8,325.53 on Monday, November 9th; and the Hang Seng Red Chip Index opened 5.05 points higher, or 0.13%, at 4,025.1 on Monday, November 9th.

Hong Kong stocks opened higher, with the Hang Seng Index up 0.59% and the Hang Seng Tech Index up 1.02%. Automotive stocks generally rose, with NIO-SW (09866.HK) up over 5%, and Li Auto (02015.HK) and XPeng Group (09868.HK) up over 2%.

Berkshire Hathaway has appointed Mizuho Bank and Bank of America Securities to handle the issuance of its yen-denominated unsecured senior bonds.

The yield on Japan's 30-year government bonds rose 4.0 basis points to 3.865%.

The NI225 index touched 59,000 points, up 2.74% on the day.

Nvidia (NVDA.O) shares fell more than 3% in overnight trading after Jensen Huang admitted to having an extramarital affair and apologized, prompting the Nvidia board to launch an investigation.

The yield on Japan's 5-year government bonds rose 6.5 basis points to 2.110%.

NI225 rose by 2.00% within the day.

US President Trump plans to continue to actively use his pardon power before leaving office.

US President Trump said he would "most likely" support his successor, but "not necessarily".