U.S. markets opened higher with modest gains across major indices. The Dow Jones rose by 0.01%, the Nasdaq increased by 0.39%, and the S&P 500 added 0.20%. Notably, Chinese assets attracted significant attention, and the Nasdaq Golden Dragon China Index jumped over 1.5% at opening, with popular Chinese stocks rising strongly.
Kingsoft Cloud surged over 15%, XPeng Motors (XPEV, Financial) rose more than 5%, and Bilibili increased by over 6%. Other major Chinese companies such as ZTO Express, NIO (NIO), and Alibaba followed suit. The strong performance of Chinese stocks was supported by Pictet Asset Management upgrading both U.S. and Chinese equities to overweight and Goldman Sachs maintaining its positive outlook on the Chinese market, expecting potential returns of around 20% over the next 12 months for A and H shares.
Dongxing Securities highlighted that the A-share market has been maintaining good momentum with a noticeable rotation in hot topics, providing numerous market opportunities. UBS Securities' analyst Meng Lei suggests that the third quarter might represent a profit trough, anticipating a clear recovery in earnings in the first half of next year.
In the U.S., tech giants showed significant gains. Tesla (TSLA) was up over 3%, and NVIDIA (NVDA) rose more than 2%. Analysts at Shenwan Hongyuan indicate the need to watch how U.S. fundamentals evolve, noting that a re-entry of U.S. Treasury yields into restrictive territory may necessitate stronger earnings to support current high market valuations.
COMEX silver prices increased by nearly 1%, reflecting its financial asset pricing amid a new interest rate cut cycle. Wukuang Securities noted that while there might be room for the gold-silver ratio to rise in the short to medium term, the potential upside is limited due to its currently high historical level.
