Same Asia, Same AI Rally. But Different Market Stories!

Quite an interesting day in Asian markets!

South Korea surged 3.8%, Japan gained nearly 2%. But Singapore? Well, the STI went the other way. 😅

So what's going on?

As I shared with Lianhe Zaobao, it really comes down to what drives each market.

South Korea and Japan have strong exposure to semiconductors. So when AI stocks rally on Wall Street, these markets naturally get a boost.

But Singapore is a different story.

Our $STI(STI.SI) is dominated by the three local banks. And for banks, it's more about interest rates, bond yields and earnings. So even when AI stocks are flying elsewhere, our market may not follow.

Looking ahead, I'll be watching US Big Tech earnings and the Fed's interest rate decision.

AI excitement is one thing. But are companies making enough money to justify all that spending? That's the bigger question!

Same global headlines, but different market reactions. And that's what makes the stock market interesting, isn't it? 😄

Thanks to Lewis Ong (王阳发), Senior Business News Correspondent at Lianhe Zaobao (联合早报), for reaching out and giving me the opportunity to share my thoughts!

https://www.zaobao.com.sg/finance/singapore/story20261027-9903120

𝐌𝐚𝐫𝐤𝐞t 𝐔𝐩𝐝𝐚𝐭𝐞 *28/10/26*

.

STI: 5397 (-18) | HSI: 23041 (-170) | Dow: 52,378 (+16) | S&P: 7,723 (+46) | Nasdaq: 26,478 (+308)

.

*US Markets Overnight*

.

*AI Is Back, But Who’s Paying?*

.

Looks like investors are getting excited about AI again. But what’s interesting is that the Nasdaq jumped more than 1%, while the Dow hardly moved. So the market is going up, but not everyone is joining the party. 😅

The Nasdaq gained 1.2%, S&P 500 rose 0.6%, while the Dow was almost flat. And once again, it was AI and semiconductor stocks doing most of the lifting. *Broadcom* rose after helping *Anthropic* arrange a massive US$63 billion financing deal to purchase more of its AI chips. That’s a lot of money! Meanwhile, *Nvidia* gained nearly 1% after announcing plans to invest US$3 billion in *Meta*, which will also be buying more of Nvidia’s AI infrastructure.

.

Now, here’s what I find interesting. These deals show that demand for AI infrastructure is still strong. But they also raise questions about how all this spending is being financed.

When chip suppliers are helping their customers fund purchases, investors need to look a little more carefully at where the money is coming from. The demand may be real, but financing and cash flow matter too.

.

Elsewhere, Tesla gained 4%, extending Monday’s rally. But Meta slipped 1.5%, as investors continued to digest its US$95 billion fundraising plans. On the earnings front, JetBlue surged 19%, SoFi jumped 13%, UPS gained 6% and Royal Caribbean rose 6.5%. But *Boeing* plunged nearly 11%, after investors were disappointed with its slower-than-expected plans to ramp up 737 Max production. That was one big reason the Dow struggled.

.

Oil gave investors some relief. WTI fell 1.9% to below US$100, while Brent slipped 1.7% to below US$114. The 10-year Treasury yield was little changed at around 4.99%.

.

For now, chips are back in favour. But I think investors should still keep one eye on the balance sheet, not just the AI headlines. 😅😅

.

*What’s Brewing Today*

.

*Can S$5.6 Billion Defend the $10 Fortress?*

.

Definitely a welcome news for *ST Engineering ( $ST Engineering(S63.SI))*. Announced S$5.6 billion in new contracts in just one quarter! More importantly, the wins are spread across aerospace, defence and urban solutions. That gives investors a sense of the group's diversified earnings visibility. Welcoming because share price had not been doing well. It had fallen to $10.16 yesterday, dangerously close to the strong support line of $10. This is a critical level, technically speaking. If broken convincingly, I also no eyes to see. But with this news, hopefully it can at least stay above that level, or even better, embarked on a recovery trail.

.

Not the first time I mentioned * DFIRG ( $DFIRG USD(D01.SI))*! The stock jumped another >5% yesterday. For context, it had recently reported a 17% increase in 3Q underlying profit and also raised its full-year earnings guidance and plans to increase its dividend payout ratio from 70% to 80% in FY2027. More legs in my opinion.

.

A maiden DPU of 3.71 cents for *UI Boustead ( $UIBREIT(UIBU.SI))*,, beating forecast, with an annualised yield of around 8.3% based on its September closing price. Add 97.3% occupancy and positive rental reversions, and there's a nice income and resilience story here. Music to the ear for vested investors who have seen meh  price movements since IPO.

.

Do note that tonight is the *FOMC meeting decision*. Any positions taken today should probably take that into consideration. Also note that *Mi Material* will debut today on SGX. Look out for this new kid on the block too.

.

===

*Happening Today*

SG Earnings:

— Capland India^, Wilmar, Landmark REIT, MLT

US:

— Fed Interest Rate Decision / FOMC Statement / Fed Chair Press Conference / Crude Oil Inventories

.

===

*SG Stock News*

👍— *ST Engineering* secured S$5.6 billion in new contracts in 3Q2026, bringing 9M2026 wins to S$13.2 billion, led by Urban Solutions & Satcom (S$2.4 billion), Defence & Public Security (S$1.8 billion) and Commercial Aerospace (S$1.4 billion).

https://links.sgx.com/1.0.0/corporate-announcements/WK82IZJRM0O3H15T/909341_20261027_SGX_ST%20Engineering%20Reports%203Q2026%20Contract%20Wins.pdf⁠

👍— *Digital Core REIT* reported 9M2026 distributable income of US$34.8 million, with portfolio occupancy at 97% and leverage at 41.6%, while guiding for 2027 DPU of 4.15–4.25 US cents.

https://links.sgx.com/1.0.0/corporate-announcements/IB065DN33RUIAZWW/909317_Digital%20Core%20REIT%20-%203Q26%20Business%20and%20Operational%20Update_Final.pdf⁠

👍— *UI Boustead REIT* delivered maiden DPU of 3.71 cents, 0.8% above forecast, with distributable income of S$50.9 million, portfolio occupancy at 97.3% and positive Singapore rental reversion of 5.1%, translating to an annualised yield of approximately 8.3% based on its 30 September closing price.

https://links.sgx.com/1.0.0/corporate-announcements/93NTA6O1UPRTEC61/909363_UI%20Boustead%20REIT%20Delivers%203.71%20Cents%20DPU_Media%20Release.pdf⁠

👍— *Keppel REIT* 9M2026 distributable income from operations rose 24.4% YoY to S$179.9 million, with net property income up 12.7% to S$181.8 million, supported by 96% portfolio occupancy and positive rental reversion of 12%.

https://links.sgx.com/1.0.0/corporate-announcements/HN1NUN59H1TBJG5M/909441_MREL_KREIT%203Q%202026_Financial%20Highlights.pdf⁠

🤔— *CapitaLand India Trust* 9M2026 net property income grew 4% YoY in rupee terms but fell 6% to S$161.3 million due to currency weakness, with portfolio occupancy at 91%, positive rental reversion of 23% and gearing at 38.2%.

https://links.sgx.com/1.0.0/corporate-announcements/0SGVTEB4VPSJT6DE/909443_CLINT%203Q%202026%20slides%2028%20Oct%202026.pdf⁠

‼️— *Mapletree Industrial Trust* 2QFY2027 DPU fell 6.6% YoY to 2.97 cents as net property income declined 3.5% to S$119.8 million, weighed down by weaker North American contributions, despite positive Singapore rental reversion of 6.9%.

https://links.sgx.com/1.0.0/corporate-announcements/3TNAUNY3K2WYP97A/909407_20261027_2QFY26_Press%20Release.pdf⁠

‼️— *First REIT* 9M2026 DPU fell 12.7% YoY to 1.44 cents as distributable income declined 11.9% to S$30.6 million, mainly due to currency weakness, while gearing improved sharply from 45.7% to 27.5% following debt repayments and Indonesian asset divestments.

https://links.sgx.com/1.0.0/corporate-announcements/R7PISO59TJ7QEHR6/909413_First_REIT_9M_2026_Business_Update.pdf⁠

‼️— *Aztech Global* 9M2026 revenue fell 27.3% YoY to S$231.8 million while net profit declined 40.9% to S$15.9 million, although 3Q net profit recovered to S$6.5 million and net cash stood at S$186.9 million.

https://links.sgx.com/1.0.0/corporate-announcements/AGA2X14HXB2Z50X2/909315_3Q%202026%20Business%20Performance%20Update%20Press%20Release.pdf⁠

— *Keppel* signed a framework agreement with Apollo to explore private capital transactions of US$500 million and above across Asia Pacific, potentially expanding its funds under management and recurring fee income, although no binding investment commitment has been made.

https://links.sgx.com/1.0.0/corporate-announcements/8ERKLRNVVLV2RVGC/909318_20261027_%20Keppel%20and%20Apollo%20to%20explore%20large-scale%20private%20capital%20solutions%20in%20Asia%20Pacific.pdf⁠

— *Aoxin Q & M Dental Group* received SGX approval-in-principle to transfer its listing from Catalist to the Mainboard, subject to shareholder approval at an upcoming EGM and regulatory requirements.

https://links.sgx.com/1.0.0/corporate-announcements/QCBN2BBFV1XUB3KN/909431_AoxinQM%20-%20Receipt%20of%20Approval%20In-Principle.pdf⁠

— *Mi Material* will debut on SGX Mainboard on 28 October at S$1.80 per share, following a S$215 million semiconductor IPO that was 2.1 times subscribed, valuing the company at approximately S$891 million.

https://links.sgx.com/1.0.0/corporate-announcements/CUP8ZUEIROK8QQIX/909430_MiMH-%20Balloting%20Press%20Release.pdf⁠

— *Wee Hur Holdings* secured a 2-year 8-month lease extension for its 15,744-bed Tuas View Dormitory until June 2029, providing greater recurring income visibility, with occupancy at 92% in 1H2026 and dormitory revenue rising 50.7% YoY to S$63.3 million.

https://links.sgx.com/1.0.0/corporate-announcements/B3XL014WYF5RDPMP/909433_Press%20Release_Tuas%20View%20Lease%20Extension.pdf

.

*Earnings calendar:*

28/10 - Wilmar, Landmark REIT, MLT

29/10 - Ultragreen^, CICT^, CDLHT^, FEH^, Capland Ascendas, Starhill

30/10 - MPACT^, LREIT

2/11 - Elite UK REIT^, GE^

3/11 - ParkwayLife REIT^, SIA Engg

4/11 - UOB^, CLI^, ACROPHYTE HT^, Manulife US REIT^, CAREIT

5/11 - DBS^, UOI, AVEPoint

6/11 - OCBC^, Singpost^, FLCT^

11/11 - Valuetronic^, SATS, SIA, NTTDC, Prime US REIT, World Precision

12 Nov - Sasseur REIT^, Asian Pay TV, GoldenAgri, SERT

13/11 - UHREIT^, Frasers Property

.

Rgds, Dan

https://www.phillip.com.sg/talktophillip/danccs/

https://tinyurl.com/dan-disclaimer

𝐌𝐚𝐫𝐤𝐞t 𝐔𝐩𝐝𝐚𝐭𝐞 *27/10/26*

.

STI: 5415 (-5) | HSI: 23211 (+118) | Dow: 52,362 (+146) | S&P: 7,677 (+53) | Nasdaq: 26,169 (+214)

.

*US Markets Overnight*

.

*AI Is Back… But At What Cost?*

.

After two weeks of selling in the Nasdaq, it was nice to see tech stocks bouncing back. But what was worth noting wasn’t just the rebound. It was the news behind it. *Anthropic*, the company behind Claude AI, has filed for a Nasdaq IPO. Exciting news for the AI industry, no doubt. But the company also reported some pretty eye-watering losses. Quite a reminder that building AI isn’t cheap! 😅

.

Wall Street started the week on a positive note. The Nasdaq gained 0.8%, S&P 500 rose 0.7% and Dow added 0.3%.

AI and semiconductor stocks were back in favour, with *Tesla* jumped 5% after Barclays upgraded the stock. Microsoft also gained 1.5%. But not everyone joined the party. *Meta* fell almost 2% after announcing plans to raise up to US$95 billion to fund its AI ambitions.

.

And that’s where I think its funny. Investors clearly still believe in AI’s growth potential. But they are also starting to ask how much all this growth is going to cost, and more importantly, when the returns will come. Anthropic’s IPO news and Meta’s fundraising plans are good examples of the two sides of the AI story.

.

Meanwhile, oil finally eased a little after last week’s sharp rise. WTI fell 1.8% to around US$101.40, while Brent slipped to US$115.35. Still very expensive, though. I don’t think the inflation worries are going away just because oil fell for one day. The 10-year Treasury yield also eased slightly to just below 5%.

.

For now, Monday’s rebound is encouraging. But with the Fed and big tech earnings just around the corner, I suspect investors won’t have to wait long for the next market-moving headline. 😅Stay nimble, guys!

.

*What’s Brewing Today*

.

*iFAST, Growing FAST!*

.

Some encouraging numbers from *iFAST ( $IFAST(AIY.SI))*! 3Q net profit rose 24.5% to S$32.4 million, while assets under administration hit a record S$36.76 billion. But what was really impressive to me was iFAST Global Bank, where pretax profit jumped almost tenfold to S$3.3 million. Still a relatively small contributor, but it’s gaining traction. The group also raised its full-year dividend guidance. Not bad at all! The question now is whether the share price, which has been rather sluggish lately, will start catching up with the improving fundamentals. Worth watching!

.

*Sembcorp: Down But Not Out?*

.

Quite a rollercoaster for *Sembcorp ( $Sembcorp Ind(U96.SI))* yesterday! The stock came under selling pressure following news that Indonesia was cutting piped gas supplies to Singapore, falling as low as S$5.62 before recovering to close at S$5.84, down 2.8%. What was worth noting was the recovery from the day’s low, suggesting some buying interest at lower levels. Meanwhile, there’s also news that Sembcorp is exploring a potential IPO of its Indian renewable energy subsidiary, which could raise up to US$394 million. Could this provide some reprieve for the stock after the recent selling? Still early days, but certainly worth watching.

.

Also look out for *KIT*, *KORE*, *ESR REIT*, *Capland Ascott REIT* as all four released business updates. See below for more info.

.

===

*Happening Today*

SG Corporate action:

— AIMS APAC REIT: Dividend S$0.02571

— LMS Compliance: BONUS : OFFER OF 1 FOR 5

SG Earnings:

— Capland Ascott^, KIT^, MIT, Digicore REIT, Aztech, UI Boustead REIT, First Resources

CN:

— Industrial Profits (YoY)

EU:

— French Consumer Confidence

US:

— CB Consumer Confidence / New Home Sales / Richmond Fed Manufacturing Index

.

===

*SG Stock News*

👍 — *iFAST Corporation* 3Q2026 net profit rose 24.5% YoY to S$32.37 million, with assets under administration hitting a record S$36.76 billion (+20%) and iFAST Global Bank’s pretax profit surging 964.7% to S$3.29 million.

https://links.sgx.com/1.0.0/corporate-announcements/B16KRGVYM5K8G6HQ/909186_iFAST_3Q2026_Press%20Release.pdf⁠

👍 — *Sembcorp Industries* is reportedly gauging investor demand for a proposed IPO of its Indian renewable energy subsidiary, Sembcorp Green Infra, potentially raising up to US$394 million (S$504 million), with a listing possible as early as December 2026, subject to regulatory approval.

https://www.theedgesingapore.com/news/ipo/sembcorp-gauges-demand-us394-mil-india-unit-ipo--bloomberg

👍 — *Info-Tech Systems* 9M2026 revenue grew 20% YoY to S$42.6 million, driven by 11% growth in recurring software subscriptions and an 82% surge in services revenue from strong demand for AI-related training.

https://links.sgx.com/1.0.0/corporate-announcements/KH756YU6MAVSQ026/909113_ITS%20-%203Q2026%20Press%20Release.pdf

👍 — *Keppel Infrastructure Trust* 9M2026 distributable income excluding divestment gains rose 12.3% YoY to S$140.1 million, supported by recent acquisitions, with all FY2026 debt maturities successfully refinanced.

https://links.sgx.com/1.0.0/corporate-announcements/Z2KA199PUJK5DYNQ/909288_20261027_KIT_9M_2026_Presentation%20Slides.pdf⁠

— *ESR-REIT* 9M2026 distributable income rose 1.0% YoY to S$136 million despite net property income falling 4.2% to S$237.5 million, with occupancy at 91.7%, positive rental reversion of 9.3% and gearing at 44.1%.

https://links.sgx.com/1.0.0/corporate-announcements/YFZEGXW2FZEMWKRO/909291_ESR-REIT%20-%203Q2026%20Interim%20Business%20Update.pdf⁠

— *CapitaLand Ascott Trust* reported 3Q2026 portfolio revenue per available unit of S$164, with 84% occupancy and 4% same-store growth excluding selected divestments and renovations, supported by stronger US hotel performance.

https://links.sgx.com/1.0.0/corporate-announcements/FH5D4UFZ9JZZFCXB/909289_20261027_CLAS_3Q%202026%20Business%20Updates.pdf⁠

— *Keppel Pacific Oak US REIT* recorded 245,836 sq ft of leasing activity in 3Q2026, equivalent to 5.1% of net lettable area, with leasing momentum supported by the completion of The Post and three of six new office suites at The Plaza Buildings pre-leased before completion.

https://links.sgx.com/1.0.0/corporate-announcements/H0Z6FYA0ZVYCQU6U/909287_KORE%203Q%202026%20Key%20Business%20and%20Operational%20Updates.pdf⁠

👍 — *Yangzijiang Maritime* signed contracts to sell six newbuild tankers for US$308 million, bringing total contracted vessel sales to US$805 million across 18 vessels over the past 10 months.

https://links.sgx.com/1.0.0/corporate-announcements/JLVBGWBS8HAED3FC/909147_YZJ%20Maritime_Press%20Release_VesselSales_26Oct2026_final.pdf

👍 — *Soilbuild Construction* secured S$103 million in new contracts, including an industrial facility and HDB precast works, lifting its order book to approximately S$809 million and providing stronger revenue visibility.

https://links.sgx.com/1.0.0/corporate-announcements/EGZU5PPG4WL5EBNW/909154_SBCG%20-%20Press%20Release%20for%20Award%20of%20New%20Contracts%2026Oct2026.pdf

👍 — *Ley Choon Group* secured S$39.1 million in new contracts for underground utility works, with projects expected to be completed over the next 24 to 36 months.

https://links.sgx.com/1.0.0/corporate-announcements/AOZEH11L4LXHB2YV/909128_LCGH%20-%20Announcement%20-%20Award%20of%20Contracts.pdf

— *TeleChoice International* secured a S$1.3 billion contract renewal from Malaysia's U Mobile for supply chain services, covering three years from February 2027 with an option to extend for another two years.

https://links.sgx.com/1.0.0/corporate-announcements/L9PJ3X5U19D2D5BO/909115_Press%20Release%20-%20Telechoice%20x%20UM.pdf

— *ProsperCap Corporation* achieved Green Key sustainability certification across all 17 hotels in its UK portfolio, covering properties operated under Hilton, IHG and Marriott brands.

https://links.sgx.com/1.0.0/corporate-announcements/MGZDJLDQ5FM6MKBC/909116_20261026%20Press%20Release.pdf

— *Yamada Green Resources* secured approval for a JPY130 million loan over 24 years to finance its Osaka property acquisition, which is expected to be completed on 30 October 2026.

https://links.sgx.com/1.0.0/corporate-announcements/6YHVNB6E7NLS3A50/909193_Yamada%20-%20Annmt%20-%20Update%20on%20Acquistion%20of%20Land%20and%20Building%20Osaka.pdf⁠

— *First Sponsor Group* 3Q2026 European property net operating income rose 14.8% YoY to €17.2 million, driven by stronger hotel contributions, while its financial position was bolstered by S$341.7 million in additional equity funding.

https://links.sgx.com/1.0.0/corporate-announcements/QPD8I1376BBQX7XT/909194_FSGL%20-%20Voluntary%20Interim%20Update%203Q2026.pdf⁠

.

*Earnings calendar:*

27/10 - MIT, Digicore REIT, Aztech, UI Boustead REIT, First Resources

28/10 - Capland India^, Wilmar, Landmark REIT, MLT

29/10 - Ultragreen^, CICT^, CDLHT^, FEH^, Capland Ascendas, Starhill

30/10 - MPACT^, LREIT

2/11 - Elite UK REIT^, GE^

3/11 - ParkwayLife REIT^, SIA Engg

4/11 - UOB^, CLI^, ACROPHYTE HT^, Manulife US REIT^, CAREIT

5/11 - DBS^, UOI, AVEPoint

6/11 - OCBC^, Singpost^, FLCT^

11/11 - Valuetronic^, SATS, SIA, NTTDC

12 Nov - Sasseur REIT^, Asian Pay TV, GoldenAgri, SERT

13/11 - UHREIT^, Frasers Property

.

Rgds, Dan

https://www.phillip.com.sg/talktophillip/danccs/

https://tinyurl.com/dan-disclaimer

#danccs