APAC companies gain $550b market capitalisation in Q3

This was driven by China’s fiscal stimulus.

The Asia-Pacific (APAC) region experienced a surge in market capitalisation, with the top 50 companies gaining $550b in the third quarter (Q3) of 2024, according to GlobalData.

The technology sector led the market reaching $3.3t, followed by financial services totalling $527.4b. Of the top 50 companies, 19 were from the technology sector.

This was driven by China’s fiscal stimulus, strong domestic demand in India and Southeast Asia, and better corporate earnings amidst global uncertainties.

Companies that witnessed significant gains include Chinese food delivery Meituan, which experienced 50% quarter-on-quarter (QoQ) growth in market capitalisation. Alibaba Group’s market valuation also soared by 46.2% during the quarter.

Additionally, the shares of China Life Insurance saw a 46.1% increase driven by strong interim financial results.

However, chipmakers SK Hynix and Samsung Electronics declined in market value by 22.2% and 20.1%, respectively. These reflect concerns over a potential oversupply in the market, despite low occurrence probability.

Furthermore, Samsung is facing challenges in maintaining its lead in high-bandwidth memory (HBM) chips as domestic competitor SK Hynix’s latest HBM products are reportedly undergoing testing for integration into processors from AI chip maker Nvidia.

“APAC companies should keep an eye on their respective countries’ monetary policies with interest rates likely to be cut down. Moreover, the ongoing Middle East crisis could disrupt the market, affecting investor confidence and business strategies,” Murthy Grandhi, business fundamentals analyst at GlobalData, said.