Bualuang Securities (BLS) wrote in a global investing brief on Wednesday, expecting full return of investors’ risk appetite following significant gains in global benchmarks. This came after positive geopolitical developments and robust corporate earnings in the technology sector.
BLS noted that U.S. stock markets soared to record highs in the previous session, spurred by a combination of robust corporate earnings, rising hopes for a Middle East diplomatic breakthrough, and a sharp drop in oil prices. The S&P 500 gained 1.79% to surpass 7,700 points for the first time, while the Nasdaq and Dow Jones rallied 2.59% and 1.71% respectively—both setting new records. The rally extended beyond mega-cap names, reflecting broader investor risk appetite.
A key catalyst came from news of progress in negotiations between the U.S. and Iran to reopen the Strait of Hormuz, a vital energy conduit. Optimism from both Washington and Tehran, supported by a preliminary proposal from Qatar, led to a swift reassessment of global energy risk, sending WTI crude oil tumbling 5.7% below $80 per barrel.
Corporate earnings provided further fuel, the analyst remarked, with more than 84% of S&P 500 companies exceeding market expectations. This has shifted investor focus back to fundamentals over external risks. Palantir Technologies soared 29% on results that beat forecasts, and Caterpillar rose over 5% after it upgraded revenue guidance. Semiconductor stocks extended their recovery, led by Marvell Technology up 13% and Micron Technology up 7%, assuaging concerns over AI infrastructure spending.
In contrast, Hong Kong’s Hang Seng Index slipped 0.6%, although certain sectors benefited from the U.S. tech momentum. WuXi AppTec spiked 11.2% after strong Q2 results and an upgraded 2026 outlook, while optical transceiver specialist Zhongji Innolight jumped 17% on optimism around Nvidia’s CPO platform.
BLS continues to recommend core portfolios focused on Tech & AI Hardware, direct beneficiaries of AI CAPEX expansion, while accumulating Hong Kong Tech Software stocks cautiously as revenue outlooks gradually clarify.
In Vietnam, the VN Index gained 0.8%, closing at a new intraday high of 1,777, with Vingroup’s VHM, VIC, and VRE drawing strong buying. Foreign investors marked their fifth consecutive day of net inflows, totaling $33.9 million. Noteworthy individual performers included Phu Nhuan Jewelry (+7%) as selling pressure subsided. Consumer stocks Digiworld Corporation and Dien May Xanh rallied after announcing attractive cash and stock dividend plans, underlining business confidence in long-term growth.
