Weekly Market Update - 9 October 2023

Huawei

Several Taiwanese companies are helping Huawei Technologies Co. build infrastructure for an under-the-radar network of chip plants across southern China. At a time when China threatens Taiwan regularly with military action for even contemplating independence, it’s unusual that members of the island’s most important industry may be helping US-sanctioned Huawei develop semiconductors to effectively break an American blockade.

Source: Bloomberg

Oil Market

Oil surged more than 3% after the surprise attack threatened to destabilize the Middle East, home to a key maritime chokepoint and several top suppliers of crude, fuel and energy to global consumers. West Texas Intermediate rose above $85 a barrel in early Asian trade as a war-risk premium returned to markets. Oil market observers will be watching for signs of a wider fallout involving Washington and Tehran after months of thawing relations.

Source: Bloomberg

Chinese Tourism

Tourism revenue from China’s “Golden Week” holiday surged year-on-year but edged only slightly above its pre-Covid level, suggesting relatively muted consumer sentiment continues to weigh on the country’s economic growth. Domestic tourism revenue reached 753.4 billion yuan ($103 billion) for the eight-day holiday period, an increase of 1.5% from the comparable level in 2019, the country’s tourism ministry said.

Source: Bloomberg