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SMIC’s Stock Surges Amid China’s Push for Self-Reliance but Faces Risks and Overvaluation Concerns

Key Points SMIC’s Shanghai shares have surged 120% since September, outperforming global peers. Beijing’s localization push has boosted demand for domestic chipmakers. U.S. restrictions limit access to advanced semiconductor technology. Rivals like TSMC may intensify competition by lowering legacy chip prices. SMIC shares trade above historical valuation averages, raising overvaluation concerns. Semiconductor Manufacturing International Corp. (SMIC), China’s largest outsourced chipmaker, has seen its Shanghai-listed shares more than double in value over the past two months. The 120% rise from a...

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Japan’s Nikkei 225 Stocks Rise Amid Gains in Steel and Paper Sectors

Key Points Nikkei 225 rose by 0.51%, with Paper & Pulp, Steel, and Warehousing sectors leading gains. Japan Steel Works Ltd. (TYO:5631), Fujikura Ltd. (TYO:5803), and Ebara Corp. (TYO:6361) were among the top performers. Bandai Namco Holdings, Inc. (TYO:7832), Konica Minolta, Inc. (TYO:4902), and Astellas Pharma, Inc. (TYO:4503) were among the worst performers. 2,359 stocks rose, compared to 1,188 falling...

Tesla Shares Surge Amid Prospects of Federal Framework for Self-Driving Cars

Key Points Tesla shares rose by 5.63% following the news of federal self-driving vehicle framework plans. Tesla recently showcased the “Cybercab,” a concept car designed for fully autonomous operation. Tesla plans to roll out unsupervised Full Self-Driving technology in Texas and California by next year. Elon Musk’s role in the new Department of Government Efficiency aligns Tesla with Trump’s deregulation...

European Stocks Struggle Amid Rate Speculations and Sectoral Weakness

Key Points The STOXX 600 index declined by 0.052% after four weeks of consecutive declines, the longest losing streak in over two years. European tech shares dipped, with Nvidia's upcoming earnings adding pressure to the sector. Real estate stocks led losses across major sectors. Investors closely monitor remarks from ECB policymakers, including Christine Lagarde, for rate hike signals. After a...

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