Alibaba Tencent Asics and Others Market Update

The report summarizes 1Q/4Q earnings reviews across APAC markets, highlighting strong AI-driven growth for Alibaba and ASML, while noting significant capex increases for Tencent. It also forecasts high passive flow volatility due to MSCI index rebalancing.

Key Takeaways

• 1.Alibaba is seeing cloud revenue acceleration driven by Model-as-a-Service (MaaS) and AI products, which are expected to account for over 50% of external cloud revenue within the next year.
• 2.Tencent is significantly increasing AI-related capital expenditure (capex) and opex to invest in the 'AI agentic era', despite near-term pressure on profit growth.
• 3.The May 2026 MSCI index rebalancing is expected to trigger over $76 billion in gross two-way flows in Asia Pacific markets.

Table of Contents

• In Focus | Alibaba & Tencent
• Results
• Consumer | Asics, Miniso
• Technology | Mitsui Kinzoku, Resonac, MPI
• Financials | SMFG, Mitsubishi Estate
• Industrials | Japan Steel Works, Harmonic Drive
• Internet | JD.com, JD Health, NC
• Themes in Play | Index Strategy, Kia
• Events | DISCO, Nidec, First Tractor
• Connections | China Consumer
• Around the World | US Strategy, ASML

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