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On December 2nd, Intel announced an additional investment of RM860 million (US$208 million) to make Malaysia its assembly and testing operations hub, a move Malaysian Prime Minister Anwar Ibrahim stated would boost the Southeast Asian nation's key role in the global semiconductor supply chain. He added that Intel's decision was based on confidence in Malaysia's long-term plans. Anwar stated that Intel already has operations in Malaysia, including a RM12 billion advanced packaging plant in Penang, which is 99% complete. In 2021, the US company pledged a US$7 billion investment to establish a manufacturing base in Penang. Malaysia accounts for approximately 13% of the global chip packaging, assembly, and testing (the final step in semiconductor manufacturing) market, an industry that drives 40% of Malaysia's export output. As major governments race to strengthen their semiconductor capabilities, Malaysia has been striving to elevate its position in the global supply chain.

Futures News, December 2nd: As of December 1st, the mainstream benzene market price in East China closed at 5320 yuan/ton, down 110 yuan/ton from 5430 yuan/ton at the beginning of November. From a fundamental perspective, December arrivals in East China are concentrated, and major ports in East China will enter a period of continuous inventory accumulation. In addition, with the weather turning colder, insufficient end-user orders and low downstream operating enthusiasm continue to put pressure on price recovery across the industry chain. However, on the cost side, geopolitical tensions threaten market supply, and European and American crude oil futures rose 1.3%. Under the interplay of bullish and bearish factors, the benzene market is expected to trade within a range.

On December 2nd, futures market news reported that crude oil prices traded higher yesterday, primarily driven by the return of two major geopolitical risk premiums. Firstly, the slow progress of peace talks between Russia and Ukraine, coupled with Ukraine's attacks on European oil ports and pipelines; secondly, the US's air traffic control over a South American country over the weekend, leading to the breakdown of peace talks and heightened tensions in South America. Zhuochuang Information predicts that the return of geopolitical risks has led to an increase in oil prices. However, whether this upward trend can continue depends on close monitoring of developments. If the conflict escalates, oil prices will continue to rise; otherwise, if the situation remains manageable, oil prices will likely experience wider fluctuations. In the short term, the geopolitical risk premium remains high, and oil prices are expected to remain relatively strong.

Fitch: Penalties imposed on South Korean banks highlight non-financial risks.

The yield on Japan's 20-year government bonds rose 1.5 basis points to 2.905%, hitting its highest level since June 1999.

Japan's Ministry of Finance will auction 2.4 trillion yen in five-year government bonds on December 9.

Hong Kong-listed auto stocks showed mixed performance, with NIO (09866.HK) opening down more than 6%, XPeng (09868.HK) down 1.6%, and Seres (09927.HK) up 1.1%.

On Tuesday, December 2nd, the Hang Seng Index opened 155.29 points higher, or 0.6%, at 26,188.55; the Hang Seng Tech Index opened 42.73 points higher, or 0.76%, at 5,687.49; the H-share Index opened 51.26 points higher, or 0.56%, at 9,224.1; and the Red Chip Index opened 0.76 points lower, or 0.02%, at 4,244.75.

Japan's Ministry of Finance will auction 3.5 trillion yen in short-term government bonds on December 9.

According to the Wall Street Journal, the Federal Aviation Administration (FAA) is intensifying its investigation into whether airlines have complied with flight reduction measures related to the grounding. The FAA stated that it has sent letters to airlines requesting information to determine if they have met their targets for reducing flights at 40 airports. Airlines could face fines of up to $75,000 per flight for exceeding the limits.

According to the Wall Street Journal, the Trump administration will invest in chip startup Xlight, reportedly having agreed to inject up to $150 million into the company.

Hang Seng Index futures opened 0.57% higher at 26,188 points, a premium of 166 points.

New York gold futures touched $4,250 per ounce, down 0.58% on the day.

Malaysian Prime Minister: Intel (INTC.O) announced an additional investment of RM860 million for its assembly and testing business.

Futures News, December 2nd: Crude oil prices are trending positively, and favorable news for fuel oil is boosting market participants' trading confidence. However, the supply and demand of various products vary slightly. Today, major refineries are expected to maintain stable to narrow price increases for low-sulfur fuel oil/asphalt feedstock. Fuel oil trading is expected to remain stable in some areas today, while some may see slight increases.

Japanese stock FANUC rose more than 7% after announcing a partnership with Nvidia.

Japanese Finance Minister Satsuki Katayama: There is no disagreement between the Bank of Japan and the government that the economy is experiencing a moderate recovery.

Japanese Finance Minister Satsuki Katayama: The Bank of Japan is expected to implement appropriate monetary policy to achieve its price target sustainably and stably, and will work closely with the government.