☕️ Good morning friends, 

we are standing at the threshold of the Year of the Horse.

We are not superstitious, but we do believe in the placebo effect. So it might be worth checking what 2026 has in store for your career and your wealth. It certainly cannot hurt.

P.S. The asiabits team will once again deliver the best insights from Asia this year, at full gallop.

Shanghai hits a 10-year high and logged its strongest weekly gain since November 2024. Easing deflation fears and fresh stimulus hopes are driving the market, led by materials, industrials, and tech.

Japan too expensive? Despite record highs, roughly one in three Japanese stocks still trades below book value. That points to structural inefficiencies such as excess cash, weak returns on capital, and intense competition. Room for upside in 2026.

TOP BIT

📱 Why your next phone will cost 20% more

The AI revolution has a problem: there isn't enough memory for everyone.

The massive demand for specialized AI memory (HBM) is causing conventional memory (RAM) for laptops, phones, and cars to become scarce and expensive worldwide. The result: the era of cheap hardware is coming to an end for now.

Details

🚀 The AI trap: Modern AI chips require vertically stacked specialty memory (HBM). Since this is extremely profitable, the three global market leaders—Samsung, SK Hynix, and Micron—are shifting their capacities massively.

📈 Price shock for standard chips: Due to this shift, normal chips (DRAM) are becoming a scarce commodity. Analysts expect a price jump of up to 55% in this quarter alone.

🇰🇷 South Korea cashes in: Samsung expects its quarterly profit to triple. SK Hynix shares rose by 88% in three months—the company is even considering a US listing.

⏳ The situation remains tense: SK Hynix is already sold out for the entire year 2026. New factories (e.g., from Micron in the USA) won't be able to deliver significant quantities until 2027 or 2028.

📊 Price shock for consumers: RAM now accounts for 1/5 of the hardware costs of a laptop. Analysts expect PC prices to rise by 15% and sales to fall by 10%.

Good to know: The Memory Oligopoly

Three giants completely control the global RAM market:

• Samsung (South Korea): Global market leader; shares doubled in 2025. Profit margins for DRAM exceed 50%.

• SK Hynix (South Korea): Leading in HBM4 development for Nvidia.

• Micron (USA): The only Western player, but dependent on Asian supply chains.

Chinese manufacturers, who emerged as budget suppliers in recent years, are also focusing on HBM instead of standard RAM—they will not fill the gap.

📊 All details & data: CNBC, Bloomberg, The Economist

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NUMBER OF THE DAY

That’s how much K-beauty exports reached in 2025.

💄 K-Glow at record highs: Exports rose 12.3% y-o-y. 2025 delivered new highs almost every month, peaking in September at over USD 1.15bn. K-beauty now exports its “glass skin” standard to 202 countries.

🌍 A more global export mix: The US is the largest market at USD 2.2bn, followed by China and Japan. Europe, the Middle East and Latin America posted especially strong growth, with Poland and the UAE delivering triple-digit gains.

Watch: A broad product range, massive social media reach and fast market entry are turning cosmetics into one of Korea’s most resilient export engines.

MARKET BIT

🇮🇳 India overtakes Japan and enters the next growth phase

🏆 Fourth-largest economy: India has surpassed Japan to become the world’s No. 4 economy at USD 4.2 trillion. Growth is stronger than last year but cooling: after 8.2% in the first half, 7.4% is expected through March 2026.

🏍️ Rural revival: 42.2% of rural households saw income gains in 2025, and 80% reported higher consumption. Cuts to income and consumption taxes are supporting purchasing power.

💰 Capital markets on fire: About USD 24 billion flowed into IPOs in 2025. The key driver is massive monthly inflows (~USD 3 billion) into equity mutual funds — the market is clearly led by domestic capital.

🏗️ Investment cycle turns: More than 80% of CEOs plan new investments or capacity expansion in 2026. “Make in India,” localization, and infrastructure spending are starting to pay off.

⚠️ Trump risk: Despite threatened 500% U.S. tariffs, geopolitical pressure, and roughly USD 18 billion in foreign outflows, India remains resilient thanks to strong domestic financing, healthy banks, and inflation kept below the 4% target.

Background

India is aiming for third place by 2028, set to overtake Germany after Japan. By 2030, GDP is expected to reach USD 7.3 trillion, adding roughly USD 1 trillion every 12 to 18 months. Per capita income has nearly doubled since 2014 to USD 2,700.

Prime Minister Modi has cleaned up banks, reformed taxes, and delivered stability in a volatile region. With only 2.1% of household savings invested in equities, a booming startup scene, and roughly half of the world’s digital transactions flowing through the country, India’s upside — as the world’s second-largest smartphone producer — remains substantial.

👉🏻 Full Story: Bloomberg, SCMP, StraitsTimes, Forbes

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WORD OF THE DAY

 🇯🇵 Hara Hachi Bu (腹八分目)

In Japan, hara hachi bu (腹八分目), literally “stomach eight parts full,” is the practice of eating until you’re about 80% full. It’s especially common in Okinawa, a region renowned for its high number of centenarians.

• It’s more than just portion control: It’s about being mindful, savouring each bite, and showing respect for the food on your plate. Overindulgence is avoided, promoting a sense of satisfaction without feeling stuffed.

The benefits: This practice is linked to maintaining a healthy weight, supporting longevity, and even reducing the risk of age-related issues like dementia.

HIGHLIGHTS 

🤖 Indonesia blocks Elon Musk’s Grok: Indonesia has temporarily blocked xAI’s chatbot Grok, becoming the first country to ban the tool over risks of AI-generated pornographic and sexualised deepfake content. Authorities cited threats to human rights, dignity, and digital safety, especially for women and children, and summoned X officials for talks. The move follows growing global backlash in Europe and Asia, despite xAI limiting image generation to paying users.

🚁 North Korea accuses South Korea of drone incursions: North Korea claims South Korean drones violated its airspace and were brought down using electronic warfare, warning Seoul of retaliation. South Korea denies the allegations and called for an investigation. Analysts say the claims may be politically motivated, aimed at reinforcing Pyongyang’s hostile stance ahead of a key party congress and weakening President Lee Jae Myung’s push to restart inter-Korean dialogue.

🍼 China urges Nestlé to speed up baby formula recall: Chinese regulators have pressed Nestlé to act quickly on recalling infant formula over potential contamination with cereulide, a toxin linked to food-borne illness. The recall affects products sold globally, including in China, the world’s largest formula market. While the financial impact may be limited, analysts warn reputational risks could be significant in the high-trust infant nutrition sector.

COUNTRY READS

🇮🇩 Indonesia reports its first death linked to the H3N2 “super flu,” prompting health authorities to tighten surveillance. More on this.

🇮🇳 Prada teams up with Indian artisans to create a special collection after earlier cultural appropriation backlash. More on this.

🇸🇬 Singapore drivers turn back to petrol cars, with 32 % planning ICE purchases over the next two years. More on this.

✅ Watch how to prepare Korean sweet potatoes properly.
✅ Read why people still play with Tamagotchis.  
✅ Fly to Chengdu to get your ears cleaned.
✅ Listen why 9,999 steps a day should be fine too.
✅ Get ready for your next China trip with our asiabits China Guide.*

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FORTUNE COOKIE

Happy Monday! 😜

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