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Asia Equities Stronger As Markets Reopen Post Breaks

EQUITIES

Asian equities have started the trading day on a positive note, with the BBG Asia Index rising by 1.81%. Japan played a significant role in driving these gains following its return from National Foundation Day, while markets in Hong Kong and China remain closed for Lunar New Year celebrations.


  • In Japan, equity markets are moving closer to all-time highs. Today's surge is attributed to strong performances in tech names, particularly Tokyo Electron, which rose by 11% after boosting its operating income guidance for the year, surpassing analyst estimates. The weaker yen is also contributing to broader market strength. PPI data released earlier showed mixed results, with month-on-month numbers softer than expected at 0.0% versus the estimated 0.1%, while year-on-year figures were slightly stronger at 0.2% compared to the estimated 0.1%. Topix is up by 1.6%, and the Nikkei is trading 2.13% higher.
  • In Australia, equity markets are relatively unchanged, with the ASX200 at 7615, up 0.01%, as gains in the Financial sector have been offset by weakness in the health sector. Challenger exceeded expectations, leading to a 7.2% increase, while the country's largest job board, Seek, missed forecasts, resulting in a 13% decline.
  • New Zealand equities continue their four-day losing streak, down by 0.45%, following remarks from RBNZ Governor Orr hinting at potential further rate hikes due to persistently high inflation. The latest NZ 2yr inflation expectation stands at 2.50%, compared to the previous 2.76%.
  • South Korean equities opened higher, with the Kospi trading 1.40% higher after a day off. Expectations for a regulatory push to close the "Korea Discount" are boosting markets and attracting significant inflows, with $365 million heading into SK stocks this morning
  • Indonesian equities are lower today, anticipating the upcoming presidential election on Wednesday, despite witnessing the highest net buying by global investors on Feb 12th in about two months. The Jakarta Composite currently trades 0.65% lower.
  • Elsewhere in SEA, Philippines equities are 0.40% higher ahead of BSP's first policy meeting this year, Malaysian equities are 0.40% higher while Singapore Equities are largely unchanged for the day.

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