ASIA STOCKS: Asian Equities Mixed, Yen Falls Supporting Japanese Export Name

Asian markets are mixed today driven by multiple global and regional factors. Japanese equities are the top performing market with major benchmarks trading about 1% higher buoyed by a weaker yen, which is supporting exporters. The broader Asia-Pacific region was cautious following hawkish comments from Federal Reserve Chair Jerome Powell, as investors pared back expectations for near-term rate cuts. This led to another move higher in both the USD and front-end tsys yields.

• China & Hong Kong equities are mixed today. HK listed equities are slightly higher
• Japanese equities are higher primarily supported by a weaker yen. The yen’s drop came after Japan’s third-quarter GDP data showed economic growth had slowed. Exporters, especially in the automobile and electronics sectors, saw gains as a result, with Toyota contributing significantly to the Topix index’s rise. Additionally, Japan's major banks, including Mitsubishi UFJ and Sumitomo Mitsui, raised their profit forecasts to record levels, further lifting market sentiment.
• In South Korea, stocks fell, with battery makers leading the decline due to concerns over a potential removal of the US tax credit for electric vehicles under Trump. Samsung has surged and last trades up over 6%, the company did tentatively agree with the union over pay increases. Foreign investors have continued to sell local shares, with a total outflow of $111m so far today. The KOSPI is 0.45% lower, while the KOSDAQ trades down 1.10%.
• Australian equities edged higher, with the ASX 200 index rising 0.3%, driven by gains in bank and property stocks. Strong domestic banking performance helped lift the index, reflecting confidence in financials despite global uncertainties. New Zealand's NZX50 is 0.30% higher.