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Asian Equities Climb with Taiwan Surging on Strong AI Tech Demand

EQUITIES

Regional Asian Equities are mostly higher, with Taiwan outperforming post-break. Indonesian equities rise after Defence Minister Prabowo Subianto claims victory in the presidential elections.

  • Japan equities are slightly higher today led by tech and exporter names after the yen holds onto recent losses and falling yields benefits both sectors. Tokyo Electron continues to move higher after strong results last week, contributing most to the gains for the Topix. The tech heavy Nikkei 225, has hit 3 year highs relative to the Topix on the back of strong results and performance from the tech sector, while the Topix lags largely due to an under performance in banks stocks with links to US commercial real estate exposure. Earlier today, Japan Q4 GDP was released and was weaker than expected, with the economy now in a technical recession, annualized q/q GDP fell -0.4% versus a +1.1% forecast. Q3 was also revised lower, to -3.3% (from -2.9%). Currently the Nikkei 225 is 0.78% higher, while the Topix is 0.10% higher.
  • Taiwan equities surge to all-time highs on growing demand for AI tech. Taiwan Semiconductor Manufacturing Co (TSMC) leads, up 9.8% as January sales rise 7.9% YoY. Taiex trades 3.3% higher.
  • South Korea equities slightly lower as individuals and foreign investors withdraw $155m so far this morning. There has been little in the way market headlines, potential profit-locking due to SK equities' recent top performance. Kospi is 0.10% lower.
  • Australia equities are higher today after the unemployment rate edged higher to 4.1% from 3.9% previously, highlighting the nations cooling labor markets and prompting bets of an earlier rate cut as traders bought forward bets of the first rate cut to September from November. Financial have led the move higher, while Wesfarmers earnings beat pushed their shares 4.36% higher. Currently the ASX200 is 0.65% higher.
  • Elsewhere, NZ & Malaysian equities trade lower by around 0.30%, while Indonesia rises by 1.50% after Defence Minister Prabowo Subianto claims victory in the presidential elections.

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