Asian Equities Extend Losses As US Yields Head Higher

Asian equities have extended declines as the trading day has progressed and now look on track to mark three straight session of losses following moves made overnight in the US after another weak bond auction saw US treasury yields head higher. South Korean equities are the worst performing today after Samsung fell on reports of union strikes, while in Japan JGB yields continue to creep higher and the yen trades close to where it was suspect the BoJ intervened about a month ago. Earlier, Australia Building Approvals missed estimates, while NZ just released their budget.

• Japanese equities have gapped lower this morning, there has been no major headlines out so far this morning while it is also a quiet day for economic data in the region. Moves are being driven by higher US yields. The Nikkei 225 has tapped the 100-day EMA at 37,679, and now trade just above at 38,089 to be down 1.20% for the day, while the Topix is performing slightly better, the index did earlier break below the 50-day EMA but has managed to trade back above that post the break and currently trades down 0.45% for the day.
• Taiwan equities are lower today, while foreign investor selling hit a 1 month high on Tuesday. The largest contributor to Taiex moves, TSMC is down 1.20% while the Taiex is down about 1% today, although still holds above all major moving averages. The 14-day RSI is out of overbought territory falling to 60 from 75, while the MACD indictor is showing decreasing green bars. Later today we have GDP for 1Q with consensus at 6.50%, down slightly from prior reading of 6.51%.
• South Korean equities are lower today, Samsung is the largest contributor to the fall today after strikes continue to drag on. The Kospi is the worst performing index in the region today, we have broken below the 100-day EMA and trade down 1.30% while the small-cap Kosdaq is faring slightly better trading off just 0.65%.
• Australian equities are lower today although have been slowly grinding higher since the open. Earlier, Private Capital Expenditure for 1Q come in slightly above consensus at 1% vs 0.7%, while Building Approvals were below consensus at -0.3% vs 1.8% for April, and down from a revised 2.7% in March. Australian agriculture stocks are higher on the back of China lifting the ban on Australian beef, while BHP is the largest contributor to the fall today, with The ASX200 is down 0.48% and has just broken below the 100-day EMA.
• Elsewhere in SEA, New Zealand equities are down 1%, the NZ Budget has just been released however there has been little reaction by local markets, Indonesian equities are 1.25% lower, Indian equities are 0.50% lower, Singapore equities are 0.30% lower, Philippines equities are 0.70% lower while Malaysian equities are up 0.15%.