Asian Equities Find Support As Investors Weigh up Strong US GDP Data

Asian equities are mostly higher today, as investors weigh up strong US GDP data with firming chances of a US rate cut in September while awaiting US PCE and Personal Spending & Income due later today. South Korean equities are the top performers, led higher by major tech stocks, Japanese equities have seesawed ahead of the BoJs meeting next week and Taiwan returned after heavy Typhoons hit with the market playing catch up. Locally we have had Tokyo CPI which came in just below estimates.

• Japanese equities equities have fluctuated today although all major benchmarks now trade higher, the market is awaiting the BoJ meeting next week, while the USDJPY has held steady today trading in a tight range. bank stocks are the top performers today with the Topix Bank Index up 1%, while the border Topix is 0.20% higher while the Nikkei has erased earlier gains and now trade flat.
• China & Hong Kong equities were little changed today, Chinese small-cap were the top performers with the CSI 1000 & 2000 up about 1.50%, elsewhere major benchmarks are largely flat with the GSI 300 up 0.8% and the HSI up 0.10%. Headlines out of the region light on today.
• South Korean equities are higher today, although foreign investors have been net sellers of local stocks with rotation out of tech and into financials occurring. SK Hynix, up 1.50% has contributed most to the index gains. Kospi is 0.80% higher, while the Kosdaq is 0.10% higher.
• Taiwan equity markets have returned after strong Typhoons hit the island, with the Taiex falling about 4% on the open, we have since seen some recovery and now trade down 3.30%. Semiconductors have been hit hard over the past week or so with the Philadelphia SE Semiconductor Index down 8% over the past 5 sessions.
• Australian equities higher today, driven by a rebound in mining with Iron Ore 2.15% higher and firm financial stocks, the ASX200 is 0.75% higher. Next week focus will turn to Retail Sales and CPI on Wednesday. The NZX 50 has largely missed the weeks sell-off and trades up 0.70% for the week after large jump higher in three stocks, currently the index is unchanged for the day.
• In EM Asia markets are mixed with Malaysia's KLCI down 0.10%, Singapore's Strait Times is 1.15% lower, while Indonesia's JCI is 0.50% higher, Philippine's PSEi is 0.65% higher, India's Nifty 50 is 0.80% higher.