Asian Equities Head Higher Ahead Of Busy Earnings Week

Regional Asian equities are higher today, benchmark indexes in Japan, South Korea and Australia are up, while US equity futures are unchanged after US markets ended a run of down days led higher by Nvidia. Concerns remain around rising interest rates, stubborn inflation, and geopolitical risks although these tensions look to be cooling with focus for the moment turning to corporate earnings as about 40% of the S&P are set to report this week. Economic data from Australia and South Korea suggests some inflationary pressures but remains relatively subdued.

• Japanese equities are higher today recovering further from the sell-off on Friday. The Nikkei 225 index is up 0.31% to 37,555 and has now consolidated back above the 100-day EMA, while the broader Topix has outperformed recently and is now testing the 20-day EMA, up 0.21% to 2,668. Investors will be closely monitoring the earnings report of Nidec, a Kyoto-based manufacturer of precision and automotive motors. Many investors are cautious, waiting to see if the company's financial performance will differ from previous disappointing results in the EV sector. Additionally, attention is on the yen, which is trading close to a 34-year low against the dollar at 154.75, prompting investors to watch for any indications of potential verbal intervention or concrete measures by Japanese authorities to bolster the currency.
• South Korean equities are higher today, with PPI for March indicating a cooling of domestic inflationary pressure, with a smaller month-on-month rise compared to February, signaling progress in the broader disinflation process, while agricultural prices saw a notable increase, contributing to a modest year-on-year rise of 1.6%. The Kospi has traded back above the 100-day EMA, up 0.14% to 2,633.53. Focus now turns to GDP tomorrow.
• Taiwan equities are higher today ending a run of down days up 1.10%, the Taiex has just broken back above the 50-day EMA and now trades down 5.90% from recent highs after being down as much as 7.62% on Friday. Late Monday Taiwan's unemployment rate was unchanged in March at 3.4% as expected, looking ahead Industrial Production for march is expected out with consensus of 7.25% up from -1.10% in Feb.
• Australian equities are following wider markets higher today the ASX200 is up 0.46% and now up 2.70% from lows made on Friday, the index is now testing the 50-day EMA levels at 7,684. Industrials are the only sector in the red today, as Health Care stocks lead the way. Earlier Judo Bank PMIs showed an increased from the March, while focus will turn to CPI due out tomorrow.
• Elsewhere in SEA, New Zealand Equities are down 0.41%, Singapore equities are 1.22% higher ahead of March CPI due out later today, Malaysian equities up 0.40%, Philippines equities are up 0.93%, while Indonesian equities are up 0.67%