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Asian Equities Head Higher As Tech Rallies, JPY Sees Sharp Reversal

ASIA STOCKS

Asian markets have tracked US markets higher, Japan is closed today for a public holiday. There has been very little in term of headlines over the weekend and a slow day for economic data today. Local market equity flows have been mixed recently, Taiwan and South Korean have seen a pick up late in the week as tech rallied on the back of strong earnings, while Indonesian equities continue to see outflows. Focus in the region today has largely been on the JPY with large moves taking place, the USDJPY is down 2%.

  • South Korean equities are higher, tech stocks are the top performing sector. Nasdaq futures are also testing Friday highs, a break higher could help drag the local market up further. The Kospi is up 0.97% at 2,682.23, holding back above the 20-day EMA, we have ticked above 50 on the 14-day RSI, while decreasing red bars for the MACD indicating buyers are in control. Looking ahead this week on Tuesday we have Industrial Productions with consensus at 3.8% falling from 4.8% y/y, Wednesday we have Trade Balance data consensus is a drop to $600m from $4.28b in March and finally on Thursday CPI is expected with consensus at 3% falling from 3.1% in March.
  • Taiwan equities are higher today, local markets have benefitted from strong US tech earnings last week with the Taiex trading back above the 20,000 mark, and has now bounced 5.20% from the lows made during the Israel/Iran conflict, the index now trades back above all moving averages, the RSI is back above 50 while the MACD indicator is around 50 and up 1.65% for the day.
  • Australian equities are higher today, largely tracking global markets. Most sectors are in positive territory day, with financials leading the way. Looking ahead, Tuesday we have Private Sectors Credit and Retail Sales, Wednesday we have Trade Balance and Building Approval data. The ASX200 closed on the 100-day EMA on Friday and have this morning bounced right off it trading up 0.86% at 7,641. The 20 & 50-day EMAs trade at 7,680/7,690 and are initial resistance.
  • Elsewhere in SEA, New Zealand Equities are up 0.40%, jobs filled data showed an increase from the prior month to 0.4% from 0.3% in Feb, Malaysian equities are up 0.42%, Philippines equities have surged 1.60%, Indonesian equities are up 1.90%, while Singapore Equities are down 0.23%.

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