Asian Equities Head Higher As Tech Stocks Rally On Powell Comments

Asian equities advanced today, led by gains in Korea and Taiwan as technology stocks rallied, tracking a similar move in the US. The MSCI Asia Pacific Index climbed up to 0.6%, marking its fourth straight session of gains, the longest since May, fueled by Federal Reserve Chief Jerome Powell's comments on the resumption of a disinflationary trend in the US. Japanese stocks rose for the fourth consecutive session, the longest streak since March, with equities also up in Hong Kong, Singapore, and Australia. There was a bit of data out earlier, with Japan Jibun Bank PMI composite 49.7 vs 50 prior, while in Australia retail sales came in above estimates at 0.6% vs 0.3% and up from 0.1% prior, while building approvals jumped 5.5% vs 1.6% est and 1.9% prior.

• Japanese equities are higher today with the Nikkei 225 advancing for a fourth consecutive day, marking its longest winning streak since March. This uptrend is bolstered by speculation that the Federal Reserve may consider rate cuts, which has boosted investor confidence in technology shares and large-cap stocks. Specifically, semiconductor-related stocks have shown notable gains, reflecting strong buying interest. Despite cautious optimism, concerns persist regarding global trade tensions and fluctuations in the yen's value. The Topix is 0.22% higher, while the Nikkei is up 1% due to the heavier weighting towards tech stocks.
• South Korean equities are higher today, driven by Federal Reserve Chair Jerome Powell's dovish comments, which alleviated concerns about imminent interest rate hikes. This has bolstered investor sentiment, particularly in sectors like technology and manufacturing. Key stocks such as Hyundai Motor and SK Innovation have seen small gains, while LG Energy Solution and POSCO Holdings have also shown notable increases. However, challenges remain, notably in the semiconductor sector, where stocks like Samsung Electronics and SK hynix face some downward pressure after Nvidia fell 1.30% overnight. The Kospi and the Kosdaq both trade about 0.50% higher.
• Taiwanese equities are higher today, most of the gains can be attributed to TSMC & Hon Hai. The S&P 500 hit new all time highs overnight, while the Philadelphia Semiconductor Index rose 1.24% even though Nvidia fell 1.30%. The Taiex is up 1.10%.
• Australian equities are slightly higher this morning, however have pared some gains after Australian retail sales data for May surpassed expectations, rising 0.6% from the previous month, double economists' forecasts, driven by discounts amidst high borrowing costs. However, annual growth at 1.7% remains subdued compared to early 2023 levels. Building approvals also jumped 5.5% vs 1.8% est. The ASX200 is currently 0.18% higher.
• Elsewhere, New Zealand equities are little changed today after dairy prices plunged overnight although ANZ commodity prices rose 1.5% earlier. While in the EM space, markets are trading well after the slightly dovish Powell overnight, in Indonesia the JCI is up 0.24%, and is now about 3% over the past 5 sessions, The Philippine PSEi is up 0.80%, Singapore Straits Times up 0.32%, Malaysian KLCI is 0.60% higher, India's Nifty 50 is 0.65% higher,