Asian Equities Head Higher, Led By Tech, RBA Keeps Rates On Hold

Asian stock markets experienced gains today, driven by a recovery in Japanese equities following previous losses due to concerns over political turmoil in France. The MSCI Asia Pacific Index rose by up to 0.8%, marking its best performance in over a week, supported largely by strong performances in chip-related shares like TSMC and Samsung, following gains in their US counterparts. Australian stocks held onto gains after the Reserve Bank of Australia (RBA) maintained its key interest rate at a 12-year high of 4.35%, signaling a cautious approach amidst global economic uncertainties. Overall, optimism over tech sector strength and expectations of stable monetary policy in Australia contributed to positive sentiment across the region's markets today.

• Japanese stocks rebounded strongly from Monday's slump, tracking US shares higher. The benchmark Nikkei 225 index climbed 0.87%, while the Topix index rose 0.53%. Tech shares led the gains, with Tokyo Electron up 1.94% and Fanuc gaining 1.17%. Exporters also contributed significantly, with Toyota rising 1.12% and Honda jumping 2.13%. The positive sentiment was supported by optimism over a resilient US economy and easing political concerns in France.
• South Korean stocks opened higher, reflecting overnight gains on Wall Street. The KOSPI is 0.73% higher with large caps leading the way higher, with the small-cap Kosdaq trading down 0.25%. Samsung Electronics adding 1.79% and SK Hynix jumping 3.59%. Hyundai Motor and LG Energy Solution also posted gains of 1.62% and 1.49%, respectively, which contributed the most to index gains. Foreign investors were net buyers of equities on Monday, with that trend continuing this morning.
• Taiwan equities are currently up 1.12%, driven by gains in semiconductor stocks. TSMC contributed significantly to the index's rise, gaining as much as 3.2% after Citigroup raised its price target by 12% to NT$1,150, citing strong utilization-rate recovery and advanced node demand, while Morgan Stanley also increased TSMC’s price target to NT$1,080, highlighting potential upside from Apple Silicon and Edge AI processors.
• Australian stocks advanced, buoyed by the rally in US technology stocks. The RBA is kept its benchmark cash rate at a 12-year high of 4.35% for a fifth straight meeting. The ASX200 is currently up .90%
• Elsewhere, New Zealand equities are 0.40% earlier Westpac Consumer Confidence for Q2 was 82.2 vs 93.2 prior. Singapore equities are 0.15% higher, Malaysian equities are 0.27% higher, Thailand equities are 0.90% higher, Indian equities are 0.45% higher