Asian Equities Head Higher On Soft US Data

This morning, Asian stocks gained as a softer reading of the Federal Reserve’s preferred inflation measure bolstered hopes for rate cuts. Equities in Australia, Japan, and Hong Kong advanced. India's stock futures surged following exit polls indicating a victory for Prime Minister Narendra Modi’s party. The recent decline of the US dollar, down 1.1% in May, also supported gains. While on the data front we have had regional PMIs and AU MI Inflation.

• Japanese equities are higher today. Japan's Topix rose 1.1% to a two-month high of 2,802.71, driven by renewed expectations for US interest-rate cuts, which boosted investor appetite for riskier assets. Sony Group has contributed the most to the Topix gain, with high domestic bond yields particularly benefited banking stocks such as Mitsubishi UFJ and Sumitomo Mitsui, the Topix Bank Index is up 1.73% while the Nikkei also advanced 1.1% to 38,922.52. Earlier Capital spending for 1Q was 6.8% vs 11% est, while Jibun Bank PMI was 50.4 vs 50.5 prior.
• Taiwan equities are higher today, TSMC has contributed the most the index gain up 2.30%. Earlier, S&P PMI manufacturing was up in May to 50.9 from 50.2. The Taiex is up 1.26%.
• South Korean equities have surged higher today as chip and auto names lead the way. Earlier, S&P Manufacturing PMI increased in May to 51.6 vs 49.4 in Apr. The Kospi is up 1.80% and is now testing the 50-day EMA.
• Australian equities are on track for their 2nd straight day of gains, led by Utilities and energy stocks. Earlier, we had Judo Bank PMI coming in at 49.7 vs 49.6 prior and MI Inflation for May was 0.3% vs 0.1% in April. The ASX200 is 0.72% higher.
• Elsewhere in SEA, Indonesian equities are 0.45% higher, Singapore equities are 0.23%, Philippines equities are 0.20% higher.