Asian Equities Higher As Recession Fears Ease, Tech Outperforming

Asian markets extended their rebound, buoyed by positive signals from both Chinese inflation data and U.S. jobless claims, which eased recession fears. The Hang Seng Index rose for the third consecutive day, with tech stocks leading gains. Japan's Nikkei 225 and Topix indices also advanced, driven by a weaker yen and strong earnings reports from major companies like Tokyo Electron. South Korea's KOSPI gained, led by large-cap stocks, as investor sentiment improved following the global market rout earlier in the week. Overall, the region's markets benefited from a stronger outlook and increased investor confidence.

• Japanese stocks rose, with the Nikkei 225 and Topix indices both gaining 1.5%, as the yen weakened and positive earnings reports lifted market sentiment. Technology firms like Hitachi and Tokyo Electron led the advance, buoyed by a strong performance in the Nasdaq. The market rebounded from earlier losses, recovering about half of the decline since the BoJ's recent interest rate hike. Additionally, individual investors continued to buy stocks, marking the fourth straight week of net buying, as optimism returned to Japan's export-driven economy. Banks are the worst performing sector over the past week with the Topix Bank Index down 7.30%, verse the TOPIX & Nikkei down just 1.50% for the same period, both major benchmarks remain in a downtrend after breaking below all key moving averages on Monday.
• South Korean equities are higher today, with the small-cap KOSDAQ up 2.90% while the KOSPI is 1.90% higher. Foreign investors remain better sellers of Korean stocks today with a net outflow of $100m although local retail investors have snapped those stocks up. Equities still trade about 5% lower for the week after Monday saw the KOSPI largest 1-day drop since 2008. Next week we have Korean's unemployment rate due on Wednesday.
• Taiwanese equities have jumped higher today, leading the way in Asia with the Taiex up 3.30% after the Philadelphia SE Semiconductor Index rallied 6.86% overnight, while TSMC is expected to release July sales figures later today.
• Australian equities are higher with metals & miners the top performers after falling the past couple of sessions, the ASX 200 is 1.40%. New Zealand equities are slightly higher with the NZX 50 up 0.40%
• In Asia EM is all higher today, Indonesia's JCI is 0.85%, Thailand's SET is 0.90% higher, Philippines PSEi is 1% higher, Malaysian KLCI is 0.80% higher and Singapore's Strait Times is closed for National day.