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Asian Equities Mixed After US Hits Fresh Highs, Nikkei Above 41,000

ASIA STOCKS

Regional Asian equities are mixed on Friday in a sign investors are rethinking the optimism that propelled the region’s shares higher in the prior session, as fresh signs of persistent inflation appeared in the US, while US stocks rose in early Asian trading after the S&P 500 index rose 0.3% to a fresh high on Thursday. The US Justice department is sure Apple for violating antitrust laws which may weigh on the tech sector today.

  • Japan equities have edged higher in early morning trading, earlier National CPI missed expectations coming in at 2.8% y/y vs 2.9% expected, Finance Minister Suzuki spoke in Tokyo earlier about FX moves, while shortly we have BoJ Governor Ueda appearing before local parliament. The Topix Bank Index is the top performing sector up 1.17%, the wider Topix is up just 0.60%, while the Nikkei 225 is trading above 41,000 for the first time and up 0.60% for the day.
  • South Korean PPI data was out earlier this morning rising to 1.5% from 1.3%5 in January, equities are slightly lower in early trading with the Kospi down 0.10% after surging higher Thursday on higher tech prices, while foreign investors flooded the SK equity market on Thursday with $1.678b of inflows.
  • Taiwanese equities are slightly higher this morning, currently up 0.35%. Late on Thursday the Central Bank rose interest rates from 1.875% to 2.00% with analysts suggesting that the Taiwan central bank's unexpected interest rate hike, aimed at addressing inflation concerns, is likely to be the final adjustment for this cycle, with minimal market impact given Taiwan's relatively low policy rate compared to the rest of Asia. Foreign investors bought Taiwan equities on Thursday with $529m of inflows, breaking a run of 5 consecutive days of outflows.
  • Australian equities are lower today, as banks weigh on the markets the surge in employment on Thursday has pushed chances of a rate cut back further with just 41bps of cuts priced in for the year. The ASX200 is down 0.31%
  • Elsewhere in SEA, New Zealand Trade Balance narrowed from the month prior coming in at -$218m vs -$1,089m, equities are up 0.50%, Singapore equities are down 0.25%, Philippines equities down 0.65% while Malaysian equities are up 0.10%

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