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Asian Equities Mixed Ahead Of BoJ Decision

ASIA STOCKS

Asian markets opened mixed on Friday, focus is on the Bank of Japan's policy decision expected sometime shortly, they are expected to consider reducing bond purchases. Stocks in Japan and South Korea opened lower, but has since recovered while stocks in Australia trade lower, reflecting cautious sentiment as investors remain focused on central bank actions and economic data. Overnight in the US, the S&P 500 and Nasdaq Composite extended their gains to post fourth consecutive record closes, driven by fresh data showing signs of easing inflation pressures.

  • Japanese stocks opened lower this morning but have since recovered most of those loses, as investors await the Bank of Japan's policy decision, which could include reducing bond purchases. The Topix is up 0.30%, Topix Bank Index is0.37% higher, while the Nikkei 225 is unchanged.
  • South Korean equities are mixed this morning with the Kospi now 0.30% higher while the small cap index the Kosdaq is down 0.95%. Earlier, Import price index rose to 4.6 y/y from 2.9% with the Export price index also rising to 7.5% y/y from 6.2%. On Thursday, government officials announced that the short selling ban will remain until proper systems are ready, and that the tax incentive plan for the corporate "Value-Up" program will be prepared shortly. The broader market sentiment remained cautious due to potential impacts from international economic trends.
  • Taiwan equities are a touch higher today, led higher by tech names with the Philadelphia SE Semiconductor Index trading up another 1.48% overnight. Late on Thursday, the central bank kept interest rates on hold at 2%. The Taiex is currently trading 0.10% higher.
  • Australian shares opened lower, following a weaker performance in global markets. The downturn was influenced by concerns over US economic data and its potential impact on local exporters and market dynamics. The ASX200 is 0.32% lower.
  • Elsewhere, New Zealand equities are down 0.11%, earlier food prices fell 0.2% m/m from 0.6% in April and the lowest annual increase in almost six years. Singapore equities fell 0.28%, Malaysian equities are down 0.16% and Philippines equities are down 0.19%

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