Asian Equities Mixed As Many Markets Shut for Public Holidays

Asian equities traded in a narrow range today with mixed performances across the region. The MSCI Asia Pacific Index fell by up to 0.2%, with declines in South Korea, where the Kospi dropped due to reduced bets on US interest rate cuts, and in Thailand, where the SET Index hit a 3.5-year low due to a stronger dollar. Meanwhile, Japanese stocks gained as higher bond yields lifted financials and a weaker yen boosted exporters. Indian stocks swing between gains and losses as traders awaited new government announcements. Trading volumes were lower than usual with markets in China, Hong Kong, Taiwan, and Australia closed for holidays.

• Japanese stocks have rebounded due to rising bond yields, benefiting financial firms. This movement comes amid speculation that the Federal Reserve will maintain its current policy stance and that the Bank of Japan may tighten its policies. Exporters, particularly automakers and machinery firms, gained from a weaker yen against the dollar. The Topix is up 0.90%, the Topix Bank Index is up 1.39% while the Nikkei 225 is up 0.83%
• South Korea’s Kospi index dropped by up to 1.2%, following its best weekly performance in four months, due to rising Treasury yields and diminishing rate cut expectations after strong US nonfarm payroll growth. Samsung, LG Energy Solution, and Celltrion were the main contributors to the decline. Nearly all sectors saw losses, except for machinery and food. Last week, the Kospi gained 3.3%, marking its best weekly advance since early February. The small-cap Kosdaq Index fell by as much as 0.6%.
• Elsewhere in SEA, New Zealand Equities closed down 0.65%, Singapore equities are 0.29% lower, Malaysian equities are down 0.17%, Philippines Equities are 0.90% lower, while Indonesian & Indian equities are up about 0.20%.