Asian Equities Mixed As Tech Stocks Weigh On Market

Asian stock markets experienced mixed performances, with the MSCI Asia Pacific Index dropping 0.4% in early trading, weighed down by losses in South Korean and Chinese shares, while Japanese stocks rose. The decline was influenced by a sell-off in US tech stocks and a stronger US dollar. Japanese inflation data showing acceleration due to rising energy costs bolstered the case for potential interest rate hikes, while yen weakness heightened the risk of market intervention by Japanese officials.

• Japanese equities opened higher this morning, driven primarily by financial stocks amid speculation that the Bank of Japan might tighten its policy due to yen weakness and rising inflation. Exporters also benefited from a weaker yen, with Keyence Corp., which earns a significant portion of its revenue overseas, contributing significantly with a 2.2% gain. The Nikkei advanced slightly by 0.1% to 38,669.57, although chip-related shares like Advantest led losses, reflecting trends from US markets, while the Topix is 0.30% higher.
• South Korean equities are lower today with the Kospi falling by as much as 1.1%, marking its first loss in four sessions, as chip stocks like Samsung and SK Hynix dropped following declines in US tech stocks. SK bid for a market upgrade from MSCI was hindered by the reimposition of a short-selling ban, maintaining its emerging market status. Despite reforms aimed at improving market accessibility. Local funds were net sellers of Kospi equities, while retail investors were net buyers. Despite this decline, the Kospi remained on track for its third consecutive weekly gain. The small-cap Kosdaq Index is down 0.40%
• Taiwan equities have opened lower today with the Taiex opening 0.5% lower at 23 with semiconductor stocks leading the decline. Taiwan Semiconductor Manufacturing Co. (TSMC) was the biggest contributor to the index's drop, decreasing by 0.8%.
• Australia equities are little changed today, earlier we had Judo Bank PMI data with the composite showing a drop from 52.1 to 50.6. Gains in Consumer Staples/Discretionary, Health Care & Real Estate have been offset with declines in Financials and Materials.
• Elsewhere, New Zealand equities are unchanged for the day, Indonesian equities are 0.75% higher, Singapore equities are 0.30% higher, Malaysian equities are 0.15% higher while Philippines equities are down 0.60%.