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Asian Equities Mixed, Foreign Investors Sell TW & SK Equities

ASIA STOCKS
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Asian equities are mixed early, gains in Japanese stocks have been offset by losses in South Korea and Taiwan. The US stock market saw a notable rotation into smaller stocks, with the Russell 2000 Index up 12% in the last five sessions, the move higher in more beaten up stocks has been helped by the market pricing in a greater chance of fed rate cuts in the coming months, with September futures now pricing in 100% chance of a 25bps cut.

  • Japanese equities are headed for a two-day gain as cyclical stocks rose following better-than-expected US retail sales in June, bolstering hopes for a soft landing in the US economy. The better than expected Retail sales, coupled with the continuation of the Trump Trade Rally is likely to further push Japanese stocks higher.
  • South Korean stocks are lower today as investors have looked to take profits after two days of gains. Tech and automotive stocks have led the decline, with Samsung Electronics down 0.34% and Hyundai Motor down 1.09%. Financial shares also retreated, while SK Innovation jumped 3.18% ahead of merger board meetings, while Korean shipbuilder stocks have surged to multi-year highs driven by expectations of strong second-quarter earnings and US industrial gains amid rate-cut bets.The Kospi is 0.30% lower, while the Kosdaq trades 0.45% lower.
  • Taiwan equities are lower this morning, recently foreign investors have been heavy sellers of Taiwan equities with an outflow of $2.2b over the past week, the TWD is weaker on the back of this selling and currently sits back near two week lows. The Taiex is 0.30% higher.
  • Australian equities are higher this morning, and mirror the rally in US equities overnight. The ASX200 is 0.85% higher and is back above 8,000. Miners led the gains, supported by gold reaching its highest price ever and details from BHP’s quarterly production report.
  • New Zealand equities are higher today, after Q2 headline CPI came in moderately lower than expected at 0.4% q/q with the annual rate easing to 3.3% from 4%. Overnight GDT price index rose 0.40%, with strong performance in "fats" which offset a fall in "powders". The NZX 50 is up 0.63%
  • Elsewhere, Singapore equities are 0.15% higher, Malaysian equities are 0.35% higher and Philippines equities are 0.40% higher.
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Asian equities are mixed early, gains in Japanese stocks have been offset by losses in South Korea and Taiwan. The US stock market saw a notable rotation into smaller stocks, with the Russell 2000 Index up 12% in the last five sessions, the move higher in more beaten up stocks has been helped by the market pricing in a greater chance of fed rate cuts in the coming months, with September futures now pricing in 100% chance of a 25bps cut.

  • Japanese equities are headed for a two-day gain as cyclical stocks rose following better-than-expected US retail sales in June, bolstering hopes for a soft landing in the US economy. The better than expected Retail sales, coupled with the continuation of the Trump Trade Rally is likely to further push Japanese stocks higher.
  • South Korean stocks are lower today as investors have looked to take profits after two days of gains. Tech and automotive stocks have led the decline, with Samsung Electronics down 0.34% and Hyundai Motor down 1.09%. Financial shares also retreated, while SK Innovation jumped 3.18% ahead of merger board meetings, while Korean shipbuilder stocks have surged to multi-year highs driven by expectations of strong second-quarter earnings and US industrial gains amid rate-cut bets.The Kospi is 0.30% lower, while the Kosdaq trades 0.45% lower.
  • Taiwan equities are lower this morning, recently foreign investors have been heavy sellers of Taiwan equities with an outflow of $2.2b over the past week, the TWD is weaker on the back of this selling and currently sits back near two week lows. The Taiex is 0.30% higher.
  • Australian equities are higher this morning, and mirror the rally in US equities overnight. The ASX200 is 0.85% higher and is back above 8,000. Miners led the gains, supported by gold reaching its highest price ever and details from BHP’s quarterly production report.
  • New Zealand equities are higher today, after Q2 headline CPI came in moderately lower than expected at 0.4% q/q with the annual rate easing to 3.3% from 4%. Overnight GDT price index rose 0.40%, with strong performance in "fats" which offset a fall in "powders". The NZX 50 is up 0.63%
  • Elsewhere, Singapore equities are 0.15% higher, Malaysian equities are 0.35% higher and Philippines equities are 0.40% higher.