Asian Equities Mixed, Market Cautious Ahead Of FOMC & BoJ This Week

Asian equities had a mixed performance today, Japanese & South Korean stocks are up, driven by higher tech shares following gains in the US, with the Philadelphia SE Semiconductor Index hitting records highs on Monday. Conversely, Australian stocks were down, impacted by falls in mining and real estate sectors after a public holiday. Overall, investors across the region are cautious ahead of the policy decisions by the Federal Reserve and Bank Of Japan later this week.

• Japanese stocks opened trading near session best and have since given up about half of those gains. The technology sector led the gains, inspired by the Philadelphia Stock Exchange Semiconductor Index reaching a record high. The Topix index increased up 0.14%, supported by resource shares benefiting from rising crude oil prices, with companies like ENEOS Holdings and Inpex among the gainers, while the Nikkei 225 is up 0.40%. Investors are cautiously optimistic, awaiting significant economic events later in the week, including the Federal Reserve meeting, the US consumer price index report, and the Bank of Japan policy decision.
• South Korean stocks are higher today. This uptick follows overnight gains on Wall Street, driven by investor caution ahead of the upcoming FOMC meeting and US inflation data. Large caps showed mixed performance, with Samsung Electronics and SK hynix experiencing slight declines, while Hyundai Motor and Kia Motors advanced. Despite the positive start, investors remain wary of potential volatility stemming from US macroeconomic developments and ongoing political uncertainty in Europe. The Kospi is up 0.25%.
• Taiwan equities are slightly higher today, although shares of Taiwanese Apple suppliers dropped following disappointment over Apple's annual conference, which did not improve the outlook for iPhone shipments this year. Focus this week will turn to Taiwan rate decision on Thursday. The Taiex is currently trading up 0.10%.
• Australia equities are lower today, led by declines in mining and real estate stocks following Monday’s holiday closure. Investors are now awaiting this week’s Australian jobs report, along with the Federal Reserve decision and US inflation data later this week. The ASX200 is down 1.35%
• Elsewhere in SEA, New Zealand Equities are 0.15% higher, Indonesian equities are 0.14% lower, Singapore & Malaysian equities are 0.25% lower, Philippines equities are unchanged, while Indian equities continue their moves higher and now trade back of pre-election highs.