Asian Equities Mixed On Little Catalyst, BoE Shortly

Asian markets are mostly mixed today as investors sought new catalysts after a US holiday. The MSCI Asia Pacific Index slipped 0.4% following a 1.7% jump the past two sessions. Japanese stocks moved lower, led by losses in cyclical value shares such as brokerages, real estate companies, and automakers. In South Korea equities are higher driven by gains in tech stocks like Samsung Electronics. New Zealand released Q1 GDP which beat estimates, equities have reacted positively to it, while Australian equities are little changed this morning. In the EM space, most markets continue to see foreign investors sell stocks, while markets hit ytd lows.

• Japanese equities opened lower on Thursday as European markets drifted downwards overnight, while Wall Street remained closed. We currently trade just off session lows with the Nikkei 225 index down 0.38%, and the broader Topix index lost 0.62%. Market sentiment was cautious with no significant news driving activity, leading investors to hold back on purchases. Tourism-related sectors showed resilience amid ongoing international visitor arrivals to Japan. Major automakers and chip-related stocks faced selling pressure, while Japan Airlines and ANA Holdings saw modest gains.
• South Korean equities are mixed today with the KOSPI up 0.51%, while the KOSDAQ is down 0.43% The market was buoyed by tech stocks, with Samsung Electronics Co. rising 0.5% and SK hynix climbed 1.1%. Positive sentiment was driven by tech gains amid concerns over a potential delay in US interest rate cuts.
• Taiwan equities have opened slightly higher this morning, TSMC was up over 4% on Wednesday which has been the contributor to the Taiex gains recently, while foreign investors have also been better buyers of local stocks recently with a 3.6b inflows over the past 5 sessions. The Taiex is up 0.30%
• Australia equities are a touch lower today, with gains in industrial and energy shares were offset by losses in the financial sector. Mexican fast-food chain Guzman Y Gomez listed on the ASX and was up about 40% at one point, investors remain cautious following a weak lead from European markets and the closure of Wall Street for a federal holiday. The ASX 200 is down 0.20%
• New Zealand's equities are higher this morning, following positive GDP data indicating the economy exited recession with a 0.2% expansion in Q1, surpassing economist estimates of 0.1% growth. The upbeat GDP data is seen as reducing the likelihood of early rate cuts, the NZX 50 is 0.65% higher heading into the close.
• Elsewhere, foreign investors continue to sell stocks in Indonesia, Thailand, Philippines with all markets trading near or at their ytd lows. Singapore equities are down 0.30%, Malaysian equities are 0.45% lower, Philippines equities are 0.35%, Thailand equities are down 0.25% Indian equities are unchanged, while Indonesian equities are up 0.90%.