Asian Equities Mixed, RBNZ Shortly

Asian markets opened mixed on Wednesday, with Australian shares lower and Japanese shares steady. This follows fresh highs in US equities, with the S&P 500 and Nasdaq 100 continuing their winning streaks. Federal Reserve Chair Jerome Powell's comments indicated a potential rate cut later this year, emphasizing signs of a cooling job market. Today, we have China PPI & CPI as well as the RBNZ rate decision which is expected to be left unchanged.

• Japanese markets remained steady on Wednesday following recent all-time highs. Investors are closely monitoring inflation data from China, with expectations of a slight increase in CPI and a softer decline in PPI. Additionally, Japan's largest banks have called on the Bank of Japan to make significant cuts to its monthly bond purchases, adding to the cautious market sentiment. The Nikkei 225 is unchanged while the Topix is up 0.20%.
• South Korean equities opened lower Wednesday as investors reacted to Federal Reserve Chairman Jerome Powell's lack of clarity on future rate policy. The Kospi is down 0.25% while the Kosdaq is down 0.40%, despite record highs for the Nasdaq and S&P 500, Samsung Electronics and SK hynix dropped 0.34% and 0.42%, respectively. The largest union at Samsung has announced an indefinite general strike after confirming that management has shown no willingness to engage in dialogue. JP Morgan expects $1.4 billion in foreign investment into value and dividend-focused funds following the launch of the "Value-up" index in September, aimed at enhancing corporate governance. SK Govt Bonds are flat to 2bps lower, while the KRW is trading just below Ytd lows at 1,385.65.
• Taiwanese equities have opened slightly lower this morning, after the Philadelphia SE Semiconductor Index close unchanged for the day. Late Tuesday Taiwan reported a robust 23.5% year-on-year increase in exports for June, totaling US$39.9 billion, driven by strong demand for technology products and inventory replenishment. The United States saw the largest growth in imports from Taiwan, while ASEAN and Europe also showed significant increases, despite a slight decline in exports to Japan. The Taiex is up about 4% over the past 5 days, although have opened 0.50% lower this morning.
• Australian equities have opened lower today, reversing gains from the previous day, with declines across most sectors. The mining sector led the losses due to weaker metal prices, while banks also contributed to the index's decline. The ASX is down 0.50%.
• Elsewhere, New Zealand equities are steady at 11,840.50 as investors await the RBNZ policy decision, expected to maintain interest rates and uphold a hawkish stance. Singapore equities are 0.45% higher while Malaysian equities are little changed.