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Asian Equities Mostly Higher After BoJ Rate Hike, AU Inflation Cools

ASIA STOCKS
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Asian markets are mostly higher today with Japanese stocks have reversing earlier losses while the yen has shown fluctuations following the BoJ's interest-rate hike and bond purchase reduction. The Nikkei 225 index has edged higher while Japanese government bonds have trimmed losses. In South Korea, the Kospi Index is up on gains from Samsung Electronics, Australian stocks are also higher after inflations cools a touch, while Indian markets are advancing after brushing off concerns about proposed tighter rules on equity derivatives.

  • Japanese equities have erased earlier losses after the BoJ's decision to raise interest rates and cut bond purchases. The Nikkei 225 is now unchanged for the session while the Topix is up 0.32% the yen is fluctuating as traders assess the impact of the central bank's moves. Japanese bank stocks are rising, buoyed by the prospect of improved interest income, with the Topix Bank Index up 3.05% while real estate shares are under pressure from anticipated higher borrowing costs. The BOJ's measures, including a reduction in monthly bond buying to ¥3 trillion by early 2026, are being closely watched for their broader economic implications.
  • South Korean equities are higher today, led by gains in Samsung after the company reported its fastest profit growth since 2010. The benchmark KOSPI is 0.45% higher, despite declines in other major stocks like LG Energy Solution and POSCO Holdings, the positive performance in the tech and auto sectors bolstered the market, while the small-cap focused KOSDAQ is 0.85% lower.
  • Taiwan equities opened lower today, after the Philadelphia SE Semiconductor Index fell 3.88% overnight and Microsoft also fell over 6% in after hours trading on the back of disappointing earnings update, although has followed regional markets higher post the BoJ announcement and now trades unchanged for the day. Foreign investors are back to offloading local stocks, however on Tuesday this selling was matched with local accounts buying. Later today, 2Q GDP data is expected to show a drop from 6.56% to 4.8%.
  • The Australian market is higher this morning driven by gains in banks and consumer discretionary stocks. Australia’s 2Q CPI was inline with expected y/y at 3.8%, Retail sales were higher than expected at 0.5% vs 0.2%, the ASX 200 ticked higher post the data and now trades up 1.40%. New Zealand equities are 0.30% higher today largely tracking regional markets, earlier Building Permits dropped 13.8% in June from a revised 1.9% fall in May.
  • In EM Asia most markets are higher with the Indonesian JCI up 0.15%, Indian Nifty 50 up 0.33%, Singapore Straits Times Index up 0.20%, Malaysian KLCI Index 0.40% higher and the Philippines PSEi up 0.30%.
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Asian markets are mostly higher today with Japanese stocks have reversing earlier losses while the yen has shown fluctuations following the BoJ's interest-rate hike and bond purchase reduction. The Nikkei 225 index has edged higher while Japanese government bonds have trimmed losses. In South Korea, the Kospi Index is up on gains from Samsung Electronics, Australian stocks are also higher after inflations cools a touch, while Indian markets are advancing after brushing off concerns about proposed tighter rules on equity derivatives.

  • Japanese equities have erased earlier losses after the BoJ's decision to raise interest rates and cut bond purchases. The Nikkei 225 is now unchanged for the session while the Topix is up 0.32% the yen is fluctuating as traders assess the impact of the central bank's moves. Japanese bank stocks are rising, buoyed by the prospect of improved interest income, with the Topix Bank Index up 3.05% while real estate shares are under pressure from anticipated higher borrowing costs. The BOJ's measures, including a reduction in monthly bond buying to ¥3 trillion by early 2026, are being closely watched for their broader economic implications.
  • South Korean equities are higher today, led by gains in Samsung after the company reported its fastest profit growth since 2010. The benchmark KOSPI is 0.45% higher, despite declines in other major stocks like LG Energy Solution and POSCO Holdings, the positive performance in the tech and auto sectors bolstered the market, while the small-cap focused KOSDAQ is 0.85% lower.
  • Taiwan equities opened lower today, after the Philadelphia SE Semiconductor Index fell 3.88% overnight and Microsoft also fell over 6% in after hours trading on the back of disappointing earnings update, although has followed regional markets higher post the BoJ announcement and now trades unchanged for the day. Foreign investors are back to offloading local stocks, however on Tuesday this selling was matched with local accounts buying. Later today, 2Q GDP data is expected to show a drop from 6.56% to 4.8%.
  • The Australian market is higher this morning driven by gains in banks and consumer discretionary stocks. Australia’s 2Q CPI was inline with expected y/y at 3.8%, Retail sales were higher than expected at 0.5% vs 0.2%, the ASX 200 ticked higher post the data and now trades up 1.40%. New Zealand equities are 0.30% higher today largely tracking regional markets, earlier Building Permits dropped 13.8% in June from a revised 1.9% fall in May.
  • In EM Asia most markets are higher with the Indonesian JCI up 0.15%, Indian Nifty 50 up 0.33%, Singapore Straits Times Index up 0.20%, Malaysian KLCI Index 0.40% higher and the Philippines PSEi up 0.30%.