Asian Equities Mostly Higher As A Weaker Yen, Higher Iron Ore Help

Regional Asian equities are mostly higher today, investors attention has turned to crucial US inflation data that could play a pivotal role in the Federal Reserve's decision-making on interest rates, with investors lowering their expectations for how many cuts it will deliver. A weaker yen is seen to be helping Japanese markets, while higher Iron Ore prices is benefitting Australia, although consumer confidence has fallen in the region. Elsewhere South Korea readies for parliamentary elections on Wednesday, while Taiwan equity markets are unfazed by recent earthquakes as they make new all-time highs.

• Japan equities have risen for a second day as the weak yen supported exporters ahead of key US inflation data this week that may provide clues on the outlook Federal Reserve policy. Banks have also benefitted from higher yields as the markets now favour just two rate cuts this year. Looking ahead today Japan has Consumer Confidence and Machine Tool Order data out. The Nikkei 225 trades back at the 39,660 up 0.80% which is right in the middle of its recent ranges, while the Topic is up 0.59%.
• South Korean equities have turned negative after initially opening the trading day in the green. Parliamentary elections are happening tomorrow. Equities have been largely rangebound since mid-March, trading between 2,700 and 2,780 region with the 20-day EMA acting as support. The region continues to see foreign investors buying local stocks and is seeing the bulk of inflows in the region. Currently the Kospi is down 0.15% at 2,713.
• Taiwanese equities have surged higher today and have again made new all-time highs, the Taiex is now up 15.76% for the year and 35.81% from the lows of the past year, with the recent earthquake having done little to disrupt the market. Foreign investors have been selling stocks recently with $500m leaving the market on Monday and taking the 20-day average to -$150m. The Taiex is up almost 1.75% today.
• Australian equities are higher today as Iron Ore trades back above $100 a ton, miners are the top performing sector, followed by Financials while Healthcare and Real-estate names weigh on the market. Earlier Westpac Consumer Confidence was released showing a decline to -2.4% m/m from -1.8% in March, while the Index fell to 82.4 from 84.4 and NAB Business Confidence rose to 1 from 0 in Feb, while Business Conditions fell to 9 from 10 in Feb. The ASX200 is up 0.57%.
• Elsewhere in SEA, New Zealand equities closed down 0.54% ahead of RBNZ decision tomorrow, Malaysian equities are down 0.15%, Singapore Equities are up 0.83%, Indian equities are up 0.36% while Philippines & Indonesia markets are closed for Public Holidays.