Asian Equities Mostly Higher As the S&P 500 Reaches New Highs

Asian markets are mostly higher this morning after a slightly dovish Powell overnight where he noted progress on inflation, but reiterated patience on cutting rates, while overnight the S&P 500 hit new all-time-highs. Elsewhere traders will be looking for signs of improvement in China’s beleaguered housing market after China Vanke sales stalled and Country Garden Holdings slumped further last month. There has been a bit of data out this morning, with Japan Jibun Bank PMI composite 49.7 vs 50 prior, while in Australia retail sales came in above estimates at 0.6% vs 0.3% and up from 0.1% prior, while building approvals jumped 5.5% vs 1.6% est and 1.9% prior.

• Japanese equities are slightly higher this morning with the Nikkei 225 advancing for a fourth consecutive day, marking its longest winning streak since March. This uptrend is bolstered by speculation that the Federal Reserve may consider rate cuts, which has boosted investor confidence in technology shares and large-cap stocks. Specifically, semiconductor-related stocks have shown notable gains, reflecting strong buying interest. Despite cautious optimism, concerns persist regarding global trade tensions and fluctuations in the yen's value. The Topix is 0.05% higher, while the Nikkei is up 0.75% due to the heavier weighting towards tech stocks.
• South Korean equities have started the day positively, driven by Federal Reserve Chair Jerome Powell's dovish comments, which alleviated concerns about imminent interest rate hikes. This has bolstered investor sentiment, particularly in sectors like technology and manufacturing. Key stocks such as Hyundai Motor and SK Innovation have seen small gains, while LG Energy Solution and POSCO Holdings have also shown notable increases. However, challenges remain, notably in the semiconductor sector, where stocks like Samsung Electronics and SK hynix face some downward pressure after Nvidia fell 1.30% overnight. The Kospi is 0.05% higher, while small cap Kosdaq is trading 0.25% higher.
• Taiwanese equities are higher today, most of the gains can be attributed to TSMC & Hon Hai. The S&P 500 hit new all time highs overnight, while the Philadelphia Semiconductor Index rose 1.24% even though Nvidia fell 1.30%. The Taiex is up 0.70%.
• Australian equities are slightly higher this morning, however have pared some gains after Australian retail sales data for May surpassed expectations, rising 0.6% from the previous month, double economists' forecasts, driven by discounts amidst high borrowing costs. However, annual growth at 1.7% remains subdued compared to early 2023 levels. Building approvals also jumped 5.5% vs 1.8% est. The ASX200 is currently 0.18% higher.
• Elsewhere, New Zealand equities are 0.13% higher, Singapore equity are 1.20%, Malaysian equities are 0.30% and Philippines equities are 0.16%