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Asian Equities Mostly Lower, Yen Intervention Risk Grows

ASIA STOCKS

Regional Asian equities opened mostly lower today. The ASX hit new all-time highs despite a slowdown in retail sales in Feb, while New Zealand also rose following a drop in consumer and business confidence. Japanese markets face growing risk of government intervention in FX markets, impacting exporters, with foreign investors selling regional equities except in South Korea.

  • In Japan, equities opened lower due to rising risk of government intervention in the FX market, particularly affecting exporters. The yen remains steady at 151.36 to the dollar, with Assistant Governor Tokiko Shimizu of the Bank of Japan expecting inflation to remain around 2%, emphasizing accommodative policy and plans to maintain current JGB purchases. The Topix is down 1.14%, while the Nikkei is slightly above 40,000, down 1.03%.
  • South Korean equities are slightly lower today. Finance Minister Choi Sang-mok highlighted export-driven recovery but cautioned about high prices and borrowing costs, aiming to stabilize inflation at 2%. President Yoon Suk Yeol expressed hope for the Bank of Korea's active role in financial market stabilization. The Kospi is down 0.20%.
  • Taiwanese equities opened slightly lower with foreign investor flows negative for 7 of the past 10 days. Interest rate swaps declined as the central bank hinted at holding rates in June after a March hike. CB Governor Yang Chin-long suggested unchanged rates in June if CPI stays between 2%-2.5%. The Taiex is down 0.17%.
  • Australian equities made fresh all time highs earlier, touching the 7,900 mark, we trade just off those levels at the moment to be up 0.85% for the day. Miners and Real estate names are the top performers. Earlier, Private sector credit beat estimates at 0.5% m/m vs 0.4%m/m expected, while Retail Sales missed estimates coming in at 0.3% vs 0.4% m/m down from last month of 1.1%.
  • Elsewhere in SEA, New Zealand Equities are higher, the NZD made fresh YTD lows after consumer and business confidence showed a steep drop while Singapore equities are up 0.20%,

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