Asian Equities Push Higher Ahead Of A Busy Central Bank Week

Regional Asian equities are higher today, with Japanese equities being the best-performing region, while tech is the top performing sector, the Bloomberg APAC Index is up 1.27%. Eyes will be on central banks this week, with the BoJ being the major focus as the likelihood of a rate rise increased again after the Rengo wages results showed an increase of over 5% compared to 3.8% the year prior. The RBA also meets on Tuesday; however, it is widely expected to keep rates on hold while Taiwan's central Bank meets on Thursday.

• Japanese equities rose as a weak yen supported exporters, fueled by speculation that the Bank of Japan would lift its key interest rate for the first time in 17 years during its two-day meeting, following reports of strong wage deals and reduced uncertainty, leading to expectations of higher stock prices, particularly in defensive sectors such as electric power and gas, land transportation, materials, non-ferrous metals, and steel. The Nikkei 225 is up 2.41%%, while the Topix is 1.80% higher.
• South Korean equities snapped a three-day winning streak on Friday as foreign investors sold equities at the largest rate since March 2023. The market gapped lower right on the close Friday, and we now trade at the levels prior to that late move. Tech names are the top-performing sector today. The Kospi is up 0.50%.
• Taiwanese equities have opened higher, while Taiwanese officials are growing increasingly concerned about the surging equity market, indicating that regulators may look into ways to control the market. Later this week we have the Central Bank rate decision, expected to remain unchanged at 1.1875%. Currently, the Taiex is up 0.35%.
• Australian equities have recovered earlier loses to trade mostly unchanged for the day real estate names have been the worst-performing sector offsetting gains in financials and mining names. The major focus this week will be on the RBA tomorrow; however, it's widely expected to keep rates on hold. The ASX200 closed Monday up 0.06%.
• Elsewhere in SEA, New Zealand equities closed down 0.33% after the NZ Institute of Economic Research published forecasts showing lower expected GDP growth, while Prime Minister Luxon made comments about the deteriorating economic conditions. Singapore equities are unchanged after with Non-oil Domestic Exports fell to -0.1% in Feb from 4.7% in Jan, Philippines equities are 1.60% higher and Indonesian equities up 0.14%.