Asian Equities Rebound Although Off Earlier Highs

Regional Asian equities have tracked US markets higher today, with the MSCI Asia Pacific Index ending a three-day decline. Taiwanese stocks are the top performers after heavy selling recently by foreign investors looks to have at least temporarily stopped as TSMC surges 3.40%. The market is enjoying a decrease in political uncertainty, with it now widely expected Kamala Harris will lead the Democrat party, while we now just wait for the announcement of her running mate. There is little in the way of economic data today, with focus now turning to US Inflation data and Major Tech earnings later this week.

• Japanese equities are higher today although we are well off the morning highs. The Yen has strengthened and now trades back below 157.00 after LDP Secretary-General Motegi spoke about how the BoJ should articulate its normalization policy more clearly and said “It is clear that an excessively weak yen is negative for the Japanese economy." Japanese banks are the top performing today with the Topix Banks Index up 1.40%, Tech stocks are well off earlier highs with the Nikkei 225 now flat after opening up about 0.80%, while the wider Topix Index is 0.20% higher.
• South Korean equities have rebounded following a four-day sell-off, the Kospi still trades 2% lower over the past week. Foreign investors have continued to sell local tech stocks today, although overall flows are positive with investors buying transport and financial stocks. The Kospi is up 0.60%, while the Kosdaq is 0.50% higher.
• Taiwan equities are the top performers today, tracking gains made overnight in the Philadelphia SE Semiconductor Index which closed 4% higher, TSMC has contributed the most to index gains, up 3.40% while the Taiex is 2.13% higher.
• Australian equities are higher today, although have underperformed global markets. Financials have been the largest contributor to the index gains, while energy stocks are the only sector in the red with Woodside leading the decline after reporting a revenue miss. The ASX 200 is 0.60% higher, while in New Zealand the NZX 50 is trading 0.90% higher.
• In EM Asia, markets are mixed with Singapore's Straits Times up 0.50%, Malaysia's KLCI up 0.50%, while Indonesia's JCI is unchanged, Philippines PSEi is down 0.10%, Thailand's SET is down 1% while India's Nifty 50 is down 0.20%