Asian Equities Take A Break, Equity Flow Momentum Slows

Regional Asian Equities are mostly lower today, Japan is out-performer the wider region but off highs from earlier to now trade mixed. There has been little in the way of market headlines, earlier South Korea had store sales out showing a decline from the previous month, while retail sales came in at 8.2% vs 7.5% prior.

• Japan equities are mixed today, bank stocks are the top performer after Warren Buffet commentary around strong corporate governance and shareholder friendly policies has been seen to be boosting the sector, while the 2Y JGBs hit their highest levels since 2011, boosting expectations for higher profitability, the Topix Bank index is up 1.77% today and 1.38% for the past month. The Nikkei 225 has turned negative now down 0.11%, while the Topix is up 0.18%
• South Korean equities are lower today, investors remain cautious after the "Corporate Value-up" program fell short of expectations yesterday. Foreign equity inflows are slowly with the 5-day average is now at $65m Vs $322m a week ago, while the 20-day sits at $302m, the Kospi is 0.75% lower.
• Taiwan Equities are lower today, after initial opening higher and making fresh All-time highs. Investors may be looking to book profit ahead of a busy end to the week for global data. Equity inflows are slowing, although still comfortably in positive territory as the 5-day average is now at $242m while the 20-day sits at $482m, the Taiex is down 0.36%.
• Australian equities turned positive late in the session after miners were able to find a bid, this could be on the back of iron ore trading higher. the ASX Metals and Mining Index closed down 0.48% after being as low as 1.60%. The ASX200 closed 0.13% higher.
• Elsewhere in SEA, Malaysia equities are the out-performer as the weaker MYR is seen to be supportive to equities up 0.41%, NZ equities down 0.13%, Indonesia down 0.22% while Singapore equities are 0.90% lower.