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Asian Equities Track US Markets Higher As Rate Cut Expectations Grow

ASIA STOCKS

Asia markets are higher today, after US equities surged on Friday on amid growing bets that the Fed will cut interest rates soon, with the market fully pricing in a cut for September while investors also looked to pick up some heavily sold tech stocks ahead of earnings from Apple, Amazon & Microsoft this week. The Yen has weakened this morning, driving Japanese equities higher, Taiwan equities have seen heavy selling recently with selling reaching two-year highs.

  • Japanese markets saw significant gains on Monday, with the Nikkei 225 rising 2.2% and the Topix Index up 1.9%, driven by positive momentum from US markets and a weaker yen. The yen's depreciation boosted exporters like Tokyo Electron and Toyota Motor, lifting the broader market. Investors are also anticipating the BoJ policy meeting, where changes to bond purchases and potential rate hikes are expected, adding to the market's optimism.
  • South Korean markets have experienced a strong performance this morning, with the Kospi climbing as much as 1.3%, its largest gain since early July. This rise was driven by a rebound in US stocks and expectations of improved shareholder returns from local bank stocks. The Kospi Finance Index jumped almost 5% to its highest level since May 2021, although we now trade just 2.25% higher, following a tax break proposal from the finance ministry.
  • Taiwan equity markets have jumped 1% on the open, but have since given back a lot of those gains. The Philadelphia SE Semiconductor Index rose almost 2% on Friday, which is helping the local market. The Taiex is currently 0.50% higher.
  • Australian equities are also higher today, with all sectors in the green. Tech stocks the top performers although Financials & Materials are contributing the most to index gains. Focus will turn to Wednesday when we have Retail Sales and CPI, currently the ASX200 is trading 0.80% higher. The New Zealand market is a touch lower today after Healthcare stocks fell, the NZX 50 and down 0.20%.
  • In EM Asia markets are higher today with Malaysia's KLCI higher 0.70%, Singapore's Strait Timesis 0.60% higher, Indonesia's JCI is 0.50% higher, Philippine's PSEi is 0.45% higher.
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Asia markets are higher today, after US equities surged on Friday on amid growing bets that the Fed will cut interest rates soon, with the market fully pricing in a cut for September while investors also looked to pick up some heavily sold tech stocks ahead of earnings from Apple, Amazon & Microsoft this week. The Yen has weakened this morning, driving Japanese equities higher, Taiwan equities have seen heavy selling recently with selling reaching two-year highs.

  • Japanese markets saw significant gains on Monday, with the Nikkei 225 rising 2.2% and the Topix Index up 1.9%, driven by positive momentum from US markets and a weaker yen. The yen's depreciation boosted exporters like Tokyo Electron and Toyota Motor, lifting the broader market. Investors are also anticipating the BoJ policy meeting, where changes to bond purchases and potential rate hikes are expected, adding to the market's optimism.
  • South Korean markets have experienced a strong performance this morning, with the Kospi climbing as much as 1.3%, its largest gain since early July. This rise was driven by a rebound in US stocks and expectations of improved shareholder returns from local bank stocks. The Kospi Finance Index jumped almost 5% to its highest level since May 2021, although we now trade just 2.25% higher, following a tax break proposal from the finance ministry.
  • Taiwan equity markets have jumped 1% on the open, but have since given back a lot of those gains. The Philadelphia SE Semiconductor Index rose almost 2% on Friday, which is helping the local market. The Taiex is currently 0.50% higher.
  • Australian equities are also higher today, with all sectors in the green. Tech stocks the top performers although Financials & Materials are contributing the most to index gains. Focus will turn to Wednesday when we have Retail Sales and CPI, currently the ASX200 is trading 0.80% higher. The New Zealand market is a touch lower today after Healthcare stocks fell, the NZX 50 and down 0.20%.
  • In EM Asia markets are higher today with Malaysia's KLCI higher 0.70%, Singapore's Strait Timesis 0.60% higher, Indonesia's JCI is 0.50% higher, Philippine's PSEi is 0.45% higher.