Asian Equities Weighed Down By Tech Earnings

Asian markets are mostly lower today, we trade in a narrow range and have started to see a bit of a bounce in tech stocks after a weak open driven by disappointment over recent earnings reports from major U.S. tech companies. Japan's Nikkei is outperforming the Topix, while the Kospi trade little changed as gains in Pharma stocks offset losses in tech. Meanwhile, Australia's private sector activity expanded at a slower pace in July Additionally, Taiwan's market remained closed due to Typhoon Gaemi.

• Japanese equities are lower today following unimpressive earnings results from major US tech companies, particularly Alphabet and Tesla, set off a slump in electronics makers and telecom names. Equity prices were also affected by discussions around potential rate cuts although only about 30% of analysts predict that the BOJ will hike interest rates on July 31, while the yen edged higher. The Nikkei is 0.26% lower, while the Topix is down 0.45%.
• South Korean are off earlier lows with Pharma stocks largely offsetting falls in tech stocks and particular Samsung. The Kospi is currently trading 0.10% higher, while the Kosdaq trades 0.80% higher.
• Taiwan equity markets are closed today due to Typhoon Gaemi, Taiex futures are pointing to a 0.50% fall in the index with the Philadelphia SE Semiconductor Index falling 1.46%, and weak tech prices post the NY close contributing to the losses.
• Australian equities are little changed today with gains in Consumer Discretionary and Health Care stocks offset by losses in Metals & Mining and Energy stocks. Earlier, Judo Bank preliminary July PMIs suggest that the economy barely grew at the start of Q3 with services growth mildly positive but manufacturing continuing to contract. In New Zealand shares are also little changed.
• In EM Asia most markets are lower with Singapore's Straits Times down 0.25%, Malaysia's KLCI down 0.43% & Indonesia's JCI down 0.20%.