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Equities Mixed Ahead Of US Data, Samsung's Earnings Beat Estimates

ASIA STOCKS

Asian equities were mixed, with gains in Taiwan and South Korea offset by a selloff in Japanese, Australia and China equities, leading the MSCI Asia Pacific Index to fall 0.2%. Japan's Topix Index ended a five-day winning streak due to a stronger yen, while Hong Kong and Singapore shares also traded lower. South Korean equities were higher after the current account balance swung to a surplus, while Samsung rallied after beating earnings estimates. Investor attention is now on the US nonfarm payrolls data, which could influence the Federal Reserve's rate decisions. Additionally, weaker-than-expected Japanese household spending raises doubts about a potential July rate hike by the BoJ

  • Japanese equities initially opened higher with markets hitting new highs, although we have since traded off to trade lower in the region. The strengthening yen has negatively impacted export names. Japanese Finance Minister Suzuki has been out earlier mentioning he will be watching financial moves closing, and referenced stocks for the first time in recent memory. The Topix is trading 0.44% lower, while the Nikkei is down 0.15%
  • South Korean stock market has rallied again today, after Samsung reported earnings which beat estimates, while the May current account balance swung to $8.92b surplus. The Kospi is up 1.30%, while the Kosdaq is up 0.90%
  • Taiwanese equities are a touch higher today while TSMC trades unchanged. There have been little in the way of headlines in the region today, with focus turning to CPI which is due out a bit later.
  • Australian equities are slightly lower today dragged down by weakness in mining and financials stocks. The ASX200 is currently on track for a 0.70% weekly gain. Investors focus will now turn to the US jobs data due Friday for clues on Federal Reserve rate cuts.
  • Elsewhere, New Zealand equities are 0.15% higher, Indonesian equities continue their move higher and now trade up 2.10% for the week, Philippines are trading 0.45% higher while Indian equities are 0.30% lower, Singapore equities are 0.70% lower and Malaysian equities are 0.14% lower.

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