Equities Mixed, Stronger Yen Hurting Japanese Stocks

Asian equities are mixed this morning, Japanese stocks experienced sharp declines, driven by a stronger yen and a significant drop in real estate shares following the BoJ rate hike. In contrast, Australian equities rose, buoyed by gains in mining and real estate stocks and optimism over potential Federal Reserve rate cuts, while the market is no longer pricing in a chance of a hike by the RBA next month. South Korean & Taiwan equities are also both higher after semiconductor stocks surged higher in the US session.

• Japanese markets are under significant pressure this morning, with major benchmarks down about 3%. The declines are primarily attributed to a stronger yen, which is affecting exporters and reducing profit margins. Real estate shares have also taken a hit, plunging almost 7% following the BoJ's decision to raise its benchmark interest rate to 0.25%, financials are holding up well on the back of the decision with the Topix Bank Index steady. The Nikkei 225 is currently 2.80% lower, while the Topix is 3.20% lower.
• South Korean equities are off morning highs although still trading 0.25% higher. Samsung rallied on the open however has pared gains to trade 0.50% lower.
• Taiwan equities have gapped higher after the Philadelphia SE Semiconductor Index surged 7% during the US session, TSMC is currently 3% higher. Foreign investors continue to heavy sell local stocks with TSMC seeing $5.8b in net sales on July. Currently the Taiex is 1.80% higher.
• Australian equities have hit a new intraday record high, driven by gains in mining and real estate stocks, following the Fed signally potential rate cuts in September, while the AU OIS market no longer pricing in a chance of a hike up upcoming RBA meetings, the ASX 200 is 0.45% higher. New Zealand equities are 0.60% this morning.
• In EM Asia markets are mixed this morning with the Malaysian KLCI down 0.25%, Singapore's Straits Times down 0.50%, while the Philippines PSEi is 0.45% higher.