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Equities Mostly Higher, Aus Equities Lower On Higher CPI

ASIA STOCKS
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Asian markets are mostly higher today, influenced by a rotation into value stocks and the ongoing sell-off in US tech shares. The MSCI Asia Pacific Index is fluctuating as investors await key economic data and assess the impact of global economic trends on regional markets. While sectors like banking and energy are seeing gains, technology shares are under pressure, reflecting broader market uncertainties and investor sentiment.

  • Japanese equities are mostly higher today with the Nikkei 225 index rising by 1.25%, bolstered by gains in chip-related stocks like Disco and Tokyo Electron. The Topix index has underperformed the Nikkei and trade up 0.35%, as automakers weighed down the gauge. Investors are adjusting portfolios at the end of June, with expectations of profit-taking as the Nikkei approaches 39,500. The BoJ is expected to raise interest rates in July and introduce quantitative tightening. This shift is in response to rising inflation risks and the need to adjust the current monetary policy.
  • South Korean stocks are slightly higher this morning, small-cap stocks are underperforming with the Kosdaq is little changed, while the Kospi is up 0.60%. This was attributed to weak starts from major tech and auto companies, including Samsung Electronics, which fell 0.87%, and SK Hynix, which gained 3.33% following Nvidia's positive performance. HSBC recently upgraded South Korean stocks to overweight, citing growth opportunities in the memory sector and the "Value-Up" program.
  • Taiwanese stocks experienced a rise in early trading, following gains in the tech sector and influenced by Nvidia’s rebound. Despite this, HSBC remains underweight on Taiwan, citing limited comfort in valuations after the AI-led rally. The overall market sentiment is cautious, reflecting global economic uncertainties and valuation concerns. The Taiex is up 0.26%.
  • Australian shares fell 0.85%, driven by concerns over the Fed’s interest rate stance and a faster-than-expected inflation reading in May. This inflation data supports the case for the Reserve Bank of Australia to resume raising interest rates. The Australian market is also reacting to global economic trends and local economic data, which together create a cautious investment environment.
  • Elsewhere, New Zealand equities are 0.56% higher, Indonesian equities are 0.57% higher today although HSBC downgraded stocks to neutral due to high interest rates, weak foreign exchange, and uncertainty around government policies amid potential cabinet changes, Singapore & Indian equities are little changed, Malaysian equities are 0.20% higher, Philippines are 0.16% lower.
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Asian markets are mostly higher today, influenced by a rotation into value stocks and the ongoing sell-off in US tech shares. The MSCI Asia Pacific Index is fluctuating as investors await key economic data and assess the impact of global economic trends on regional markets. While sectors like banking and energy are seeing gains, technology shares are under pressure, reflecting broader market uncertainties and investor sentiment.

  • Japanese equities are mostly higher today with the Nikkei 225 index rising by 1.25%, bolstered by gains in chip-related stocks like Disco and Tokyo Electron. The Topix index has underperformed the Nikkei and trade up 0.35%, as automakers weighed down the gauge. Investors are adjusting portfolios at the end of June, with expectations of profit-taking as the Nikkei approaches 39,500. The BoJ is expected to raise interest rates in July and introduce quantitative tightening. This shift is in response to rising inflation risks and the need to adjust the current monetary policy.
  • South Korean stocks are slightly higher this morning, small-cap stocks are underperforming with the Kosdaq is little changed, while the Kospi is up 0.60%. This was attributed to weak starts from major tech and auto companies, including Samsung Electronics, which fell 0.87%, and SK Hynix, which gained 3.33% following Nvidia's positive performance. HSBC recently upgraded South Korean stocks to overweight, citing growth opportunities in the memory sector and the "Value-Up" program.
  • Taiwanese stocks experienced a rise in early trading, following gains in the tech sector and influenced by Nvidia’s rebound. Despite this, HSBC remains underweight on Taiwan, citing limited comfort in valuations after the AI-led rally. The overall market sentiment is cautious, reflecting global economic uncertainties and valuation concerns. The Taiex is up 0.26%.
  • Australian shares fell 0.85%, driven by concerns over the Fed’s interest rate stance and a faster-than-expected inflation reading in May. This inflation data supports the case for the Reserve Bank of Australia to resume raising interest rates. The Australian market is also reacting to global economic trends and local economic data, which together create a cautious investment environment.
  • Elsewhere, New Zealand equities are 0.56% higher, Indonesian equities are 0.57% higher today although HSBC downgraded stocks to neutral due to high interest rates, weak foreign exchange, and uncertainty around government policies amid potential cabinet changes, Singapore & Indian equities are little changed, Malaysian equities are 0.20% higher, Philippines are 0.16% lower.