Equities Surge Higher, Topix At 34 Year Highs

Asian markets are higher today, driven by favorable economic data from the US that bolstered the case for potential Federal Reserve rate cuts. A regional equities gauge rose for the fifth consecutive session, with Japan’s Topix reaching a record intraday high and gains seen in South Korea and Australia. The USD/JPY gapped lower on the back of US data overnight, although has erased about half the moves to trade back at 161.50, which has help support Japanese export names. The positive sentiment followed the S&P 500 and Nasdaq setting new highs in a shortened trading session before the July 4th Holiday.

• Japanese equities are higher today with the Topix surging to its highest level in over 34, surpassing the peak recorded during the bubble economy in 1989, driven by broad-based buying momentum across almost all industry sub-indexes, with automakers, insurers, and banks leading the gains. The Nikkei 225 Stock Average also climbed above 40,000, with Semiconductor and high-tech stocks leading the gains, following positive trends from the US markets. Overall, Japanese stocks are on a bullish trajectory amid favorable economic conditions and supportive monetary policies. The Topix is currently 0.85% higher, while the Nikkei is trading 0.80% higher.
• South Korean stock market has rallied to its highest levels since early 2022, buoyed by strong gains in tech and automotive sectors. Positive sentiment from US markets, fueled by expectations of Federal Reserve rate cuts, contributed to the rally. Samsung Electronics have surged higher ahead of the company reporting results. The Kospi is up 0.82%, while the Kosdaq is up 0.50%
• Taiwanese equities are higher today, most of the gains can be attributed to TSMC up 2.66% & Hon Hai up 5.40%. The S&P 500 hit new all time highs overnight, while the Philadelphia Semiconductor Index rose 1.92%, the Taiex is currently trading 1.40%.
• Australian equities are higher today, led by gains in mining and energy shares following strong performances in US markets. Key contributors included BHP Group and Arcadium Lithium. Economic data showed a narrowing trade surplus in May, with mixed results in export and import figures. The ASX200 is 1.10% higher.
• Elsewhere, New Zealand equities are 0.18% lower, Singapore equity are 0.50% higher, Indonesian equities are 0.62% higher, Philippines equities are 0.90% higher, India is 0.45% higher and finally Malaysian equities are up 0.15%