Equities Track US Markets Higher, Yen Above 161.00, US PCE Later

Asian markets are higher today. Tokyo stocks opened higher, with the Nikkei and Topix indices gaining on the back of Wall Street rallies, despite concerns about the yen's recent weakness, after breaking above 161.00. In South Korean equities edged up slightly, although major tech stocks like Samsung Electronics declined. Meanwhile, Australian shares rose, supported by gains in banks and real estate stocks. There have been some concerns in the region surround the poor results from Nike, with the Taiwan based Feng Tay falling. Investors are closely monitoring the upcoming US inflation data and its potential impact on Federal Reserve policies.

• In Japan, the Nikkei 225, up 75% and the broader Topix index up 0.71% are both trading well with the Topix approaching multi-decade highs. The market was buoyed by expectations of a stronger economic recovery, supported by recent industrial output data showing a significant increase. Financial stocks are leading the rally, boosted by optimism around potential Bank of Japan interest rate hikes. The yen's depreciation is also a factor, while investors await US inflation data for global market cues and potential currency impacts.
• South Korean stocks, opened slightly higher amidst anticipation of the US Federal Reserve's inflation data. The index saw modest gains, driven by strength in financial shares like KB Financial Group and Shinhan Financial Group. However, market bellwethers Samsung Electronics and SK hynix experienced minor declines. Investors are closely monitoring US economic indicators for insights into the Fed's future monetary policy, influencing market sentiment in Seoul. The Kospi is 0.30% higher, while the Kosdaq is up 0.26%.
• Taiwanese equities have tracked global markets higher, TSMC the largest contributor to index moves is little changed. Concerns over Nike Inc.'s sales outlook are affecting its suppliers' stocks in Asia, including Taiwan-based companies like Feng Tay wich is down about 3%. On Monday we have Taiwan Mfg PMI, with CPI to come on Friday. The Taiex is up 0.80%.
• Australian shares opened higher, tracking gains in US markets and driven by strength in financial and real estate sectors. The S&P/ASX 200 index is 0.33% higher, supported by positive investor sentiment and expectations of favorable economic data. Market participants are focusing on upcoming US inflation figures and domestic economic indicators to gauge future monetary policy and market stability.
• Elsewhere, New Zealand equities are closed for a public Holiday, FTSE Straits is down 0.25%, Thai SET down 0.65%, Nifty 50 is 0.46% higher, FTSE Malay up 0.20%, PSEi up 0.60% & the JCI is up 1.30%