Japan Outperformance Continues, Negative Trends Elsewhere

Outside of continued Japan equity outperformance, Asia Pac bourses are mostly in the red for Wednesday trade. The Nikkei 225 is +2% higher, fresh multi decade highs back to the early 1990s. US equity futures are close to flat. Eminis last near 4789, while Nasdaq futures sit at 16830.

• The Topix is also up +1.4% at the time of writing. A weaker yen, which has lost ground modestly against the USD today, is seen as aiding local benchmarks, particularly in parts of the machinery space.
• Note the weaker Nov labor earnings data as well, which printed earlier today. This may underpin a more dovish BoJ backdrop in the near term.
• Trends elsewhere are mostly negative. At the break, the HSI sits down 0.42%, while the CSI 300 is off 0.16%. Stimulus calls continue and may be delivered soon, per the latest piece from our China policy team (see this link), but this is yet to aid broader equity sentiment.
• The Kospi is off 0.6%, the Taiex down by 0.25% at this stage.
• In SEA, only the JCI in Indonesia is up, last around +0.70%. The index recouping some of the sharp losses seen in recent sessions.