Japan Stocks Back To Pre-December BoJ Levels

Regional equity markets are tracking higher, although a lot of markets are still closed for the LNY break. Japan markets have led the way, with the Nikkei 225 up 1.70% at this stage. Tech and semiconductor names have led the rally. This follows the 5% surge in the SOX during Monday's US session.

• Tech optimism is being buoyed by hopes of reduced Fed hawkishness. Underperformance in this sector followed the move higher in US real yields last year.
• The Nikkei is now back around levels that prevailed prior to the mid Dec BoJ meeting, last near 27355.
• Elsewhere, the ASX 200 is tracking modestly higher, up 0.43% at this stage. Thai stocks are also up, while Indian equities are +0.20% in the first part of trade.
• Only Indonesian equities are weaker, down 0.36% at this stage, with markets returning after yesterday's holiday.
• US equity futures are down a touch (-0.05/-0.10% at this stage), but have tracked a tight range through the session.