Japan Stocks Sink, South Korea Does Better In Holiday Affected Markets

Japan stocks are off sharply, the Topix down by nearly 1.9%, as global recession fears edge higher. Moves elsewhere have been more muted though, with South Korean stocks outperforming. Note also lighter liquidity with China and Hong Kong markets closed today for local holidays. US futures are close to flat presently.

• Japan stocks have been weighed by Toyota, which has contributed the most to lower index levels, while the electric appliances sector is also weaker. Such sectors are exposed to global demand, with softer US data outcomes raising recession fears in recent sessions. The firmer yen backdrop could also be weighing at the margins.
• In contrast such fears haven't weighed on South Korean shares, the Kospi is +0.55% higher, with the Kosdaq +1.35%. Samsung SDI has rallied strongly. The company will reportedly invest $3.1bn in advanced OLED panels, which has likely helped local sentiment. Offshore investors are still sellers of local equities (-$80.6mn so far today).
• Moves are more muted elsewhere. Indian shares are playing catch up after onshore markets were shut yesterday. The Nifty +0.50%. Philippines shares are higher, +0.55%, after the CPI miss gave hope the BSP can turn less hawkish.
• Australian shares are close to flat, while NZ shares are down 0.55%, as the RBNZ surprised with a +50bps hike.