Japanese Equities Drop On Yen Rally, Asian Tech Stocks Higher

Asian equities are mixed today, with Japanese stocks experienced sharp declines, driven by a stronger yen and a significant drop in real estate shares following the BoJ rate hike. In contrast most other markets are trading higher with Australian equities led higher by gains in mining and real estate stocks and optimism over potential Federal Reserve rate cuts, while the market is no longer pricing in a chance of a hike by the RBA next month. South Korean & Taiwan equities are also both higher after semiconductor stocks surged higher in the US session.

• Japanese equities have been under significant selling pressure today, with major benchmarks down about 3%. The declines are primarily attributed to a stronger yen, which is affecting exporters and reducing profit margins. Real estate shares have also taken a hit, plunging almost 7% following the BoJ's decision to raise its benchmark interest rate to 0.25%, financials held up well for most of the day, before selling occuring in the second half of the session with the Topix Bank Index down 1.20%, the Nikkei 225 is currently 2.80% lower, while the Topix is 3.60% lower.
• South Korean equities are higher today largely tracking the rally in US tech stocks overnight, the KOSPI is 0.70% while, underperforming the small-cap KOSDAQ Index which is up 1.40%.
• Taiwan equities have gapped higher after the Philadelphia SE Semiconductor Index surged 7% during the US session, TSMC is currently 2.60% higher. Foreign investors continue to heavy sell local stocks with TSMC seeing $5.8b in net sales on July. Currently the Taiex is 1.95% higher.
• Australian equities have hit a new intraday record high, driven by gains in mining and real estate stocks, following the Fed signally potential rate cuts in September, while the AU OIS market no longer pricing in a chance of a hike up upcoming RBA meetings, the ASX 200 is 0.45% higher. New Zealand equities are 0.50% today.
• In EM Asia markets are mixed with the Malaysian KLCI down 0.10%, Singapore's Straits Times down 0.85%, while the Philippines PSEi is 0.45% higher, Indonesian JCI is up 0.70%, India's Nifty 50 up 0.70% while Thailand's SET is 0.60% higher.