North East Asia Stocks Outperform On Tech Optimism

Regional stock markets are mostly higher, led again by Japan bourses. North East Asia markets have mostly outperformed South East Asia, as tech sentiment continues to drive gains. US futures sit close to flat after a positive Wednesday session.

• Japan's Topix is up over 1%, with the index now tracking higher for 5 straight sessions. Tech sentiment has again been positive. Micron will reportedly start making advanced chips in Japan with the aid of government subsidies. This is expected to boost local supplies, while Japan PM Kishida met the heads of other tech firms from South Korea and Taiwan, hence there is scope for further partnership/investments. Sony is also tracking higher after it was reported the company is considering spinning off its financial unit.
• In Taiwan, the Taiex is up a further 1%, with the index back to June 2022 levels (above 16000). Again, semiconductors are leading the move higher. Positive spill over from Japan news is helping, along with optimism around the demand outlook. The Kospi is +0.65%, with offshore investors adding a further $167.7mn to local shares.
• The HSI is also higher +1.1%, with the underlying tech index +1.73%. This comes despite weaker Tencent trends, after a disappointing earnings update. Alibaba reports later today. Mainland China shares are higher, but up a more subdued +0.38% for the CSI 300 at this stage. SoE firms are doing better on the back of strong ETF demand.
• In SEA, Thai stocks are performing the strongest, up near 0.9%, although who the next PM will be remains uncertain at this stage.