Regional Asia Equities Head Higher On US Rate Cut Expectations

Asian equity markets are mostly higher today, following US markets higher as the latest US inflation data reinforced bets for Federal Reserve interest-rate cuts. Locally, Japan posted GDP numbers that were lower than expected coming in annualized at -2.0% q/q and Australia reported mixed employment data.

• Japanese equities are mixed today, tech shares gained after a slowdown in US inflation supported the sector globally, while USD weakness has helped strengthen the yen and now trades back under 154.00 however this move has hurt export names. The Topix is down 0.08%, while the Nikkei 225 is up 0.95%
• South Korean equities have returned from their break and with the Kospi trading about 1.2% higher although off morning highs, the moves are largely on the back of higher global tech prices following lower yields and expected rate cuts.
• Taiwan equities continue their strong run of late, with the Taiex trading up 0.65%. There hasn't been any local data out or major headlines recently, with the moves largely tracking global peers. Equity flows into Taiwan, have been strong recently with $1.65b of net flows over the past 5 trading sessions.
• Australian equities are trading near days best with the ASX200 up 1.87%, earlier we had a mixed employment print with slightly higher jobs growth at 38.5k (+23.7k forecast) although full time jobs fell to -6.1k, partially unwinding some of the prior months rise, part time job rose 44.6k and the unemployment rate rose more than expected to 4.1% 3.9% est.
• Elsewhere in SEA, New Zealand equities are up 1.75%, Indonesian equities are up 0.90%, Philippines equities are up 0.45%, Malaysian equities are up 0.50% and Singapore equities are 0.80% higher.