Regional Asian Equities Mixed, Japanese Equities Gain On Weaker Yen

Asian markets are experiencing a mixed trading session today. The MSCI Asia Pacific Index is down by as much as 0.6%, marking its third consecutive day of losses. The decline is led by drops in tech shares, with notable decreases seen in companies like TSMC, Tencent, and SK Hynix. Japanese stocks fluctuated within a tight range as automakers benefited from a weaker yen while chip-related stocks declined following a selloff led by Nvidia in the US. Investors are eagerly awaiting key US inflation data later this week, which could provide further insights into the Federal Reserve's monetary policy direction. Geopolitical concerns, including the upcoming US presidential debate and the French election, are also contributing to cautious trading sentiment across Asian markets.

• Japanese stocks are higher this morning with the Topix up 0.80% & Nikkei up 0.63%. The weaker yen has help exporter, the yen hovered around 159.89 per dollar, nearing the intervention levels seen earlier this year. Japan's top currency official reiterated the readiness to intervene if necessary, maintaining pressure on the yen's depreciation.
• South Korean equities are 0.85% lower this morning, as investors remained cautious ahead of key US data and corporate earnings. Samsung Electronics was flat, while SK hynix declined by 2.56%. Hyundai Motor and Kia pulled back by 0.18% and 0.23%, respectively. Battery shares also started in negative territory. On the other hand, steel giant POSCO Holdings gained 0.55%, and leading chemical producer LG Chem rose by 0.28%. The calendar is empty in the region today.
• The Taiex is 1.75% lower today, led by declines in semiconductor stocks. TSMC decreased by 2.3%, contributing the most to the index decline. Min Aik Precision Industrial Co. had the largest drop, falling by 5.7%. Later today we have unemployment and industrial production data due out.
• In Australia, the S&P/ASX 200 is 0.75% lower as investors await inflation reading later in the week that could influence the Reserve Bank of Australia's monetary policy. Australia's 10-year real yields rose by 1.8 basis points to 1.87%. The upcoming inflation data is expected to show an acceleration in annual inflation, which may present a policy challenge for the Reserve Bank of Australia, given the need to balance inflation control with economic growth.
• Elsewhere, New Zealand equities are 0.48% lower, Singapore equities are 0.05% lower, Malaysia are 0.05% lower, India is 0.30% lower while Indonesia up 0.15% and Philippines equities up 0.55%.