[MARKET ANALYSIS] Asia-Pac equities follow on from the gains seen stateside, with many indices reaching new ATHs

The strong performance of Asia-Pac equities today can be seen as a continuation of positive sentiment from U.S.

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[MARKET ANALYSIS] Asia-Pac equities follow on from the gains seen stateside, with many indices reaching new ATHs

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  • Asia-Pac stocks follow on from Monday’s gains, with equities entirely in the green.
  • ASX 200 started the session on the front foot, +0.4%, before extending on gains and currently trading just shy of session highs at 8835. With spot XAU trading near ATHs, this has aided sectors such as metals and mining (2.0%) to continue Monday’s gains.
  • Nikkei 225 returned from its long weekend with a gap higher, resulting in the index opening with gains as much as 3.7% and forming new ATHs. This comes amid a weaker JPY and growing speculation of PM Takaichi dissolving parliament. Japanese media noted that the LDP was looking to capitalise on Takaichi's high approval ratings.
  • KOSPI opened Tuesday’s trade at ATHs and oscillated at highs before peaking at 4681 and slightly paring back, but remains comfortably in the green.
  • Hang Seng and Shanghai Comp. opened in line with the broader sentiment, with the former surging higher, aided by gains in Gigadevice (3986 HK) +53%. The latter is the laggard across Asia-Pacific equities, trading with slight gains of 0.2%.
  • US equity futures continue to pullback from ATHs, with losses led by big-tech (NQ -0.4%) while S&P 500 futures return to 7000.
  • European equity futures are indicative of a positive open with the Euro Stoxx 50 future +0.3% after cash closed +0.3 on Monday.
Context

markets, evident as many indices, including the Nikkei 225 and ASX 200, are reaching all-time highs (ATHs). This uptrend is bolstered by a weaker Japanese yen and favorable conditions in sectors like metals and mining, indicating robust risk appetite. Traders should consider how this momentum might influence European markets as they prepare for a positive open.

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