MXAPJ fell 0.4%, weighed by foreign outflows and weaker Asian FX amid hawkish Fed and dovish BOJ rate hikes; North Asia and Tech broadly outperformed

MXAPJ fell 0.4%, with Taiwan (+2%) outperforming, while Korea, China, and Hong Kong were broadly flat, and Philippines (-5%) and other ASEAN markets (-1% to -2%) lagged. Health Care, Tech Hardware & Semis, and Consumer Retail led, while Capital Goods, Energy, and Internet/Media underperformed. EM Asia ex-China recorded US$7.4bn of outflows, driven primarily by Korea (-US$6.5bn). Oil prices declined as concerns over potential Saudi supply disruptions eased. On monetary policy, the FOMC delivered a widely expected 25bp hike, with the SEP dot plot indicating one additional 25bp increase by year-end. The BOJ also raised rates by 25bp as expected, and signaled further tightening ahead. Taiwan's CBC left rates unchanged. On the macro front, US core retail sales were well above expectations. In China, the divergence between strong supply and weak demand persisted: industrial production beat expectations on resilient exports and stronger output growth, while FAI, retail sales, and credit growt