AI-driven tech rally lifts Taiwan and South Korea stocks as Asian currencies retreat
SMH•Taiwan’s benchmark index rose 1.6% and South Korea’s KOSPI gained nearly 7% as technology shares rallied, while regional currencies weakened against a firmer U.S. dollar. SK Hynix shares jumped 11% after a stronger-than-expected sevenfold profit increase and a 100-trillion-won shareholder return plan through 2026.
1. Tech shares lead gains
Equity markets in Taiwan and South Korea advanced on Wednesday, lifting MSCI’s emerging Asia equities index more than 2.4%. SK Hynix rose 11% after reporting a stronger-than-expected sevenfold jump in profit and outlining a 100-trillion-won ($75.41 billion) shareholder return plan through 2026. Taiwan’s benchmark index gained 1.6%, helped by a 1.3% rise in TSMC.
2. Currencies weaken
Regional currencies retreated as the U.S. dollar edged higher. The South Korean won weakened to 1,339.70 per dollar, the Philippine peso hovered near an all-time low, and the rupiah fell as low as 18,185 per dollar, near its record low. Indonesian equities fell 1.6%; MSCI’s potential reclassification of Indonesia to standalone market status has unsettled investors.
3. Policy decisions in focus
Investors awaited the Bank of Thailand’s policy decision, with the central bank widely expected to keep its key rate unchanged. Thailand’s baht was flat and stocks lost 0.3% ahead of the announcement. The Federal Reserve was also widely expected to hold interest rates steady.
