EM Asia equities rally after oil prices slide on peace deal hopes
SPY•Emerging Asian stocks rallied as oil prices fell on hopes for a peace deal, with South Korea’s KOSPI surging as much as 5% and Taiwan shares rising 3.5%. Samsung Electronics jumped more than 5%, while SK Hynix gained 7%.
1. Regional stocks rise
Emerging Asian stocks rallied on Tuesday, led by technology shares in South Korea and Taiwan, after oil prices fell sharply and revived risk appetite. The KOSPI surged as much as 5%, while Taiwan shares rose 3.5%, extending gains for a second session and advancing nearly 7% over two days.
2. Chipmakers lead gains
Samsung Electronics jumped more than 5%, SK Hynix soared 7%, and TSMC lifted the Taipei market. Singapore and Indonesian stocks each climbed 1.7%, while Thailand’s benchmark added 1.3%. The South Korean won weakened to 1,345.80 per dollar.
3. Oil and rate outlook
The oil decline followed President Donald Trump’s statement that he would hold off on new military strikes against Iran. Lower crude eased concerns about energy costs in import-dependent Asian economies. Investors awaited US inflation data, with a stronger-than-expected reading likely to reinforce expectations of another Federal Reserve rate increase next month.
