Emerging Asian equities rally after oil prices slide on peace deal hopes
QQQ•Emerging Asian stocks rallied on Tuesday as oil prices fell on hopes for a peace deal, with South Korea's KOSPI up 5% and Taiwan's market up 3.5%. Samsung Electronics rose more than 5%, SK Hynix gained 7%, and the won weakened to 1,345.80 per dollar.
1. Asian stocks rebound
Emerging Asian stocks rallied on Tuesday, led by technology shares in South Korea and Taiwan, after oil prices fell sharply following news that the United States would hold off on further strikes against Iran. South Korea's KOSPI surged 5%, while Taiwan shares rose 3.5%, extending gains for a second session and bringing their two-day advance to nearly 7%.
2. Chipmakers lead gains
Samsung Electronics jumped more than 5%, SK Hynix soared 7%, and TSMC lifted Taiwan's market. The decline in crude eased concerns about energy costs in import-dependent Asian economies, after the conflict-driven oil rally had raised prices from fuel to food and prompted central banks to tighten policy.
3. Investors await inflation data
Markets awaited U.S. inflation data due later in the day; a stronger-than-expected reading could reinforce expectations of another Federal Reserve rate increase next month. The South Korean won weakened to 1,345.80 per dollar, while Singapore, Indonesia and Thailand stocks also advanced.
