Emerging Asian equities rally after oil prices slide on peace deal hopes
SPY•Emerging Asian stocks rallied as oil prices fell after the United States said it would hold off on further strikes against Iran. South Korea’s KOSPI surged as much as 5%, Taiwan shares rose 3.5%, and SK Hynix gained 7%.
1. Stocks rebound
Emerging Asian stocks rallied on Tuesday, led by technology shares in South Korea and Taiwan, after lower oil prices revived risk appetite. The KOSPI surged 5%, while Taiwan shares rose 3.5%, extending their gains over two sessions to nearly 7%.
2. Chipmakers lead gains
Samsung Electronics rose more than 5% and SK Hynix gained 7%; TSMC also lifted Taiwan’s market. The decline in crude eased concerns about energy costs in the region’s import-dependent economies, after rising oil prices had fueled inflation and prompted central banks to tighten policy.
3. Investors await US data
Markets awaited US inflation data due later in the day. A stronger-than-expected reading could reinforce expectations that the Federal Reserve will raise interest rates again next month. The South Korean won weakened to 1,345.80 per dollar.
