South Korea leads gains as chip sentiment improves
Seoul's benchmark, the focal point of Asia's AI-led rally, closed 3.6% higher at its strongest level in about three weeks and was set to close nearly 9% higher this week, helping end a seven-week losing streak.
It has risen for all four sessions this week as investors returned to Asian chipmakers after softer U.S. jobs data reduced concerns over further interest-rate hikes and encouraging signals emerged from AI cloud firm CoreWeave and Super Micro Computer.
The companies announced larger investment plans and optimistic revenue forecasts, easing concerns that had triggered a sharp selloff in July.
Asian currencies and stocks mixed after U.S. inflation data
Asian currencies were subdued and stocks were mixed on Thursday after an in-line U.S. inflation report offered little impetus to regional markets, although traders trimmed expectations of a near-term Federal Reserve rate increase.
The MSCI index of EM currencies was little changed. The Taiwan dollar rose 0.2%, bucking broader weakness, while the Philippine peso and Malaysian ringgit each fell 0.2%.
The South Korean won slipped 0.1%, with the Indonesian rupiah, Singapore dollar and Thai baht also marginally weaker.
Data showed U.S. consumer prices rose 0.1% in July, in line with expectations. Fed funds futures were pricing in a 40% chance of a rate increase in September, down from 54% a week earlier, according to CME Group's FedWatch tool.
"The CPI print was reassuring, but not soft enough to change the Fed's outlook materially," said Glenn Yin, director of research at ACCM.
"For markets, that leaves the dollar relatively well-supported and limits the upside for EM currencies, particularly while U.S. yields remain elevated."
The dollar held broadly steady after the inflation data, with the index little changed at 99.976.
Regional equities mostly firmer, with Indonesia weaker on MSCI decision
Asian equities found more support, with MSCI's broadest index of Asia-Pacific shares outside Japan rising 1% to a nearly one-month high.
Indonesian stocks dropped 1.2%, while investors assessed MSCI's decision to remove ride-hailing firm GoTo Gojek Tokopedia from its Indonesia index at the end of August.
The removal has added to near-term market caution, said Andrey Wijaya, head of research at RHB Indonesia, although he doesn't think it reflects a "broader weakening in the fundamentals of Indonesia's equity market."
"The immediate impact is likely to be largely company-specific, particularly for GoTo."
The stock did not react to the news, last seen at 50 rupiah a share - the minimum trading price on the exchange's main trading board.
Elsewhere, Philippine equities fell 1.1%, Malaysian shares lost 0.3% and Singapore's Straits Times Index slipped 0.2%. Thai stocks rose 0.3%.
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