Singapore equities gain on DBS record profit; other Asian markets retreat

Equities in the region have attracted investor interest recently following a sell-off in AI and chip-related stocks in South Korea and Taiwan, prompting investors to cut their exposure following an unprecedented rally earlier in the year.

The MSCI ASEAN index has gained 8% since June-end, outperforming broader EM Asia, which is down about 4%, led by Indonesia's 13% rise.

"When we look at Singapore and Indonesia specifically, both countries carry less of the semiconductor and AI-linked exposure that's largely been responsible for the rally we have seen this year," said Zavier Wong, a market analyst at eToro.

Investors seeking profits without leaving the region are naturally rotating into the two markets, he added.

Meanwhile, Indonesian President Prabowo Subianto will move quickly to appoint a new central bank governor, and interim head Destry Damayanti is the frontrunner for the role, a source with knowledge of the matter told Reuters.