Tech rout hits South Korea, Taiwan; Jakarta faces worst month in 18 years
SMH•South Korean and Taiwanese stocks fell as disappointing technology earnings accelerated a pullback in AI-linked shares, while Indonesia's benchmark was on track for an almost 18% monthly loss, its worst since October 2008.
1. Asian stocks retreat
South Korea's KOSPI fell 4.5% and Taiwan's benchmark declined 2.5%, dragging emerging Asia equities down 2.5%. Samsung Electronics fell 5.2% after reporting a 15-fold jump in quarterly chip profit but offering no fresh shareholder-return measures and an outlook that disappointed investors. SK Hynix fell 7.4% earlier in the day.
2. Jakarta heads lower
Indonesia's benchmark dropped more than 2% and was on course for a nearly 18% monthly loss, its worst performance since October 2008. A warning from MSCI that Indonesia could be removed from indexes tracked by investors prompted officials to announce support measures after the market's worst two-day selloff on record. The country's 10-year bond yield stood at 7.643%, near Thursday's six-year high of 7.707%.
3. Currencies and rates
The South Korean won rose to 1,336.23 per dollar and was on track for a fourth consecutive monthly gain. The Bank of Japan held interest rates steady and signalled scope to raise borrowing costs as soon as December.
