Emerging Markets - Taiwan stocks lift emerging markets to 14-month high

Pedestrians walk past an electronic board showing a share price of the Nikkei index of the Tokyo Stock Exchange in Tokyo on Tuesday, April 9, 2024. - AFP

MANILA (Reuters): Emerging market stocks rose on Tuesday to their highest level in more than a year, as a rally in chipmaker TSMC lifted Taiwan stocks to their all-time high.

The MSCI index for emerging market stocks gained 0.5% by 0851 GMT, briefly touching a level not seen since January 2023.

Taiwan stocks hit a record high, led by a 4.6% jump in shares of TSMC after the world's largest contract chipmaker won a $6.6 billion subsidy for an Arizona production plant.

Among other Asian bourses, South Korean stocks ended lower on caution ahead of the country's elections on Wednesday to decide the make-up of its 300-strong National Assembly.

Currencies in emerging markets edged 0.1% higher against a subdued dollar as U.S. inflation data loomed this week.

"For this week, quite a few Asia markets are out. The lack of liquidity and perhaps CPI tomorrow, is keeping FX movements more subdued," said Alex Loo, macro and FX strategist at TD Securities.

"A big upside surprise on CPI could trigger a dollar rally."

Philippines and Indonesia markets were closed due to public holidays. Gulf markets and Egypt stock exchange will also be closed for the rest of the week for the Eid al-Fitr holidays and reopen on Sunday April 14.

Israel's shekel rose 0.3%, following its 1.8% jump against the dollar on Monday after the central bank held interest rates steady.

In Central and Eastern Europe, Poland's zloty ticked 0.2% higher against the euro, hovering near levels last seen in early 2020 as markets position for an expected inflow of European Union funds.

Markets were little moved by Poland's local government elections where nationalist opposition party Law and Justice (PiS) won the popular vote, according to final results on Monday.

The Russian rouble was slightly stronger against the U.S. dollar, while South Africa's rand rose 0.7%.

Elsewhere in emerging markets, El Salvador launched a tender offer for its external debt due from 2025 to 2029, President-elect Nayib Bukele said on Monday in a post on social media platform X.

The International Monetary Fund said its staff reached agreement with authorities from Ivory Coast on a review of two lending programs, which will pave the way for disbursement of $574 million, once approved by the IMF's executive board.

Bulgaria's President Rumen Radev appointed a caretaker government on led by Prime Minister Dimitar Glavchev, and set June 9 as the date for snap elections, the president's office said in a statement.

Pakistan's benchmark share index breached the key 70,000 level to touch an all-time high, its fourth consecutive session of hitting a record. - Reuters

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Emerging Markets , Asia , Stocks on a high


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