Emerging Asian stock markets rallied to multi-year highs on Thursday, with South Korea and Taiwan notching record peaks, as a fresh wave of artificial intelligence-fuelled optimism boosted risk appetite.
Chipmakers Samsung Electronics and SK Hynix soared following a deal to supply memory chips for OpenAI's data centres. The global race to build computing power has unleashed record orders for advanced semiconductors, keeping memory chip makers at the centre of the AI supply chain.
The MSCI EM Asia Index rose as much as 1.8% to its highest level since June 2021 and was on track for a fourth straight session of gains. A broader gauge of equities in Asia excluding Japan hit its strongest level since March 2021.
Taiwan's benchmark stock index jumped 2% to a record high of 26,489.79 in its third straight session of gains. Taiwan Semiconductor Manufacturing Co led the rally with a 3% rise.
Analysts at KGI Securities expect the index to test 26,400 on Thursday, noting that funds are rotating out of traditional sectors into technology plays.
In Seoul, equities advanced 3.2% to hit a fresh high as exports in September rose at their fastest pace in 14 months, smashing forecasts. The surge was powered by red-hot semiconductor demand tied to the global AI frenzy.
The upbeat sentiment spilled over to other markets in emerging Asia, with Singapore shares rallying 1.5% to a fresh high, reflecting underlying strength in big banks. DBS shares gained 1.8%.
Stocks in Malaysia gained 0.8% to their highest since early January, while those in Indonesia rose 0.8%.
Malaysian stocks continue to ride on bullish sentiment, once again supported by strength in banking giants, analysts at Maybank said in a note.
"The finance sector, in particular, has regained momentum, trading back above all its key moving averages for the first time since March 2025," they said.
Emerging Asian currencies struggled for direction, with sentiment weighed down by the U.S. government shutdown, which has delayed key jobs data and clouded the outlook for interest rates. U.S. data released overnight pointed to cracks in the labour market.
While softer jobs figures normally bolster bets for rate cuts and support equities, the government shutdown has muddied the policy outlook. The U.S. dollar regained some of its footing in Asia trade.
The South Korean won and Taiwan's dollar rose 0.1% and 0.2%, respectively. The Malaysian ringgit and Indonesia's rupiah were trading flat, while the Philippine peso edged lower.
HIGHLIGHTS
** Indonesian 10-year benchmark flat at 6.321%
** Thailand should prepare measures amid US shutdown concerns
** China and India markets closed for public holidays - Reuters
