Singapore’s benchmark stock index climbed to an all-time high on Tuesday, while South Korean shares inched towards record levels, following the U.S. Senate's approval of a deal to end the country’s longest ever government shutdown.
Singapore's FTSE Straits Times index rose as much as 1.4% to a record 4,552.05 points, driven by a more than 1% rally in top lenders DBS, OCBC, and United Overseas Bank.
The MSCI ASEAN equity index also climbed to a near five-week high in its fifth consecutive day of gains. Emerging Asian markets have gained as progress towards the end of the U.S. government shutdown revived a rally that stalled last week amid concerns the AI boom was pushing equity valuations too high.
Asian equities followed the move higher in U.S. stocks overnight, said Lloyd Chan, senior currency analyst at MUFG in Singapore.
"With the end of the U.S. government shutdown nearing, that will solve the data uncertainty and help lift investor sentiment."
Chan struck a cautious note, though, warning that there could be some near-term resistance following the technical rebound in U.S. equities. Stocks in Seoul stayed in the green, just a few pips shy of their lifetime highs hit on November 4.
South Korea's KOSPI index gained nearly 0.8%. The country is a major beneficiary of global AI-related investments.
Taiwan shares on the other hand, reversed early gains to decline 0.3% to 27,784.95 points, slipping below the 28,000-point mark it first crossed on October 27.
The South Korean won meanwhile eased as much as 0.7% to 1,467.50 against the U.S. dollar, its weakest since early April.
Malaysian stocks advanced as much as 1% as well, to their highest level in over a month. Investors await the country's third-quarter economic growth data at the end of the week.
Elsewhere in Southeast Asia, Philippine stocks bucked the trend, extending a recent run of declines to fall as much as 1.6% to an over five-year low, while the peso edged marginally lower.
Equities in Jakarta reversed early gains to fall around 0.3%, with the Indonesian rupiah weakening by a similar margin.
HIGHLIGHTS:
** Trump's deal with South Korea bogged down in details over submarine
** Thailand to halt implementation of ceasefire deal with Cambodia, will inform Washington
** China ready to resume exchanges and cooperate with Canada, foreign minister says - Reuters
