South Korean and Taiwanese equities climbed to record highs on Monday, driven by a rally in AI-related equities, as investors awaited U.S. President Donald Trump's decision on a proposal to extend the ceasefire with Iran.
MSCI's EM Asia equities gauge advanced nearly 2% to an all-time high, buoyed by a 4.5% jump in South Korea's KOSPI and a 1.7% rise in Taiwan stocks.
The two tech-heavy markets account for about 40% of the MSCI index. Seoul shares surged to a record high, driven by a near 10% jump in index heavyweight Samsung Electronics and a 2.2% rise in rival SK Hynix.
Investors were optimistic that the much-anticipated meetings between Nvidia CEO Jensen Huang and South Korean executives could potentially lead to tie-ups in AI and robotics.
Meanwhile, TSMC shares gained more than 1.5%. Andrew Sheets, a strategist at Morgan Stanley, called 2026 a very "macro" year, with the AI buildout and the Strait of Hormuz dominating global newsflow, pulling at nearly every asset class, and helping explain unusually high stock-bond correlations.
However, Sheets said Asia presents a compelling investment case, as the region is undergoing a broad industrial super-cycle that is much larger than just the semiconductor industry.
Oil prices rose more than 2% in early trading on Monday after Israel ordered troops to move further into Lebanon in the battle with the Iranian-backed Hezbollah militant group, despite a ceasefire announced more than six weeks ago.
Philippine shares rose 1.3%, helped by a more than 5% gain in International Container Terminal. The benchmark stock index was up after three straight sessions of falls to a six-month low on Friday.
The dollar index held steady, pressuring regional currencies. The South Korean won depreciated to 1,516.5 per dollar and the Philippine peso edged closer to its record low of 61.753. The Indian rupee appreciated marginally to 94.91 a dollar in early trade.
Markets were closed in Indonesia, Malaysia, Thailand and Singapore for public holidays.
HIGHLIGHTS:
** Gas leak at SK Hynix chip factory injures six people, Yonhap reports
** US proposes new plan to ease Israel-Lebanon tensions amid fighting
** Philippines, Vietnam elevate ties to enhanced strategic partnership - Reuters
