EMERGING MARKETS-South Korea, Taiwan lead declines among Asian stocks on renewed AI concerns
Taiwan central bank to keep rates steady - poll
South Korean stocks decline nearly 2%
Emerging Asian currencies largely steady
By John Biju
Dec 18 (Reuters) - South Korean and Taiwan equities led losses among Asian markets on Thursday, as investors exited technology stocks on concerns over whether extravagant AI-related spending and investments would translate into sustainable profits.
An MSCI index of emerging Asian equities .MIMS00000PUS declined 0.6% and hovered around a three-week low hit on Tuesday. Stocks in South Korea .KS11 and Taiwan .TWII, which make up 40% of the index, dipped 2% and 0.6%, respectively.
Chipmaker Samsung Electronics 005930.KS fell 2%, while battery maker LG Energy Solution 373220.KS tumbled 7.8%.
Taiwan Semiconductor Manufacturing 2330.TW, the world's biggest contract chipmaker, declined 0.4%.
Taiwan's central bank is set to decide on its monetary policy later in the day. Economists surveyed by Reuters expect the central bank to maintain its policy stance citing the strong performance of the economy, which is booming on AI demand.
In Southeast Asia, equities in the Philippines .PSI slipped 0.4%, while those in Singapore .STI retreated 0.2%.
"Although emerging market equities are, in some places, very heavily exposed to the AI boom, we think they would in aggregate hold up better than those in the U.S. if that boom continued to unwind," Thomas Mathews, head of markets, Asia Pacific at Capital Economics, said in a note.
However, he said if concerns about AI became a panic, Asian equities would probably still be hit hard, even where AI exposure was not high.
Indonesian equities .JKSE slipped, while the rupiah IDR= declined to its weakest point since November 21. The currency has fallen more than 3% this year, making it one of the worst performers in the region.
Bank Indonesia on Wednesday kept its policy rate unchanged for a third straight meeting, focusing on maintaining the stability of the currency.
"Policymakers continue to count on transmission to ease financial conditions," Radhika Rao, DBS Bank senior economist, said.
"While the central bank is likely to retain its dovish language, we expect ammunition to be preserved in light of firmer momentum in domestic activity towards late 2025."
In Thailand, equities .SETI fell for a third straight session, while the baht THB=TH seemed to be facing resistance around 31.47 per dollar after strengthening more than 3% since mid-November.
The Bank of Thailand cut interest rates by 25 basis points on Wednesday to support a slowing economy hit by multiple challenges including a strong baht THB=TH.
The baht has firmed about 9% against the dollar this year, which is not favourable for the tourism and export-reliant economy.
On Thursday, the central bank chief said they were proposing the finance ministry to control gold trade in the country, a major gold trading hub.
HIGHLIGHTS:
** Thai economy facing multiple issues, central bank chief says
** US approves $11.1 billion arms package for Taiwan, largest ever
** Japan's premier says country must pursue proactive spending for growth
Asia stock indexes and currencies at 0341 GMT | ||||||
COUNTRY | FX RIC | FX DAILY % | FX YTD % | INDEX | STOCKS DAILY % | STOCKS YTD % |
Japan | JPY= | -0.05 | +0.92 | .N225 | -1.02 | 22.84 |
China | CNY=CFXS | +0.03 | +3.65 | .SSEC | 0.15 | 15.64 |
India | INR=IN | +0.06 | -5.22 | .NSEI | 0.00 | 9.19 |
Indonesia | IDR= | -0.21 | -3.74 | .JKSE | -0.04 | 22.52 |
Malaysia | MYR= | +0.00 | +9.35 | .KLSE | -0.06 | -0.12 |
Philippines | PHP= | +0.10 | -0.89 | .PSI | -0.38 | -7.24 |
S.Korea | KRW=KFTC | -0.20 | -0.35 | .KS11 | -1.85 | 65.93 |
Singapore | SGD= | -0.12 | +5.66 | .STI | -0.22 | 20.54 |
Taiwan | TWD=TP | -0.06 | +3.92 | .TWII | -0.39 | 19.03 |
Thailand | THB=TH | -0.11 | +8.94 | .SETI | -0.02 | -10.25 |
Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
Asian stock markets https://tmsnrt.rs/2zpUAr4
(Reporting by John Biju in Bengaluru; Editing by Subhranshu Sahu)
Taiwan central bank to keep rates steady - poll
South Korean stocks decline nearly 2%
Emerging Asian currencies largely steady
By John Biju
Dec 18 (Reuters) - South Korean and Taiwan equities led losses among Asian markets on Thursday, as investors exited technology stocks on concerns over whether extravagant AI-related spending and investments would translate into sustainable profits.
An MSCI index of emerging Asian equities .MIMS00000PUS declined 0.6% and hovered around a three-week low hit on Tuesday. Stocks in South Korea .KS11 and Taiwan .TWII, which make up 40% of the index, dipped 2% and 0.6%, respectively.
Chipmaker Samsung Electronics 005930.KS fell 2%, while battery maker LG Energy Solution 373220.KS tumbled 7.8%.
Taiwan Semiconductor Manufacturing 2330.TW, the world's biggest contract chipmaker, declined 0.4%.
Taiwan's central bank is set to decide on its monetary policy later in the day. Economists surveyed by Reuters expect the central bank to maintain its policy stance citing the strong performance of the economy, which is booming on AI demand.
In Southeast Asia, equities in the Philippines .PSI slipped 0.4%, while those in Singapore .STI retreated 0.2%.
"Although emerging market equities are, in some places, very heavily exposed to the AI boom, we think they would in aggregate hold up better than those in the U.S. if that boom continued to unwind," Thomas Mathews, head of markets, Asia Pacific at Capital Economics, said in a note.
However, he said if concerns about AI became a panic, Asian equities would probably still be hit hard, even where AI exposure was not high.
Indonesian equities .JKSE slipped, while the rupiah IDR= declined to its weakest point since November 21. The currency has fallen more than 3% this year, making it one of the worst performers in the region.
Bank Indonesia on Wednesday kept its policy rate unchanged for a third straight meeting, focusing on maintaining the stability of the currency.
"Policymakers continue to count on transmission to ease financial conditions," Radhika Rao, DBS Bank senior economist, said.
"While the central bank is likely to retain its dovish language, we expect ammunition to be preserved in light of firmer momentum in domestic activity towards late 2025."
In Thailand, equities .SETI fell for a third straight session, while the baht THB=TH seemed to be facing resistance around 31.47 per dollar after strengthening more than 3% since mid-November.
The Bank of Thailand cut interest rates by 25 basis points on Wednesday to support a slowing economy hit by multiple challenges including a strong baht THB=TH.
The baht has firmed about 9% against the dollar this year, which is not favourable for the tourism and export-reliant economy.
On Thursday, the central bank chief said they were proposing the finance ministry to control gold trade in the country, a major gold trading hub.
HIGHLIGHTS:
** Thai economy facing multiple issues, central bank chief says
** US approves $11.1 billion arms package for Taiwan, largest ever
** Japan's premier says country must pursue proactive spending for growth
Asia stock indexes and currencies at 0341 GMT | ||||||
COUNTRY | FX RIC | FX DAILY % | FX YTD % | INDEX | STOCKS DAILY % | STOCKS YTD % |
Japan | JPY= | -0.05 | +0.92 | .N225 | -1.02 | 22.84 |
China | CNY=CFXS | +0.03 | +3.65 | .SSEC | 0.15 | 15.64 |
India | INR=IN | +0.06 | -5.22 | .NSEI | 0.00 | 9.19 |
Indonesia | IDR= | -0.21 | -3.74 | .JKSE | -0.04 | 22.52 |
Malaysia | MYR= | +0.00 | +9.35 | .KLSE | -0.06 | -0.12 |
Philippines | PHP= | +0.10 | -0.89 | .PSI | -0.38 | -7.24 |
S.Korea | KRW=KFTC | -0.20 | -0.35 | .KS11 | -1.85 | 65.93 |
Singapore | SGD= | -0.12 | +5.66 | .STI | -0.22 | 20.54 |
Taiwan | TWD=TP | -0.06 | +3.92 | .TWII | -0.39 | 19.03 |
Thailand | THB=TH | -0.11 | +8.94 | .SETI | -0.02 | -10.25 |
Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
Asian stock markets https://tmsnrt.rs/2zpUAr4
(Reporting by John Biju in Bengaluru; Editing by Subhranshu Sahu)
This article originally appeared on reuters.com