EMERGING MARKETS — Asian stocks recover from chip — led selloff; Singapore steady after MAS pause
EM Asia stocks index up 1.3% Samsung, SK Hynix gain more than 1% Monetary Authority of Singapore stuns with policy hold Taiwan dollar on 5-day losing streak By Nikita Maria Jino Oct 14 (Reuters) — Emerging Asian equities rose on Wednesday from a recent chip-driven selloff, as investors weighed competitive pressures in the semiconductor sector and prospects for AI-related spending, while Singapore shares held firm after a surprise monetary policy hold. MSCI's broad index of EM Asian equities advanced 1.3% after the benchmark closed 2.6% lower on Tuesday. South Korea's KOSPI clawed back from a 5.5% drop in the previous session, rising as much as 2.6% earlier in the day. Shares of chipmakers Samsung Electronics and SK Hynix advanced 2.4% and 1.4%, respectively, after hitting multi-week lows on Tuesday. Regional chipmakers steadied on Wednesday after a global semiconductor selloff as investors weighed the impact of higher bond yields on AI-related spending and reports of technological advances by China's CXMT, which have called into question South Korea's competitive edge in memory chips. "Korean retail investors are reducing margin loans rather than buying the dip. For much of this ye
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3% Samsung, SK Hynix gain more than 1% Monetary Authority of Singapore stuns with policy hold Taiwan dollar on 5-day losing streak By Nikita Maria Jino Oct 14 (Reuters) — Emerging Asian equities rose on Wednesday from a recent chip-driven selloff, as investors weighed competitive pressures in the semiconductor sector and prospects for AI-related spending, while Singapore shares held firm after a surprise monetary policy hold. 6% lower on Tuesday. 6% earlier in the day. 4%, respectively, after hitting multi-week lows on Tuesday.
Regional chipmakers steadied on Wednesday after a global semiconductor selloff as investors weighed the impact of higher bond yields on AI-related spending and reports of technological advances by China's CXMT, which have called into question South Korea's competitive edge in memory chips. "Korean retail investors are reducing margin loans rather than buying the dip. For much of this year, retail traders have been a relatively steady source of buying support on pullbacks," said Dilin Wu, research strategist at Pepperstone.
Downward pressure for the KOSPI could persist in the near term, depending on a meaningful stabilisation of the broader US AI trade and clearer evidence of the durability of high bandwidth memory (HBM) demand, Wu said. The KOSPI has shed nearly 35% since its June record high. Retail investors were among the hardest hit during a selloff in July, when the index fell about 20%, dragged down by losses in highly leveraged single-stock ETFs. 5% after a 2% slump in the previous session.
2% gain in TSMC ahead of the world's largest contract chipmaker's earnings report on Thursday, where it is expected to post a sixth consecutive quarter of record profit. In Southeast Asia, Singapore stocks were flat after the central bank unexpectedly left its monetary settings unchanged. 1% drop last week following a bank selloff. A strong US dollar and elevated Treasury yields are overshadowing the impact of MAS's policy decision, especially when the index has already taken a hit from an entirely separate catalyst, Wu said.
3% after notching a two-year peak on Monday. 9575 per US dollar. Traders told Reuters that the Reserve Bank of India likely intervened in the foreign exchange market to support the currency's recent recovery from near record lows. 4% in its fifth session of declines.
2% higher in Asian trade. com;)