BENGALURU: Emerging Asian stocks hit a multi-year peak on Tuesday as an AI-driven rally propelled shares in Taiwan to record high, while investors also watched for upcoming regional central banks’ decisions.
The MSCI index of Asian emerging market equities climbed 0.5 percent to its highest point since early March 2021.
Taiwan shares rose 1.7 percent, driven by chip giant TSMC.
Overnight, the S&P 500 and the Nasdaq hit record closing highs as semiconductor stocks gained after AMD said it would supply chips to OpenAI in a multi-year deal.
Benchmark indexes in Singapore and Indonesia reached all-time highs.
Meanwhile, trading volume in most emerging markets remained subdued as China and South Korea markets were closed for public holidays.
Currency trading was also tepid.
The MSCI index of emerging market currencies edged lower as the US dollar strengthened, helped in part by yen’s weakness.
The yen sank to a two-month low after fiscal and monetary dove Sanae Takaichi was elected leader of Japan’s ruling party.
Other regional currencies struggled for direction, with the Indonesian rupiah, the Malaysian ringgit and the Indian rupee largely flat.
The Thai baht fell as much as 0.5 percent to its lowest level in nearly six weeks. It has been on a depreciating path since authorities acted to contain its gains.
A stronger baht, seen as a tourism and export risk, along with a slowing economy is expected to prompt the Bank of Thailand (BOT) to trim its key policy rate on Wednesday.
Thailand’s annual headline inflation rate fell for a sixth straight month in September, and the commerce ministry has lowered its full-year forecast to 0 percent.
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