Asian stocks: South Korean shares touch a record high, Taiwan shares climb

BENGALURU: Seoul hits Equities in emerging Asian markets were tentative on Wednesday as investors pulled back from heavyweight AI stocks, although South Korean shares touched a record high on the back of gains in auto and battery makers.

The MSCI gauge of Asian emerging stocks slipped 0.3 percent, but shares in Seoul rose as much as 1.4percent to a fresh high after dipping more than 5percent earlier this week.

The benchmark KOSPI was helped by automakers Hyundai Motor and Kia Corp and battery maker LG Energy Solution offsetting losses in chipmakers Samsung Electronics and SK Hynix.

Worries about artificial intelligence creating more competition for software makers triggered a sell-off on Wall Street overnight.

“The rebound in Asian markets is a lot stronger compared to the sell-off in US equity markets overnight. This could be largely due to the fact that Asian markets are not as AI- or tech-heavy as compared to US markets,” said Isaac Lim, chief markets strategist at online trading platform Moomoo.

“Additionally, a quick rotation into industries such as financials and industrials helped to pare some of the losses from the previous sessions.”

Tech-heavy Taiwan shares climbed 0.4percent in a second session of gains after losing 3.6percent in the three sessions till Monday. Financials and industrial stocks were among the major gainers, while top contract chipmaker TSMC slipped 0.6percent.

Singapore stocks climbed as much as 0.3percent to a record level before paring gains. The rise was helped by gains in consumer and industrial stocks.

Thailand shares rose 0.6percent, Philippines equities inched 0.2percent higher, while Indonesia’s Jakarta Composite index dipped 0.7percent, shedding more than 3percent so far this week after last week’s nearly 7percent decline.

Limiting losses, PT Barito Pacific and PT Chandra Asri Pacific climbed 5.1percent and 2.7percent, respectively, after announcing market buybacks amid a market rout.

Asian currencies were largely subdued, with the Thai baht gaining the most with a 0.4percent rise ahead of the country’s general election on February 8.

The South Korean won pared losses after the country’s vice welfare minister said she hopes the National Pension Service will start issuing foreign-currency bonds by the end of the year.

In India, the rupee slipped 0.1percent, relinquishing some of the previous session’s gains made after a trade deal that cut US tariffs on Indian goods to 18percent from 50percent.