BENGALURU: Asian currencies gained on Wednesday as US efforts to reach a peace deal with Iran eased investor caution and fanned a chip rally, which bumped up Samsung to the USD1 trillion club and drove South Korean shares to an all-time high.
Samsung Electronics soared 14.4 percent to become the second Asian company after Taiwan’s TSMC to hit that milestone, as investors shifted focus towards positive tech earnings that signal continued demand for chips to power data centers that form a part of big tech’s massive capital expenditure plans.
The world’s second largest memory chipmaker SK Hynix also lifted South Korea’s shares, with the benchmark index ending up 6.5 percent at its highest closing level. The index has advanced nearly 12 percent in May alone, bringing 2026 gains to over 75 percent, and markets believe there to be more room for the chip rally to advance.
CW Chung, co-head of APAC equity research at Nomura, said that Samsung continues to trade at “very low multiples” due to cyclical stock discounts, and sees more room for the KOSPI to advance on re-rating of chip stocks, which make up nearly half of the benchmark.
Taiwan stocks also followed suit, ending up 0.9 percent to their highest close.
Oil prices slipped, easing some pressure off Asian currencies that have been battered by the crisis, as higher oil import bills have fueled inflation and growth concerns. The conflict has driven Thailand and Philippines’ annual inflation to three-year highs.
“The announcements have soothed markets again providing hope that all sides would keep working in the direction of achieving peace,” Maybank analysts said in a note.
The South Korean won gained to 1,476.50, reaching its strongest level since February 27.
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