BENGALURU: Shares in Indonesia and Singapore advanced and were on course to outperform their Asian peers this week, as investors focussed on AI spending and valuation concerns while an upswing in crude prices dented regional risk appetite.
MSCI’s gauge of ASEAN equities jumped 6 percent to its highest in more than five months. Singapore makes up more than half of the index, while Indonesia accounts for around 8 percent.
The Jakarta Composite index rose as much as 1 percent to a two-week high and was on track for its sixth straight weekly gain.
Singapore equities advanced 1.1 percent to a one-week peak, with major lenders DBS Group and Oversea-Chinese Banking Corp hitting record highs. The FTSE Straits Times index was headed for a 1.2 percent weekly rise, also its sixth straight week in the green.
The banks, alongside smaller peer United Overseas Bank, account for about 32 percent of Singapore’s benchmark.
Other markets in emerging Asia were on the back foot as crude rose amid rising concerns over the reopening of the crucial Strait of Hormuz.
Stocks in Thailand fell as much as 0.5 percent before clawing back some losses, while Malaysian shares ticked 0.3 percent lower.
South Korea’s KOSPI reversed early gains to close down 0.6 percent, while shares in Taiwan swung between gains and losses to finally settle 0.4 percent lower.
For the week, Seoul was down 5.1 percent, while Taipei eked out a 2.3 percent gain, as investor concerns about the durability of hefty AI capital expenditures persisted.
MSCI’s EM Asia equities index, with its heavy exposure to South Korea and Taiwan, slipped 0.2 percent to stay on course for a 1.1 percent weekly decline.
Regional currencies were steady.
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