BENGALURU: Indonesian shares reached a record high, while most emerging Asian bourses gained on Monday on hopes of a US rate cut in December, though advances were capped by policymakers’ split views and fears of an overstretched AI-led rally.
The MSCI emerging Asia stock index rose 0.6 percent, rebounding from Friday’s 3 percent drop. Indonesia’s benchmark index rose as much as 1 percent to its record level.
Local ride-hailing firm GoTo advanced around 2 percent after announcing the resignation of its executive chief and nomination of the replacement.
Taiwan shares climbed 0.3 percent while stocks in Thailand rose 0.2 percent.
Top US Federal Reserve official John Williams on Friday said rates could fall “in the near term”, raising market bets for a cut in December.
Fed funds futures now point to a 57 percent chance that the US central bank will cut by 25 basis points next month, up from less than a 30 percent chance a week ago.
Other officials, such as Fed Boston President Susan Collins, remain apprehensive about cutting interest rates in December.
Meanwhile, shares in Seoul reversed course to slip 0.2 percent as investors remained concerned about a persistent weakness in the South Korean won.
The won depreciated 0.3 percent for the day after having declined around 9.6 percent from its strongest level so far this year in June.
Persistent fears of overvaluation in the AI sector had prompted a pullback in tech-heavy Asian indexes such as South Korea’s, which rely heavily on the growing demand for semiconductor chips while a 43-day government shutdown in the United States also lowered investors’ risk appetite.
“If some of the above investor concerns continue to weigh on US equities and risk sentiment, we think Asia stocks will also be vulnerable,” said Chetan Seth, a financial analyst at Nomura.
Stocks in Singapore added 0.6 percent, while its currency was largely unchanged after October inflation figures came in higher than anticipated.
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