BENGALURU: Emerging Asian equities held firm near a five-year high in afternoon trading on Monday, led by records in Taiwan and South Korea, as investors piled into AI-linked assets while largely brushing off the US military action in Venezuela.
The MSCI index of emerging Asia equities rose about 2 percent to its highest since late February 2021 and a gauge of ASEAN stocks touched its highest level since January 30, 2020. A broader index of global EM equities extended gains into a seventh consecutive session, and was trading just a few points shy of its lifetime high touched earlier in the day.
Global markets shrugged off the US capture of Venezuelan President Nicolas Maduro and warnings of further strikes on Venezuela, as well as the threats of military action in Colombia and Mexico.
However, the geopolitical jolt has injected fresh risks into global financial markets, particularly oil, as Maduro’s capture could unlock Venezuela’s vast oil reserves and worsen a supply glut.
Vishnu Varathan, head of macro research for Asia ex-Japan at Mizuho Bank, said the sanctions on Venezuela and its heavy dependence on oil exports mean the impact of regime change through trade or investment channels is “limited and ring-fenced”.
In EM Asia, Taiwan’s benchmark index finished the day 2.6 percent higher at a record closing level of 30,105.04 points, driven by a 5.4 percent surge in TSMC, the world’s largest contract chipmaker.
South Korea’s KOSPI index shot up 3.4 percent to settle at its lifetime peak and highest closing level of 4,457.52 points.
Taiwan and South Korean equities were the top beneficiaries of the AI-trade in 2025 and are set to remain in favour as investors continue to ride AI optimism.
Stocks in Singapore and Indonesia also traded around their all-time highs, advancing 0.7 percent and 1 percent, respectively.
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