BENGALURU: Asian markets held on to gains on Wednesday, though the early relief faded across much of the region, as investors weighed a Wall Street Journal report that said the International Energy Agency has proposed to launch its largest-ever oil stock release.
The MSCI emerging markets stocks index rose 1.2 percent, extending Tuesday’s rebound, while the EM currency index
was little changed after its near-1 percent jump in the previous session.
The prospect of a record release of oil from IEA member nations’ strategic reserves, first reported by the WSJ, offered some reassurance that policymakers could move to soften the energy shock.
Oil prices eased modestly following the report, while currencies and bonds showed a more restrained reaction.
Trump has repeatedly threatened to hit Iran hard over any move to choke energy flows through the Strait of Hormuz, the route through which nearly a fifth of global oil and liquefied natural gas moves, leaving Asia’s import-reliant economies particularly exposed to prolonged disruption.
Taiwan’s benchmark led regional gains, rising 4.1 percent to a near one-week high, while South Korea pared some earlier advances to trade 1.4 percent higher.
Sharp rebounds in heavyweight chip stocks underpinned the move, with Samsung Electronics and SK Hynix rising 2.5 percent and 3 percent, respectively.
Taiwan Semiconductor Manufacturing Co jumped more than 5 percent and was on course for its best session since early January.
Gains were more measured elsewhere. Thailand rose 1.3 percent, the Philippines was up 0.5 percent after trimming its morning advance, and Malaysia added 0.3 percent.
China edged up 0.3 percent. Singapore slipped 0.1 percent, Jakarta fell 0.4 percent and India’s dropped 1 percent.
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