BENGALURU: South Korean and Taiwanese stocks ended the week higher on Friday, beating other emerging Asian markets, as bargain hunters bought after steep losses over the prior two weeks.
Renewed interest in artificial intelligence-linked stocks helped South Korea’s KOSPI post a 5.4 percent weekly gain after losing about 12 percent over the prior two weeks. Benchmark indexes in Singapore and Thailand were also set to end the week up 0.9 percent to 2 percent.
Persistent Middle East hostilities kept oil prices elevated through the week, pressuring risk assets in emerging Asia, where most economies are net energy importers vulnerable to supply-chain disruption and pass-through inflation.
“Investors in Asia local markets should brace for heightened volatility and potential further downside in the near term,” wrote Jennifer Kusuma, senior rates strategist at ANZ.
“While we maintain that Asia is better positioned to weather higher oil prices compared to 2022, a prolonged supply chain and inflationary shock encompassing energy, food and freight would materially raise stagflation risks across the region.”
Most equity benchmarks moved cautiously on Friday as oil prices eased on signs of support from major European countries and Japan for safeguarding shipping through the Strait of Hormuz.
Shares in South Korea closed up 0.3 percent, while Taiwan erased early gains to end 0.4 percent lower, pulling the MSCI EM Asia index down 0.5 percent. Stocks in Singapore and the Philippines also fell 0.6 percent each.
Markets in Malaysia were closed for a late-scheduled local holiday, while Indonesian markets are shut until March 24 for local holidays.
Comments