BENGALURU: Most emerging Asian equities climbed to multi-week highs and regional currencies strengthened on Wednesday as hopes of easing US-Iran tensions boosted risk appetite and kept oil prices below USD80 a barrel.
The MSCI emerging markets Asia equities index rose about 3 percent to a two-week high, while the EM currencies gauge gained 0.4 percent to an all-time high.
Crude futures steadied after a two-day slide, supported by hopes for a Middle East ceasefire and progress in discussions to reopen the Strait of Hormuz, a key global shipping route.
South Korea’s KOSPI surged as much as 5 percent, lifted by gains in chipmakers Samsung Electronics and SK Hynix after an overnight rally in US AI-linked stocks. Taiwan’s tech-heavy benchmark followed suit, jumping 3.4 percent.
Equities in Kuala Lumpur advanced as much as 1 percent to their highest point since mid-May and were on track for a sixth session of gains.
Bangkok shares climbed as much as 0.8 percent before trimming some gains. Thailand’s headline inflation rose less than expected in July, weighed by lower oil prices.
The Singapore bourse bucked the regional trend, falling as much as 0.8 percent to its lowest level in more than a week. The FTSE Straits Times index was on track for a fifth consecutive session of declines, moving further away from its record high of 5,713.19 reached on July 29.
In currency markets, the South Korean won, Taiwan dollar and Philippine peso, all sensitive to energy prices, strengthened modestly. The Indonesian rupiah moved back below the closely watched 18,000-per-dollar level and was last trading at 17,935 per US dollar.
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