South Korean stocks, won lead Asian gains as AI trade rebounds

BENGALURU: South Korean stocks and the won led gains across Asian markets on Tuesday, as investors returned to AI-linked trades after a rally in US chipmakers and tech stocks, while Indonesian stocks and the rupiah fell a day ahead of a central bank rate decision.

South Korea’s KOSPI index gained as much as 2.3 percent to its highest since September 8, while the won appreciated as much as 1.6 percent to a one-week high.

Sentiment toward AI stocks improved after last week’s sharp selloff, with investors looking past recent industry warnings and focusing instead on signs of robust corporate AI spending, reinforcing expectations for sustained demand for advanced chips and computing infrastructure.

The rebound in US chipmakers and AI-linked heavyweights overnight, coupled with easing oil prices and lower Treasury yields, helped revive appetite for technology shares across Asia’s export-oriented markets.

Shares in Taiwan rose as much as 1.9 percent to a record high and logged their fifth straight session of gains.

Meanwhile, Indonesian stocks fell more than 1 percent, hitting their lowest since August 14.

The rupiah depreciated as much as 0.4 percent, hitting its lowest since August 7.

Outside Indonesia, Asian currencies were broadly firmer against the dollar. The Taiwan dollar gained 0.3 percent, while the Philippine peso and the Singapore dollar ticked higher.