BENGALURU: Most emerging Asian equities rose on Wednesday, with Taiwan, Indonesia, and South Korea hitting all-time highs, while currencies were flat as US inflation data supported expectations of a Federal Reserve rate hold later this month.
The MSCI EM Asia equity index and a broader global EM equities index both touched lifetime highs in the session, rising as much as 0.6 percent and 0.5 percent, respectively.
Global central bankers and Wall Street executives backed Fed Chair Jerome Powell after the Trump administration threatened a criminal indictment, underscoring the Fed’s global importance.
South Korea’s KOSPI index and Taiwan’s benchmark index climbed record peaks, rising as much as 0.5 percent and 0.9 percent, respectively, as artificial intelligence-linked assets held onto continued strong demand.
The rally in both the tech-heavy benchmarks is consistent with broader global tech trends, reflecting a bias toward growth investing in Asia, said Kenneth Tang, senior portfolio manager at Amova Asset Management.
“The ongoing global AI race is a significant driver of this rally, with Taiwan and South Korea taking leading roles in the semiconductor supply chain, particularly in memory.” Elsewhere, China reported a robust 2025 export run and a record trade surplus of nearly USD1.2 trillion.
Meanwhile, Singapore equities slipped from record highs touched on Tuesday, declining 0.1 percent, which Glenn Yin, director of research at ACCM, attributed to potential profit-taking after several record sessions.
Stocks in Jakarta also logged a record high, crossing the key 9,000 mark for the second time since last week.