BENGALURU: South Korean shares hit a record on Thursday on strong chip demand tied to global AI expansion, while Singapore stocks crossed 5,000 for the first time as investors rotated into diversified non-tech plays in Asia.
The MSCI index of emerging Asian equities rose about 0.7 percent to a fresh peak, led by South Korea’s KOSPI, which gained 3 percent to a record.
Chipmakers Samsung Electronics and SK Hynix jumped 6.4 percent and 3.3 percent, lifting the benchmark for a fourth straight session. “AI enthusiasm is clearly back in the driver’s seat for Asian chipmakers, with memory pricing firming and capex pipelines still expanding,” said Glenn Yin, director of research at brokerage firm ACCM.
Singapore’s FTSE Straits Times index also advanced 0.7 percent to a record 5,021.27, breaching the psychologically important 5,000-point level for the first time, helped by consumer and financial stocks.
Eugene Koh, sales trader at CMC Markets Singapore, said the Singapore rally was largely due to the banking sector, with DBS, OCBC, and UOB near record highs.
Along with the strong financial sector, structural policy reforms, initiatives to improve market structure, and a strong currency have supported foreign returns and confidence in Singapore as a stable regional banking hub, Koh said.
The Singapore dollar has appreciated nearly 2 percent this year so far, but was flat on the day, ahead of the outcome of the fiscal 2026 budget. Elsewhere, Thailand’s benchmark index maintained its election-driven rally to rise 1.9 percent, sitting near its highest level since mid-December 2024.
Investor confidence has perked up following Prime Minister Anutin Charnvirakul’s big surprise win in Sunday’s election, raising the prospects of political stability and new policies to deliver growth.
On the other hand, Indonesia equities declined 0.7 percent, snapping three sessions of gains.