BENGALURU: Asian chipmakers surged on Friday and broader equities rallied, as risk appetite returned on hopes that a Middle East peace deal may finally materialise, while Indonesia’s rupiah was set to log its first weekly gains in nearly three months.
Currencies of energy importers that have come under pressure from a prolonged period of elevated oil prices tracked higher against the US dollar as oil prices hit a two-month low, the greenback tumbled, and 10-year Treasury yields slid.
South Korea’s won appreciated 0.6 percent to 1,521.8 and the Indian rupee jumped 0.4 percent to 95.41 a dollar.
Equities, particularly the AI-heavy gauges in South Korea and Taiwan, soared on the hopes of a Middle East peace deal after US President Donald Trump said a deal could be signed as soon as this weekend.
South Korea’s KOSPI closed 4.6 percent higher on the day, but ended the week in the red due to sharp losses earlier in the week. Chipmaker Samsung Electronics gained nearly 8 percent and SK Hynix added more than 2 percent on the day.
Taiwan’s stocks also advanced 2.4 percent on the day, although they were on track to end the week about 2 percent in the red.
In Indonesia, stocks resumed a rally sparked by the central bank’s off-cycle rate hike on Tuesday, boosting major lenders. The benchmark gauge advanced 3 percent, on track to add over 8 percent for the week.
Bank Central Asia and Bank Negara Indonesia gained more than 2 percent each on Friday and were set for bumper weekly gains.
The rupiah also resumed its relief rally, strengthening to as much as 17,840 per dollar. It was last trading at 17,860, clocking its first weekly gain since late March.