Emerging Markets: Asian stocks lose steam after chip rout

Samsung Electronics

14/10/2026 08:37

.
EM Asia stocks index up 0.2%
SK Hynix turns red, down 1.7%
Monetary Authority of Singapore stuns with policy hold
Taiwan dollar on 5-day losing streak
By Nikita Maria Jino
Oct 14 (Reuters) - Emerging Asian equities surrendered some gains in afternoon trading on Wednesday amid lingering concerns around the durability of the AI rally and competition from Chinese rivals to Korean chipmakers.
Regional chipmakers struggled to find a footing after a global semiconductor selloff, as investors evaluated the impact of higher bond yields on hefty AI-related spending as reports about technological advances by China's CXMT 688825.SS called into question Seoul's competitive edge in memory chips.
South Korea's benchmark equity gauge .KS11 erased early gains to end the day 0.4% in the red, its sixth consecutive session of losses. Samsung Electronics 005930.KS ended flat, while SK Hynix 000660.KS fell 1.7%. The KOSPI has shed around 35% since its June record high.
"The next phase of AI investing could become more selective. Investors may increasingly distinguish between companies benefiting from a temporary supply-demand imbalance and those with more defensible technology, customer relationships and long-term pricing power," said James Ooi, chief market strategist at Tiger Brokers.    
Taiwan stocks .TWII held on to gains to close up 0.6%, after a 2% slump in the previous session. TSMC 2330.TW ended unchanged ahead of its earnings on Thursday, where the world's largest contract chipmaker is expected to post a sixth consecutive quarter of record profit.
Singapore shares .STI held steady, while its dollar SGD= edged lower, after the city-state's central bank kept its monetary settings unchanged in a surprise move.
MSCI's EM Asian equities index .MIMS00000PUS was up 0.2% after advancing 1.3% earlier in the day. 
On the currency front, the Taiwan dollar TWD=TP depreciated by 0.2%, losing nearly 1.5% over five sessions to trade near mid-August lows.
Weakness in the currency could persist in the near-term if Treasury yields and the US dollar index remain elevated alongside foreign investors continuing to reduce exposure to Taiwanese equities, said Lukman Leong, chief analyst at brokerage Doo Financial Futures.
Leong attributed the recent declines to broad dollar strength, rising geopolitical tensions and high oil prices, in addition to heavy foreign selling of Taiwan stocks.
The South Korean won KRW= appreciated 0.2% after notching a two-year peak on Monday. The Indian rupee INR=IN hit a one-month high of 95.06 per US dollar, bolstered by hawkish remarks from the central bank chief and pledges of ensuring currency stability following a series of support measures. INR/
The MSCI EM currencies gauge .MIEM00000CUS edged 0.2% higher in Asian trade.
Traders await US consumer price index data due later in the day for cues on the Federal Reserve's interest rate outlook. MKTS/GLOB


HIGHLIGHTS:    
** Singapore economy grows 5.4% year-on-year in third quarter, preliminary data shows
** China's September exports soar, putting $1 trillion trade surplus in sight
** Thailand central bank chief says no need for rate cut now

Asia stock indexes and currencies at 0630 GMT




COUNTRY
FX RIC
FX DAILY %
FX YTD %
INDEX
STOCKS DAILY %
STOCKS YTD %
Japan
JPY=
-0.01
-1.04
.N225
-0.05
34.58
China
CNY=CFXS
+0.01
+4.42
.SSEC
-0.67
-4.87
India
INR=IN
+0.27
-5.42
.NSEI
-0.08
-13.12
Indonesia
IDR=
-0.06
-6.85
.JKSE
0.82
-30.91
Malaysia
MYR=
+0.10
-0.59
.KLSE
0.37
-3.02
Philippines
PHP=
-0.05
-6.30
.PSI
-1.03
-6.78
S.Korea
KRW=
+0.22
+7.58
.KS11
-0.44
42.58
Singapore
SGD=
-0.12
+0.36
.STI
-0.12
16.74
Taiwan
TWD=TP
-0.22
-2.23
.TWII
0.59
67.89
Thailand
THB=TH
-0.02
-6.25
.SETI
-0.10
24.65

 (Reporting by Nikita Maria Jino in Bengaluru; Editing by Sherry Jacob-Phillips)
 ((Nikita.Jino@thomsonreuters.com;))