Emerging Markets: Asian stocks climb as Micron earnings drive AI optimism, KOSPI surges

Samsung Electronics Co

Today 09:29

KOSPI closes 5.4% higher
Philippine peso set for seventh decline in eight sessions
Thai baht snaps six sessions of declines
SK Hynix hits record high on U.S. listing plan
Updates for afternoon trade
By Rajasik Mukherjee

    June 25 (Reuters) - 
    South Korean shares surged sharply on Thursday on upbeat results from Micron Technology and SK Hynix's plan for a U.S. listing, while Indonesian stocks and the rupiah advanced a day after MSCI deferred its decision on Indonesian equities until November.

    South Korea's KOSPI index .KS11, Asia's biggest beneficiary of the AI rally climbed 5.4% by the close. 
  
The KOSPI index has rebounded nearly 8% in its last two sessions, following Tuesday's 10% drop, underscoring the tug-of-war between investor anxiety around rising interest rates and stretched valuations and opportunistic dip-buying in Korean tech shares.
Nvidia supplier SK Hynix <000660.KS> rose as much as 15.8% to hit a record high on Thursday, after Micron Technology's MU.O upbeat quarterly results set off a chipmaker rally.
The South Korean firm, which is the world's most valuable memory chipmaker, said on Wednesday it aims to raise up to $29.4 billion through a U.S. listing, in what would be among the biggest listings globally.

    "Micron's earnings have provided fresh reassurance that the AI investment cycle remains firmly intact," said Daniela Hathorn, senior market analyst at capital.com.
  
Elsewhere, Taiwan's benchmark gauge .TWII rose as much as 1.6%, before paring somewhat to close around 0.5% higher. Thailand's stock index .SETI rose over 1% a day after its central bank kept its policy rate steady, while revising upward its economic growth forecasts.
Indonesian equities .JKSE rose more than 2%, on course to snap a three-day losing streak, while stocks in Manila .PSI traded in the green.
The dollar =USD was heading toward its sharpest monthly gain in almost a year, as traders bet a strong U.S. economy would prop up short-term interest rates, putting pressure on emerging Asian currencies.
"Asian currencies are weakening mainly on a stronger U.S. dollar, supported by elevated U.S. yields and still-solid U.S. data, which is keeping rate differentials wide and weighing on EM FX," said Ruben Carlo Asuncion, chief economist at Union Bank of the Philippines.
Philippine peso PHP= led losses, declining 0.6%. The currency was set to weaken for the seventh time in the last eight sessions.
The South Korean won KRW=KFTC and Indonesian rupiah traded largely flat, while the Thai baht THB=TH eked out marginal gains, snapping a six-session streak of declines. 
"The recent THB weakness came from relatively strong levels amid still-robust external position, which could support tourism and ease financial conditions for smaller exporters," said Chua Han Teng, Senior Economist at DBS.
The Malaysian ringgit MYR= and the Indian rupee went against the tide to trade higher, rising 0.5% and 0.3%, respectively. 
     
HIGHLIGHTS:    
** Indonesia weighs $2 billion cut to Prabowo's signature free meals programme
** Bears loosen grip on rupiah, rupee on lower oil prices, policy support: Reuters poll
** Malaysia's foreign minister says new Myanmar leadership 'more open' to suggestions

    ** Two major earthquakes strike 
    Venezuela
    , killing at least 32 and injuring hundreds
  
     
     
     
Asia stock indexes and currencies at 0737 GMT

            
              COUNTRY
            
          

            
              FX RIC
            
          

            
              FX DAILY %
            
          

            
              FX YTD %
            
          

            
              INDEX
            
          

            
              STOCKS DAILY %
            
          

            
              STOCKS YTD %
            
          
Japan
JPY=
-0.03
-3.19
.N225

            4.61
          

            43.76
          
China
CNY=CFXS
+0.08
+2.70
.SSEC
0.23
3.82
India
INR=IN
+0.27
-4.81
.NSEI
0.70
-7.42
Indonesia
IDR=
-0.03
-7.03
.JKSE
2.02
-30.58
Malaysia
MYR=
+0.53
-1.39
.KLSE
-0.62
-0.50
Philippines
PHP=
-0.47
-3.87
.PSI
1.33
0.30
S.Korea
KRW=KFTC
+0.01
-6.68
.KS11
5.42
111.91
Singapore
SGD=
-0.03
-0.89
.STI
0.18
12.46
Taiwan
TWD=TP
-0.33
-1.32
.TWII
0.46
59.70
Thailand
THB=TH
+0.09
-5.77
.SETI
0.66
23.72

     

Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
Asian stock markets https://tmsnrt.rs/2zpUAr4
 (Reporting by Rajasik Mukherjee in Bengaluru; Editing by Harikrishnan Nair and Ronojoy Mazumdar)
 ((Rajasik.Mukherjee@thomsonreuters.com))