Emerging Markets: EM stocks rise as South Korea tech rout reverses; FX edges up

SK Hynix

25/06/2026 11:06

South Africa's rand edges lower as gold prices extend losses
Micron-fueled U.S. chip rally lifts Asian peers
EM stocks gain 1.5%, FX inches up 0.1% 
By Ragini Mathur and Avinash  P

    June 25 (Reuters) - Emerging-market equities regained their footing on Thursday after two straight sessions of losses, as a chip-led rebound in South Korea helped revive risk appetite, while currencies edged higher against a subdued U.S. dollar.
MSCI's index of emerging-market equities .MSCIEF jumped 1.5% after sliding about 4% over the previous two sessions.
South Korea's benchmark KOSPI .KS11 was again in the spotlight as investors rushed back into the market. A historic rout in heavyweight technology shares earlier in the week had dragged the index down 10% in its steepest one-day fall in more than a year.
The KOSPI closed 5.4% higher on Thursday, with index heavyweight SK Hynix 000660.KS jumping 13%.
The rebound tracked a rally in U.S. chip stocks after Micron's MU.O earnings and outlook reinforced confidence in the memory-chip sector, with gains spilling over into Asian peers.
Sentiment was further supported after SK Hynix 000660.KS said it planned to raise up to $29.4 billion through a U.S. stock-market offering, in what would be among the biggest listings globally.
Elsewhere, South Africa's rand ZAR= edged 0.1% lower for a fourth straight session as gold, a key export for the country, extended losses.
Falling precious metals prices will continue to impact the rand, said Geoff Yu, EMEA macro strategist at BNY, but ruled out "aggressive underperformance".
"There are institutional factors that could prove beneficial, such as South Africa's inflation mandate and central bank resilience."
Traders were also awaiting South Africa's producer inflation data due later in the day.
Meanwhile, the U.S. dollar =USD edged lower on Thursday, easing some pressure on emerging-market currencies. The greenback was still headed for its sharpest monthly gain in almost a year, as traders bet a resilient U.S. economy would keep short-term interest rates elevated.
Tumbling oil prices offered further relief to investors, with crude — a key import for many emerging economies — extending declines to levels last seen before the start of the U.S.-Iran war.
The broader EM currency gauge .MIEM00000CUS inched 0.1% higher after five consecutive sessions of losses.
In central Europe, currencies were largely weaker against both the euro and the dollar, while regional equities gained.
Romania's equity benchmark .BETI hit a record high, rising 1.1%, while the leu RONEUR=R was subdued. 
The Hungarian forint HUFEUR=R depreciated 0.3%, extending its retreat from multi-month highs. Hungary's central bank cut interest rates earlier this week and flagged further easing in the coming months.
"The region has come through the energy shock relatively unscathed, and the recent fall in oil prices has improved the growth outlook in Central Europe," said analysts at Capital Economics. 
"...but central banks will follow diverging paths. We expect further rate hikes in Czechia but cuts in Hungary."


HIGHLIGHTS:

** Thai export growth slightly below forecast in May, shipments to China fall
** Moody's cuts Gabon's outlook to 'negative' on rising debt risk
** Brazil plans largest panda bond debut to 'test' waters


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For CENTRAL EUROPE market report, see CEE/
For TURKISH market report, see .IS
For RUSSIAN market report, see RU/RUB

 (Reporting by Ragini Mathur and Avinash P in Bengaluru; Editing by Joyjeet Das)
 ((Ragini.Mathur@thomsonreuters.com;))