BENGALURU: South Korean equities extended their rise for a third consecutive session on Thursday following a week of volatility stoked by political instability, while shares in Taiwan climbed after Chinese military presence eased in its vicinity.
South Korea’s KOSPI rallied as much as 1.9% late in the session to its highest level in a week. Shares had tanked after President Yoon Suk Yeol declared martial law earlier this month, leading to a political crisis and public protests.
The index was trading at levels seen before the brief martial law declaration last week while the Korean won was largely flat during the session.
The won is the worst-performing Asian currency this year, having depreciated over 10% so far.
The MSCI’s gauge of Asian emerging market equities, in which South Korea and Taiwan have over one-third weightage, rose 1% on Thursday.
Taipei shares closed 0.6% higher after a turbulent two days, in which the island contended with increased presence of Chinese military units.
The island-state’s defence ministry said it has detected fewer Chinese military aircraft than previously reported.
Globally, investors have fully locked in a 25-basis-point rate cut by the US Federal Reserve next week after November inflation figures came in line with market expectations.
Markets are pricing in a nearly 99% chance of a quarter point cut, compared with 86% before the data, according CME’s FedWatch tool.
Elsewhere, Philippine stocks reversed earlier losses to climb 0.3% amid concerns about political stability, while the peso was up 0.2%.
“Tensions between President Marcos Jr. and Vice President Sara Duterte in the backdrop of the midterm elections, slated on May 12, 2025, may dampen investor sentiments and in return growth, but continuity in economic policies is anticipated to be the buffer,” Maybank analysts said.
Equities in China gained 0.7% while the yuan was flat.
The spot yuan depreciated 0.2% on Wednesday in the wake of a Reuters report that said China was considering allowing a weaker yuan to weather tariff risks from the incoming Donald Trump administration in the US
MSCI’s emerging market currency index was largely flat, with the Thai baht up 0.2% and Indonesian rupiah down 0.1%.
The Jakarta stock index fell 0.8% after four straight sessions of gains with Bank Central Asia as the worst performer with a decline of 1.7%.
The benchmark has gained nearly 5% this month so far.
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