BENGALURU: Equity markets in emerging Asia drifted lower on Wednesday as oil prices rose on worries of energy supply disruptions in the Middle East, although the broader regional stocks gauge advanced on the back of chip stocks in South Korea and Taiwan.
Investors are keenly awaiting Bank Indonesia’s monetary policy meeting, where a fourth consecutive interest rate hike is widely predicted as the central bank prioritises stabilising a weak rupiah.
The MSCI EM Asia equities index advanced more than 2 percent to a one-week high, largely propelled by South Korean semiconductor manufacturers SK Hynix and Samsung Electronics which occupy around 18 percent weight in the gauge.
SK Hynix soared as much as 9 percent, while Samsung added over 6 percent, pushing the benchmark KOSPI index more than 6 percent higher in early trading.
Taiwan’s benchmark gauge also advanced around 1.7 percent, largely driven by Foxconn, the world’s largest contract electronics maker and top iPhone assembler, which added as much as 5.3 percent.
Meanwhile, oil prices extended gains, with Brent crude futures last trading around USD92 a barrel as fears of further supply disruptions intensified after US forces struck Iranian military targets for the 11th straight night.
Indonesia’s stocks advanced in early trading but drifted lower by noon. The index would snap a nine-session winning streak, if the trend holds. The rupiah weakened to 17,930 ahead of the central bank decision.
Malaysia’s benchmark gauge logged its third straight session of losses, while Thai equities snapped a five-day winning streak.
Currencies in EM Asia were mostly muted, with the Thai baht slipping to 33.845 against the dollar, its lowest level since mid-April last year.
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