Asian Stocks Hit One-Week Highs on Chip Rally and BOJ Hike
Asian emerging market equities surged as semiconductor stocks led gains, while the Bank of Japan lifted rates to a 31-year peak.
The MSCI Emerging Asia equities index rose by as much as 1.7 percent on Friday. This marked a one-week high for the benchmark. Chip-heavy markets in South Korea and Taiwan drove the bulk of the advance.
South Korea’s KOSPI index climbed 2.8 percent to a new one-week peak. Taiwan’s TAIEX index gained 1.7 percent during the session. Both markets tracked overnight strength in US semiconductor peers.
Semiconductor gains drive regional equity rally
Samsung Electronics shares advanced by 3.6 percent in Seoul trading. SK Hynix stock rose by 6.1 percent during the session. TSMC shares in Taiwan gained 1.4 percent following US market moves.
The Philadelphia Semiconductor Index jumped 3.1 percent overnight. This global momentum supported regional chipmakers. Traders cited renewed optimism over AI monetization as a key driver.
Bank of Japan sets 31-year rate high
The Bank of Japan raised its policy rate to 1.25 percent. This is the highest level in three decades. Two board members dissented against the decision.
The central bank signaled intent to continue raising borrowing costs. Analysts note this aligns with actions by European and US peers. Inflation risks from fiscal policy and AI demand remain central concerns.
Currency moves mixed after central bank decision
The US dollar index remained flat at 100.23. This followed a pullback from a two-and-a-half-month high. Emerging market currencies saw varied performance against the greenback.
The New Taiwan dollar gained 0.4 percent. The Malaysian ringgit rose by 0.5 percent. The South Korean won fell 0.4 percent. Jakarta stocks dropped 0.9 percent, while Thai stocks gained 0.6 percent. These moves reflect mixed regional sentiment reported by GN markets/fx (en-US). The Philippine peso fell 1.2 percent to a fourteen-week low.
