South Korea and Taiwan stocks fall on tech drag; Asian FX inch lower
Shares in South Korea fell 2.3 per cent to hit their lowest level in more than a month, after megacap tech companies on Wall Street dipped overnight following a record-breaking run for much of the year.
Chipmaker SK Hynix dropped 4.6 per cent on Wednesday, while battery maker LG Energy Solution slipped 2.3 per cent. Taiwanese stocks slid 3 per cent to their lowest level in two weeks, with semiconductor giant TSMC down 4.2 per cent.
The benchmark had hit a record high earlier this week. Elsewhere in Southeast Asia, Malaysian shares slipped 0.3 per cent, while Thai stocks were flat.
Fed Chair Jerome Powell's speech at the annual Jackson Hole symposium on Friday is the main focus, with traders watching for any pushback against market pricing of a rate cut next month.
"Investors will be curious to see if the recent US data deluge has caused Powell's opinions to shift," said Vasu Menon, managing director for investment strategy at OCBC.
The Fed will release minutes of its July 29–30 policy meeting later on Wednesday, although they may offer limited clues as the meeting preceded the weak July jobs data.
The US dollar index rose for a third straight session, weighing on Asian currencies. The South Korean won and Taiwan's dollar both fell 0.5 per cent.
"The minutes may be able to inform us on where the consensus leans towards amid growing contention between the two mandates of the Fed, employment and stable prices," said Fiona Lim, a senior forex strategist at Maybank Singapore.
"Notwithstanding some weakness in Asian currencies this morning, regional currencies are more likely to take a consolidative tone this week." The Indonesian rupiah fell 0.3 per cent, while stocks gained 0.5 per cent.
Later in the day, the country's central bank is expected to pause its easing cycle to assess the impact of earlier rate cuts, according to a Reuters poll.
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Malay Mail
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The Star
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New Straits Times
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- New Straits Times
Ringgit rises against major currencies, eases vs US dollar
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