Asia shares eye best week in months, TSMC surge boosts Taiwan stocks
The MSCI gauge of equities in emerging Asia jumped 0.6 per cent. In Southeast Asia, stocks in Indonesia, Singapore, Malaysia, and the Philippines gained up to 1.4 per cent. Thailand's benchmark index rose 1 per cent.
It has surged almost 7 per cent for the week and was set for its biggest gain since June 2020, driven by inflows on news that the government would propose to Cabinet a new central bank chief with a dovish bias.
Stocks in Taiwan climbed 1.5 per cent to hit their highest since February 27, fuelled by a rally in TSMC, which surged 2 per cent after posting record quarterly profits and lifting its full-year sales forecast.
The index has gained more than 2.7 per cent this week, heading for its best performance since mid-May. "The strong overnight performance of TSMC's ADR following the firm's announcement of better-than-expected 2Q25 EPS and 2025 sales guidance, bodes well for the Taiex today," said analysts at KGI Securities.
"We expect the Taiex to rise 250-300 points and challenge the intraday high of 23,400." Optimism around Nvidia's H20 shipments further lifted sentiment in Taipei, extending the rally in tech shares. In Indonesia, the benchmark rose for a tenth straight session and touched its highest level since December 13.
It was on track for its strongest weekly gain since early March. Investor sentiment was buoyed by Bank Indonesia's rate cut and signals of further easing, following a newly inked trade agreement with Washington — the second such deal in Southeast Asia after Vietnam.
"Besides lowering rates, we expect more verbal suasion on banks to lower borrowing costs to provide relief. We have another 25bp cut in our baseline view, taking the rate to 5.0 per cent," said Radhika Rao, senior economist at DBS.
In forex markets, most Asian currencies gained modestly against a steady US dollar, but were losing ground over the week. The dollar index was on track for a second straight weekly rise, buoyed by solid economic data and resilient earnings from heavyweights.
The Indonesian rupiah was on pace for its weakest weekly performance since April's record low, while the Singapore dollar and Taiwan dollar were both set for second consecutive weekly losses.
The Philippine peso slipped 1.1 per cent over the week, while the Thai baht stood out, rising 0.1 per cent. With the earnings season in full swing and signs of policy support building across Asia, investors are finding reasons to stay bullish, even as the uncertainty persists. H
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The Star
10 hours ago
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New Straits Times
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