Taiwanese shares surged to a three-month high on Friday, buoyed by chipmaker TSMC, which reached a record peak following strong earnings. In contrast, other Asian stock markets showed mixed results, weighed down by concerns regarding China’s economic outlook.
Recent data revealed that China’s economy grew at its slowest pace since early 2023 in the third quarter, primarily due to ongoing challenges in the beleaguered property sector.
The Taiwan Weighted Index (.TWII) climbed as much as 2.9%, reaching its highest level since mid-July. Meanwhile, Thai shares (.SETI) rose 0.5%, setting the stage for a weekly gain of approximately 2.1%, the largest since late September. Indonesian stocks (.JKSE) are also on track for a nearly 3% weekly gain, their most substantial increase since mid-May, while South Korean shares (.KS11) are headed for a second consecutive weekly rise.
In the currency markets, most Asian currencies inched higher but are projected to face weekly declines as the U.S. dollar strengthens due to robust economic data. The Philippine peso (PHP=) rose 0.5%, yet is set for a fourth consecutive weekly drop. The Malaysian ringgit (MYR=) increased by 0.2% but is poised for a third straight weekly decline. The South Korean won (KRW=KFTC) gained 0.1% but is also on track for a third consecutive weekly fall.
Conversely, the Thai baht (THB=TH) is expected to gain 0.6% this week, and the Indonesian rupiah (IDR=) is projected to rise 0.7%.
Robert Carnell, the regional head of research for Asia Pacific at ING, noted, “The fact that currencies remain under a little bit of pressure is a deterrent to some central banks from further easing, especially for those that are more concerned about currency stability.” He added that Bank Indonesia is particularly focused on its currency, unlike the Bangko Sentral ng Pilipinas (BSP).
Earlier this week, the Bank of Thailand (BOT) surprised markets by cutting its key interest rate, while the Philippine central bank also lowered rates. Bank Indonesia, however, maintained its status quo as anticipated. According to a Reuters poll, the BOT is expected to hold its key interest rate at its final policy meeting for the year in December, while the BSP has indicated another rate cut may occur in the same month.
Next week, investors will be closely watching Malaysia, which is set to release its advance estimates for third-quarter GDP on October 21.
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