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EMERGING MARKETS-Chip rally drives South Korea, Taiwan stocks to record highs
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EMERGING MARKETS-Chip rally drives South Korea, Taiwan stocks to record highs
Apr 26, 2026 10:39 PM

* S.Korea, Taiwan stocks set for best month in over three decades

* MSCI EM Asia set for best month since Feb 1998

* Chip rally continues on AI optimism

* Ringgit, Singapore dollar firm marginally; Rupiah weakens

* Philippine Peso near four-week low

By Nichiket Sunil

April 27 (Reuters) - Equities in South Korea and Taiwan hit record highs on Monday and were headed for their best month in more than three decades as renewed excitement about artificial intelligence eclipsed worries over the Middle East conflict.

Equity investors looked beyond stalled U.S.-Iran peace talks and the inflationary risks from a prolonged disruption of energy exports to an AI trend that is seen as unstoppable.

Chip stocks' demand was bolstered after Intel ( INTC ) forecast second-quarter revenue above Wall Street expectations last week, setting off the latest bout of enthusiasm for AI-related stocks.

Shares in Taipei soared as much as 3.2% to a record high. The benchmark, which houses TSMC, one of Asia's two listed companies with a trillion-dollar valuation, has advanced a whopping 26% in April, on track for its best since late 1993.

South Korea's KOSPI clinched an all-time high of 6,630.35 points on the day. Chipmaker SK Hynix rose 6.4%, and rival Samsung Electronics ( SSNLF ) touched a fresh all-time high.

The KOSPI index is also set for bumper gains in April, having soared about 31% so far this month, on track to be its best since January 1998.

The two tech-heavy equity benchmarks have sharply outperformed their emerging-market peers by a long shot and have also driven the MSCI EM Asia gauge to a record-high.

The MSCI EM Asia gauge is set to end April 20% higher - its best month since February 1998. It has gained more than 18% so far this year, slightly ahead of the 14% gain in the broader MSCI Asia-Pacific gauge.

"The good news for Asia is that the AI build-out globally remains very strong and if anything, seems to be accelerating, with Intel ( INTC ) reporting better-than-expected results," MUFG analyst Michael Wan said.

Meanwhile, an Axios report said Iran wants to make a deal to open the Strait of Hormuz first and postpone nuclear talks until later, helping the risk appetite slightly.

In Southeast Asia, Thailand's benchmark rose 1.2% and was set for its best session since April 10.

The country's central bank will hold its policy meeting later this week and is expected to keep its interest rates unchanged after a shock 25-basis-point cut at its last meeting in February.

Stocks in Malaysia rose to a one-month high, while Indonesian stocks added 0.4%.

Most Asian currencies were stronger: the Malaysian ringgit rose 0.3%, while the Singapore dollar rose 0.1%.

The Indonesian rupiah, meanwhile, weakened to 17,225 per dollar.

The Philippine peso rose slightly but continued to trade near its four-week lows of 60.76 a dollar.

HIGHLIGHTS:

** Taiwan court hands out jail terms of up to 10 years in TSMC trade secrets case

** China's industrial profit growth quickens even as Iran war heightens risks

** Indonesia reaffirms it has no plan to impose tolls in Malacca Strait

Asia stock indexes and currencies at 0443 GMT

COUNTRY FX RIC FX FX YTD INDE STOCKS STOCKS

DAILY % % X DAILY % YTD %

Japan +0.12 -1.59 China EC>

India EI>

Indones -0.17 -3.19 Malaysi +0.30 +2.68 Philipp +0.06 -3.05 S.Korea 11>

Singapo +0.14 +0.90 Taiwan II>

Thailan TI>

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