* KOSPI on track for worst week since early March
* Thai baht set for seventh decline in eight sessions
* Malaysian ringgit strengthens 0.4%
By Rajasik Mukherjee
June 26 (Reuters) - Asian stocks took a fresh hit on Friday
after Apple's ( AAPL ) price hikes rattled tech sentiment,
sparking a selloff in tech-heavy markets such as South Korea and
Taiwan and reviving doubts about the durability of the AI-driven
rally.
The MSCI Emerging Markets Asia gauge fell
nearly 4%, hitting its lowest point since June 12. For the week,
the index has lost more than 5% so far, on track for its worst
since the first week of the Middle East conflict.
South Korea's KOSPI fell 8%, prompting the regulator
to impose a temporary trading curb.
The index, which has been one of the biggest beneficiaries
of AI-related inflows so far this year, lost 7.6% this week.
KOSPI is also on track for its worst week since the week ended
March 6.
Apple ( AAPL ) raised iPad and MacBook prices on Thursday, saying it
could no longer shield customers from soaring memory and storage
chip costs driven by the AI industry's datacenter buildout.
"Apple's ( AAPL ) sudden price hike has become a reality check for AI
trades," said Glenn Yin, director of research at brokerage
ACCM.
"Investors are beginning to ask who is ultimately bearing
the cost, rather than just celebrating growing semiconductor
demand, and if a significant part of that cost is being passed
onto consumers, then demand elasticity could become the next
constraint on AI-related earnings growth."
Taiwan shares fell as much as 2.3% to their lowest
level since June 17, putting the market on track for its worst
weekly performance since early March.
Across Southeast Asia, Singapore stocks fell 1%,
while those in the Philippines traded 0.6% lower.
Stocks in Jakarta shed more than 1.5%, and
Thailand's benchmark lost over 1%.
Regional currencies also weakened on Friday, pressured by
expectations that the Federal Reserve will keep interest rates
elevated and by a broadly stable U.S. dollar.
The dollar inched lower but remained on track for its first
back-to-back weekly gain since the start of the Middle East
conflict on February 28.
"The combination of strong U.S. data and delayed Fed easing
continues to underpin the dollar through favourable rate
differentials," MUFG analysts wrote in a note.
"Most Asian currencies still face relatively lower, and in
some cases widening, yield differentials versus the U.S.,
limiting scope for sustained appreciation."
The Indonesian rupiah traded 0.2% lower, still
hovering around the key 18,000 mark against the dollar.
The Thai baht shed as much as 0.5%, hitting its
lowest level since May, and was on track for a seventh decline
in eight sessions.
Bucking the broader weakness, Malaysian ringgit
strengthened 0.4%, while the Phillippine peso was largely
flat.
HIGHLIGHTS:
** Core inflation in Tokyo accelerates as energy-driven
price pressures begin to broaden
** Bangladesh urges China to reduce trade gap
** UN halts escort of ships through Hormuz after vessel
comes under attack
Asia stock indexes and currencies at 0441 GMT
COUNTRY FX RIC FX DAILY FX YTD % INDEX STOCKS STOCKS
% DAILY YTD %
%
Japan +0.13 -3.05 -4.35 37.54
China India - -4.79 - -7.94
Indonesi -0.19 -7.13 -2.73 -32.52
a
Malaysia +0.41 -1.02 -0.18 -1.14
Philippi +0.04 -3.99 -0.42 -0.12
nes
S.Korea Singapor -0.05 -0.80 -1.10 11.09
e
Taiwan -0.16 -1.41 -2.58 55.58
Thailand -0.30 -5.89 -0.92 22.59