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Indonesian stocks set for fourth straight weekly gain

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South Korean shares at record high

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Delta Electronics leads Thailand stocks lower

By Rishav Chatterjee

Oct 10 (Reuters) - Thai equities slumped more than 2% on Friday, weighed

by a sharp sell-off in Delta Electronics after the stock was placed under

exchange surveillance, while South Korean markets touched record highs, riding a

fresh wave of artificial intelligence optimism.

Thai stocks fell as much as 2.2%, and was set for its weakest

trading session since late June. The dip was led by a more than 11% drag in

Delta Electronics Thailand, the country's most valuable stock.

The selloff followed the stock exchange's decision to impose surveillance

measures after a staggering 22% rally this month. The gains had been driven by

mounting excitement around Delta's strategic position as a key supplier of

components for AI data centers.

Broadly, the MSCI index of emerging Asian equities slipped

0.4%, retreating after a modest gain on Thursday. The broader MSCI Asia-Pacific

ex-Japan index also declined 0.3%.

Stocks in Malaysia and Indonesia fell 0.2% and 0.3%

respectively, while Singapore posted marginal losses. The benchmark index

in the Philippines also traded in the red, shedding 0.2%.

The mood mirrored a subdued session on Wall Street, where U.S. stocks closed

lower as investors grappled with the absence of new economic data or directional

cues. Major indexes pulled back from record highs reached earlier this week.

In stark contrast, South Korean equities rallied as traders returned from an

extended holiday, with enthusiasm for AI-related chip stocks propelling gains.

The benchmark Kospi jumped as much as 1.9%, reaching a historic high.

Semiconductor giants led the charge, with Samsung Electronics ( SSNLF )

surging 5.96% to its highest level since January 2021, while SK Hynix ( HXSCF )

soared 9.23%, buoyed by a sustained wave of AI-driven demand.

But the Korean won weakened, hitting a five-month low.

Indonesian shares were poised for a fourth consecutive weekly gain,

underpinned by strong local bond demand and the surprise rate cut by Bank

Indonesia earlier this month aimed at boosting growth.

"After the BI's unexpected rate cut this month, the central bank maintained

a clearly dovish bias by prioritising growth, providing room for the government

bonds to rally further," DBS Bank senior economist Radhika Rao said.

"Strong demand from domestic players has helped to offset foreign portfolio

outflows as investors remained concerned over the fiscal and political economy

developments."

Emerging Asian currencies were choppy against the U.S. dollar, which nudged

lower. The Thai baht was slightly lower, while the Malaysian ringgit

and Indonesian rupiah fell 0.1% and 0.2%, respectively. The

Philippine peso added 0.4%.

HIGHLIGHTS:

** Powerful 7.5 magnitude earthquake strikes off southern Philippines

** Singapore expected to keep monetary policy unchanged on firm growth

Asia stock indexes

and currencies at

0436 GMT

COUNTRY FX RIC FX DAILY FX YTD % INDEX STOCKS STOCKS

% DAILY YTD %

%

Japan +0.19 +2.89 -1.00 22.36

China India +0.00 -3.56 0.36 6.89

Indonesi -0.18 -2.90 -0.26 16.24

a

Malaysia -0.14 +5.88 -0.18 -0.95

Philippi +0.35 -0.16 -0.24 -7.44

nes

S.Korea Singapor +0.08 +5.18 -0.08 17.14

e

Taiwan -- +7.32 -- 18.52

Thailand -0.09 +4.67 -2.05 -8.08