South Korea stocks reset record high; Philippine shares hit 3-year low

• South Korea shares jump over 2.5%, hit record high
• Philippine stocks down 2.8%
• Most Asian currencies edge lower

South Korean shares set yet another record high on Monday, bolstered by optimism over the U.S.–China trade ceasefire and a global rush into AI-related assets, while shares in the Philippines slumped to their lowest in over three years.

Manila shares <.PSI> plummeted 2.8% to hit their lowest level since early October 2022. The benchmark stock index has slid over 11% this year, and is one of the worst performers in the region.

Philippine equities have been plagued by persistent outflows due to a poor growth outlook and weak confidence, with a major government scandal further driving investors away from the archipelago.

“The PSI has not only continued its downward trend amid weak growth expectations, undermining investor confidence, but has also reflected recent allegations of corruption on public-works projects,” said Glenn Yin, Director of Research at AC Capital Market.

“Foreign capital outflow is a prolonged catalyst. Technicals suggest the bearish trend may continue, echoing net capital outflows and concerns over regulatory uncertainty.”

Stock markets elsewhere in emerging Asia edged higher after a week of earnings from blue-chip companies, particularly AI-related stocks, that showed investors were keen to see a return on the extensive capital spending on AI infrastructure.

South Korean shares <.KS11> advanced 2.7% to hit another record high, powered by strong export data coupled with upbeat earnings from tech firms including SK Hynix <000660.KS> and Samsung Electronics <005930.KS>. The KOSPI index has scaled record highs 12 times since the start of October.

SK Hynix jumped 10.6%, while chipmaker Samsung Electronics <005930.KS> gained 3.7%. Investors are now awaiting Qualcomm’s <QCOM.O> results on Wednesday for signs of whether the enthusiasm around artificial intelligence spending is justified.

Sentiment across the region was also boosted by the Sino–U.S. deal for a year-long trade truce that largely met expectations, though scepticism remained over how long the accord will hold.

Stock markets in Indonesia <.JKSE>, Singapore <.STI> and Thailand <.SETI> gained between 0.3% and 1.2%. Taiwan shares <.TWII> inched 0.1% higher.

The dollar index <=USD> edged higher against a basket of major currencies, staying close to its strongest level since August after hawkish comments from Federal Reserve policymakers including Chairman Jerome Powell last week.

“Fed Chair Powell’s comments post-FOMC, that December meeting is not a foregone conclusion, provided the excuse for markets to unwind USD shorts,” said Christopher Wong, FX and Rates Strategist at OCBC.

“Looking on, the absence of U.S. data due to government shutdown as well as a less committal and divisive Fed will likely allow for USD short squeeze to transpire in the near term.”

Asian currencies were mostly on the back foot, with the Indonesian rupiah <IDR=> and the Taiwan dollar <TWD=TP> both down 0.2%, while the Thai baht <THB=TH> fell 0.1%.

The Malaysian ringgit <MYR=> and the Singapore dollar <SGD=> lost 0.3% and 0.1% each. The South Korean won <KRW=KFTC> however, gained 0.3%.

Highlights:

** Thai economy improves in September but slows in third quarter

** Indian central bank steps in to help rupee avert fall past record low, traders say