Asian markets moved higher on Wednesday as oil prices eased and technology shares recovered, helping to stabilise sentiment across the region.
South Korean equities rose 1.4%, while Taiwanese stocks gained 0.7% after four consecutive sessions of declines. The broader MSCI emerging market Asia index advanced as much as 0.9%.
Technology was a key driver. South Korean semiconductor shares benefited from continued demand linked to artificial intelligence memory products, while a weaker won added support for export-focused companies by increasing the local value of overseas earnings.
Indonesia also improved, with equities rising as much as 1.2% after falling 3% over the previous five sessions. Markets continued to assess the appointment of Suahasil Nazara as finance minister, with attention focused on fiscal policy and government credibility. The response suggests policy direction remains an important factor in determining whether recent weakness can stabilise.
Oil prices remained another major influence. Brent crude fell 1.1% to US$107.60 a barrel, easing some pressure on economies that rely heavily on imported energy. Even so, oil remained above US$100, leaving fuel costs as a significant risk for companies exposed to transport, manufacturing and consumer spending.
That pressure was visible in the Philippines and Thailand. Philippine equities fell as much as 2% to their lowest level since 11 June. Thai shares declined 0.5 per cent and were on course for a sixth consecutive session of losses. Both markets remain sensitive to higher energy costs, which can increase inflation and reduce corporate margins.
Japan offered a more balanced picture. The Nikkei 225 rose 0.7% as the yen weakened against the US dollar. A weaker yen can support exporters by increasing the value of overseas revenues, but it also raises the cost of imported fuel and raw materials.
Hong Kong also moved higher. The Hang Seng TECH Index gained 0.8 per cent, while the broader Hang Seng Index rose 0.2%. The MSCI All Country Asia Pacific Index increased 0.6% as technology shares recovered and lower oil prices reduced some immediate pressure on regional markets.
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