EMERGING MARKETS-SMIC’s U.S. curbs aid S.Korean, Taiwan stocks after Chinese data boost
* Jakarta COVID-19 curbs extended
* Malaysia's ruling coalition wins state election; reduces
* South Korea, Taiwan chipmakers rise after U.S tightens
to China's SMIC
By Nikhil Nainan
Sept 28 (Reuters) - South Korean and Taiwanese stocks
climbed over 1% each on Monday as investors priced in a boost
for their tech-focussed economies from tighter U.S. curbs on
China's biggest chipmaker, adding to a broadly brighter start
across Asian markets.
Data showing profits at Chinese industrial firms grew for a
fourth straight month underpinned stock markets in the region,
although the extension of export curbs on Semiconductor
Manufacturing International Corp left
China's own indices flat after a strong start.
The dual-listed chipmaker's shares plunged more than 5% in
both Shanghai and Hong Kong.
Stocks in Seoul climbed 1.2% with local chipmakers
gaining the most, also helped by a fall in the number of daily
COVID-19 infections to its lowest in close to two months. Taiwan
stocks saw a similar rise.
"The knee-jerk reflex (to the SMIC decision), apart from
caution, may be for Japanese, Korean and Taiwanese chipmakers to
opportunistically benefit from substitution trades," analysts
from Japanese bank Mizuho said in a note.
China's recovery has been among the few bright spots for the
global economy as a second wave of coronavirus infections mounts
in Europe, prompting countries to reimpose restrictions and
quashing hopes that the continent was turning a corner.
"Broadly I would attribute the lift for Asia markets to the
positive data out of China," said Jingyi Pan, senior market
strategist at retail trading platform IG, adding she expected
factory activity (PMI) survey from China on Wednesday to
reinforce the recovery.
Indonesian shares, down 0.6%, were again an
exception as COVID-19 curbs were extended in the capital
Currencies were more of a mixed bag,