(.)
South Korea stocks close 1.8% lower, Taiwan down 1.2%
Taiwan shares hit lowest level in more than a week
Taiwan, Indonesia and Thailand cenbanks in focus
By Roshan Thomas
Dec 15 (Reuters) - Stocks in Taiwan and South Korea slipped on Monday as concerns grew over the escalating price tag of artificial intelligence investments, while the Thai baht’s surge to a more than four-year high added pressure on policymakers to temper its strength.
Market participants were also awaiting a slew of central bank meetings, with Thailand and Indonesia scheduled to decide policy on Wednesday, followed by Taiwan on Thursday.
South Korean shares (.KS11) slid as much as 2.8% before closing 1.8% lower, driven by heavy losses in chipmakers Samsung Electronics (005930.KS) and SK Hynix (000660.KS) , which slumped 3.8% and 3%, respectively.
Taiwan’s tech-heavy bourse (.TWII) slid 1.8% to its lowest level since December 4, dragged down by a 2.4% decline in TSMC (2330.TW) , the world’s largest contract chipmaker.
Investors exercised caution after Wall Street’s technology sector came under heavy pressure on Friday over concerns of an AI bubble.
Margin warnings from chipmakers and weak forecasts from cloud firms have fuelled doubts over whether soaring AI investments would translate into sustainable profits.
“This (development from the U.S.) has prompted investors to reassess tech valuations and growth expectations, especially in cyclical, high-beta names,” said Tareck Horchani from Maybank Securities.
Regardless, equity benchmarks in South Korea and Taiwan remain the biggest beneficiaries of the AI-frenzy. South Korean shares have advanced a whopping 71% this year, on track for the best year since 1999, while Taiwanese stocks have added around 21%.
Meanwhile, Thailand’s baht (THB=TH) rose 0.3% to 31.44 per U.S. dollar, marking its strongest point since June 2021.
The baht has appreciated about 9% against the greenback this year, making it one of the best-performing emerging market currencies.
Seeking to curb the currency’s strength, the central bank said it ordered financial institutions to tighten controls on forward foreign exchange transactions by gold traders to limit volatility in the baht.
The Bank of Thailand (BoT) is expected to cut its interest rate by a quarter point on Wednesday after an unexpected hold in October, a Reuters poll showed.
Taiwan’s central bank is expected to keep its interest rate steady on Thursday and hold rates unchanged into 2027, as per a Reuters poll.
Bank Indonesia is also expected to keep its interest rate unchanged on Wednesday, according to a Reuters poll.
If the central bank keeps rates unchanged, it would be third consecutive hold amid sustained pressure on the rupiah (IDR=) , which was last trading at 16,667 per U.S. dollar, down 3.5% so far this year.
Stocks in Jakarta (.JKSE) advanced 0.6%, while those in Manila (.PSI) added 0.5%. Equities in Kuala Lumpur (.KLSE) were little changed.
<h3>HIGHLIGHTS:</h3>
Thai economy to grow at least 1% in fourth quarter, finance minister says
China’s factory output, retail sales weaken in November
Asia stock indexes and currencies at 0636 GMT
<h3>COUNTRY FX RIC FX DAILY FX YTD % INDEX STOCKS STOCKS</h3>
% DAILY YTD %
%
Japan (JPY=) +0.54 +1.43 (.N225) -1.22 25.88
China 

<h3>S</h3>
*
India (INR=IN) -0.35 -5.64 (.NSEI) -0.18 9.96
Indones (IDR=) -0.18 -3.45 (.JKSE) 0.57 23.02
ia
Malaysi (MYR=) +0.15 +9.32 (.KLSE) 0.08 -0.20
a
Philipp (PHP=) -0.04 -1.71 (.PSI) 0.55 -7.03
ines
S.Korea 

<h3>C</h3>
*
Singapo (SGD=) +0.11 +5.83 (.STI) -0.14 20.92
re
Taiwan (TWD=TP) -0.47 +4.56 (.TWII) -1.17 20.98
Thailan (THB=TH) +0.32 +9.15 (.SETI) 0.28 -10.19
d
Graphic: World FX rates here Asian stock markets here

South Korea and Taiwan stocks fell due to AI investment cost concerns, with South Korea down 1.8% and Taiwan 1.2%. The Thai baht hit a four-year high, pressuring policymakers. Central banks in Thailand, Indonesia, and Taiwan are in focus for upcoming policy decisions. South Korean shares have risen 71% this year, while Taiwanese stocks are up 21%. The Bank of Thailand may cut interest rates to curb baht strength.

- Stocks in South Korea and Taiwan fell by 1.8% and 1.2%, respectively, amid concerns over rising AI investment costs and a strong Thai baht.  
- South Korean shares were impacted by significant losses in major chipmakers, while Taiwan's tech sector hit its lowest level in over a week.  
- Central bank meetings in Thailand, Indonesia, and Taiwan are anticipated, with expectations of interest rate holds to address currency pressures and economic stability.

EMERGING MARKETS-South Korea, Taiwan stocks slip on AI cost worries; baht hits four-year peak