Why is HSI is up today?

JPMorgan raised its Kospi target to 10,000 for the second time in a month, citing the memory chip supercycle and corporate governance reform. South Korea ETF flows surging amid recognition of Korean memory makers' dominance in AI infrastructure buildout.

The Iran-linked conflict has effectively closed the Strait of Hormuz and halted oil shipments from Iran's main export terminal, creating a genuine physical supply shock. Shipping routes are diverted, tanker rates spike, and energy-dependent economies face forced policy tightening as inflation and FX pressures cascade.

Emerging-market currencies are under acute pressure as the dollar strengthens on higher US rates and geopolitical risk aversion. From Indonesia's rupiah hitting record lows to pressure on the Mexican peso and Philippine bonds, EM asset classes are facing a confluence of headwinds: capital flight, inflation, and weakened government finances.

Emerging markets are bleeding foreign capital as the Middle East conflict triggers a broad risk-off rotation. India, Indonesia, Turkey, and other EM currencies are facing intense selling pressure, forcing central banks to intervene and deploy capital controls to defend reserves and manage macro stability.

Asian equity markets are under pressure from multiple headwinds: US inflation surprises resetting Fed policy, Middle East conflict choking energy supplies, and China's manufacturing struggling with power stress. Regional indices are set for weakness as growth concerns mount.