The political impasse in Malaysia’s government has regressed to a game of chicken, experts say, with Prime Minister Anwar Ibrahim and the former ruling Umno party trading barbs and dares as pressure grows for snap polls with more than a year left to term.
Relations between Anwar’s Pakatan Harapan (PH) coalition and erstwhile rivals Umno have hit its lowest point since the two sides cut a deal to form a unity government in 2022, after a series of recent state polls that saw PH all but decimated…
Bodies from Philippine ferry arrive at port after fire killed at least 76
Rescuers retrieved more remains from a passenger ferry in the Philippines that was gutted by fire, bringing the death toll on Saturday to 76 with 13 missing.
Forty-three people survived the fire on Wednesday night among the 132 on board.
The ferry sailed from the capital, Manila, and was off the village of Turda some 39km (24 miles) from its destination, the Port of Coron, when the fire was reported on Wednesday evening.
The cause of the blaze has not been determined but a survivor said it may…
South Korea’s Kospi Outpaces Nasdaq’s Dotcom-Era Gains as Japan and South Korea Deepen Energy Ties
South Korea’s stock market has delivered extraordinary returns in just the past 18 months as the Kospi index triples in value, fueled by relentless demand for semiconductors from Samsung Electronics and SK Hynix amid the ongoing global AI boom. In a separate but equally significant development, Japan and South Korea have agreed to expand bilateral energy cooperation, including plans for joint hydrogen projects and deeper LNG trade integration.
## The Kospi’s Triple Surge
According to the latest data from the Financial Times, South Korea’s benchmark Kospi index has outpaced even the dotcom-era gains of the Nasdaq, surging more than 200% over the past 18 months. The rally is primarily driven by the global semiconductor supply chain, with Samsung Electronics and SK Hynix serving as the primary beneficiaries of AI infrastructure buildout.
SK Hynix, in particular, has benefited from being one of the few qualified suppliers of high-bandwidth memory (HBM) chips used in NVIDIA’s AI accelerators. Samsung is similarly expanding production capacity to meet the insatiable demand from hyperscale data centers across Asia, the United States, and Europe.
The FT report notes that the surge has fundamentally rewritten the valuation calculus for Korean equities. For years, South Korea’s market was viewed as a cyclical commodity play driven primarily by electronics exports. Today, the Kospi sits at all-time highs, with P/E ratios for leading semiconductor names trading at premiums not seen since the late 1990s tech boom — and yet the earnings backing those valuations are substantially more robust.
“Korean semiconductors are now irreplaceable in the AI stack,” said a Seoul-based equity strategist quoted by the FT, noting that “without HBM memory, there is no path to competitive AI training systems.”
## Japan-South Korea Energy Pact
On the diplomacy front, Tokyo and Seoul have agreed to deepen energy cooperation — a notable shift given the historical frictions between the two economies. The agreement, discussed against the backdrop of the FT’s coverage of talks on Russia’s Power of Siberia 2 gas pipeline, signals a broader realignment in Northeast Asian energy strategy.
Key elements under discussion include:
– Joint development of green hydrogen production facilities
– Expanded liquefied natural gas (LNG) supply partnerships to reduce dependence on Middle Eastern imports
– Shared investment in next-generation nuclear technology
– Coordinated energy procurement strategies in the context of rising global energy prices
The timing is significant. With oil prices reaching their highest levels since the beginning of the Iran conflict — unleaded petrol in the UK has hit 158.52p per litre — energy security has become a pressing concern across the Asia-Pacific. The Japan-South Korea energy pact represents an effort to pool resources and reduce vulnerability to supply shocks.
## What It Means for Southeast Asia
For Southeast Asian investors, the Korean semiconductor surge has dual implications. On one hand, it underscores the growing centrality of Asia in the global tech economy — a trend that could benefit regional supply chain participants in Malaysia, Vietnam, and the Philippines. On the other hand, the elevated valuations raise questions about sustainability if AI capex trends soften or semiconductor demand normalizes.
The Japan-South Korea energy cooperation could also have ripple effects. A more diversified Northeast Asian energy network could stabilize regional power markets and create new trade opportunities for LNG exporters like Australia and Qatar, who are closely positioned to supply both markets.
## Bottom Line
The triple surge of the Kospi and the deepening Japan-South Korea energy alliance point to a broader reconfiguration of Asian economic power. The region is no longer just a manufacturing base; it is becoming the engine of the global AI economy and a critical node in the world’s energy future.
Sources: Financial Times, Nikkei Asia