Asian equities set for strong weekly gains; Taiwan, S.Korea lead tech-driven surge

• Taiwan stocks hit record high, up nearly 3% this week
• South Korean stocks hit two week-high, up 3% this week
• South Korean won eyes best week since November 2022

By Rajasik Mukherjee

Dec 26 (Reuters) - Most Asian equities were headed for their best week in more than a month on Friday, buoyed by a rally in technology shares, with Taiwan's benchmark index hitting a record high and South Korea's KOSPI climbing to a two-week peak.

A robust rally in artificial intelligence-related stocks has been a key driver behind the surge in Taiwan and South Korean stocks, with heavyweight chipmakers and tech suppliers benefiting from robust demand for AI infrastructure.

An MSCI gauge of emerging Asian equities .MIMS00000PUS inched 0.1% higher on Friday, heading for a 1.7% gain this week in what could be its best week since late November. South Korea and Taiwan make up 40% of the index.

Taiwan equities .TWII rose as much as 0.8% in its fifth straight session of gains and hit a record high of 28,590.91. The benchmark has gained nearly 3% so far this week, poised for its best week since late November.

South Korea's KOSPI .KS11 climbed as much as 0.8% to its highest level since December 12. It has risen 3% this week, set for its strongest week since early December.

"We expect Korean equities to post further gains next year... continued momentum in technology stocks will remain the principal driver, as global investment in AI infrastructure continues," Gareth Leather, senior Asia economist at Capital Economics, said in an earlier note.

Among other stock markets, Singapore .STI traded largely flat but was on track for its best week since October-end with a 1.5% gain.

Philippine stocks .PSI rose 0.4%, heading for a 2.4% weekly gain in what could be their best week since late November.

Malaysian equities .KLSE slipped 0.3% on Friday but were up 0.5% for the week.

Among currencies, the Malaysian ringgit MYR= rose 0.3%, hitting its highest point since 2021. The region's best currency of 2025 has appreciated more than 1% this week, eyeing its best week since mid-May.

"The ringgit continues to benefit from Malaysia's stable macro backdrop, ongoing structural reforms and selective investor flows," analysts at Kenanga Investment Bank said in an earlier note.

"While episodic global volatility may introduce temporary swings, the combination of policy credibility, export inflows underpins a bullish medium-term outlook for the ringgit."

South Korea's won KRW=KFTC rose as much as 1% to hit its highest level since November 6. For the week, the currency has risen 3.1%, eyeing its best week since November 2022, largely benefiting from the national pension fund's steps to support the currency.

Elsewhere in the region, the Thai baht THB=TH was largely unchanged but has appreciated nearly 1.3% this week in what could be its best since October-end.

Singapore's dollar SGD= traded largely flat but was headed for its best week in more than a month, while the Philippine peso PHP= was tracking a weekly loss of 0.3%.

Indonesian markets were closed on Friday for a holiday.