1 week Ago By Reuters
KUALA LUMPUR: Currencies in emerging Asia were subdued on Tuesday, weighed down by President Donald Trump's renewed criticism of the US Federal Reserve, while Singapore equities extended their winning streak into a sixth straight session.An MSCI index of Asian emerging market equities snapped a three-day streak of gains, dragged lower by stocks in Taiwan, which lost as much as 1.5 per cent at one point to hit a near two-week low.
The Singapore dollar and Thai baht drifted around their mid-October highs, while Indonesia's rupiah crept lower to 16,855 per US dollar, a near two-week low.The rupiah, one of the worst performing EM currencies in the world, has slumped about 5 per cent this year as concerns over the country's fiscal spending plans and the economic fallout from US tariffs triggered massive capital outflows.Bank Indonesia is widely expected to keep its interest rate unchanged on Wednesday to support the currency despite rising concerns around slowing growth in Southeast Asia's largest economy, a Reuters poll showed.
The central bank has been known to prioritize rupiah stability as the currency has been an underperformer in the region despite a weaker US dollar, analysts at Maybank said in a note."Ongoing anxiety regarding the domestic situation does weigh on the currency although the authorities being in the market in addition to a softer dollar has given the currency support."Currencies in the Philippines, Malaysia, Taiwan, and South Korea drifted lower after scaling multi-month highs in the previous sessions.
Equity markets in emerging Asian countries were mixed. Singapore's Straits Times index advanced for the sixth straight day, led by the top two banks DBS and Oversea-Chinese Banking Corp.The city-state's benchmark has significantly outperformed regional rivals over the past three months, attracting investors with its fiscal stability and compelling returns.
Shares in Kuala Lumpur snapped a three-day rally and dropped from an over two-week high scaled the previous day.The Thai equity benchmark slipped 0.3 per cent.
The United States on Monday announced steep tariffs on solar imports from four Southeast Asian nations, including Thailand and Malaysia.These levies are higher than the preliminary duties announced late last year. Malaysia had exported US$1.
9 billion worth of solar products to the US in 2023, according to the investigations.© New Straits Times Press (M) Bhd.
