Asian stocks, currencies eyes monthly losses as US tariffs loom
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Philippine stocks eye worst month in over 2-years
Thai baht rises 0.5%, Malaysian ringgit up 0.2%
Brazil's real hits life-time low, Mexican peso falls 0.2%
By John Biju
Nov 29 (Reuters) -Emerging Asian markets were mixed on Friday, while currencies got a breather as the U.S. dollar dipped, but many assets, especially in South Korea and Indonesia, were set for their worst performance in months due to the threat of U.S. tariffs.
Since Donald Trump won the U.S. elections in early Nov, the dollar has rallied, weighing on emerging market currencies, while stock markets have been hit by Trump's recent pledge for 25% tariffs on key trading partners, including China, a major trading partner for Asian economies.
South Korea is among the worst hit as it has close trading ties with the U.S. and China.
Its stocks .KS11 closed 2% lower onthe day and have slid 3.9% in November, the most in anymonth since January. The won KRW=KFTC was flat on the day, but has lost 1.2% this month and 7.7% this year, among the worst hit in the region.
The central bank unexpectedly cut interest rates for a second consecutive meeting on Thursday as economic growth faltered, with policymakers keeping a wary eye on trade risks.
Over in Indonesia, the rupiah IDR= was largely unchanged on the day and down 1% for November, among the least in the region. The stock market .JKSE was hit harder, tumbling 5.8% this month and heading for its worst month in over four years.
Investors are also worried as the country's consumptiongrowth is still below 5%, said Fakhrul Fulvian, an economist at Trimegah Securities.
Maybank analysts said in a note that they are monitoring the developments in local elections, while remaining cautious on the dollar-rupiah pair due to uncertainties, including over U.S. policies.
The Thai baht THB=TH and the Malaysian ringgit MYR= rose 0.5% and 0.2%, respectively, on the day as the dollar dipped, largely on the back of a rally in the Japanese yen.
Nonetheless, both Southeast Asian currencies were headed for their second consecutive month of declines.
The headwinds for Asian currencies could continue in 2025, said Ken Cheung, Chief Asia FX Strategist at Mizuho Bank.
"... We look for more two-way volatilities in Asian FX as the actual tariff hikes could come lower than expected, considering the reflation risk in the U.S."
Equities in the Philippines .PSI retreated 0.1%on the day and their roughly 7% drop thismonth is set to be the steepest since September 2022.
Elsewhere, Brazil's real < BRL=> hit a lifetime low on Thursday after the government's proposed income tax reform sparked a bruising selloff, while the Mexican peso MXN= edged 0.2% lower.
HIGHLIGHTS:
** India's September quarter GDP growth likely slowed on weak urban spending
** Malaysian c.bank calls for fair insurance pricing as medical costs soar
** BOJ's retreat from low rates heightens Japan's debt troubles
Asian stocks and currencies as at 0647 GMT | ||||||
COUNTRY | FX RIC | FX DAILY % | FX YTD % | INDEX | STOCKS DAILY % | STOCKS YTD % |
Japan | JPY= | +1.03 | -5.96 | .N225 | -0.37 | 14.18 |
China | CNY=CFXS | +0.16 | -1.87 | .SSEC | 1.03 | 11.92 |
India | INR=IN | -0.01 | -1.52 | .NSEI | 0.75 | 10.87 |
Indonesia | IDR= | -0.03 | -2.99 | .JKSE | -1.18 | -2.16 |
Malaysia | MYR= | +0.16 | +3.45 | .KLSE | 0.07 | 9.90 |
Philippines | PHP= | +0.31 | -5.32 | .PSI | -0.12 | 2.80 |
S.Korea | KRW=KFTC | -0.01 | -7.65 | .KS11 | -1.95 | -7.51 |
Singapore | SGD= | +0.19 | -1.52 | .STI | -0.42 | 14.85 |
Taiwan | TWD=TP | -0.03 | -5.52 | .TWII | -0.16 | 24.16 |
Thailand | THB=TH | +0.47 | -0.19 | .SETI | 0.14 | 1.00 |
Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
Asian stock markets https://tmsnrt.rs/2zpUAr4
Reporting by John Biju in Bengaluru; Editing by Tom Hogue and Savio D'Souza
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