Asian currencies regroup but equities weighed by tariff worries, oil prices
Thai stocks fall to lowest in over 2 months
Trade war fears rattle markets
Mexican peso hovers near July 2022 lows
Markets in Indonesia closed
Updates as at 0708 GMT
By Adwitiya Srivastava
Nov 27 (Reuters) -The pressure on Asian currencies eased slightly on Wednesday after they slid in the previous session after U.S. President-elect Donald Trump's pledge for higher tariffs, although lower oil prices weighed on some regional stock markets.
Asian currencies and stocks tumbled in the previous session as the dollar rallied on Trump's pledge to raise taxes on imports from China, Mexico and Canada. However, the dollar index =USD eased 0.07% at 106.83 on the day. FRX/
The greenback could be weighed by the strength in the Japanese yen JPY=, which has appreciated recently as geopolitical uncertainty sparks a rush into the safe haven currency, said Poon Panichpibool, a markets strategist at Krung Thai Bank.
The yen had added around 0.7% to hit a near three-week high. Among other currencies, the Malaysian ringgit MYR= advanced 0.3% and the Thai baht THB=TH added 0.2%.
However, China's yuan CNY=CFXS eased to a near four-month-low due to declining industrial profits and the potential impact of tariffs. The Mexican peso MXN= hovered near its lowest level since July 2022 after plummeting in the previous session.
Among stocks, Bangkok equities .SETI fell as much as 0.9% to their lowest since Sept. 16. Oil and gas explorers PTT Pcl PTT.BK and PTT Exploration and Production PTTEP.BK were down around 0.8% and 1.2%, respectively.
Panichpibool said some energy-heavy stock markets, including Thailand's, might be pressured by the drop in oil prices after the Israel and Hezbollah ceasefire deal announcement.
Oil prices dropped on Tuesday and held steady in the Asian trading hours on Wednesday as markets assessed the potential impact of a ceasefire deal between Israel and Hezbollah and ahead of a meeting of the oil-producing group. O/R
Shares in Manila .PSI and Taiwan .TWII shed 1.5% each.
Malaysian stocks .KLSE bucked the trend, gaining 0.3% on the back of utilities and banking companies.
Indonesian markets were closed for a public holiday. The currency IDR= ended the previous session just shy of weakening below 16,000 rupiah per dollar.
HIGHLIGHTS:
** S.Korea pension fund recently selling dollars in forex market, sources say
** China state media warn Trump against mutually destructive tariff war
** Thai Airways seeks to raise up to $1.27 bln to exit restructuring plan
** IMF sees Thai GDP growth at 2.7% this year, 2.9% next year
Asian stocks and currencies as at 0708 GMT | ||||||
COUNTRY | FX RIC | FX DAILY % | FX YTD % | INDEX | STOCKS DAILY % | STOCKS YTD % |
Japan | JPY= | +0.69 | -7.23 | .N225 | -0.80 | 14.56 |
China | CNY=CFXS | -0.06 | -2.16 | .SSEC | 1.45 | 11.16 |
India | INR=IN | -0.17 | -1.49 | .NSEI | 0.31 | 11.67 |
Indonesia | IDR= | - | -3.33 | .JKSE | - | -0.37 |
Malaysia | MYR= | +0.27 | +3.31 | .KLSE | 0.34 | 10.59 |
Philippines | PHP= | +0.14 | -5.87 | .PSI | -1.53 | 3.92 |
S.Korea | KRW=KFTC | -0.06 | -7.80 | .KS11 | -0.69 | -5.73 |
Singapore | SGD= | +0.13 | -1.91 | .STI | -0.10 | 14.46 |
Taiwan | TWD=TP | -0.14 | -5.59 | .TWII | -1.52 | 24.56 |
Thailand | THB=TH | +0.19 | -1.43 | .SETI | -0.75 | 0.82 |
Reporting by Adwitiya Srivastava in Bengaluru; Editing by Kim Coghill and Savio D'Souza
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