Asian FX, equities rise; Philippine stocks fall in Trump win aftermath

Reuters

Asian FX, equities rise; Philippine stocks fall in Trump win aftermath

8. Nov. 2024 um 5:29 vorm. GMT

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Repeats story published earlier, with no change to text

Singapore stocks hits highest since Nov 2007

Indonesian shares rise 1%

Malaysian ringgit on track for sixth consecutive weekly fall

By John Biju and Adwitiya Srivastava

Nov 8 (Reuters) -The Philippine's peso and equities fell on Friday as investors weighed security and trade implications of Donald Trump's return to the White House, while a U.S. Federal Reserve rate cut buoyed other emerging market currencies and stocks.

Focus is also on the conclusion of China's week-long National People's Congress Standing Committee where investors are expecting further stimulus measures from Beijing.

Trump's victory in the U.S. presidential election has stoked fears that his threat to impose tariffs, especially those on China, would impact most emerging market economies which rely on China as their top trading partner.

Of particular concern for the Philippines, a country in which remittances account for a significant portion of its growth, is vice presidential candidate JD Vance's proposal for a 10% tax on remittances.

"The country could be negatively affected the most from the immigration policy if Trump decides to pursue the mass deportation policy. However, Philippines could be less affected by the trade tension and could potentially benefit from the factory relocation as well," Poon Panichpibool, a markets strategist at Krung Thai Bank said.

The Philippine peso PHP= declined 0.4%, while equities .PSI retreated 0.9% heading for a third straight day of declines. Shares were on track for the worst week since mid-June.

Most other emerging market equities advanced during the day, brushing off a fall during the U.S. election night, after the U.S. Federal Reserve delivered a widely expected rate cut on Thursday.

The Fed signalled a cautious and patient approach to subsequent easing, although analysts still widely believe another rate cut is still on the table in December.

"If the Fed continue to cut rate..... I would expect the EM FXs to regain some strength with some weakness in the U.S. dollar. In this scenario, EM stocks could gain some grounds as well," Panichpibool said.

Shares in Indonesia .JKSE jumped 1%, while those in Taiwan .TWII climbed 0.6%.

Stocks in Singapore .STI advanced 1.7% to hit their highest level since November 2007, led by gains in the city-state's top banks following upbeat results.

Shares of the OCBC OCBC.SI and UOB UOBH.SI and DBS DBSM.SI all hit record highs.

Currencies in the region also advanced with the Indonesian rupiah IDR= climbing 0.4% while the Malaysian ringgit MYR= climbed 0.5%.

The ringgit, one of the best performing currencies in the region this year, was on track for its sixth consecutive week of decline, while the Thai baht THB=TH was heading for its third week of decline.

HIGHLIGHTS:

** Japan to respond appropriately to excess FX moves, finance minister says

** Hong Kong central bank cuts interest rate after Fed move

** Indonesia seeks $800 bln of new investment in 2025-29 to reach 8% GDP growth

Asian stocks and currencies as at 0425 GMT
COUNTRY	FX RIC	FX DAILY %	FX YTD %	INDEX	STOCKS DAILY %	STOCKS YTD %
Japan	JPY=	+0.14	-7.63	.N225	0.23%	18.59%
China	CNY=CFXS	-0.06	-0.73	.SSEC	-0.50	16.08
India	INR=IN	+0.01	-1.37	.NSEI	-0.16	11.17
Indonesia	IDR=	+0.38	-1.75	.JKSE	0.96	0.55
Malaysia	MYR=	+0.50	+4.84	.KLSE	0.12	11.73
Philippines	PHP=	-0.41	-5.19	.PSI	-0.92	7.75
S.Korea	KRW=KFTC	-0.06	-7.12	.KS11	-0.03	-3.45
Singapore	SGD=	-0.13	-0.20	.STI	1.57	15.15
Taiwan	TWD=TP	+0.45	-4.23	.TWII	0.47	31.17
Thailand	THB=TH	-0.26	+0.43	.SETI	-0.42	3.37