Asian currencies, Philippine stocks drop as traders weigh Trump win implications
Thai baht hits more than 2-month low
Philippine stocks fall as much as 3.4%
Singapore stocks rally 2.3%
Updates at 0721 GMT
By Himanshi Akhand
Nov 7 (Reuters) - China-exposedAsian currencies weakenedon Thursday, while the Philippine stock market slumped over 3% as investors priced in heightened tensions around security and trade in a second term for Donald Trump as U.S. president.
Trump has promised to slap new and potentially hefty tariffs on a wide swath of goods from countries including China and Mexico, while his vice presidential candidate, JD Vance, has proposed a 10% tax on remittances.
The Philippine benchmark index .PSI fell up to 3.4%, accumulating losses of about 4.5% in two sessions. The country is considered particularly sensitive to remittances.
"It appears that markets are pricing in some risk of lower remittance flows and slower domestic consumption in the aftermath of a Trump win," said Shivaan Tandon, markets economist at Capital Economics.
Among currencies, China's yuan CNY=CFXS is trading at a three-month low, while Mexico's peso MXN= has slumped to its lowest level in over two years.
The South Korean won KRW=KFTC fell past 1,400 to its lowest since late 2022.
"The won's weakness is being aggravated by the fact that the structure of South Korea's exports is formed in a way sensitive to China," said Baik Seok-hyun, economist at Shinhan Bank.
Any tariff hikes will also hurt chipmakers in Taiwan, South Korea and other countries that produce for Chinese tech firms.
"Asia, excluding China, has become more dependent on the U.S. as a source of end-demand. A universal tariff would also limit the incremental benefit Asia ex-China receives from supply-chain diversification efforts," Morgan Stanley analysts said in a note.
Still, they said it remained to be seen how quickly the proposed tariffs would be implemented.
These tariffs would likely stoke inflation and, in turn, lift the dollar and slow the Federal Reserve's policy easing -- both of which would suck money out of emerging markets, as the greenback's rally has already done.
The Fed is expected to reduce rates by 25 basis points later in the day but the focus now will squarely be clues for whether or not it will cutrates in December.
Analysts believe that the response from regional central banks would depend on the magnitude of growth downside and the extent of currency depreciation, which could limit their ability to cut rates immediately.
Malaysia's central bank kept its key policy rate unchanged on Wednesday, but warned about potential currency volatility.
The ringgit MYR= was last at its lowest since mid-August.
Among stock markets, Jakarta equities .JKSE slid up to 1% to a near three-month low.
However, stocks in Singapore .STI rallied as much as 2.3% to a 17-year high, led by a 7% jump in DBS Group DBSM.SI after the city-state's biggest bank posted a record quarterly profit.
China stocks .SSEC rose 2.6% on optimism over potential stimulus measures a day ahead of the conclusion of the week-long National People's Congress Standing Committee meeting.
HIGHLIGHTS:
** Philippines GDP yr/yr growth slows to 5.2% in Q3
** China's exports soar past forecast as factories front-run Trump tariff threat
Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
Asian stock markets https://tmsnrt.rs/2zpUAr4
Reporting by Himanshi Akhand in Bengaluru; Additional reporting by Jihoon Lee and Rae Wee; Editing by Subhranshu Sahu and Savio D'Souza
Relaterade tillgångar
Senaste nytt
Ansvarsfriskrivning: XM Group-enheter tillhandahåller sin tjänst enbart för exekvering och tillgången till vår onlinehandelsplattform, som innebär att en person kan se och/eller använda tillgängligt innehåll på eller via webbplatsen, påverkar eller utökar inte detta, vilket inte heller varit avsikten. Denna tillgång och användning omfattas alltid av i) villkor, ii) riskvarningar och iii) fullständig ansvarsfriskrivning. Detta innehåll tillhandahålls därför uteslutande som allmän information. Var framför allt medveten om att innehållet på vår onlinehandelsplattform varken utgör en uppmaning eller ett erbjudande om att ingå några transaktioner på de finansiella marknaderna. Handel på alla finansiella marknader involverar en betydande risk för ditt kapital.
Allt material som publiceras på denna sida är enbart avsett för utbildnings- eller informationssyften och innehåller inte – och ska inte heller anses innehålla – rådgivning och rekommendationer om finansiella frågor, investeringsskatt eller handel, dokumentation av våra handelskurser eller ett erbjudande om, eller en uppmaning till, en transaktion i finansiella instrument eller oönskade finansiella erbjudanden som är riktade till dig.
Tredjepartsinnehåll, liksom innehåll framtaget av XM såsom synpunkter, nyheter, forskningsrön, analyser, kurser, andra uppgifter eller länkar till tredjepartssajter som återfinns på denna webbplats, tillhandahålls i befintligt skick, som allmän marknadskommentar, och utgör ingen investeringsrådgivning. I den mån som något innehåll tolkas som investeringsforskning måste det noteras och accepteras att innehållet varken har varit avsett som oberoende investeringsforskning eller har utarbetats i enlighet med de rättsliga kraven för att främja ett sådant syfte, och därför är att betrakta som marknadskommunikation enligt tillämpliga lagar och föreskrifter. Se till så att du har läst och förstått vårt meddelande om icke-oberoende investeringsforskning och riskvarning om ovannämnda information, som finns här.
