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Asian equities and currencies staged a sharp rebound as a  US-Iran ceasefire boosted risk appetite  and eased pressure from elevated oil prices. Equities Rally Across Emerging Asia The  MSCI Emerging Asia Index jumped 5% , reaching a  three-week high , while broader emerging-market equities rose  4% globally . Regional markets posted strong gains: South Korea:  +7% Taiwan:  +4.5% Southeast Asia (Singapore, Malaysia, Indonesia, Thailand, Philippines):  +1% to 3% The rally reflects renewed optimism after  Donald Trump  agreed to a  two-week ceasefire with Iran , reducing immediate geopolitical risks. Oil Drop Eases Pressure on Import-Dependent Economies Crude prices fell  below US$100 per barrel , providing relief to  oil-importing Asian economies  that had been hit by rising energy costs. Lower oil prices are expected to: Reduce  inflationary pressure Support  consumer spending and growth Improve  trade ...

Asian equities saw an uneven recovery on Tuesday, following overnight gains on Wall Street after signs that U.S.-China trade talks remain on track. The  MSCI Asia-Pacific ex-Japan Index  rose  0.5% , while  S&P 500 futures  advanced  0.3% , extending Monday’s rally in New York where major indexes climbed up to  2.2% , led by semiconductor stocks. The rebound came after U.S. President Donald Trump signaled a softer stance on trade, with Treasury Secretary Scott Bessent confirming plans for Trump to meet Chinese President Xi Jinping in South Korea later this month. Regional Performance Taiwan:  Stocks led gains, rising  2.2% , after  Samsung Electronics  projected a  32% YoY increase  in Q3 operating profit, outperforming expectations. South Korea:  The  Kospi  climbed  1% , boosted by chipmakers and technology shares. Japan:  The  Nikkei  fell  1.2%  as markets reopened post-...

Emerging Asian currencies weakened on Friday, tracking a stronger US dollar after the Federal Reserve signaled a slower, more measured pace of monetary easing. Stocks Cool Off The  MSCI EM Asia equities index  — dominated by China, Taiwan, and South Korea — slipped just below a four-year high. Singapore’s Straits Times Index  dropped for the sixth straight session after hitting a record high last week. Taiwan and South Korea stocks  also pulled back from record levels reached on Thursday. Markets had rallied sharply ahead of the Fed decision on hopes for further rate cuts. Analysts still see easier US policy supporting risk appetite, but valuations in Asia’s major markets are starting to look stretched. Currency Moves An  MSCI index of EM currencies  fell for the second day after touching a 10-week high earlier in the week. Malaysia’s ringgit : weakest in a week. Indonesia’s rupiah : hit a four-month low, down ~1.5% since Finance Minister Sri Mulyani’s dism...

The Mexican peso tumbled to its weakest level in over two years, and Asian currencies retreated as the US dollar rallied after President-elect Donald Trump pledged sweeping tariffs on key trading partners. Trump, set to take office on  Jan 20, 2025 , announced plans to impose a  25% tariff on imports from Canada and Mexico  and an  additional 10% tariff on Chinese imports,  compounding market jitters. The  Mexican peso sank as much as 2.3%  to its lowest level since August 2022, before stabilizing at a  1.7% loss  by 0745 GMT. The  US dollar soared to a 4.5-year high against the Canadian dollar,  while climbing to its strongest level since July 30 against  China’s yuan. EM Asian Currencies Under Pressure Currencies in emerging Asia also faced losses, with the  Malaysian ringgit and Indonesian rupiah declining by 0.4%  each. The  Thai baht fell up to 0.4%,  pressured by concerns over the country’s widening tr...

Key Takeaway: Asian currencies and stocks tumbled as the US dollar hit a one-year high on trade policy concerns following Donald Trump's election victory. Asian markets saw significant declines, with currencies like the ringgit, Thai baht, and Indonesian rupiah hitting multi-month lows. The ringgit recorded its fourth consecutive loss , while Malaysia’s and Thailand’s trade-dependent economies faced heightened risks from potential tariff hikes on exports to the US. The Philippine stock index fell 2.3% , marking its seventh straight loss, with Jakarta’s index down over 1% . DBS analysts noted that Indonesia and India , with economies more reliant on domestic demand, showed relatively more resilience against tariff fears. Key Market Reactions: Outflows increased in Malaysia and Thailand, with their currencies losing approximately 4% since the US election . Indonesia’s central bank pledged to monitor and intervene to stabilize the rupiah, which remains less impacted than other r...