EMERGING MARKETS-Asian currencies inch lower amid Trump tariff policy uncertainty

By Aaditya GovindRao

March 7 (Reuters) - Most emerging Asian currencies ticked lower on Friday and stocks were mixed after a turbulent week as U.S. President Donald Trump's fast-changing tariff policy fuelled investor uncertainty.

The Malaysian ringgit MYR= and the Indonesian rupiah IDR= slipped 0.1% each. The rupiah, however, was on track to rise 1.5% for the week, its biggest weekly gain since mid-September.

Trump suspended on Thursday the 25% tariffs he imposed this week on most goods from Canada and Mexico until April 2 - the day he has threatened to impose a global regime of reciprocal tariffs on all U.S. trading partners.

The Mexican peso MXN= was little changed after its 0.7% jump on Thursday. The U.S. dollar index =USD languished near four-month lows. USD/

The ever-shifting U.S. trade policy has sent global markets into a tailspin. Emerging Asian equity markets faced sizeable foreign investment withdrawals in February, driven by the potential for Trump's policies to disrupt global economic growth.

"Emerging market asset volatility is likely to remain elevated amid a host of factors that show no sign of letting up," analysts at Barclays said in a note.

While a loss of U.S. growth momentum may help emerging markets, weaker U.S. demand and tariffs hurt EM assets disproportionately, the analysts said.

The Thai baht THB= and the Taiwan dollar TWD=TP both fell 0.1%, with investors looking out for inflation data due from both countries later in the day.

Among equities, stocks in Jakarta .JKSE were up 0.6% for the day and on course to post their biggest weekly rise since March 2020. This follows a 7.8% decline last week.

Philippine stocks .PSI were up 0.6%, on track for their fifth straight day of gains, while Kuala Lumpur shares .KLSE fell 0.6% to hit a one-month low.

Bank Negara Malaysia (BNM) held steady on its key overnight policy rate on Thursday for the eleventh consecutive meeting. Central banks in Indonesia and Thailand have cut interest rates so far this year.

"The monetary policy stance appeared to position BNM as less pre-emptive than some ASEAN-6 central banks that have eased monetary policy this year to safeguard economic growth," DBS analysts said in a note.

Chinese stocks .SSEC and the yuan CNY=CFXS were flat even as Southeast Asia's biggest trading partner's exports and imports for the January-February period came in weaker than expected.

HIGHLIGHTS:

Thailand seeks cooperation with India, Vietnam to support falling rice prices

Indonesia's foreign exchange reserves drop by $1.6 billion in February

Saudi Arabian fund to invest $100 million in Malaysia's AirAsia, Bloomberg News reports