EMERGING MARKETS-Stocks rise on US tech tariff pause but caution prevails

By Sameer Manekar

April 14 (Reuters) - Stocks in Asian emerging markets advanced on Monday after the White House exempted smartphones and computers from "reciprocal" U.S. tariffs, although caution prevailed as President Donald Trump warned levies were still likely.

Currencies in the region also firmed against the dollar as Trump's on-again, off-again tariff policies eroded investors' faith in U.S. assets and the country's growth prospects.

Singapore's dollar SGD= touched a five-month high, reversing earlier losses, after its central bank reduced the slope of its policy band "slightly" compared with broad market expectations of a larger easing.

"The USD/SGD moved lower ... in the wake of the announcement, a possible indication that the market was expecting a larger easing move or for further MAS (Monetary Authority of Singapore) dovishness," analysts at Maybank said.

Risk appetite was lifted by the temporary relief on tech duties but concerns lingered about the economic fallout of levies on the trade-reliant region, bracing for a fresh week of chaotic policy announcements and abrupt turnabouts.

"Markets may rally around an occasional tariff reprieve or trade deal, but the damage to the global order of trade and commerce is going to be lasting, we fear," DBS analysts, led by Chief Economist Taimur Baig, said.

"The pervasive uncertainty around U.S.-China trade, tariffs, and elevated volatility in markets should pose a drag on both investor sentiment in Asia and delay firms' investment plans."

An MSCI gauge of emerging market Asian equities .MIMS00000PUS hit a one-week high, while a gauge of ASEAN equities .MISU00000PUS jumped over 1% to a one-week peak.

Singapore's shares .STI rose 1.3% in afternoon trade after soaring more than 2% earlier. The benchmark lost 8.2% last week and was down more than 11% since hitting a record high in late March.

The city-state also cut its 2025 growth forecast to 0% to 2% from 1%-3% previously, citing a significantly weaker external demand outlook.

South Korea's KOSPI index .KS11 added 1%, while Taiwan's benchmark stock index .TWII erased over 2% initial gains to finish marginally lower. Top stock TSMC 2330.TW fell 2.7% ahead of its first-quarter earnings on Thursday.

Malaysia's ringgit MYR= hit a near two-month high, while the Philippine peso PHP= appreciated 0.4%. Indonesia's rupiah IDR= firmed to 16,772 a dollar, continuing its recovery after slumping to an all-time low last week.

Indonesian stocks .JKSE advanced 2% to a near three-week high, while benchmark gauges in Malaysia .KLSE, the Philippines .PSI, and Vietnam .VNI gained up to 2%, each.

Markets in Thailand .SETI, THB=TH and India .NSEI, INR=IN were closed for public holidays.

HIGHLIGHTS:

Singapore's banks jump; DBS Group DBSM.SI advances over 2%

Fore Kopi Indonesia FORE.JK jumps 34% in debut trade

MSCI EM .MSCIEF up 1.2%, while EM currencies gauge .MIEM00000CUS rises 0.5%

China's Xi urges greater cooperation with Vietnam

First phase of US tariff talks 'smooth,' Taiwan president says