EMERGING MARKETS-Stocks tick higher in holiday-thinned trade

By Sameer Manekar

April 18 (Reuters) - Equities in emerging Asia eyed a calmer end to the week on Friday with limited trading due to holidays in most markets and wary investors taking a cautious approach to tariff negotiations.

U.S. President Donald Trump's sweeping tariffs on major trading partners two weeks ago rocked financial markets, but stability returned over the week following a 90-day pause, certain exemptions, and progress on negotiations.

Yet, the market remains on tenterhooks given the uncertainty around Trump's vacillating policies, the economic fallout from an upending of global trade, and anxiety around how negotiations proceed, especially with China.

"Global risk appetite may be dampened for longer notwithstanding a pause in U.S.-China tariff escalation," Citi analysts wrote.

"We find the U.S. and China are hit hardest initially, but collateral damage is spread across Vietnam, Mexico, Korea and ASEAN."

The MSCI index of stocks in Asian emerging markets .MIMS00000PUS ticked higher, largely buoyed by firms in South Korea and Taiwan. It held steady near a seven-session high, though it was down over 3% so far this month.

South Korea's KOSPI index .KS11 added 0.4%, driven by carmakers Hyundai Motor 005380.KS and Kia Corp 000270.KS, which advanced 1.5% each. The won KRW=KFTC ticked lower to 1,421.50 per dollar.

Taiwan's benchmark .TWII consolidated after a two-session slump. Top contract chipmaker TSMC 2330.TW added about a percentage point after signalling a bullish outlook for the year on robust demand for AI applications.

A gauge of ASEAN equities .MISU00000PUS, largely comprising Southeast Asian firms, edged higher for the eighth consecutive session, slowly creeping to where it was before Trump unveiled sweeping tariffs on April 2.

Thailand's benchmark .SETI edged up while its currency, the baht THB=TH, drifted lower after touching a near six-month high earlier in the week. A shimmering rally in gold prices during the week propped up the currency.

On Thursday, JP Morgan turned neutral across ASEAN countries except Thailand and Singapore, citing growing macro headwinds and a fiscal support that is likely to be inadequate.

"A U.S. slowdown would be a key drag on external demand, weighing on manufacturing and exports of ASEAN," wrote Khoi Vu, an ASEAN Equity Strategist at JP Morgan.

In China, the onshore yuan CNY=CFXS scaled a nine-session high of 7.2855 per dollar, but pared those gains to turn largely flat. The unit has been under immense pressure this month as confidence remains fragile amid high trade tensions with the United States.

Meanwhile, Chinese President Xi Jinping was on a trip to Southeast Asia this week to cement ties with the country's closest neighbours and trade partners in the wake of sweeping U.S. tariffs on the region.

Singapore's dollar SGD= drifted a shade below its late October highs, while Malaysia's ringgit MYR= and Thailand's baht THB=TH were largely unchanged.

Financial markets in Singapore .STI, Indonesia .JKSE, IDR=, the Philippines .PSI, and India .NSEI, INR=IN were closed for the Good Friday holiday.

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