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EMERGING MARKETS-Stocks advance as investors stay calm against tariff rhetoric

ReutersJul 10, 2025 7:46 AM
  • S.Korea stocks at September 2021 high
  • Indonesia stocks hit three-week top
  • Singapore stocks scale new high
  • Asian currencies recover; ringgit turns flat

By Sameer Manekar

- Stock markets in emerging Asian economies pressed forward on Thursday, led by South Korea, as investors took in stride U.S. President Donald Trump's latest tariff salvos, betting the most damaging scenarios were unlikely to materialise.

An MSCI gauge of emerging Asian equities .MIMS00000PUS inched higher, supported by stocks in South Korea .KS11, which jumped 1.6% to a near four-year high, and Taiwan stocks .TWII, which advanced 0.8%.

A subset of ASEAN equities .MISU00000PUS jumped to a two-week high. Singapore stocks .STI, which account for nearly half of the index, hit a new high for the seventh consecutive session, driven by strong inflows into industrials, telecom, and banks.

Investors dismissed Trump's latest tariff threats as rhetoric, expecting them to be a tactic to extract more concessions from trade partners, said analysts.

"Since Trump took office, he has created a lot of noise in the market. But compare that noise today with three months ago; it is no longer creating that kind of volatility," said Ernest Chew, head of ASEAN equities at BNP Paribas Asset Management.

"Investing in ASEAN will remain focused on a very bottom-up approach. If we see opportunities, we will continue to put the trickles on. If there is a sector or a company that we think is very attractive, we will start to do some bottom-fishing."

Market participants will keenly scrutinise headlines from the trade negotiations between emerging economies and the United States. Eyes are on U.S. Secretary of State Marco Rubio's first visit to Asia during an ASEAN summit in Kuala Lumpur on Thursday.

Most EM Asia currencies rebounded as the dollar slipped from a two-week high scaled in the previous session. Analysts believe that while Trump's tariff letters exerted pressure on currencies, the reaction was much less dramatic than in April.

In the lead were the Philippine peso PHP= and Thailand's baht THB=TH, firming 0.4% each against the U.S. dollar.

Malaysia's ringgit MYR= erased early gains to trade largely flat. The country's central bank slashed its key interest rate for the first time in five years on Wednesday, citing trade-related risks to growth.

A fortnightly survey by Reuters showed traders trimmed their long positions in most Asian currencies as Trump's threats to ramp up tariffs dampened appetite for risk assets, although such bets on the Taiwan and Singapore dollars shot up.

Among stock markets, Indonesia .JKSE jumped to a three-week high in its fourth straight session of gains. Malaysia .KLSE turned flat in the afternoon session, while the Philippines .PSI slipped further to finish 0.6% in red.

HIGHLIGHTS:

** Indonesia's 10-year benchmark yield ID10YT=RR at 6.585%

** A FTSE ASEAN index dominated by banks .FTF4GAS up 0.6%, few points short of six-week high

** Indonesia, US eye wider critical minerals partnership after 'positive' meeting

** Thai stock market .SETI closed for holiday

Asia stock indexes and currencies at 0710 GMT

COUNTRY

FX RIC

FX DAILY %

FX YTD %

INDEX

STOCKS DAILY %

STOCKS YTD %

Japan

JPY=

+0.08

+7.51

.N225

-0.44

-0.62

China

CNY=CFXS

+0.07

+1.71

.SSEC

0.53

4.76

India

INR=IN

+0.13

+0.06

.NSEI

-0.32

7.40

Indonesia

IDR=

+0.12

-0.80

.JKSE

0.61

-1.32

Malaysia

MYR=

-0.05

+5.13

.KLSE

0.13

-6.77

Philippines

PHP=

+0.35

+2.94

.PSI

-0.63

-1.00

S.Korea

KRW=KFTC

+0.31

+7.39

.KS11

1.58

32.66

Singapore

SGD=

+0.11

+6.76

.STI

0.41

7.57

Taiwan

TWD=TP

-0.29

+12.13

.TWII

0.74

-1.48

Thailand

THB=TH

+0.37

+5.38

.SETI

-

-20.70

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