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EMERGING MARKETS-Asian stocks gain as US-China extend tariff truce; inflation data on deck

ReutersAug 12, 2025 7:33 AM

  • Indonesia stocks jump 2%, highest since Oct. 2024
  • U.S., China extend tariff truce to November
  • Thailand central bank policy decision due on Wednesday

By Roshan Thomas

- Most Asian stocks rose on Tuesday, while regional currencies held steady, after the United States and China extended their tariff truce to November, easing market nerves ahead of a keenly watched U.S. inflation report later in the day.

Stocks in Malaysia .KLSE and Philippines .PSI gained 0.1% and 0.5%, respectively. Shares in Taiwan .TWII edged 0.1% higher.

Equities in Indonesia .JKSE rose as much as 2.1%, with the main stock market index hitting its highest level since late October 2024.

"Indonesia's rally is being underpinned by optimism after the Bank Indonesia's recent rate cut, the U.S. tariff clarity, and the milestone EU trade deal," said Mohit Mirpuri, equity fund manager at SGMC Capital.

"The broader backdrop of easing policy risk and attractive valuations is helping Indonesia stand out in the region today," Mirpuri added.

Lifting market sentiment across Asia, U.S. President Donald Trump signed an executive order overnight extending a 90-day pause on triple-digit tariffs on imports from China, and Beijing issued a pause on extra tariffs on imports from the U.S.

Globally, investors are keeping an eye out for the U.S. consumer inflation report for July later in the day that could shape expectations for a September Federal Reserve rate cut.

"Softer-than-expected U.S. CPI may even tip markets to price in some chance of a 50-basis-point Fed cut in September," said Christopher Wong, currency strategist at OCBC.

Among Asian currencies, the Indonesian rupiah IDR= and Taiwan dollar TWD=TP shed 0.1% and 0.3% each, while most regional peers stayed flat against a steady dollar. USD/

Earlier, the dollar slipped as traders raised bets on rate easing based on Trump's dovish-leaning pick for a Fed governor and similarly inclined potential candidates for chairman.

Elsewhere, investors await July inflation data from India, after the Reserve Bank of India left interest rates unchanged last week, while also flagging risks from U.S. tariffs. The rupee INR=IN was flat.

In Singapore, data showed the economy expanded slightly faster than initially estimated, prompting the government to upgrade the city-state's growth forecast for the year. The dollar SGD= was largely unchanged.

Markets in Thailand were closed for a public holiday. Investors are on the lookout for the Bank of Thailand's rate decision on Wednesday, with a Reuters poll forecasting a 25-basis-point cut to 1.50%.

HIGHLIGHTS:

** Singapore monetary policy stance appropriate, MAS official says

** India pushes ahead with U.S. trade talks despite tariff hike to 50%

Asia stock indexes and currencies at 0701 GMT

COUNTRY

FX RIC

FX DAILY %

FX YTD %

INDEX

STOCKS DAILY %

STOCKS YTD %

Japan

JPY=

-0.09

+6.00

.N225

2.15

7.08

China

CNY=CFXS

-0.02

+1.52

.SSEC

0.45

9.32

India

INR=IN

+0.02

-2.31

.NSEI

-0.10

3.87

Indonesia

IDR=

-0.12

-1.20

.JKSE

2.00

9.58

Malaysia

MYR=

+0.02

+5.63

.KLSE

0.13

-4.69

Philippines

PHP=

+0.05

+1.82

.PSI

0.49

-3.73

S.Korea

KRW=KFTC

+0.06

+5.95

.KS11

-0.53

32.94

Singapore

SGD=

+0.03

+6.14

.STI

-0.27

11.45

Taiwan

TWD=TP

-0.31

+9.24

.TWII

0.09

4.88

Thailand

THB=TH

-

+6.16

.SETI

-

-10.08

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