Asian stocks slide as waning hopes for Fed rate cut trigger selloff

• Fed's hawkish stance triggers global selloff
• MSCI emerging Asia and ex-Japan indexes dropped 1.3%
• Malaysia's ringgit snaps eight-day winning rally

By Shivangi Lahiri

Nov 14 (Reuters) - Emerging Asian equities slipped on Friday, with Singapore stocks tumbling from record highs, as hawkish U.S. Federal Reserve comments sparked a global selloff and dimmed hopes of a rate cut next month.

The MSCI index of emerging Asia equities .MIMS00000PUS and a broader index tracking Asian equities outside Japan .MIAPJ0000PUS fell 1.3% each, while the MSCI ASEAN equity index .MISU00000PUS was down 0.4%.

A growing number of Fed policymakers are turning cautious about more rate cuts, citing stubborn inflation and signs that the labour market remains relatively stable even after two U.S. rate reductions this year.

"The moves set up global markets for a bearish end to the week, where thoroughly risk-off sentiment is likely to see risk assets everywhere come under pressure," said Kyle Rodda, senior financial market analyst at Capital.com.

"There's uncertainty, perhaps a strategic ambiguity, when it comes to future Federal Reserve policy, with the markets pricing higher odds that the central bank could leave rates unchanged entirely in December."

Singapore's FTSE Straits Times index .STI fell 1%, pulling back from its record high of 4,575.91 points it hit on Thursday, although it was hovering just a few pips away from the peak.

Stocks in Seoul .KS11 fell as much as 3.3%, snapping a four-day winning rally, while equities in Taiwan .TWII fell around 1.7%, on track for their second session of losses.

The AI rally, of which South Korea and Taiwan have been key beneficiaries, has also lost its momentum amid fears about rich valuations, with "risk potential returns on investment too low to justify them", Kyle added.

In Malaysia, the ringgit MYR= slid 0.1% to snap an eight-day gaining streak, while equities .KLSE dipped 0.3%.

The country's central bank said the economy expanded at its fastest pace in a year in the third quarter, with growth in 2025 poised to come in at the upper end of its forecast.

Currencies elsewhere in the region were mostly muted, with Indonesia's rupiah IDR= gaining 0.2% to end a three-day losing streak, while the Singapore dollar SGD= and the Philippine peso PHP= both rose 0.1% each.

Investors now await a flurry of economic data next week, including Bank Indonesia's policy rate decision and Thailand's third-quarter economic growth data.

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