EMERGING MARKETS-Asian FX steady after Fed rate cut; Oracle stokes AI profitability scare

By Shivangi Lahiri

Dec 11 (Reuters) - Emerging Asian equity markets traded mixed on Thursday, while currencies held steady as market participants digested less-hawkish-than-feared comments from U.S. Federal Reserve Chair Jerome Powell after a widely expected interest rate cut.

The broader MSCI index of emerging Asia equities .MIMS00000PUS was down 0.7% and an index tracking Asian equities outside Japan .MIAPJ0000PUS was 0.5% lower, hurt by South Korean and Taiwanese stocks, after cloud computing giant Oracle ORCL.N sounded a warning for AI profitability.

The U.S. cloud computing giant's disappointing earnings added to fears of overvaluation in the AI sector, triggering a pullback in tech-heavy Asian indexes such as South Korea and Taiwan.

Stocks in Jakarta .JKSE climbed as much as 0.9% to hit a record high before reversing gains, while equities in Singapore .STI and Kuala Lumpur .KLSE rose 0.3% each.

Among currencies in the region, Malaysia's ringgit MYR= rose 0.3% after three straight sessions of losses, while the Singapore dollar ISGD= was marginally lower against a weaker U.S. dollar.

The greenback was on the back foot after the Fed's 25-basis-point rate cut and Powell's comments at his post-meeting press conference were perceived as less hawkish than expected, firming bets of two more rate cuts next year.

Steven Dooley, head of market insights at Convera, said rising odds of a rate cut in early 2026 would boost global liquidity and help emerging Asian assets "play catch-up".

Elsewhere, the Philippine peso PHP= slipped, while stocks .PSI rose 0.4% ahead of the Bangko Sentral ng Pilipinas' (BSP) rate decision later in the day.

A Reuters poll showed economists expected the central bank to deliver a 25-bp rate cut, citing weak growth and easing inflation, with at least one more reduction seen early next year.

Stocks in Thailand .SETI were down 1.2% as trading resumed after a holiday on Wednesday, while the baht THB=TH eased 0.1%.

Fighting between Thailand and Cambodia entered its fourth day as both sides waited for a promised telephone call from U.S. President Donald Trump.

($1 = 4.1050 ringgit)

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