EMERGING MARKETS-Asian FX holds in tight ranges as thin holiday trade keeps markets muted

By Rajasik Mukherjee

Feb 16 (Reuters) - Emerging Asian currencies hovered in narrow ranges on Monday, as holiday-thinned trading kept movements subdued, while regional equities edged lower in the absence of strong market cues to drive investor sentiment.

With markets in China, South Korea, Taiwan, the United States and Indonesia closed for holidays, activity was subdued across the region, leaving most currencies and equities largely becalmed.

Among the few actively traded units, the Malaysian ringgit MYR= and the Thai baht THB=TH edged 0.2% higher.

The ringgit has strengthened in four of the past five sessions and is the region's best‑performing currency so far this year, with Malaysian assets drawing global inflows as a softer U.S. dollar and rising geopolitical tensions encourage diversification.

The rest of the traded currencies in the region stayed largely flat.

On the equities front, stocks in the Philippines .PSI shed as much as nearly 1%, touching their lowest levels since early February, pressured by declines in key index constituents.

Shares of Jollibee Foods JFC.PS fell 1.4% after the Filipino fast-food chain reported quarterly results, while renewable power company Alternergy Holdings ALTER.PS dropped to a two-week low following its earnings release earlier in the day.

Malaysian stocks .KLSE dipped as much as 0.4% to touch their lowest levels since February 6, weighed down by benchmark constituent 99 Speed Mart Retail SPEE.KL, which came under pressure after reporting its quarterly results late on Friday.

Defying the broader subdued trend, Thai stocks .SETI rose as much as 1.2% to their highest level since December 2024.

The market was building on its strongest weekly performance since mid‑2025, supported by a decisive election outcome that lifted investor confidence.

The rally was driven by renewed foreign inflows as optimism strengthened over a clearer political outlook and the prospect of fresh economic stimulus measures, said Ratasak Piriyanont, senior vice-president for investment strategy at Bangkok-based Kasikorn Securities.

Looking ahead, investors will focus on key data releases this week, including two central bank meetings scheduled for Thursday. Bank Indonesia (BI) and the Bangko Sentral ng Pilipinas (BSP) are both set to announce their policy decisions on February 19.

The BI is expected to stand pat on its policy rate, Maybank analysts said, adding that the BSP "should lower its benchmark rate to 4.25%."

HIGHLIGHTS:

Japan's economy limps back to scant growth in fourth quarter, raises test for Takaichi

Thai fourth-quarter GDP grows 2.5% y/y, above forecast

US consumer prices increase marginally, but inflation pressures persist