Asian stocks retreat from recent peaks as US tariff deadline looms
An MSCI gauge of equities in emerging Asia slid nearly 1 per cent from a 3-1/2-year high notched in the previous session. Stocks in South Korea and Taiwan, which together make up over a third of the regional index, were the biggest drags on performance.
Investors initially cheered trade discussions between the United States and Vietnam, hoping they could pave the way for breakthroughs in other emerging economies. But limited details and tariffs remaining above pre-April 2 levels dampened the optimism.
"The trade deal with Vietnam announced this week was more hawkish than we expected, posing a risk that other countries could face higher tariff rates," Nomura analysts said in a note. South Korea's KOSPI fell 1.5 per cent after scaling a near four-year high in the previous session, marking its worst intraday drop since April 9.
Taiwan's benchmark index slipped from a near four-month high. Stocks in the Philippines fell 0.7 per cent, while those in Singapore eased off from a record-closing high. Thai stocks also came off a three-week peak, snapping a four-session rally.
Vietnam's benchmark index slipped from its April 2022 peak, while the dong weakened to a record low of 26,230 against the US dollar.
Currencies in emerging Asia also nudged lower - Malaysia's ringgit slipped to an eight-session low, while the Indonesian rupiah and the Philippine peso shed around 0.2 per cent each.
An index tracking global emerging market currencies retreated from a record high. "Asian currencies may face renewed volatility as markets turn their attention to tariff-related developments," said Lloyd Chan, senior currency analyst at MUFG.
Citi analysts, referring to the US-Vietnam trade development, said that while the "de-dollarisation" narrative remained well-entrenched and had more steam to run further, "the roadblocks for stronger EM Asia FX had just increased".
They predicted similar deals could impact currencies such as the Chinese yuan, ringgit, Thai baht, South Korea's won, and the Singapore dollar.
On the day, the Singaporean dollar snapped a three-day losing streak to appreciate marginally, and remained a few points shy of its October 2014 high.
The Thai baht and the Indian rupee weakened marginally. The US dollar index, which measures the greenback against a basket of major currencies, retraced some of its gains from Thursday.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
28 minutes ago
- The Star
Made in US no more? Trump phone website scrubs language
The Trump company initially said the new phone would launch in September. The website no longer includes a firm timeline, according to The Verge. — Bloomberg The Trump Organization is no longer claiming that its new smartphone will be made in the US. When the company announced the phone in June, it said the device would be 'proudly designed and built in the United States.' Experts cast doubt on that claim and said it was likely the phone would be manufactured by a Chinese company. The Trump Organization has now removed all language indicating the phone would be made in the US from the Trump Mobile website, according to The Verge, a tech news site. The wording has been replaced with pro-American slogans, such as 'Premium Performance. Proudly American.' and 'designed with American values in mind.' The site also says there are 'American hands behind every device,' The Verge said. The Trump Organization didn't respond to the site's request for comment. The company is owned by President Donald Trump, according to CNBC. President Trump isn't involved in the Trump company's day-to-day operations, the firm has said, according to CNN. The business is run by his eldest sons. The new phone will be gold colored, cost US$499 (RM 2,106) and will be known as the T1. Experts told multiple news outlets when the phone was announced that the US simply doesn't have smartphone manufacturing capabilities right now. And even if the phone could be produced in the US, components would still come from overseas. Either way, the new Trump-branded phone would be affected by President Trump's tariffs, according to Fortune . The Trump company initially said the new phone would launch in September. The website no longer includes a firm timeline, according to The Verge. The site now says only that the device will be available 'later this year.' – News Service
Malay Mail
3 hours ago
- Malay Mail
Trump signs sweeping US tax and spending cuts into law amidst Fourth of July spectacle
WASHINGTON, July 5 — US President Donald Trump signed into law a massive package of tax and spending cuts at the White House on Friday, staging an outdoor ceremony on the Fourth of July holiday that took on the air of a Trump political rally. With military jets flying overhead and hundreds of supporters in attendance, Trump signed the bill one day after the Republican-controlled House of Representatives narrowly approved the signature legislation of the president's second term. The bill, which will fund Trump's immigration crackdown, make his 2017 tax cuts permanent, and is expected to knock millions of Americans off health insurance, was passed with a 218–214 vote after an emotional debate on the House floor. 'I've never seen people so happy in our country because of that, because so many different groups of people are being taken care of: the military, civilians of all types, jobs of all types,' Trump said at the ceremony, thanking House Speaker Mike Johnson and Senate Majority Leader John Thune for leading the bill through the two houses of Congress. 'So you have the biggest tax cut, the biggest spending cut, the largest border security investment in American history,' Trump said. Trump scheduled the ceremony on the South Lawn of the White House for the 4 July Independence Day holiday, replete with a flypast by stealth bombers and fighter jets like those that took part in the recent US strikes on nuclear facilities in Iran. Hundreds of Trump supporters attended, including White House aides, members of Congress, and military families. After a speech that included boastful claims about the ascendance of America on his watch, Trump signed the bill, posed for pictures with Republican congressional leaders and members of his cabinet, and waded through the crowd of happy supporters. The bill's passage amounts to a big win for Trump and his Republican allies, who have argued it will boost economic growth, while largely dismissing a nonpartisan analysis predicting it will add more than US$3 trillion (RM12.7 trillion)) to the nation's US$36.2 trillion debt. While some lawmakers in Trump's party expressed concerns over the bill's price tag and its hit to healthcare programmes, in the end just two of the House's 220 Republicans voted against it, joining all 212 Democrats in opposition. The tense standoff over the bill included a record-long floor speech by House Democratic Leader Hakeem Jeffries, who spoke for eight hours and 46 minutes, blasting the bill as a giveaway to the wealthy that would strip low-income Americans of federally-backed health insurance and food aid benefits. Democratic National Committee Chair Ken Martin predicted the law would cost Republicans votes in congressional elections in 2026. 'Today, Donald Trump sealed the fate of the Republican Party, cementing them as the party for billionaires and special interests – not working families,' Martin said in a statement. 'This legislation will hang around the necks of the GOP for years to come. This was a full betrayal of the American people. Today, we are putting Republicans on notice: you will lose your majority.' — Reuters
The Star
3 hours ago
- The Star
Airbus aircraft purchase will boost AirAsia's short-and medium-haul routes, says Anwar
PARIS: AirAsia's acquisition of the A321XLR aircraft from Airbus would strengthen the airline's operational capabilities for short- and medium-haul routes, says Datuk Seri Anwar Ibrahim. The Prime Minister, who witnessed the signing of the purchase agreement for the aircraft between AirAsia and Airbus here said: 'This acquisition not only expands the flight network but supports Malaysia's aspiration to emerge as a leading aviation hub in the Asian region. 'I also witnessed the exchange of a memorandum of understanding between 3P Capital Adviser and Ardian, a leading private investment firm from France, in an effort to explore investment opportunities in the private market,' he said after carrying out one-on-one business meetings with several companies here. Anwar said this initiative had the potential to broaden Malaysians' access to alternative investments. In a meeting with Imerys, an industrial minerals processing company that has been operating in Malaysia for over 25 years, Anwar was informed of their commitment to expand operations and support the development of a high-value and environmentally friendly manufacturing sector in the country. 'I also met with Arkema, a global leader in specialty chemicals, which is currently assessing the potential for new investments in Malaysia. 'This could create more high-skilled jobs, accelerate technology transfer, and strengthen Malaysia's position as a key bioeconomy hub in the Asian region,' he added.
