Asian currencies: Taiwan's dollar hits highest since April 2022
US President Donald Trump said the country would impose a 20% tariff on exports from Vietnam, sharply down from the 46% planned earlier. The announcement, though scant on details, eased tensions with its tenth-biggest trading partner.
Stocks in Vietnam rose 0.6% to their highest level since April 2022, while the dong dropped 0.3% to hit a record low of 26,229 per US dollar. Analysts at DBS noted the proposal could mitigate downside risks to Vietnam's economic growth but 'may not prevent a slowdown in the coming quarters.'
The US-Vietnam talks lifted sentiment across most Asian stock markets on hopes other countries could reach similar outcomes before the July 9 deadline.
An MSCI gauge of equities in emerging Asian markets advanced 0.4% and touched a three-and-a-half-year high earlier in the day.
Philippine stocks climbed 1.1% to hit their highest since May 15. The archipelago faces an 18% tariff under Trump's plan.
Shares in Taiwan and Indonesia climbed 1.1% and 0.2%, respectively.
South Korean stocks ended more than 1.3% higher,
marking their highest close since September 2021, after President Lee Jae Myung said he was working to secure a 'mutually beneficial and sustainable' outcome from trade talks with the United States. Thailand stocks were up 0.9%, after the country's opposition parties said they would hold off on launching a no-confidence vote against suspended Prime Minister Paetongtarn Shinawatra pending a court ruling.
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