BENGALURU: Stocks in emerging Asian markets got some respite on Wednesday, with Indonesian stocks snapping a five-day losing streak, after a lull in the constant news flow of US tariffs, which also stemmed the dollar’s rally and gave Asian currencies a breather.
Asian markets have been on the back foot for the past two days as US President Donald Trump first announced tariffs on steel and aluminium imports and promised reciprocal duties on countries that taxed US exports.
Those plans are to be finalized on Wednesday but Trump had previously telegraphed these plans, which had stunned the markets.
The “equity markets are expected to be volatile as they seek clarity on this front (US tariffs),” said Jason Kuan, director of investment research and advisory at CIMB.
The biggest gains were in Jakarta, where stocks added up to 1.2%, and in the Philippines, where equities rose 1%.
The four-day slump in Indonesian stocks was triggered by MSCI closing the door on adding them to one of its indexes, and the pressure was exacerbated by weak earnings from market leader Bank Mandiri.
In Manila, the central bank is set to meet on Thursday, with the market expecting a 25-basis-point rate cut to bolster an economy that has missed its growth target for two straight years. The peso was more or less unchanged.
In contrast, Malaysian stocks have been on a week-long rally since the government said it would actively build trade relations with other countries, instead of awaiting tariffs. Stocks rose 0.5% in the day and are up 2.7% in the past week.
“The government is taking some necessary steps to ensure growth can continue to be sustained this year and also exploring options to diversify its export.
