* S.Korean won drops 1.4% * Malaysian ringgit posts worst session since early Nov * Indian rupee falls to all-time low * Philippines shares drop 4% (Updates at 0813 GMT) By Shivangi Lahiri and Himanshi Akhand Jan 31 (Reuters) – South Korea’s won and Malaysia’s ringgit fell most among broadly weaker Asian currencies on Friday, as investors assessed the possibility of new tariffs on Canada, Mexico and possibly China under U.S. President Donald Trump. The won dropped 1.4%, while the ringgit slipped 1.4% in its sharpest one-day drop since early November. The Indonesian rupiah fell 0.3% and the Indian rupee slipped to an all-time low, with traders suggesting the Reserve Bank of India (RBI) probably stepped in to support the currency. The dollar index firmed a day ahead of when Trump has threatened to impose 25% tariffs on imports from Canada and Mexico. Trump also said he was still considering new tariffs on Chinese goods, citing its part in the fentanyl trade. Mexico, Canada and China are the United States’ three largest trading partners, accounting for more than $2.1 trillion in annual imports and exports. The Mexican peso last traded 0.3% higher, after a 1% fall in a volatile session on Thursday, while the Canadian dollar languished near a five-year low. Markets in China and Taiwan were closed for the Lunar New Year holidays. Analysts at Barclays believe the tariff threats to emerging markets currencies are “merely delayed”. “Many Asian currencies have outperformed, suggesting risks of relatively more risk of weakness should tariff threats intensify against China,” they said in a report. The analysts see scope for the Thai baht and the Philippine peso to depreciate further. They also see risks to the won, ringgit and the Singapore dollar given their vulnerability to sectoral tariffs and high direct and indirect export shares to the U.S. Regional equity markets were mixed, with shares in Seoul dropped 0.8% on reopening post a four-day holiday break. Major chipmakers on South Korea’s benchmark led the decline, catching up to a delayed effect of the global tech rout earlier this week after China’s DeepSeek rolled out its cheap AI model. Equities in Manila tumbled in the last few minutes of trading to close 4% lower at their lowest level in 27 months. Kervin Sisayan, head of research at Maybank Securities, said the last-minute decline was mostly due to index rebalancing. “There were a couple of changes with Chinabank and AREIT going into the main index. However, there were reduction in weight in the other constituents and in this illiquid market, this caused a big decline for the PSEi,” he said. Stocks in Singapore rose 1.4%, and those in Thailand slipped 0.9% to their lowest level since mid-August. HIGHLIGHTS: ** Philippines cbank sees January inflation at 2.5% to 3.3% ** Thailand’s economy may underperform with consumption weak, warns central bank chief ** Indonesia’s FDI at $55.3 bln in 2024 Asian stocks and currencies at 0813 GMT Japan -0.27 +1.59 0.15 -0.81 China – +0.72 – -3.02 India -0.01 -1.17 1.17 -0.52 Indonesi -0.25 -1.26 1.18 1.09 a Malaysia -1.37 +0.43 0.57 -4.92 Philippi -0.17 -0.55 -4.01 -10.20 nes S.Korea -1.32 +1.50 -0.77 4.91 Singapor -0.15 +0.75 1.37 1.73 e Taiwan – +0.30 2.13 – Thailand +0.06 +2.02 -1.47 -6.01 (Reporting by Shivangi Lahiri and Himanshi Akhand in Bengaluru; Additional reporting by Sneha Kumar; Editing by Kate Mayberry and Varun H K)
