* Trump’s tariffs on Mexico, Canada and China set to be implemented at 0501 GMT * Mexican peso falls to one-month low * Emerging Asian equities slip, Indonesian stocks fall as much as 1.8% By Shivangi Lahiri March 4 (Reuters) – Emerging Asian equities slipped on Tuesday, with investors preparing for a global trade war after new U.S. tariffs are set to be implemented within hours on Mexico, Canada and China. The Mexican peso fell as much as 0.5% to a one-month low against the greenback, while the Canadian dollar was down as much as 0.2%. The Chinese yuan held steady, however, edging up 0.1% as the central bank continued a strengthening bias in its daily official guidance. Trump said there was “no room left” for a deal that would avert the tariffs on Canada and Mexico, with 25% tariffs on both going into effect from 0501 GMT on Tuesday, along with a doubling of levies on Chinese goods to 20%. MSCI’s gauge of Asian equities, excluding Japan , fell as much as 0.5%, hovering around a one-month low. Among emerging Asian equities, stocks in Indonesia slipped the most, falling as much as 1.8% and paring gains from Monday, while stocks in Malaysia dipped 0.8% to around a one-month low. Analysts at Barclays note that semiconductors are a key point of pressure in the emerging Asia region, with Malaysia standing out in terms of its vulnerability to semiconductor tariffs. In addition, “Indonesia no longer looks as insulated from critical import tariffs once agricultural products are included, even if its exposure still seems relatively small within Emerging Asia,” they wrote. Wei-Liang Chang, macro strategist at DBS Bank, sees a subdued recovery to be more likely for Asian equities in the medium term. “Until we see signs of negotiations around trade bearing fruit … then we could see a more significant recovery in (emerging Asia) equities,” he added. Stocks in Taipei were down 0.6% as chip giant TSMC dragged the most on the benchmark, dipping as much as 2.4%. Currencies in emerging Asia seemed to be more resilient, however, with Thailand’s baht and the Indonesian rupiah appreciating 0.1% and 0.2% ,respectively. But the Philippine peso slipped, falling 0.2%. “I think there is a lot more resilience in emerging Asian currencies for a few reasons … positioning in EM Asian forex is really pretty low, so most Asian currencies are somewhat undervalued,” Chang added. Markets will now be on the lookout for any signs of trade negotiations or retaliations in the days ahead, with the situation being risky enough to subdue investors’ appetite. China’s Premier Li Qiang is expected to lay out key 2025 economic growth targets and policy objectives in front of the National People’s Congress (NPC) on Wednesday and markets will be closely watching for the size of new stimulus measures. Economic data points are also queued up for various emerging Asian countries this week, with inflation readings from the Philippines, Taiwan and Thailand. Traders also expect Malaysia’s central bank to hold its key rates at 3% at its meeting on Thursday. HIGHLIGHTS: ** Thai draft law on credit guarantee agency to go to cabinet this month, official says ** China vows to hit back against US tariffs linked to fentanyl ** Indonesia to offer energy projects worth $40 billion in 2025, minister says Asian stocks and currencies as of 0404 GMT COUNTRY FX RIC FX FX INDE STOCKS STOCKS DAILY YTD % X DAILY YTD % % % Japan +0.28 +5.43 <.N2 -1.80 -5.59 25> China EC> India +0.00 -2.01 <.NS -0.68 -7.08 EI> Indonesi +0.18 -2.16 <.JK -1.41 -9.21 a SE> Malaysia -0.04 +0.04 <.KL -0.82 -5.10 SE> Philippi -0.18 +0.48 <.PS 0.59 -6.99 nes I> S.Korea 11> Singapor -0.03 +1.38 <.ST -0.34 2.85 e I> Taiwan -0.09 -0.51 <.TW -0.56 -1.76 II> Thailand +0.10 +0.96 <.SE 0.05 -15.09 TI> (Reporting by Shivangi Lahiri in Bengaluru)
