BENGALURU- Emerging Asian markets were mixed on Friday, while currencies got a breather as the US dollar dipped, but many assets, especially in South Korea and Indonesia, posted their worst performance in months due to the threat of US tariffs.
Since Donald Trump won the US elections in early Nov, the dollar has rallied, weighing on emerging market currencies, while stock markets have been hit by Trump’s recent pledge for 25 percent tariffs on key trading partners, including China, a major trading partner for Asian economies.
South Korea is among the worst hit as it has close trading ties with the US and China.
Its stocks closed 2 percent lower on the day and have slid 3.9 percent in November, the most in any month since January. The won was flat on the day, but has lost 1.2 percent this month and 7.7 percent this year, among the worst hit in the region.
The central bank unexpectedly cut interest rates for a second consecutive meeting on Thursday as economic growth faltered, with policymakers keeping a wary eye on trade risks.
Equities in the Philippines retreated 0.1 percent on the day and their roughly 7 percent drop this month is set to be the steepest since September 2022.
Over in Indonesia, the rupiah was largely unchanged on the day and down 1 percent for November, among the least in the region. The stock market was hit harder, tumbling 5.8 percent this month and heading for its worst month in over four years.
Investors are also worried as the country’s consumption growth is still below 5 percent, said Fakhrul Fulvian, an economist at Trimegah Securities.
Maybank analysts said in a note that they are monitoring the developments in local elections, while remaining cautious on the dollar-rupiah pair due to uncertainties, including over US policies. The Thai baht and the Malaysian ringgit rose 0.5 percent and 0.2 percent, respectively, on the day as the dollar dipped, largely on the back of a rally in the Japanese yen.
