Asian emerging market stocks traded higher in the morning, lifted by the White House’s exemption of smartphones and computers from “reciprocal” US tariffs, but caution prevailed as President Donald Trump warned levies were still likely at some point.
Singapore’s stocks jumped more than 2 percent on Monday, while the local currency recouped early losses to edge higher against the dollar, after the city-state’s central bank eased its monetary policy for the second time this year.
Stocks in Taiwan , a major semiconductor producer, jumped more than 2 percent to a one-week high, while South Korea’s KOSPI index advanced to its best level in 10 days. An MSCI gauge of EM Asian equities gained more than 1 percent.
Singapore’s FTSE Straits Times Index rose as much as 2.3 percent, kicking off the week on a positive note after an 8.2 percent slump last week. Meanwhile, the Singapore dollar reversed early losses to trade slightly higher at 1.3167 against the greenback.
The Monetary Authority of Singapore loosened its policy, citing that prospects for global growth and trade had dimmed due to the US tariffs. The trade ministry also cut its growth forecast for 2025.
“(We) can’t rule out another easing if economic conditions deteriorate further,” OCBC economist Selena Ling said. In Southeast Asia, the Malaysian ringgit dipped while its benchmark index. KLSE rose 1.7 percent. Stocks in Indonesia jumped 1 percent in early trade, and the rupiah edged higher.
