BENGALURU/SINGAPORE- Most Asian emerging market stocks declined on Friday on worries over US tariffs, with equities in South Korea and Thailand particularly hit as the new US auto levies dented car and auto parts makers.
Thailand’s benchmark index fell to its lowest in over a week and the baht slipped 0.4 percent, as Southeast Asia’s biggest auto production center and an export base for top car makers stood exposed to the new US auto duties.
“The US’s higher import tariffs on automobiles and auto parts will weigh further on Thailand’s ailing economy via an additional drag on the automotive sector,” said CharnonBoonnuch, an ASEAN economist at Nomura.
Boonnuch also noted that the reciprocal and auto sector tariffs announced were a downside risk to Thailand’s growth outlook.
The Stock Exchange of Thailand suspended all afternoon trading activities and went on a full halt after an earthquake struck neighboring Myanmar and people rushed out of buildings in panic in Bangkok.
South Korea’s KOSPI tumbled more than 2 percent in its second straight day of losses, dragged lower by sharp losses in Hyundai Motor and sister automaker Kia Corp
The index has lost more than 3 percent over the past two sessions as the two automakers lost billions of dollars in value.
South Korea’ won and Taiwan’s dollar slipped around 0.2 percent each.
Malaysia’s ringgit Singapore’s dollar and the Philippine peso edged lower.
US President Donald Trump’s tariff salvos since he took office in January have sent emerging Asian markets into a tizzy, resulting in heavy outflows from Southeast Asian equities.
Stocks in Indonesia and Thailand have lost 8 percent and 15.6 percent, respectively, in the quarter. The Indonesian rupiah is set for a near 3 percent decline.
