Emerging Asian stocks rose on Monday on prospects of further bilateral trade deals with the Unites States, while the South Korean won was the sole gainer among currencies after Seoul announced plans to prepare a trade package with Washington.
Jakarta shares jumped 1.5 percent to a late-October high. The benchmark has risen more than 2 percent in four straight sessions of gains since Indonesia secured a favourable tariff deal from the United States last Wednesday.
Kuala Lumpur stocks built on Friday’s momentum with a 0.2 percent advance, while Taipei shares climbed 0.9 percent to hit their highest since late February.
Most Southeast Asian stock markets have rallied over the past two weeks after Vietnam, Indonesia, the Philippines and Japan all secured favourable trade deals with Washington, creating a template for other regional economies.
Stocks in Vietnam advanced as much as 1.5 percent to hit a record high, marking their fifth straight session of gains.
“Even though effective average tariff rates are expected to settle at higher rates, we think markets are taking solace from the fact that incrementally ‘deals’ with some major trading partners are at least coming through,” said Chetan Seth, Asia-Pacific equity strategist at Nomura.
“The impact of such tariffs is yet to show up in hard economic data in the US and in China.”
Trading was more restrained in the currency markets, with the won advancing as much as 0.4 percent, while the Philippine peso, Indian rupee, and Singapore dollar traded flat.
Meanwhile, US President Donald Trump said on Sunday that the United States had struck a framework trade deal with Europe, averting a potential trade war between allies that account for nearly a third of global commerce.
However, China faces a more challenging August 12 deadline to reach a durable trade agreement, with analysts expecting another 90-day extension following Monday’s talks in Stockholm rather than a breakthrough.
