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- Philippine stocks hit lowest point since mid-Nov 2023
- Indonesian rupiah drops 0.5%
- Jakarta stocks fall 1.4%
Philippine shares hit a 14-month low on Thursday after the country’s quarterly economic growth missed estimates, while the Indonesian rupiah weakened as Federal Reserve’s rate policies and U.S. tariff threats kept investors cautious.
READ: Philippines Q4 GDP grows 5.2% y/y, below expectations
Stocks in Manila <.PSI> fell 0.3% to their lowest levels since mid-November 2023.
Data showed that the Philippine economy grew 5.2% in the fourth quarter, below expectations. However, the economic planning agency remains confident of touching the lower-end of the 2025 growth target of 6.5% to 7.5%. Meanwhile, the peso <PHP=> edged 0.1% higher.
The Thai baht <THB=TH> and the Indian rupee <INR=IN> nudged lower as the dollar held steady after the U.S. central bank kept interest rates unchanged and Chair Jerome Powell said there would be no rush to cut them again until inflation and jobs data made it appropriate.
The Indonesian rupiah <IDR=>, however, weakened 0.5% to 16,255 against the dollar, with the central bank saying the currency’s depreciation was driven by market reaction to the Fed’s rate decision and stronger U.S. stocks.
Investors across the region also remained cautious as White House said U.S. President Donald Trump still plans to make good on his promise to issue tariffs on Canada and Mexico on Saturday.
Trump had set a Feb. 1 deadline for imposing a 10% tariff on goods imported from China.
Mexico, Canada and China are the three largest U.S. trading partners, accounting for more than $2.1 trillion in annual imports and exports.
“Since there is some impact (from the tariffs) on global trade, that will negatively affect the export channels of the Asian economies,” said Poon Panichpibool, market strategist at Krung Thai Bank.
“The impact on exports and investments will negatively hurt the economic growth of Asian economies as well.”
Among other regional markets, Jakarta stocks <.JKSE> fell 1.3%, with the materials and utilities sub-sectors leading the decline.
Copper-and-gold mining company Amman Mineral Internasional <AMMN.JK> fell up to 6.8% and geothermal energy giant Barito Renewables Energy <BREN.JK> slipped 5.7%.
Stocks in Thailand <.SETI> dropped 0.4%, while those in India <.NSEI> added 0.4%.
Trading across the region remained thin, with China, South Korea, Taiwan, Malaysia and Singapore closed for Lunar New Year holidays.
HIGHLIGHTS:
** Hong Kong central bank keeps base rate unchanged as Fed holds steady
** Thai finance ministry sees economy growing 3.0% this year
** Japan’s government interest costs to swell more than 50% in next few years
Asian stocks and currencies at 0451 GMT | ||||||
COUNTRY | FX RIC | FX DAILY % | FX YTD % | INDEX | STOCKS DAILY % | STOCKS YTD % |
Japan | <JPY=> | +0.34 | +1.62 | <.N225> | 0.30 | -0.91 |
China | <CNY=CFXS> | – | +0.72 | <.SSEC> | – | -3.02 |
India | <INR=IN> | -0.04 | -1.11 | <.NSEI> | 0.36 | -1.69 |
Indonesia | <IDR=> | -0.52 | -1.02 | <.JKSE> | -1.30 | -0.10 |
Malaysia | <MYR=> | – | +1.82 | <.KLSE> | – | -5.46 |
Philippines | <PHP=> | +0.10 | -0.49 | <.PSI> | -0.29 | -6.02 |
S.Korea | <KRW=KFTC> | – | +2.86 | <.KS11> | – | 5.72 |
Singapore | <SGD=> | -0.04 | +1.16 | <.STI> | – | 0.36 |
Taiwan | <TWD=TP> | – | +0.30 | <.TWII> | – | 2.13 |
Thailand | <THB=TH> | -0.13 | +1.52 | <.SETI> | -0.42 | -4.47 |