Emerging Markets: Export-reliant stocks, currencies slump on Trump's 'America first' move

Li Ning

03/02/2025 07:17

* 
      All Asian currency markets downbeat
    

        * 
      Chinese offshore yuan at record low
    

        * 
      Chip-focussed stocks slump
    

  
 (Updates as at 0627 GMT)
    By Rishav Chatterjee
       Feb 3 (Reuters) - Emerging Asian currencies and shares
tumbled on Monday after U.S. President Donald Trump slapped
tariffs on imports from the country's three biggest trade
partners, stoking fears of a trade war and its impact on
export-focused economies in the region.
    Markets were downbeat in Asia, with stocks reliant on
exports getting hit the most, ranging from Japanese automakers
to chipmakers in Taiwan, South Korea, to Chinese e-commerce
firms. 
    As Trump had promised last month, the United States hit
Canada and Mexico with duties of 25% and China with a 10% levy,
with retaliatory moves immediately promised by Canada and
Mexico, the top two U.S. trading partners. China said it would
challenge Trump's levies at the World Trade Organization.
    The reality of a trade war sent the Mexican peso  MXN=  to
its lowest in nearly three years, the Canadian dollar  CAD=D3 
to a 22-year low and offshore yuan  CNH=D3  to a record low. 
    All currencies in Asia slumped, with the Thai baht  THB=TH 
and Indonesian rupiah  IDR=  among the top losers. 
    "In the weeks ahead, tariffs are likely to represent an
overhang on markets and contribute to volatility, at least until
investors gain greater clarity on the path and destination of
U.S. trade policy," UBS analysts said. 
    Markets in Taipei  .TWII  fell 3.5% while Seoul  .KS11  was
2.5% lower, weighed down by exporters.      
    Chip exporters Samsung Electronics  005930.KS  and Taiwan
Semiconductor Manufacturing Co (TSMC)  2330.TW  plunged 2.7% and
5.7%, respectively. TSMC was seen playing catch-up with the
global sell-off in artificial intelligence-related stocks last
week when Taiwan was closed for the Lunar New Year.
    Bangkok stocks  .SETI  traded around an over-five-year low. 
    Shares in Jakarta  .JKSE  lost 2.2% in its weakest trading
session in six months. Heavyweight coal miner Adaro Andalan
 AADI.JK  and Adaro Minerals  ADMR.JK  fell 4.5% and 8% each,
dragging the local benchmark. 
    Indonesia, Southeast Asia's largest economy, reported annual
inflation below the central bank's target range, a sign that a
surprise policy easing last month boosted spending and bolstered
the case for another rate cut. 
    The rupiah was trading 0.9% lower against the greenback. 
    The Indian rupee  INR=IN  further weakened to a fresh low,
as investors bet on rate cuts by the local central bank. 
    The Philippine peso  PHP=  and the Malaysian ringgit  MYR= 
dropped 0.4% and 0.8%, respectively.
    
    HIGHLIGHTS:    
    ** Indonesia's inflation in Jan at 0.76% y/y
    ** Thai central bank says economy slowed in December
    
  Asian                                              
 stocks                                         
   and                                          
 currenc                                        
 ies as                                         
 of 0627                                        
   GMT                                          
 COUNTRY  FX RIC        FX     FX  INDE  STOCK  STOCK
                     DAILY  YTD %     X      S  S YTD
                         %               DAILY      %
                                             %  
 Japan     JPY=      -0.11  +1.18  <.N2  -2.67  -2.01
                                   25>          
 China                           EC>          
 India     INR=IN    -0.59  -1.72  <.NS  -0.97  -1.65
                                   EI>          
 Indones   IDR=      -0.82  -2.07  <.JK  -2.27  -1.87
 ia                                SE>          
 Malaysi   MYR=      -0.76  -0.36  <.KL  -0.29  -5.48
 a                                 SE>          
 Philipp   PHP=      -0.40  -0.97  <.PS   1.22  -9.11
 ines                              I>           
 S.Korea                         11>          
 Singapo   SGD=      -0.56  -0.06  <.ST  -0.74   1.05
 re                                I>           
 Taiwan    TWD=TP    -1.30  -1.00  <.TW  -3.53  -1.48
                                   II>          
 Thailan   THB=TH    -0.89  +0.75  <.SE  -1.86  -7.87
 d                                 TI>          
 
    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Graphic: World FX rates     https://tmsnrt.rs/2RBWI5E
Asian stock markets    https://tmsnrt.rs/2zpUAr4
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Rishav Chatterjee in Bengaluru; Editing by
Christopher Cushing)
 ((Rishav.Chatterjee@thomsonreuters.com;))