Emerging Markets: Asian stocks rise as Fed hike odds ease, Singapore hits record high

Oversea-Chinese Banking

04/09/2026 08:38

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Philippine Peso rebounds from record low 
Taiwan dollar eyes worst week since early July
US payrolls data in focus
By Kumar Tanishk
Sept 4 (Reuters) - Most emerging Asia stocks advanced on Friday with Singapore's benchmark hitting an all-time high, as waning expectations of a near-term U.S. rate increase spurred demand for risk assets, while regional currencies gained ground.
The MSCI gauge of emerging Asia equities .MIMS00000PUS gained 1.6% and was headed for its best session in seven days, with tech-heavy South Korea .KS11 and Taiwan .TWII gaining 1.8% and 1.5%, respectively.
Singapore's Straits Times Index .STI climbed as much as 1.3% to a record 5,820.69 points, led by blue-chip banks. The index was up 1.9% for the week, on course for the steepest rise since early July.
Expectations of a Federal Reserve rate hike have moderated ahead of key U.S. inflation data, while the yen's appreciation has weakened the dollar and helped Asian currencies recover some lost ground, said DBS economist Radhika Rao.
"Risks nonetheless remain two-sided, as any renewed U.S.-Iran kinetic conflict could drive oil prices higher and weigh on Asian assets anew," Rao said.
Treasuries rallied, and the U.S. dollar index =USD slipped after Fed Governor Christopher Waller said overnight he would favour keeping rates unchanged at September's policy meeting if upcoming inflation reports reinforce signs of disinflation. 
Futures markets lowered the probability of a rate hike later this month to about 50%, from roughly 63% a day earlier. 0#USDIRPR
The dollar's retreat following Waller's comments supported Asian currencies, with the South Korean won KRW= leading gains at 0.4%. Taiwan's dollar TWD=TP rose 0.2%.     
Indonesia's rupiah IDR= advanced 0.1%, though it remains among the worst-performing emerging market currencies this year, down 5.5% so far in 2026.
In the Philippines, stocks .PSI climbed as much as 0.4%, reversing early declines after data showed annual inflation slowed for the fourth consecutive month in August. The benchmark, up 2.3%, is headed for its best week since mid-June.
The peso PHP= rebounded from a record low hit earlier in the session.
Elsewhere, the Thai baht THB=TH reversed earlier gains to trade 0.1% lower. The won was up 1.5% for the week, while the Taiwan dollar was on track for its worst week since early July.
Investors now await U.S. nonfarm payrolls data due later in the day for clues on the U.S. rate path, with payrolls likely having rebounded in August as a drag from local government education employment reversed.
     
HIGHLIGHTS:    
Yield on Indonesia's 10-year bonds ID10YT=RR at 7.102%
Chinese AI firm Moonshot files confidentially for Hong Kong IPO, sources say
South Korea says U.S. companies to invest $2 billion in chip, energy sectors
Asia stock indexes and currencies at 0422 GMT
COUNTRY
FX RIC
FX DAILY %
FX YTD %
INDEX
STOCKS DAILY %
STOCKS YTD %
Japan
JPY=
-0.37
+0.18
.N225
1.24
25.43
China
CNY=CFXS
+0.12
+4.06
.SSEC
-0.15
-0.83
India
INR=IN
-0.01
-4.89
.NSEI
0.39
-8.28
Indonesia
IDR=
+0.06
-5.50
.JKSE
-0.11
-22.97
Malaysia
MYR=
-0.11
+0.32
.KLSE
-0.47
1.60
Philippines
PHP=
+0.12
-5.74
.PSI
0.30
0.57
S.Korea
KRW=
+0.35
+6.51
.KS11
1.76
58.88
Singapore
SGD=
-0.01
+1.48
.STI
1.24
25.25
Taiwan
TWD=TP
+0.23
-0.77
.TWII
1.51
60.72
Thailand
THB=TH
-0.02
-4.47
.SETI
0.75
26.13



 (Reporting by Kumar Tanishk in Bengaluru; Editing by Subhranshu Sahu and Mrigank Dhaniwala)
 ((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk;))