Emerging Markets: Asia stocks lose footing as US jobs data keeps Fed on the fence

Sembcorp Industries

21/11/2025 07:29

Updates for afternoon trade

Taiwan shares down 3%

Thai equities hit lowest level in more than two months

South Korea's benchmark posts worst week since Feb 28

MSCI EM Asia stocks set for worst week since April

By Roshan Thomas

Nov 21 (Reuters) -
Emerging Asian stocks fell sharply on Friday, while regional currencies steadied, as traders cut risk exposure after U.S. jobs data failed to clarify the Federal Reserve’s policy path.

The MSCI emerging Asia stock index .MIMS00000PUS dropped 2.7%, erasing Thursday’s 1% gain and putting it on track for its worst week since April 4, when it fell
3.6% after fresh U.S. tariff actions by President Donald Trump.

Singapore's Straits Times Index .STI dipped more than 1% on the day, with utility firm Sembcorp Industries SCIL.SI among the biggest decliners, down 3.2%.

Bangkok stocks .SETI fell 1.9% to their lowest point since September 5, while Kuala Lumpur shares .KLSE were down 0.2%.

The sharp shift in sentiment followed concerns over lofty valuations and rising tech spending, which weighed on a rally fuelled by AI darling Nvidia's NVDA.O positive outlook and stronger-than-expected U.S. September jobs data.

However, a higher U.S. unemployment rate and downward revisions to previous months have left the Fed with an uncertain outlook as it considers a potential rate cut next month.

"The best explanation for the sell-off in the markets today is related to monetary policy uncertainty. While the chances of a cut are marginally higher, the markets are still implying a line ball decision in December," said Kyle Rodda, a senior financial market analyst at Capital.com.

South Korea's KOSPI .KS11 slumped 4.2% earlier in the session, erasing the 3.5% gains fuelled by Nvidia in the previous session.

The benchmark ended 3.8% lower and has fallen nearly 4% this week, marking its worst weekly performance since late February.

     South Korean heavyweights Samsung Electronics 005930.KS and SK Hynix 000660.KS lost 6.1% and 10%, respectively.

"In Korea, Samsung and SK Hynix are under outsized pressure because the memory-chip rally is now facing a potential supply-side shift, reports of buyers diversifying toward Chinese DRAM suppliers have amplified concerns that current pricing strength may be peaking," said Tareck Horchani from Maybank Securities.

Taiwan's tech-heavy index .TWII, down 3.5% this week, in its worst showing since early April, fell 3.6% on Friday, with TSMC 2330.TW sliding 4.8%.

Indonesia stocks .JKSE edged 0.2% lower, capping a week in which the central bank held rates steady as expected, prioritising the transmission of earlier cuts amid renewed rupiah weakness that complicates its easing path. The rupiah IDR= edged 0.1% higher on the day.

Other currency markets in the region were mixed against a dollar index =USD that edged lower on Friday.

The Malaysian ringgit MYR= rose 0.2%, while the Taiwan dollar TWD=TP slipped 0.5% to its weakest level since May 2.

     The South Korean won KRW=KFTC slipped 0.2%, while most other regional currencies were little changed.

HIGHLIGHTS:

** Malaysia's October CPI rises 1.3% year-on-year, below forecast

** Singapore Q3 GDP grows 4.2% from a year earlier; upgrades 2025 outlook

Asia stock indexes and currencies at 0658 GMT
COUNTRY
FX RIC
FX DAILY %
FX YTD %
INDEX
STOCKS DAILY %
STOCKS YTD %
Japan
JPY=
+0.19
+0.01
.N225
-2.40
21.89
China
CNY=CFXS
+0.07
+2.62
.SSEC
-2.25
14.65
India
INR=IN
+0.05
-3.43
.NSEI
-0.28
10.46
Indonesia
IDR=
+0.09
-3.71
.JKSE
-0.24
18.64
Malaysia
MYR=
+0.27
+7.84
.KLSE
-0.17
-1.53
Philippines
PHP=
+0.13
-1.45
.PSI
0.99
-8.26
S.Korea
KRW=KFTC
-0.23
-0.22
.KS11
-3.79
60.59
Singapore
SGD=
+0.02
+4.42
.STI
-0.89
18.06
Taiwan
TWD=TP
-0.46
+4.27
.TWII
-3.61
14.76
Thailand
THB=TH
-0.09
+5.60
.SETI
-1.45
-9.78

Graphic: World FX rates https://tmsnrt.rs/2RBWI5E

Asian stock markets https://tmsnrt.rs/2zpUAr4

(Reporting by Roshan Thomas in Bengaluru; Editing by Sherry Jacob-Phillips and Nivedita Bhattacharjee )

((Roshan.Thomas@thomsonreuters.com;))