Emerging Markets: Asian stocks, currencies rebound as Trump remarks ease nerves

Singapore Exchange

10/03/2026 05:18

Asian markets rebound after Trump calms conflict fears

KOSPI surges as much as 6.5% after previous day's slump

Ringgit leads FX gains; Peso, won, baht all falter

Hormuz risks keep volatility high across Asian markets

By Roushni Nair

March 10 (Reuters) - Asian markets staged a modest recovery on Tuesday, with South Korean stocks and the Malaysian ringgit leading gains, after reassuring comments from U.S. President Donald Trump helped calm nerves following a brutal selloff a day earlier.

The MSCI emerging markets stocks index .MSCIEF jumped as much as 3.1% after two days of losses, while the EM currency index .MIEM00000CUS climbed 0.6%, also ending a two-day slide.

Both were headed for their best session since early February after the currency gauge tumbled 3% on Monday.

The rebound followed a shift in sentiment overnight after Trump said the Iran conflict could be resolved "very soon" and that the United States was "far ahead" of a four- to five-week timeline, although he cautioned it would not end this week.

He also outlined plans to potentially waive oil-related sanctions and have the U.S. Navy escort tankers through the Strait of Hormuz, through which roughly 20%-25% of global oil supply flows.

Any disruption to the critical shipping lane would be particularly painful for energy-import-dependent Asian economies, amplifying market jitters across the region.

In South Korea, the benchmark KOSPI .KS11 jumped as much as 6.5%, rebounding sharply from Monday's steep 5.96% drop, after a sidecar curb was triggered early in the session when futures surged more than 5%.

The rally came as South Korea, where market circuit breakers have been activated twice since the Middle East conflict began, said it may draft an extra budget to support low-income households hit by surging oil prices.

The Malaysian ringgit MYR= was an outlier among regional currencies, strengthening 0.8% and snapping three straight days of losses, while stocks in Kuala Lumpur .KLSE advanced 1.6% and were on track for their best session since mid-May.

Analysts said the ringgit has fared relatively well compared with peers due to Malaysia's relatively strong cyclical fundamentals and its status as a net oil exporter, which helps cushion the currency against volatility in crude markets.

Elsewhere, share markets in India .NSEI rose more than 1% after losing nearly twice that amount in the previous session, while the Indian rupee INR=IN strengthened 0.5%.

The Thai baht THB= weakened 0.5% to 31.77 per dollar, while stocks in Bangkok .SETI rose as much as 2% before trimming gains to trade about 1% higher.

Thailand is also seeking additional energy sources to secure fuel supplies amid the ongoing Middle East conflict, highlighting concerns in the region over potential disruptions to oil flows.

Shares in Taiwan .TWII and Singapore .STI gained more than 1.5% each, while Jakarta shares .JKSE edged up 0.9%. The Singapore dollar SGD= was little changed, while Indonesia's rupiah IDR= strengthened 0.3%.

Singapore Exchange SGXL.SI plans to launch Asian government bond futures in the coming weeks as investors increasingly turn to hedging tools due to rising geopolitical tensions.

In contrast, the Philippine peso PHP= reversed early gains to fall 0.4%, extending its losing streak to a fourth session. However, Manila stocks .PSI, which plunged more than 5% in the previous session, rebounded 1.7% and were on course for their best day since early January.

Still, Josh Gilbert, market analyst at eToro, warned investors remain wary of aggressively buying the dip amid geopolitical uncertainty.

"Rebounds of this nature are going to happen, but that doesn't mean the risk is past us. Markets are going to remain volatile and reactive to every development in the Middle East over the coming days and weeks, and the situation on the ground is still serious," he said.

HIGHLIGHTS:

** Malaysia's January industrial production expands 5.9%, above forecast

** Japan upgrades Q4 GDP on robust capex

Asia stock indexes and currencies at 0453 GMT
COUNTRY
FX RIC
FX DAILY %
FX YTD %
INDEX
STOCKS DAILY %
STOCKS YTD %
Japan
JPY=
-0.10
-0.73
.N225
2.36
4.20
China
CNY=CFXS
+0.33
+1.48
.SSEC
0.39
3.62
India
INR=IN
+0.18
-2.48
.NSEI
0.43
-7.65
Indonesia
IDR=
+0.31
-1.26
.JKSE
0.69
-14.56
Malaysia
MYR=
+0.74
+3.18
.KLSE
1.40
1.04
Philippines
PHP=
-0.37
-0.80
.PSI
1.71
0.92
S.Korea
KRW=KFTC
-0.16
-2.47
.KS11
4.09
29.72
Singapore
SGD=
-0.05
+0.82
.STI
1.45
3.86
Taiwan
TWD=TP
+0.28
-1.23
.TWII
1.85
12.92
Thailand
THB=
-0.47
-1.04
.SETI
1.36
11.28

(Reporting by Roushni Nair and Sherin Sunny in Bengaluru; Editing by Saad Sayeed)

((Roushni.nair@thomsonreuters.com))