BENGALURU: Most emerging Asian equities traded in positive territory on Thursday, following the release of cooler US inflation data for February, although an escalating global trade war continues to loom.
The MSCI’s gauge for emerging Asian equities rose as much as 0.6%, rebounding from a 0.4% drop at close on Wednesday.
Data from the US showed that consumer prices increased less than expected in February, but investors fret that the improvement is likely temporary against the backdrop of aggressive tariffs on imports that are expected to raise the costs of most goods in the months ahead.
However, the upbeat sentiment from cooling US inflation supported a rebound in emerging Asia stocks and currencies, according to Poon Panichpibool, market strategist at Krung Thai Bank.
Stocks in Kuala Lumpur rose the most, advancing around 1.5% and snapping a five-session losing streak, while Thai equities climbed nearly 0.3%.
On the other side, as April approaches, concerns over reciprocal tariffs have surfaced, with US President Donald Trump continuing to impose tariffs on neighbouring countries. This could potentially have a negative impact on assets in emerging Asia, Poon warned.
“Countries such as India, Thailand, Philippines … collect higher tariffs from the US when we compare to what the US collects from them … we could definitely face reciprocal tariffs for sure, which could be quite negative for EM Asia,” he said.
Stocks in Indonesia slipped, falling as much as 0.7% in early trade as a few large banks, including Bank Mandiri (Persero) and Bank Rakyat Indonesia (Persero), pulled the benchmark lower.
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