Asian currencies: Ringgit rises 0.3pc, Taiwan dollar gains

BENGALURU: Emerging Asian stock markets rallied on Tuesday, with Bangkok and Manila trading higher on expectations of rate cuts in the near future, while Singapore stocks hit a 17-year high.

Thailand stocks gained as much as 1.3% to hit their highest since Nov. 8, after third-quarter economic growth data highlighted slowing private consumption, ramping up pressure on the central bank to lower interest rates.

Analysts at TISCO Securities expect the Bank of Thailand to stay pat on rates in December. However, they see a high chance of a 25-basis-point rate cut in the first quarter of next year.

Philippine stocks rose as much as 1.1% to hit their highest since Nov. 12, after the central bank governor said Bangko Sentral ng Pilipinas (BSP) was on course for more rate cuts. The peso was trading flat.

BSP Governor Eli Remolona told reporters that a third rate cut was likely either at the central bank’s December meeting or at its first meeting next year, and further reductions beyond that could be expected in 2025.

Citi analysts expect a 25-bp easing in borrowing costs in December and a total of 75 bps of rate cuts over the course of next year.

Losses in stocks and currencies in developing nations around the world, and especially in emerging Asia, had widened since Donald Trump won the US presidential election, as traders weighed his touted policies of tariffs and the dollar rallied on expectation of slow interest rate cuts.

Singapore shares hit their highest in 17 years, led by financials. Analysts expect Southeast Asia’s top performing stock market in 2024 to continue its momentum next year as the central bank unveils stimulus measures to further boost the market.