BENGALURU: Emerging Asian equity markets opened the week higher on Monday, led by Taiwan tracking Wall Street gains, while Indonesian shares rose on strength in banking stocks.
Most stock markets in the region were upbeat as an easing of trade tensions between the United States and China helped stir an appetite for risk among investors.
Shares in Malaysia, Thailand and India added 0.7%, 0.1% and 1.3% respectively.
“After a period of correction, ASEAN equities are showing upward momentum, having broken out of a technical downtrend that began from the 2017 high(the first technical breakout occurred in 2024),” said Mohit Mirpuri, an equity fund manager at Singapore-based SGMC Capital.
Attractive valuations, a weaker US dollar, steady growth prospects in Asia and relatively light investor positioning create the right conditions for investors to start moving back into risk assets, Mirpuri added.
Equities in Taipei surged 0.8%, reflecting a strong lead from gains in technology and artificial intelligence-related stocks in the US
The Indonesian benchmark index rose 0.7% to hit its highest since February, powered by major gains in large-cap lenders - Bank Central Asia, Bank Mandiri and Bank Rakyat Indonesia.
Bank Central Asia, Indonesia’s largest lender, reported strong first-quarter earnings last week and set a positive tone for its rivals, who are scheduled to release their results later this week.
In Thailand, the local central bank is set to meet on Wednesday for its monetary policy decision, where Poon Panichpibool, markets strategist at Krung Thai Bank, expects a cut.
The Thai baht was trading 0.4% lower against a steady US dollar.
If the central bank can decide to hold for now, we could see some profits taking on the Thai bonds and that could be somewhat negative on the baht,” added Panichpibool.
Currencies across emerging Asia were trading tepidly against a steady US dollar as investors awaited more cues on the future trajectory of trade talks between the world’s two largest economies.
Despite US President Donald Trump’s claims of progress on trade negotiations with China and other countries, concrete evidence remains scarce.
On Sunday, Treasury Secretary Scott Bessent declined to support Trump’s assertion that tariff talks with China had begun. The week is also packed with economic news including US employment, gross domestic product and core inflation.
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