Asian currencies: Taiwan’s dollar hits highest since April 2022

BENGALURU: Most stock markets in emerging Asian economies rose on Thursday, after trade discussions between the United States and Vietnam raised the possibility of breakthroughs for other countries in the region ahead of the July 9 tariff deadline.

US President Donald Trump said the country would impose a 20% tariff on exports from Vietnam, sharply down from the 46% planned earlier. The announcement, though scant on details, eased tensions with its tenth-biggest trading partner.

Stocks in Vietnam rose 0.6% to their highest level since April 2022, while the dong dropped 0.3% to hit a record low of 26,229 per US dollar. Analysts at DBS noted the proposal could mitigate downside risks to Vietnam’s economic growth but “may not prevent a slowdown in the coming quarters.”

The US-Vietnam talks lifted sentiment across most Asian stock markets on hopes other countries could reach similar outcomes before the July 9 deadline.

An MSCI gauge of equities in emerging Asian markets advanced 0.4% and touched a three-and-a-half-year high earlier in the day.

Philippine stocks climbed 1.1% to hit their highest since May 15. The archipelago faces an 18% tariff under Trump’s plan.

Shares in Taiwan and Indonesia climbed 1.1% and 0.2%, respectively.

South Korean stocks ended more than 1.3% higher,

marking their highest close since September 2021, after President Lee Jae Myung said he was working to secure a “mutually beneficial and sustainable” outcome from trade talks with the United States. Thailand stocks were up 0.9%, after the country’s opposition parties said they would hold off on launching a no-confidence vote against suspended Prime Minister Paetongtarn Shinawatra pending a court ruling.