Asian currencies: S Korea’s won and Taiwan dollar higher

BENGALURU: Emerging Asian market equities resumed their rally on Wednesday, led by strong gains in Indonesia and the Philippines after the two countries hashed out a deal with the US for tariff rates lower than those threatened earlier.

An MSCI index of emerging Asian equities jumped to a more than 3-1/2-year high, rebounding from a slight dip on Tuesday that snapped its three-day win streak.

A subset of ASEAN stocks, dominated by Singapore, also jumped nearly 1%. Singapore’s Straits Times index extended its rally into its 13th consecutive session - its longest ever - during which it advanced more than 5%.

Indonesia’s benchmark jumped more than 1%, and headed to its highest closing since mid-December. Stocks in the Philippines jumped 1.7% to mark their best day in a month.

US President Donald Trump announced new import duties of 19% for goods from the Philippines, a touch below the rate of 20% he threatened earlier this month. Indonesia agreed to eliminate levies on more than 99% of US goods and scrap barriers to American firms, while the US said it will drop its tariff rate on Indonesian products to 19% from 32%.

“Asian equities are rallying on a cocktail of positives,” said Mohit Mirpuri, an equity fund manager at SGMC Capital.

“Tariff clarity with the United States across multiple fronts, including Japan and the Philippines, is lifting sentiment...Investors are rotating back into Asia, where valuations look compelling and policy risk is finally easing.”

South Korea’s KOSPI index advanced 0.4%, while Taiwan’s benchmark jumped 1.4%. Vietnam’s benchmark was largely flat in the afternoon, after touching a more than three-year high earlier in the day.