BENGALURU: Asian stocks rose on Monday on prospects of additional bilateral trade deals with the United States, while the South Korean won was the sole gainer among muted currencies after Seoul flagged over the weekend preparations for a US trade package.
Jakarta shares jumped 1.5% to a late-October high. The benchmark has risen more than 2% in four straight sessions of gains since Indonesia secured a favourable tariff deal from the United States last Wednesday.
Kuala Lumpur stocks built on Friday’s momentum with a 0.4% advance, while Taipei shares climbed 0.9% to hit their highest since late February.
Most Southeast Asian stock markets have rallied over the past two weeks after Vietnam, Indonesia, the Philippines and Japan all secured favourable trade deals with Washington, creating a template for other regional economies.
Stocks in Vietnam advanced as much as 1.5% to hit a record high, marking their fifth straight session of gains.
“Even though effective average tariff rates are expected to settle at higher rates, we think markets are taking solace from the fact that incrementally ‘deals’ with some major trading partners are at least coming through,” said Chetan Seth, Asia-Pacific equity strategist at Nomura.
Trading was more restrained in the currency markets, with the won advancing as much as 0.4%, while the Philippine peso, Indian rupee, and Singapore dollar traded flat.
Meanwhile, US President Donald Trump said on Sunday that the United States had struck a framework trade deal with Europe, averting a potential trade war between allies that account for nearly a third of global commerce.
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