BENGALURU: Asian stocks and currencies fell sharply on Thursday, as weak Chinese economic data weighed on sentiment and US President Donald Trump’s August 1 tariff deadline neared, with nations scrambling amid last-minute trade negotiations.
The Philippine peso and Taiwan dollar led currency declines, while a gauge of emerging Asian equities slipped over 1% to a two-week low after data showed China’s manufacturing activity shrank for a fourth month in July.
The index is, however, on track for a monthly gain of over 2%.
The peso slipped nearly 1% to a five-month low of 58.371 per dollar, on track for its worst month since October. The Taiwan dollar fell 0.8% to its lowest since June 10, declining for six straight sessions.
Indonesia’s rupiah dropped 0.5% while Malaysia’s ringgit lost 0.6% in its fifth consecutive session of losses.
The MSCI emerging market currency gauge was set to snap a six-month rally, losing over 1% in July. It fell 0.3% on Thursday.
China’s economic data amplified regional growth concerns, sending Hong Kong and mainland Chinese stocks lower and pressuring regional markets already nervous about trade uncertainty.
The US dollar soared after the Federal Reserve held interest rates steady but offered less dovish commentary than expected.
Trade negotiations with the US intensified as the August 1 deadline approached. Trump said on Wednesday South Korea secured a deal with reduced 15% tariffs. The won appreciated 0.3% on the news.
Vietnam, Indonesia, the Philippines, Japan, Cambodia and Thailand have already clinched agreements, creating urgency for remaining economies. Malaysia’s prime minister said he expects to learn the country’s tariff rate on Friday.
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