BENGALURU: Most Asian stocks rose on Tuesday, while regional currencies held steady, after the United States and China extended their tariff truce to November, easing market nerves ahead of a keenly watched US inflation report later in the day.
Stocks in Malaysia and Philippines gained 0.1% and 0.5%, respectively. Shares in Taiwan edged 0.1% higher.
Equities in Indonesia rose as much as 2.1%, with the main stock market index hitting its highest level since late October 2024.
“Indonesia’s rally is being underpinned by optimism after the Bank Indonesia’s recent rate cut, the US tariff clarity, and the milestone EU trade deal,” said Mohit Mirpuri, equity fund manager at SGMC Capital.
“The broader backdrop of easing policy risk and attractive valuations is helping Indonesia stand out in the region today,” Mirpuri added.
Lifting market sentiment across Asia, US President Donald Trump signed an executive order overnight extending a 90-day pause on triple-digit tariffs on imports from China, and Beijing issued a pause on extra tariffs on imports from the US
Globally, investors are keeping an eye out for the US consumer inflation report for July later in the day that could shape expectations for a September Federal Reserve rate cut.
“Softer-than-expected US CPI may even tip markets to price in some chance of a 50-basis-point Fed cut in September,” said Christopher Wong, currency strategist at OCBC.
Among Asian currencies, the Indonesian rupiah and Taiwan dollar shed 0.1% and 0.3% each, while most regional peers stayed flat against a steady dollar.
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