BENGALURU: Most Asian stock markets paused their record-setting rallies on Tuesday as investors awaited details from US President Donald Trump’s Asia tour, the Federal Reserve’s policy decision, and major corporate earnings reports for further direction.
South Korea’s benchmark stock index declined 1.7 percent after breaching the 4,000 level for the first time on Monday, as investors awaited earnings from major companies including SK Hynix and Samsung Electronics.
Taiwan’s benchmark index was little changed a day after crossing the 28,000 mark for the first time, while stocks in Indonesia fell 1 percent after Monday’s 3.8 percent drop.
“The move (for the day and the session earlier) looks like a mix of profit-taking after strong index returns earlier in 2025 and a short-term policy repricing reaction to a less dovish-than-expected Bank Indonesia,” said Ernest Chew, head of ASEAN equities, BNP Paribas Asset Management.
Last week, BI Governor Perry Warjiyo said there was still room for further rate cuts due to expected low inflation through 2026.
Equities in Thailand fell nearly 1 percent, while Singapore stocks advanced for a sixth straight session to hit a record high.
Investors were upbeat about the possibility of a trade truce between the United States and China, but remained wary of being disappointed with the eventual deal from Thursday’s meeting.
“A broader agreement will likely require further negotiation and may not materialise until Trump’s state visit to China,” analysts at Bank of America said in a note.
Also on the trade front, Trump and Japanese Prime Minister Sanae Takaichi signed a framework agreement covering rare earths. Japan’s Nikkei closed 0.6 percent lower on profit-taking.
With the Fed widely expected to cut rates by 25 basis points on Wednesday, investors are awaiting any forward-looking comment from Fed Chair Jerome Powell for clarity on the path of future rate cuts as the US government shutdown drags on.
Asian currencies were mixed, with the Malaysian ringgit, Taiwan dollar and the Thai baht edging higher between 0.1 percent and 0.4 percent.
The Philippine peso dropped 0.5 percent to its lowest level in more than three years, while the Indian rupee lost 0.1 percent.
Oil prices slipped, as an OPEC+ plan to raise output outweighed optimism about a potential Sino-US trade deal.
Oil prices influence regional currencies since most emerging Asian economies are net oil importers and a rise in crude prices typically widens their current account deficits.
Elsewhere in the region, the Singapore dollar gained 0.1 percent, while the South Korean won lost 0.3 percent.
Copyright Business Recorder, 2025
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