Asian FX, stocks retreat as investors await Iran sanction details
BENGALURU: Asian currencies and stocks lost ground on Monday as investors waited on details around the threatened US sanctions against Iran while risk appetite was subdued ahead of key central bank meetings and Nvidia earnings.
Currencies throughout the region dropped ahead of US Treasury Secretary Scott Bessent’s press conference later in the day, after threats of severe measures on Iran’s trading partners, while Iran vowed to shut down oil exports from the Gulf.
The news piles up on uncertainty already magnified by rising developed market bond yields and ballooning debt levels, the fears of which hammered the US dollar to multi-month lows and drove up gold prices.
Indonesia’s rupiah and the Philippine peso weakened slightly, trading at 17,713 and 61.708 per dollar respectively.
The South Korean won demonstrated resilience, briefly climbing to 1,376.50 per dollar, its highest level since mid-September, 2025. The currency, with help from a weaker US dollar, gained support ahead of Bank of Korea’s rate decision later this week where a 25 basis point tightening is expected.
Samsung’s record USD79 billion shareholder-return plan, however, disappointed investors and sent its shares falling 8.7 percent and dragged South Korea’s KOSPI 3.1 percent lower.
To check the health of the artificial intelligence trade that amplified global market volatility, investors will be assessing bellwether Nvidia’s earnings due on Wednesday, with any surprises sure to move markets.
Stocks elsewhere trended lower. Taiwan’s equity benchmark shed over 1 percent, while Indonesian stocks lost 0.5 percent.
Thailand stocks shed 0.9 percent, although its currency, historically linked to gold prices, gained to 32.6425 per dollar. The Bank of Thailand will meet later this week, with an interest rate hold widely expected. Philippines stocks added 0.2 percent, ahead of the Bangko Sentral ng Pilipinas’ meeting later this week, with the central bank also widely expected to hike rates by 25 basis points.