BENGALURU: Philippine shares fell to a 14-month low on Thursday after the country’s economic growth came in below estimates, while the Indonesian rupiah slipped as market reactions to the US Federal Reserve’s rate decision led to a drop in the currency.
Stocks in Manila fell 0.7% to their lowest levels since mid-November 2023.
Data showed that the Philippine economy grew 5.2% in the fourth quarter, below expectations. However, the economic planning agency remains confident of touching the lower-end of the 2025 growth target of 6.5% to 7.5%.
Meanwhile, the peso edged 0.1% higher.
The Thai baht and the Indian rupee nudged lower as the dollar steadied after the US central bank kept its interest rate unchanged. Chair Jerome Powell signalled no rush to trim rates again until inflation and jobs data made the situation appropriate.
The Indonesian rupiah weakened 0.6% to 16,265 against the dollar, with the central bank saying the currency’s depreciation was driven by market reaction to the Fed’s rate decision and stronger US stocks.
Investors across the region also remained cautious as the White House said US President Donald Trump still plans to make good on his promise to issue tariffs on Canada and Mexico on Saturday.
Trump had set a Feb. 1 deadline for imposing a 10% tariff on goods imported from China.
Mexico, Canada and China are the three largest US trading partners, accounting for more than $2.1 trillion in annual imports and exports.
“Since there is some impact (from the tariffs) on global trade, that will negatively affect the export channels of the Asian economies,” said Poon Panichpibool, market strategist at Krung Thai Bank.
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