BENGALURU: Asian stocks were mixed on Wednesday, although currencies extended losses, led by the Indonesian rupiah and Malaysian ringgit, as the US dollar continued to strengthen on bets Donald Trump would win the US presidential elections.

Rising odds of Republican candidate Trump winning the Nov. 5 election have been pushing the dollar higher, while diminishing expectations for aggressive interest rate cuts by the US Federal Reserve have also supported the greenback.

“If he (Trump) reiterates that he will be imposing prohibitive tariffs on Asia, then I think market expectations for higher tariffs will certainly continue to weigh on Asian currencies throughout the quarter and even going into early next year,” said Lloyd Chan, senior currency analyst at MUFG Bank.

The ringgit, the best-performing currency in the region, shed as much as 0.4%, hitting a more-than-one-month low.

The rupiah lost 0.4%, while the Singapore dollar edged slightly higher and the Taiwan dollar was largely unchanged.

Forex trading was thin as markets in Thailand were closed for a holiday, while the Philippines suspended currency trading and monetary operations due to Tropical Storm Trami.

Stocks in emerging Asian markets were mixed, as investors weighed the risks of the US election results.

South Korean stocks gained 1.3%, boosted by chip makers and automakers, while shares in Taiwan lost 0.9%, Indonesian stocks edged lower and Manila fell 0.6%.

Malaysian equities were flat a day ahead of the country’s inflation report, which will help gauge the central bank’s monetary policy path.

Singapore stocks were up 0.5%. Data on Wednesday showed Singapore’s key consumer price gauge rose more than economists’ forecasts.

Last week, the Philippine central bank reduced its key interest rate, while Bank Indonesia kept rates unchanged. Bank of Thailand surprised markets with a cut but indicated it was not the beginning of an easing cycle.

“Inflation in Asia has been less of a worry compared to some of the advanced economies in the US and Europe. So, what has been a constraint for Asian central banks (from cutting rates) is the weakness that we have been seeing in their currencies over the past several years,” Chan said.

“So, for now, central banks in the region will want to wait and see the US election outcomes before deciding to take the next move.