*

Thailand's baht reverses early gains, last down 0.4%

*

Singapore stocks set for fourth straight weekly gain

*

Malaysian ringgit hits highest level in two weeks

(Updates for afternoon trading)

By Rajasik Mukherjee and Roushni Nair

Feb 21 (Reuters) - Asian currencies struggled for a

clear direction on Friday, with Malaysia's ringgit rising the

most in the region, while stocks rose as investors digested U.S.

President Donald Trump's tariff threats as mere rhetoric.

Some traders view the impact of Trump's tariffs on global

economic growth as temporary, with new tariffs on Canadian and

Mexican imports delayed, while a 10% tariff on Chinese imports

and levies on global steel and aluminium have been implemented.

The ringgit rose 0.3% to a two-week high against the

U.S. dollar, while the Indonesian rupiah, which has been

the region's worst performing currency so far in 2025, gained as

much as 0.3%.

The MSCI gauge of emerging market currencies

climbed 0.2%, hitting its highest in more than three months.

The U.S. dollar index, which measures the currency

against six major counterparts, touched its lowest for 2025 at

106.29 on Thursday and was last at 106.54.

The dollar was set for a third weekly drop in a row as bulls

who had built up big long positions in anticipation of a trade

war have backed off while Trump equivocates about tariffs.

Markets appear to have become overall immune to tariff

headlines, waiting for a firmer plan, which is now expected to

come closer to April, analysts at Barclays said in a note.

"Risk sentiment among the EM investors seemed to have turned

better this week, but we wait for more clarity for a more

fundamental recovery," Barclays said.

The Thai baht fell as much as 0.5% in late trade

after rising 0.1% earlier in the day.

The weakness is largely due to potential selling of Thai

bonds and stocks by foreign investors, said Poon Panichpibool, a

markets strategist at Krung Thai Bank.

The baht, a standout performer so far in 2025, has risen

nearly 1% over the past two weeks, fuelled largely by the recent

gold price rally. As a significant gold exporter, Thailand is

reaping the benefits of higher gold prices.

Meanwhile, Singapore's Straits Times Index has risen

1.3% this week and is poised for its fourth consecutive weekly

gains, driven by strong earnings from United Overseas Bank

and Singapore Airlines, and positive

sentiment surrounding the 2025 budget.

The index, however, traded flat on Friday, a move mirrored

by the local currency.

Elsewhere in the region, Philippine stocks gained as

much as 0.7%, while stocks in Jakarta inched 0.1% lower.

Taiwanese stocks closed 1% higher, rising more than

2% for the week in their best gain of the year so far.

HIGHLIGHTS:

** BOJ chief signals readiness to increase bond buying if

yield jumps

** Malaysia's January CPI rises 1.7% y/y, in line with

forecast

Asian stocks and currencies as of 0826 GMT

COUNTRY FX RIC FX FX INDEX STOCKS STOCKS

DAILY YTD % DAILY % YTD %

%

Japan -0.55 +4.47 China >

India -0.06 -1.27 Indones +0.15 -1.29 Malaysi +0.27 +1.20 Philipp -0.00 +0.25 0.52 -6.60

ines

S.Korea >

Singapo -0.25 +2.15 0.11 3.80

re

Taiwan +0.14 +0.11 Thailan -0.40 +1.95 (Reporting by Rajasik Mukherjee in Bengaluru; Editing by

Michael Perry and Subhranshu Sahu)