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US dollar weakness pushes Asia FX higher

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Regional Asian equities trade largely mixed

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Taiwanese stocks hit highest 2025 level

By Rajasik Mukherjee and Roushni Nair

Feb 21 (Reuters) - Asian currencies, led by the

Malaysian ringgit and Indonesian rupiah, recorded slight gains

on Friday, as regional equities also strengthened, with

investors assessing U.S. President Donald Trump's tariff threats

as largely rhetoric.

Some traders view the impact of Trump's tariffs on 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 rupiah rose as much as 0.3% against the dollar,

while the ringgit rose 0.2% to a two-week high. The MSCI

gauge of emerging market currencies added 0.2%,

hitting its highest in over three months.

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

against six major counterparts, on Thursday touched its lowest

for 2025 at 106.29 and was last at 106.44.

The U.S. 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."

Meanwhile, this week, Singapore's Straits Times Index rose

by 1.3% and is poised for its fourth consecutive week of gains,

driven by strong earnings from United Overseas Bank

and Singapore Airlines, which enhanced the positive

sentiment from the promising 2025 budget.

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

by the local currency, Singapore dollar.

Elsewhere in the region, Philippine stocks gained as

much as 0.7% with property developer Ayala Land rising

as much as 2.9% after it reported higher revenue for year.

Stocks in Jakarta, however, inched 0.3% lower while

Malaysian shares advanced 0.3%.

Taiwanese stocks rose nearly 1%, on track to gain

over 2% for the week, its highest level in 2025.

The Japanese yen lost as much 0.7% after data showed

that core inflation grew at its fastest pace in 19 months,

reinforcing bets that Bank of Japan will hike its rates once

again this year, as forecast by economists in a Reuters poll.

Nearby, the South Korean won pared some of its

gains to trade flat while a Reuters poll suggested that its

central bank will cut interest rates by a quarter point next

week.

HIGHLIGHTS:

** Alibaba shares open at three year-high as quarterly

revenue rebounds

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

forecast

Asian stocks and currencies as of 0339 GMT

COUNTRY FX RIC FX FX INDEX STOCK STOCKS

DAILY YTD % S YTD %

% DAILY

%

Japan -0.42 +4.61 China >

India +0.13 -1.07 Indones +0.21 -1.23 Malaysi +0.27 +1.20 Philipp +0.01 +0.27 0.71 -6.42

ines

S.Korea >

Singapo -0.06 +2.34 0.09 3.79

re

Taiwan +0.13 +0.10 Thailan -0.22 +2.13