Bengaluru: Asian stocks ended the week on a high with uplifted sentiment across the region, fueled by growing hopes for easing U.S.-China trade tensions.
Emerging market stocks rose on Friday, led by gains in Taiwan and the Philippines, while mixed performance was shown by currencies in the region, which were subjected to continuous uncertainty regarding U.S. trade policy and the Federal Reserve.
The Taiwan stock market was buoyed by more than a 2% gain in technology shares following strong earnings reports from the parent company of Google, Alphabet, and the AI cloud service firm ServiceNow.
Major chip manufacturer TSMC rose by 2.8%, adding further gains to the index. Meanwhile, investors were buoyed by the Philippine market reaching its highest value since March 21, putting it in line for its best week since early March on expectations of limited exposure to Trump’s tariff policies.
In Southeast Asia, Kuala Lumpur, Bangkok, and Seoul saw modest gains in their stock markets as an outflow of overall optimism. A recent upgrade of Philippine equities to an “overweight” position by JPMorgan was based on their described resilience against global trade tensions and stable economic fundamentals.
But regional currencies failed to follow suit. The U.S. dollar slightly appreciated as the market stayed sceptical after mixed signals from Washington regarding trade talks with China and the independence of the Federal Reserve.
Hopes were rekindled as Beijing reportedly weighs the exemption of certain U.S. imports from high tariffs, although no concrete deal has yet been reached.
While geopolitical developments might remain sensitive to market movements, analysts believe investor focus will remain on any additional statements from U.S. officials and significant steps forward in trade talks. At present, Asian equities are experiencing positive momentum, with currency traders reacting cautiously.
[Source Credit: Business Recorder]
