Most Asian currencies, equities rise as US rate cut bets firm

Asian currencies and equities saw gains on Friday, fueled by optimism over potential US rate cuts later this year and ahead of key US jobs data. Taiwan stocks surged 4.5% for the week, marking its best performance since November 2022, driven by optimism in artificial intelligence-linked stocks. South Korean equities climbed over 1% for the week, aiming for their best performance since mid-February. MSCI’s emerging market currency gauge rose to its highest level since January, buoyed by prospects of a US rate easing cycle. Comments from Fed Chair Jerome Powell indicating a likelihood of rate reductions boosted market confidence. Investors now await US nonfarm payrolls data for further insights into the US rate outlook. Asian currencies broadly gained ground, with the South Korean won rising 0.5% and the Indonesian rupiah up 0.3%. The Singapore dollar and Philippine peso were poised for their best weeks in several months. The Malaysian ringgit advanced to its highest level since mid-January. Meanwhile, the Bank Negara Malaysia maintained interest rates amid positive economic fundamentals. Market attention now turns to inflation data from China and India in the coming days.