BANGKOK (Reuters): Emerging Asian stock markets rose on Tuesday, with Taiwan shares recouping a third of the losses suffered in the last four sessions, while a softer US dollar helped currencies in the region regain some lost ground.
Taiwan stocks rose 2.8% after declining more than 6% in the four-day sell-off on concerns over Washington's likely curbs on semiconductor sales to China.
The benchmark stock index, however, is the best performer in the region, rising more than 26% so far this year. TSMC, Asia's most valuable listed company, was up more than 4% after losing over 9% in the last four sessions.
South Korean stocks also rose for the first time in four days and were last up 0.5%.
Meanwhile, most regional currencies eked out small gains. The dollar index was down 0.1% at 104.3, two days after U.S. President Joe Biden dropped his reelection bid.
"There is a possibility that EM Asia could experience some intermittent climb towards year-end once the U.S. elections are done," said Alan Lau Sie Ping, a senior FX Strategist at Maybank.
South Korea's won and the Japanese yen rose over 0.3% each to lead the charge. The Malaysian ringgit and Thailand's baht strengthened slightly by 0.1% each. Malaysia will report June inflation data on Wednesday.
The Indonesian rupiah, which was once a popular carry-trade currency in Asia, has been in a downward spiral as uncertainties around the country's fiscal plans dented investor confidence.
"We do though eventually expect the IDR to see some relief towards year-end once the (U.S.) elections are done and the Fed's easing cycle becomes more entrenched," Sie Ping added.
The Singapore dollar was last up 0.1%, while shares climbed 0.5%. Core inflation in the country came in at 2.9% for June, the lowest in over two years, with the focus now shifting to the central bank's policy meeting on Wednesday.
"In the medium-term, we remain positive on the SGD given robust macro fundamentals and a monetary policy that has an appreciating currency as a default stance," analysts at Maybank wrote in a note.
In India, the rupee wobbled near its all-time low, while investors digested the budget announcement by the country's finance minister. Most other equity markets in Asia traded higher, with Kuala Lumpur and Manila adding 0.6% each.
Shares in Bangkok retreated 0.9% as trading resumed after a holiday. In China, the yuan was unchanged, while shares in Shanghai dipped over 1% after the central bank's surprise short-term policy rate cut on Monday did little to lift investor sentiment in Southeast Asia's largest trading partner. - Reuters
