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South Korea stocks record worst week since Feb 28
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Taiwan shares down 3%
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Thailand stocks log lowest level in over two months
By Roshan Thomas
Nov 21 (Reuters) - Asian equities slipped on Friday
while currencies held steady, as traders stayed on the sidelines
after U.S. jobs data offered little clarity on when the Federal
Reserve might ease policy.
The MSCI index of Asian emerging-market equities
dropped 2.6%, erasing the 1% gain from the
previous session, while the MSCI Asia-Pacific ex-Japan index
eased 2.4%.
The sharp shift in sentiment followed concerns over lofty
valuations and rising tech spending, which weighed on a rally
fuelled by AI darling Nvidia's (NVDA) positive outlook and
stronger-than-expected U.S. September jobs data.
However, a higher U.S. unemployment rate and downward
revisions to previous months have left the Fed with an uncertain
outlook as it considers a potential rate cut next month.
"The best explanation for the sell-off in the markets today
is related to monetary policy uncertainty. While the chances of
a cut are marginally higher, the markets are still implying a
line ball decision in December," said Kyle Rodda, a senior
financial market analyst at Capital.com.
South Korea's KOSPI slumped 4.2% earlier in the
session, erasing the 3.5% gains fuelled by Nvidia (NVDA) from the
previous session. The benchmark was last down 3.9% and has
fallen 4% this week, marking its worst weekly performance since
late February.
South Korean heavyweights Samsung Electronics (SSNLF)
and SK Hynix lost 6.1% and 10%, respectively.
"In Korea, Samsung and SK Hynix are under outsized pressure
because the memory-chip rally is now facing a potential
supply-side shift, reports of buyers diversifying toward Chinese
DRAM suppliers have amplified concerns that current pricing
strength may be peaking," said Tareck Horchani from Maybank
Securities.
Taiwan's tech-heavy index, down 3.4% so far this
week in its worst showing since early April, fell 3.7% on
Friday, with TSMC sliding nearly 5%.
Singapore's Straits Times Index slipped more than 1%,
with utility firm Sembcorp Industries among the
biggest decliners, down 3.7%.
Bangkok stocks fell 1.6% to their lowest point since
September 5, while Kuala Lumpur was down 0.1%.
Indonesia's Jakarta Stock Exchange edged 0.3% lower,
capping a week in which the central bank held rates steady as
expected, prioritising the transmission of earlier cuts amid
renewed rupiah weakness that complicates its easing path.
The Indonesian currency edged 0.1% higher on the day.
Other currency markets in the region were stable against a
steady dollar index on Friday.
The Philippine peso and the South Korean won
inched up 0.2% and 0.1%, respectively, while the
Malaysian ringgit was up 0.3%.
HIGHLIGHTS:
** Japan's cabinet approves lavish $135 billion stimulus as
markets fret over fiscal policy
** Singapore Q3 GDP grows 4.2% from a year earlier; upgrades
2025 outlook
** RBNZ set to cut interest rates once more to 2.25% in November
- Reuters poll
Asia stock indexes and currencies at 0412 GMT
COUNTRY FX RIC FX DAILY FX YTD % INDEX STOCKS STOCKS
% DAILY YTD %
%
Japan +0.18 +0.00 -2.36 21.94
China India +0.06 -3.43 -0.11 10.65
Indones +0.09 -3.71 -0.27 18.61
ia
Malaysi +0.29 +7.87 -0.12 -1.49
a
Philipp +0.23 -1.36 0.59 -8.62
ines
S.Korea Singapo +0.03 +4.43 -0.95 17.99
re
Taiwan -0.03 +4.71 -3.32 15.11
Thailan +0.05 +5.75 -1.42 -9.75
d
(Reporting by Roshan Thomas in Bengaluru; Editing by Sherry
Jacob-Phillips)
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