(Updates for afternoon trade)
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Taiwan shares down 3%
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Thai equities hit lowest level in more than two months
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South Korea's benchmark posts worst week since Feb 28
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MSCI EM Asia stocks set for worst week since April
By Roshan Thomas
Nov 21 (Reuters) -
Emerging Asian stocks fell sharply on Friday, while regional currencies steadied, as traders cut risk exposure after U.S. jobs data failed to clarify the Federal Reserve's policy path.
The MSCI emerging Asia stock index dropped 2.7%, erasing Thursday's 1% gain and putting it on track for its worst week since April 4, when it fell
3.6% after fresh U.S. tariff actions by President Donald Trump.
Singapore's Straits Times Index dipped more than 1% on the day, with utility firm Sembcorp Industries among the biggest decliners, down 3.2%.
Bangkok stocks fell 1.9% to their lowest point since September 5, while Kuala Lumpur shares were down 0.2%.
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) in the previous session.
The benchmark ended 3.8% lower and has fallen nearly 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 3.5% this week, in its worst showing since early April, fell 3.6% on Friday, with TSMC sliding 4.8%.
Indonesia stocks edged 0.2% 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 rupiah edged 0.1% higher on the day.
Other currency markets in the region were mixed against a dollar index that edged lower on Friday.
The Malaysian ringgit rose 0.2%, while the Taiwan dollar slipped 0.5% to its weakest level since May 2.
The South Korean won slipped 0.2%, while most other regional currencies were little changed.
HIGHLIGHTS:
** Malaysia's October CPI rises 1.3% year-on-year, below forecast
** Singapore Q3 GDP grows 4.2% from a year earlier; upgrades 2025 outlook
Asia stock indexes and currencies at 0658 GMT
Japan +0.19 +0.01 -2.40 21.89
China India +0.05 -3.43 -0.28 10.46
Indones +0.09 -3.71 -0.24 18.64
ia
Malaysi +0.27 +7.84 -0.17 -1.53
a
Philipp +0.13 -1.45 0.99 -8.26
ines
S.Korea Singapo +0.02 +4.42 -0.89 18.06
re
Taiwan -0.46 +4.27 -3.61 14.76
Thailan -0.09 +5.60 -1.45 -9.78
d
(Reporting by Roshan Thomas in Bengaluru; Editing by Sherry Jacob-Phillips and Nivedita Bhattacharjee )
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