*
IDR eases after reports US trade deal at risk of collapse
*
Indonesia official says tariff talks with U.S. still
ongoing
*
Investors await Federal Reserve outlook for next year
(Updates with afternoon trade moves)
By Shivangi Lahiri
Dec 10 (Reuters) - Most Asian currencies and stocks were
subdued on Wednesday as investors awaited the U.S. Federal
Reserve policy outlook for 2026, while the Indonesian rupiah
slipped on reports a trade deal with the United States might be
at risk of collapsing.
The rupiah eased as much as 0.2% to 16,693 per
dollar. It has weakened about 3.5% so far this year, making it
one of the worst performers in Asia.
Among other currencies in the region, the Malaysian ringgit
edged down 0.5%, while the Philippine peso inched
marginally higher.
A U.S. official said on Tuesday that a trade agreement
reached with Indonesia in July was at risk of collapsing after
Jakarta allegedly backtracked on several commitments.
In response, an Indonesian government official said on
Wednesday that tariff talks were continuing, with no specific
problems emerging during the negotiations.
Investor sentiment towards Indonesian assets has stayed
broadly positive, underpinned by stronger government support,
including a 16.23 trillion rupiah ($972.73 million) stimulus,
liquidity for state banks and an improving growth outlook.
Equities in Jakarta, which have hit multiple record
highs over the last two weeks, rose 0.3%.
"I believe the market is more immune to the noise from the
trade deal unless there is more visibility on the potential
impact," said Ernest Chew, head of ASEAN equities at BNP Paribas
Asset Management.
"Investors remain constructive on Indonesia because the
domestic backdrop is still doing a lot of heavy lifting."
Among stock markets, Malaysia and Singapore
declined 0.3% and 0.2%, respectively.
With markets pricing in a more than 89% probability of a
25-basis-point Fed interest rate cut later in the day, the
spotlight is squarely on its outlook for 2026.
This week's Fed meeting has shaped up as one of the most
contentious in years, with five of the 12 FOMC voters already
signalling opposition or scepticism toward further easing.
Elsewhere, the South Korean won recouped earlier
losses to trade little changed, while stocks in Seoul
edged 0.2% lower.
A South Korean central bank board member urged foreign
exchange authorities to curb the won's slide, warning it could
reignite inflation and erode household purchasing power.
Thailand's baht slipped marginally, while stocks
were not trading on account of a public holiday.
($1 = 16,685.0000 rupiah)
HIGHLIGHTS:
** Trump says to make phone call to stop Thai-Cambodia fighting
** US backs Japan in dispute with China over radar incident
** South Korea's Lee calls for probe into links between
religious group and politics
** ADB approves $500 million policy-based loan for Indonesia
Asia stock indexes and currencies at 0727 GMT
COUNTRY FX RIC FX DAILY FX YTD INDEX STOCKS STOCKS
% % DAILY YTD %
%
Japan +0.11 +0.32 -0.10 28.74
China India -0.14 -4.88 -0.25 9.01
Indones -0.15 -3.57 0.31 22.66
ia
Malaysi -0.05 +8.58 -0.25 -1.96
a
Philipp +0.03 -1.87 -0.28 -8.71
ines
S.Korea Singapo +0.12 +5.38 -0.15 18.98
re
Taiwan +0.11 +5.13 0.77 23.29
Thailan -0.05 +7.74 - -9.31
d
(Reporting by Shivangi Lahiri in Bengaluru; Editing by
Subhranshu Sahu)
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