(.)
*
Jakarta stocks gain 1.1%, but set for worst week since Feb
2025
*
Malaysian ringgit set for best month since September 2024
*
Singapore dollar set for best month since June 2025
By Nichiket Sunil
Jan 30 (Reuters) - Asian currencies eased on Friday as
the dollar gained after U.S. President Donald Trump said he
would soon nominate his choice to head the Federal Reserve,
while Indonesian stocks recovered following ?regulators' reforms
to tackle downgrade warnings.
Stocks in Jakarta gained 1.2%, a day after
authorities took steps to allay MSCI's concerns about share
ownership and trading transparency ?that prompted its warning of
a possible downgrade to "frontier" market status.
The benchmark was on course for its ?biggest weekly fall in
11 months after slumping more than 8% on Wednesday and ?Thursday,
while the stock exchange ?chief resigned on Friday, taking
responsibility for the situation.
"Indonesia's rapid and coordinated response underscores
strong regulatory commitment and growing market maturity," said
Andrey Wijaya, research ?head at RHB Indonesia.
With measures such as clarity on ?free floats, disclosure of
ultimate beneficial owners, and a 15% free-float threshold,
authorities are tackling credibility gaps without undermining
market stability, he added.
"While the announcement has supported a rebound in the ?JCI
... we see that market volatility is likely ?to persist until
MSCI ?releases clearer guidance on its revised methodology for
Indonesia."
The rupiah edged down 0.2%, as the market slump piled
pressure on currency already reeling from concerns over fiscal
health and the independence of the ?central bank.
Other Asian currencies also retreated as the greenback rose
after Trump said he would name his pick to replace Fed Chair
Jerome Powell on Friday, following reports that former Fed
Governor Kevin Warsh visited the White House.
"The surprise swing to Warsh caught markets off-guard,
triggering off broad unwinding of cross-asset, including
precious metals, cryptoassets, equities, while USD rebounded,"
said Christopher Wong, a currency strategist at OCBC.
Asian currencies that racked up sharp early-year gains ?are
likely to ?face some near-term roadblocks, and rapid shifts in
positioning boost risks for intermittent consolidation or
retracement, Wong added.
Factors from Washington's desire for a weaker currency to
Trump's erratic policymaking had pressured the ?dollar earlier
this month, boosting regional currencies.
The Malaysian ringgit fell 0.3% on Friday, but was
poised for a monthly gain of nearly 3%, its best since September
2024. It has benefited form robust economic fundamentals and
optimistic growth prospects, along with broad dollar weakness.
The Singapore dollar slipped 0.2% on the day, but was
set to post its best monthly gain since June 2025.
Stocks in the region were mixed. South Korea's KOSPI
was set to end the week at a record, while Taiwan stocks
dropped ?0.9%. Thanks to an AI-driven rally, both tech-heavy
markets are set for bumper monthly gains.
HIGHLIGHTS:
** Trump warns Britain on China ties as Starmer hails reset
** Panama court voids CK Hutchison port contracts
** Core inflation in Tokyo slows, still on track to hit BOJ
goal
Asia ?stock indexes and currencies at 0430 GMT
COUNTRY FX RIC FX DAILY FX YTD % INDEX STOCKS STOCKS
% DAILY YTD %
%
Japan -0.53 +1.79 -0.06 5.97
China India +0.05 -2.22 -0.51 -3.22
Indones -0.24 -0.69 1.18 -3.68
ia
Malaysi -0.25 +3.07 0.35 3.38
a
Philipp +0.02 -0.21 0.14 2.96
ines
S.Korea Singapo -0.18 +1.51 -0.17 5.93
re
Taiwan -0.26 +0.09 -0.94 11.28
Thailan -0.57 +0.16 -0.46 5.18
d
(Reporting by Nichiket Sunil in Bengaluru; Editing by Clarence
Fernandez)
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