Asian currencies poised for weekly gains; rate cut lifts Indian equities
SINGAPORE/HONG KONG: Asian currencies were steady on Friday and poised for weekly gains after a phone call between US President Donald Trump and Chinese leader Xi Jinping signalled further trade talks, while most regional equities tracked Wall Street's overnight losses.
In India, equities reversed course to rise 0.9 per cent after the Reserve Bank of India delivered a larger-than-expected cut to its key repo rate and lowered the cash reserve ratio to bolster economic growth.
"The RBI may have decided to move quickly to a more appropriate policy rate level. A shift towards neutral stance means more rate cuts may be unlikely in the near-term," Jeff Ng, Head of Asia Macro Strategy at SMBC, said.
The rupee inched up 0.1 per cent to 85.74 per dollar. Other regional currencies moved within a narrow band. The Thai baht and Singapore dollar were largely flat but were on track for weekly gains of 0.5 per cent and 0.4 per cent, respectively.
The Malaysian ringgit was up nearly 0.6 per cent for the week. MSCI's index of emerging market currencies was flat after touching an all-time high on Thursday. The index is up 0.5 per cent for the week.
The dollar index was little changed, after hitting a six-week low on Thursday, and was headed for a weekly loss of 0.5 per cent.
Trump's erratic tariff moves and a worsening US fiscal outlook have triggered a flight from the dollar, prompting analysts to expect most emerging market currencies will retain or build on their gains over the next six months.
In their closely watched hour-long phone call on Thursday, Xi pressed Trump to ease trade tensions that have rattled the global economy and warned against provocative moves on Taiwan, according to a summary released by the Chinese government.
But Trump said on social media that the talks, focused primarily on trade, led to "a very positive conclusion". "The talks look positive, and coupled with Federal Reserve rate cut expectations due to weak US data, might lead to further USD softening," said Saktiandi Supaat, Head of FX research at Maybank.
Markets are now bracing for the US jobs and non-farm payrolls report due later in the day, with concerns that a downside surprise could stoke stagflation fears and boost pressure on the Federal Reserve to quickly ease policy.
Other regional stocks were broadly lower, tracking Wall Street's losses from overnight. MSCI's gauge of Asian emerging market equities edged down 0.1 per cent. Equities in Malaysia and Thailand fell 0.1 per cent and 0.8 per cent, respectively.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
32 minutes ago
- The Star
U.S. stocks rally after key jobs report
NEW YORK, June 6 (Xinhua) -- U.S. stocks advanced on Friday, as investors reacted positively to the U.S. nonfarm payroll report and growing signs that tensions between U.S. President Donald Trump and Tesla CEO Elon Musk may be cooling. The Dow Jones Industrial Average rose 443.13 points, or 1.05 percent, to 42,762.87. The S&P 500 added 61.06 points, or 1.03 percent, to 6,000.36, surpassing the 6,000 level for the first time since late February. The Nasdaq Composite Index increased 231.50 points, or 1.20 percent, to 19,529.95. All of the 11 primary S&P 500 sectors ended in green, with energy and communication services leading the gainers by rising 1.98 percent and 1.88 percent, respectively. Consumer staples posted the weakest growth, up by 0.18 percent. The U.S. Bureau of Labor Statistics reported that employers added 139,000 jobs in May, exceeding economists' expectations of 125,000. The unemployment rate held steady at 4.2 percent. The numbers reinforced the labor market's resilience, even as ongoing trade uncertainty continues to weigh on economic sentiment. "The nonfarm payrolls report came in better than expected," Anthony Saglimbene, chief market strategist at Ameriprise, said in an interview with CNBC. "It's showing that the labor market is holding up very well in spite of kind of some slowing growth trends." "The key figures in the May jobs report are better than solid, they are strong... For the Fed, this likely means they can stay in wait-and-see mode," said economists with Bank of America Global Research. Markets responded to the jobs report by pricing out a July cut and "we remain comfortable with our view that the Fed won't cut this year," said the economists in a research note. While inflation and tariffs have dominated headlines, some economists warn that declining immigration could pose an even greater drag on growth. Deutsche Bank noted that reduced immigration may have a more damaging long-term impact on the economy than trade policies. "While everyone is focused on the impact of tariffs, the real story for the U.S. economy is the collapse in immigration: down more than 90 percent compared to the run rate of previous years, equivalent to a slowing in labor force growth of more than 2 million people," Deutsche Bank's strategist George Saravelos wrote in a note on Friday. "This represents a far more sustained negative supply shock for the economy than tariffs." Tesla shares rebounded 3.82 percent after Thursday's 14.26 percent plunge, pushing the electric vehicle maker's valuation below the one-trillion-U.S.-dollar mark. The recovery helped ease broader concerns tied to the public dispute between Trump and Musk. Most large-cap tech stocks also moved higher. Alphabet climbed 3 percent, while Apple, Amazon, and Meta Platforms each gained around 2 percent. Nvidia added 1.21 percent, and Microsoft edged up 0.58 percent to 470.38, a fresh all-time high. Broadcom shares, however, dropped 5 percent despite solid quarterly earnings, as the company's outlook failed to meet expectations. In the bond market, the yield on the 10-year U.S. Treasury note climbed to 4.51 percent, up from 4.39 percent the previous day, marking its highest level in two weeks.
Malaysian Reserve
4 hours ago
- Malaysian Reserve
ZBIO Deadline: ZBIO Investors with Losses in Excess of $100K Have Opportunity to Lead Zenas BioPharma, Inc. Securities Lawsuit Filed by The Rosen Law Firm
NEW YORK, June 6, 2025 /PRNewswire/ — Why: Rosen Law Firm, a global investor rights law firm, reminds purchasers of the securities of Zenas BioPharma, Inc. (NASDAQ: ZBIO) pursuant and/or traceable to the registration statement and prospectus (collectively, the 'Registration Statement') issued in connection with Zenas BioPharma's September 2024 initial public offering ('IPO' or the 'Offering'), of the important June 16, 2025 lead plaintiff deadline in the securities class action first filed by the Firm. So What: If you purchased Zenas BioPharma securities you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement. What to do next: To join the Zenas BioPharma class action, go to or call Phillip Kim, Esq. toll-free at 866-767-3653 or email case@ for information on the class action. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than June 16, 2025. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Why Rosen Law: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources or any meaningful peer recognition. Many of these firms do not actually litigate securities class actions, but are merely middlemen that refer clients or partner with law firms that actually litigate the cases. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm achieved the largest ever securities class action settlement against a Chinese Company at the time. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered hundreds of millions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs' Bar. Many of the firm's attorneys have been recognized by Lawdragon and Super Lawyers. Details of the case: According to the lawsuit, the Registration Statement contained false and/or misleading statements and/or failed to disclose that: (1) Zenas BioPharma materially overstated the amount of time it would be able to fund its operations using existing cash and expected net proceeds from the IPO; and (2) as a result, defendants' public statements were materially false and misleading at all relevant times and negligently prepared. When the true details entered the market, the lawsuit claims that investors suffered damages. To join the Zenas BioPharma action, go to or call Phillip Kim, Esq. toll-free at 866-767-3653 or email case@ for information on the class action. No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor's ability to share in any potential future recovery is not dependent upon serving as lead plaintiff. Follow us for updates on LinkedIn: on Twitter: or on Facebook: Attorney Advertising. Prior results do not guarantee a similar outcome. Contact Information: Laurence Rosen, Esq. Phillip Kim, Esq. The Rosen Law Firm, P.A. 275 Madison Avenue, 40th Floor New York, NY 10016 Tel: (212) 686-1060 Toll Free: (866) 767-3653 Fax: (212) 202-3827 case@
Free Malaysia Today
4 hours ago
- Free Malaysia Today
Trump says Fed should cut interest rate by a full point
The Federal Reserve kept rates at 4.25%-4.50% in May, signalling a possible pause while awaiting clarity on Donald Trump's tariffs. (Reuters pic) WASHINGTON : The US Federal Reserve should cut interest rates by a full percentage point, President Donald Trump said on Friday as he reiterated his view that Fed Chair Jerome Powell has been too slow to lower borrowing costs. 'Europe has had 10 rate cuts, we have had none. Despite (Powell), our Country is doing great. Go for a full point,' Trump wrote in a social media post. Central banks typically limit rate moves to quarter point changes. Trump said the Fed could always raise rates again if cuts led to inflation. The president has repeatedly berated Powell for not cutting rates as he desires. The two men met face-to-face for the first time last week, with Trump telling Powell he was making a 'mistake' by not lowering rates. The Fed in May left the policy rate in the 4.25%-4.50% range, where it has been since December, and policymakers have since signalled they may leave it there for another few months as they wait for more clarity on Trump's tariff policy.
