Latest news with #UnitedOverseasBankLtd
Free Malaysia Today
05-05-2025
- Business
- Free Malaysia Today
Emerging Asian currencies rally spurred by hopes of trade deals
Bloomberg's gauge of Asian currencies hit a six-month high, with Malaysia's ringgit advancing to its strongest level since October. (Freepik pic) SINGAPORE : The currencies of Taiwan and Malaysia led advances among Asian peers on Monday, with sentiment lifted by hopes of a thaw in Sino-US trade tensions. Bloomberg's gauge of Asian currencies hit a six-month high, with Taiwan's dollar surging more than 2% in opening trades to the strongest level in over two years. Meanwhile, Malaysia's ringgit advanced to its strongest since October. MSCI's index of emerging market equities also gained. The rally in regional stocks and currencies comes after President Donald Trump suggested the US may strike trade deals with some countries as soon as this week, offering the prospect of relief for trading partners. 'Trade de-escalation is broadly positive on Asia FX as markets may feel more confident to buy the dip in the Asian assets that have been hammered due to Trump 2.0,' said Peter Chia, a strategist at United Overseas Bank Ltd. 'At the same time, it is worth noting that until trade deals are announced, Asia FX may stay volatile.' While the stiff tariffs announced by the Trump administration in early April roiled financial markets, they've since steadied amid signs that talks with Asian nations are progressing and trade tensions between China and the US are thawing. Underscoring the positive shift in sentiment is the huge turnover in Asian options and non-deliverable forwards. The South Korean won and Taiwan dollar ranked high among such contracts on Monday for a second session running, data compiled by Bloomberg show. That followed high turnover in Asian options and non-deliverable forwards going into the weekend. Markets in Hong Kong and mainland China were closed for a holiday on Monday.
BusinessToday
05-05-2025
- Business
- BusinessToday
Ringgit, Taiwan Dollar Lead Asian Rally As Trade Hopes Brighten
The ringgit strengthened to its highest level since October on Monday, joining a broader rally in regional currencies and equities as optimism grew over the possibility of easing Sino-US trade tensions. Taiwan's dollar led the gains in Asia, surging over 2% in early trading to its strongest point in more than two years. Investor sentiment was buoyed by comments from US President Donald Trump, who suggested that Washington may reach trade agreements with certain countries as early as this week. This injected a fresh wave of confidence into markets that have been rattled by protectionist measures and tariffs introduced by the Trump administration. Bloomberg's index of Asian currencies climbed to a six-month high, while MSCI's benchmark for emerging market equities also saw notable gains. The recovery reflects a broader rebound from earlier losses triggered by trade-related uncertainty and geopolitical tensions. 'Trade de-escalation is broadly positive on Asia FX as markets may feel more confident to buy the dip in the Asian assets that have been hammered due to Trump 2.0,' said Peter Chia, strategist at United Overseas Bank Ltd. 'At the same time, it is worth noting that until trade deals are announced, Asia FX may stay volatile.' Although the earlier imposition of stiff tariffs by the US in April had initially roiled global financial markets, recent developments suggest that negotiations with key Asian economies are showing progress. This has helped stabilise investor expectations and encouraged more risk-taking. Data compiled by Bloomberg indicate strong momentum in Asian derivatives markets as well, with high turnover in options and non-deliverable forwards. The South Korean won and Taiwan dollar featured prominently for the second consecutive session, pointing to sustained interest in hedging and positioning. Markets in Hong Kong and mainland China were closed for a public holiday, limiting participation from some of the region's largest financial hubs. However, the overall tone across Asia remained upbeat, as traders awaited clearer signals from Washington on the status of trade discussions. Bloomberg Related
