Emerging Asian Markets Rally Amid Trade Tension Easing

Shares in emerging Asian markets experienced a surge on Friday, with Manila and Taipei indexes leading the gains, spurred by optimism surrounding a potential easing of trade tensions between the world’s two largest economies. However, regional currencies displayed mixed performance.

Taiwan’s Equity Surge

Taiwan’s equities soared by over 2%, mirroring a tech-driven rally on Wall Street. This surge followed robust earnings reports from Alphabet, the parent company of Google, and ServiceNow, a prominent AI firm.

Key Players in Taiwan’s Chip Manufacturing

Taiwan is home to major global chip manufacturers, including TSMC, whose shares climbed by 2.8%, thereby bolstering the overall index.

Other Market Performances
  • Kuala Lumpur: Increased by 0.1%
  • Bangkok: Advanced by 0.9%
  • South Korea: Gained 1%
Philippines Stock Market

The Philippines stock market reached its highest level since March 21, indicating a limited impact from the tariff policies implemented by the U.S. President. The benchmark was on track for its strongest week since early March.

Analysts at JPMorgan Chase had previously upgraded Manila stocks to an “overweight” rating earlier in the week, identifying them as relative beneficiaries amid global disruption resulting from tariff measures.

Estella Dhel Villamiel, Head of Institutional Equity Research at First Metro Securities, commented, “We believe the market is reflecting the Philippines’ resilient position, given the limited repercussions of trade policies on its economy and earnings.”

Currency Market Overview

Currencies in Asian countries showed a mixed trend, while the dollar strengthened. Investors adopted a cautious approach due to inconsistent signals from the U.S. administration regarding trade negotiations, as well as remarks concerning the Federal Reserve Chair.

During the week, the U.S. altered its stance on a trade agreement with China, describing the situation as unsustainable and noting that Beijing was considering waiving tariffs on certain U.S. imports.