Emerging Asia Stocks Surge Amid Trade Optimism

Shares in emerging Asian markets experienced a broad rally on Friday, with Manila and Taipei leading gains, fueled by signs of easing trade tensions between the world’s leading economies. Regional currencies, however, exhibited mixed performance.

Taiwan and Southeast Asian Markets Show Strength

Taiwanese equities soared by over 2%, mirroring a tech-driven surge on Wall Street. This followed robust earnings reports from Alphabet (Google’s parent company) and ServiceNow, a major player in artificial intelligence.

Key Companies Lead the Way

Taiwan is home to prominent chip manufacturers, including TSMC, whose shares climbed by 2.8%, contributing to the overall market upswing. Stocks in Kuala Lumpur, Bangkok, and Seoul also saw gains, rising by 0.1%, 0.9%, and 1%, respectively.

Philippines Stock Market Reaches New Highs

The Philippine stock market achieved its highest level since March 21, seemingly unaffected by the tariff policies enacted by the U.S. President. The benchmark index is on track for its strongest week since early March.

JPMorgan Chase analysts had upgraded their rating on Manila stocks to “overweight” earlier in the week, citing the country’s resilience amid global uncertainties triggered by the trade measures.

According to Estella Dhel Villamiel, head of institutional equity research at First Metro Securities, the market reflects the Philippines’ strong performance and limited economic impact from recent policies.

Currencies Show Mixed Performance

Asian currencies displayed a mixed performance as the dollar strengthened. Investors remained cautious due to inconsistent messaging on trade negotiations from the U.S. administration, as well as remarks concerning the Federal Reserve Chair.

Throughout the week, the U.S. altered its stance on a tariff agreement with China, stating that the current situation is untenable and that China might consider waiving tariffs on certain U.S. imports.