On Thursday, Philippine shares plunged to a 14-month low following lower-than-expected economic growth, while the Indonesian rupiah weakened in response to the U.S. Federal Reserve’s rate decision.
Manila stocks tumbled by 0.7% to their lowest point since mid-November 2023, as data revealed a 5.2% growth in the country’s economy in the fourth quarter, falling short of projections. Despite this, the economic planning agency expressed confidence in achieving the lower end of the 2025 growth target of 6.5% to 7.5%.
In currency markets, the peso saw a marginal 0.1% rise. The Thai baht and the Indian rupee faced slight declines as the U.S. dollar stabilized post the Fed’s decision to maintain interest rates, with Chair Jerome Powell signaling a cautious approach on rate adjustments until economic indicators warrant action.
The Indonesian rupiah depreciated by 0.6% against the dollar to 16,265, with the central bank attributing the decline to market sentiment following the Fed’s rate decision and buoyant U.S. equities.
Investor sentiment in the region remained subdued over concerns raised by the White House regarding potential tariffs on Canada and Mexico, following President Donald Trump’s pledge.
With a looming Feb. 1 deadline for imposing tariffs on Chinese imports, the uncertainty surrounding global trade dynamics could adversely impact exports and investments, potentially denting economic prospects for Asian economies, noted market strategist Poon Panichpibool of Krung Thai Bank.
