BENGALURU: Asian equities rebounded on Thursday following a sharp selloff in the last session, while Malaysian assets were little changed after the country’s central bank left its benchmark interest rate steady, as expected.
The Malaysian ringgit held steady after the central bank’s decision, trading 0.2 per cent higher at a seven-week peak.
The currency has strengthened 6.9 per cent against the dollar so far this year, making it the best performer among regional peers. Kuala Lumpur shares were little changed following the decision, showing minimal reaction in broader trading.
Bank Negara Malaysia (Bank Negara) kept its benchmark interest rate unchanged at its final policy meeting of the year, amid subdued inflation and resilient economic growth. “Bank Negara has reaffirmed the positive outlook for the domestic economy.
While tariffs still present challenges, there are other local supportive factors, including the 2026 budget, that could sustain growth,” said Lloyd Chan, a senior currency analyst at MUFG.
“We maintain our constructive outlook for Malaysia’s economy and expect the ringgit to strengthen further against the US dollar by end-year.”
Other stock markets in the region regained footing after worries over tech valuations sparked the steepest selloff in months in the last session. Strong US private-sector data and upbeat earnings revived risk appetite on Thursday, with Wall Street’s overnight rebound on easing tech valuation fears lifting confidence across Asian markets.
Taiwan and South Korea stocks rose more than 1 per cent and 2.7 per cent, respectively. Singapore stocks climbed 1.6 per cent to hit a record peak, as DBS surged 3.4 per cent to an all-time high, even after Southeast Asia’s largest lender reported a 2 per cent decline in third-quarter profit and said it expected 2026 earnings to be slightly below this year’s levels.
Indonesian shares rose 0.5 per cent to notch a fresh high, while Philippine equities gained 0.3 per cent. On the trade front, US Supreme Court justices on Wednesday voiced scepticism over the legality of US President Donald Trump‘s sweeping tariffs, a case that could have far-reaching consequences for global commerce.
“If these tariffs are deemed unlawful and subsequently revoked, it could help bolster growth prospects and support FX performance across the Asia region,” Chan said. Currencies in emerging Asian markets were mostly steady.
The Indonesian rupiah, Taiwan dollar and the Thai baht showed little movement. However, South Korea‘s won slipped 0.5 per cent in its third consecutive session of losses to hover around its early April lows, while the Philippine peso weakened by 0.5 per cent.
© New Straits Times Press (M) Bhd
