Equities were mixed in Southeast Asia. Indonesian .JKSE and Thai .SETI stocks climbed 1.4% and 0.3% respectively, while those in Singapore .STI shed 0.6%.
Other emerging market currencies were weaker as the U.S. dollar strengthened overnight following inflation and other economic indicators that raised expectations for a Federal Reserve rate hike ahead of a Jackson Hole meeting of central bankers later in the day.
Philippine assets stay weak after rate hike
Aug. 27 (Reuters) - Philippine assets remained weak on Thursday after the central bank hiked its key rate by a quarter percentage point, as expected, to combat inflation and support the peso, while South Korean and Taiwan equities closed higher on Nvidia results.
The peso PHP= held steady at 61.739 per dollar, lower than the previous session's close of 61.635, after the Bangko Sentral ng Pilipinas raised its key interest rate by 25 basis points to 5.00% — a third consecutive tightening of policy.
The hike comes as the Philippines grapples with inflationary pressures and a weak currency. The oil-sensitive peso is among the region's worst performers after the Middle East conflict drove up energy prices.
"The hike was fully priced, so the muted market reaction makes sense. It makes me slightly more constructive on the peso, as the BSP is clearly prioritizing inflation control and currency stability," said Glenn Yin, director of research at ACCM.
Manila equities .PSI remained in the red, last down 2.2%, near their lowest since June 11.
"Equities are a tougher call. Stronger second-half growth would help, but with Q2 growth at just 2.3% and rates moving higher, investors will want evidence before buying into the recovery narrative," Yin added.
South Korea and Taiwan gain on Nvidia results
The South Korean won KRW= traded steady at 1,381.33 per dollar after Bank of Korea lifted its benchmark interest rate to 3.00% earlier in the session, along with raising its 2026 economic growth forecast. The central bank's hawkish stance along with strong export-led economic growth has helped the won fare better than Asian peers versus the dollar, gaining 4.3% so far this year.
The Taiwan dollar TWD=TP, also driven by chip exports, strengthened to 31.719 a dollar, near its strongest level since late June.
South Korean stocks .KS11 rose 1.5%, and Taiwan equities ended 0.3% higher. Both benchmarks posted a three-session win streak after Nvidia reported quarterly revenue that more than doubled and forecast third-quarter revenue above Wall Street estimates.
The AI supply chain bellwether's results showed no signs of slowing demand for chips, reviving confidence in the AI trade after bouts of anxiety throughout the year. That helped shares of the world's dominant memory chipmakers — SK Hynix 000660.KS and Samsung Electronics 005930.KS — advance 2.5% and 1.7% respectively.
EEM•
