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Investing.com – Most Asian stocks fell on Thursday, extending their subdued performance amid concerns about new US tariffs under the Donald Trump administration, as attention turned to the summit of the Bank of Japan’s policy which was due to start later in the day.
The BoJ is widely expected to hike at the end of its two-day meeting on Friday.
Analysts believe that recent data on inflation and earnings have encouraged and supported the central bank’s decision to raise interest rates.
Media reports indicated that the BoJ may indicate an interest rate hike at its meeting if the economy maintains recovery.
The Japanese yen was largely muted ahead of the rate decision.
Asian FX eased US interest rate concerns
Some local currencies were under pressure in anticipation of further US tariffs.
After his inauguration on Monday, Trump signed off on plans to impose 10% tariffs on Chinese imports starting March 1, and warned of possible tariffs on the European Union.
Local funds faced downward pressure. If implemented in full, these tariffs could have a significant impact on many Asian economies, as the region is heavily dependent on trade with China.
Overseas Chinese yuan rose 0.1%, while those overseas were little changed.
The Malaysian ringgit pair rose 0.2%, a day after Bank Negara Malaysia held steady for the 10th consecutive session.
Both the Australian Dollar and the Singapore dollar were both very quiet.
The Indonesian rupiah and the Indian rupee pair fell by 0.1%, each.
South Korea’s win streak was slightly higher amid the country’s ongoing political crisis.
The US dollar is facing problems due to the slow payment of tariffs
The dollar faces pressure as investors assess the economic impact of Trump’s gradual tariff action.
The greenback had fallen more than 1% earlier in the week after Trump avoided details on tariffs, suggesting they could come more slowly.
It was mostly quiet during Asian trading, after holding up the day before. up 0.1%.
“Markets continue to bear down on the long-term USD as US Treasuries have yet another strong session, and the delay in rate announcements is driving optimism,” analysts said. ING said in a recent report.
