* S.Korean won hits highest since October 2024 * Seoul shares at 11-month high * Philippine inflation eases in May, central bank signals easing (Updates for afternoon trade) By Roshan Thomas June 5 (Reuters) – Asian currencies were subdued on Thursday with investors tracking developments in U.S. trade negotiations, while South Korean stocks led gains among regional equities on optimism around President Lee Jae-myung’s pro-growth policies. In South Korea, shares rose 1.5% to their highest since July 2024, after gaining 2.7% on Wednesday. The won advanced 0.3% to hit an eight-month high. South Korea’s new President Lee held his first cabinet meeting on Thursday, focusing on an emergency package to tackle stagnating economic growth and provide household relief. MSCI’s gauge of Asian emerging market equities advanced 1.3%. Shares in Indonesia, Malaysia and Thailand gained between 0.6% and 0.8%. Regional currencies were largely tepid against a feeble dollar as weak economic data renewed concerns over sluggish U.S. growth and persistent inflation. The Malaysian ringgit, Taiwan dollar and Thai baht all inched up 0.1%. With the early July deadline for the pause on U.S. President Donald Trump’s “reciprocal tariffs” drawing near, market attention is on the progress in U.S. trade negotiations. Maybank analysts expect trade developments to remain a key driver of currencies as the U.S. persists on its tariff agenda. Trump described China’s Xi Jinping as “tough” and “extremely hard to make a deal with” in a social media post, dampening hopes for a swift end to trade tensions and leaving investors on edge. “While the prospect of no bilateral deals by early July and the resumption of reciprocal tariffs could yet be negative for Asia FX, a stable CNY alongside implicit FX commitments could see some currencies, especially in North Asia, remain resilient,” analysts at BofA said. China’s yuan was last trading flat. The Philippine peso rose 0.2%, while stocks were flat. Data showed the country’s annual inflation eased for a fourth straight month in May, while the central bank signalled it would allow for a more accommodative monetary policy. Analysts at Goldman Sachs said they expect the Bangko Sentral ng Pilipinas to cut two more times by 25 basis points each in the second and third quarter this year. Investors now await U.S. non-farm payroll and unemployment data, and the Reserve Bank of India’s monetary policy decision, all due to be released on Friday. HIGHLIGHTS: ** US, Vietnam to hold new round of trade talks by end of next week, Hanoi says ** Trump reinstates US travel ban, bars citizens of 12 countries Asia stock indexes and currencies at 0708 GMT COUNTRY FX RIC FX DAILY FX YTD INDEX STOCK STOCK % % S S YTD DAILY % % Japan -0.26 +9.82 <.N225 -0.5% -5.9 > China > India +0.02 -0.24 <.NSEI 0.94 5.10 > Indones +0.03 -1.17 <.JKSE 0.82 0.66 ia > Malaysi +0.12 +5.40 <.KLSE 0.60 -7.63 a > Philipp +0.16 +4.41 -0.03 -2.33 ines S.Korea > Singapo -0.05 +6.15 0.20 3.28 re Taiwan +0.14 +9.60 <.TWII 0.26 -5.91 > Thailan +0.09 +5.31 <.SETI 0.61 -18.6 d > 6 (Reporting by Roshan Thomas in Bengaluru; Editing by Mrigank Dhaniwala and Rashmi Aich)
