EMERGING MARKETS-Taiwan dollar at 7-month high as Asian FX gains on easing US-China trade tensions

* Taiwan dollar rises 1.6% for week * Taiwan central bank to hold rates in 2025 – economist * Bank of Thailand eyed to further ease rates By Rishav Chatterjee May 2 (Reuters) – The Taiwan dollar reached a seven-month peak on Friday after the country lifted its annual growth forecasts, while most Asian currencies rose as hopes of easing U.S.-Sino trade tensions helped risk sentiment across emerging markets. Taiwan’s currency rose 2% to its highest since October 1, 2024 and is set to log a weekly gain of 1.6%. Equities in the country added 2.2% and were at a one-month high. Taiwan, a key hub in the global technology supply chain, unexpectedly raised its 2025 economic growth forecast on Wednesday after a strong first quarter performance driven by surging exports as firms rushed shipments ahead of looming U.S. tariffs. Taiwan, which faces a 32% U.S. tariff, found brief relief after Washington announced a 90-day pause on the measures earlier this month. The strength in the economy prompted Ho Woei Chen, an economist with UOB, to keep his forecast for the local central bank to hold interest rates steady throughout 2025. In Southeast Asia, the Indonesian rupiah rose 0.9% to its highest level since mid-March, and the Malaysian ringgit was trading a more than six-month high. Both currencies were set to gain 1.4% and 1.3%, respectively for the week. China’s commerce ministry said Friday that the U.S. has repeatedly signaled a willingness to negotiate on tariffs, and that Beijing remains open to talks. The remarks helped lift investor sentiment, offering some relief to markets rattled by escalating tariff tensions and fears of a global economic slowdown. The offshore yuan added 0.3% and was at its strongest level since April 4. The Philippine peso and the Thai baht were last up 0.4% and 0.8%, respectively. During the week, the Bank of Thailand (BOT) lowered interest rates by a quarter point in a bid to support the country’s sluggish economy in the wake of U.S. tariffs and an earthquake earlier in the year. “Given the central bank’s dovish rhetoric, and heightened downside risks stemming from sweeping US-led global tariffs, we expect the BOT to ease its policy rate further to 1.50% by end-2025,” said Chua Han Teng, senior economist at DBS. The Singapore dollar rose 0.5% on Friday and was set for 0.3% weekly rise. The local central bank has been looking to diversify its reserves away from the U.S. dollar. The city-state’s stable political backdrop, resilient currency and deep fiscal reserves positions the country to navigate trade headwinds. Singapore’s dominant People’s Action Party is widely expected to sweep eight or nine out of every 10 seats in the May 3 general election as it typically does. Regional equity markets wee broadly higher on the day, with stocks in the Philippines and Thailand gaining 1% and 0.4%, respectively. Singapore and Indonesia shares added about 0.2% each. HIGHLIGHTS: ** Indonesia’s April inflation rate rises to eight-month high ** Thailand finance ministry cuts 2025 growth forecast to 2.1% Asian stocks and currenci es as of 0419 GMT COUNTRY FX RIC FX FX INDE STOCKS STOCKS DAILY YTD % X DAILY YTD % % % Japan +0.08 +8.17 <.N2 +0.89 -6.43 25> China EC> India +0.78 +2.13 <.NS 0.73 3.66 EI> Indonesi +0.67 -2.40 <.JK 0.38 -4.06 a SE> Malaysia +0.42 +4.05 <.KL -0.22 -6.42 SE> Philippi +0.39 +4.36 <.PS 1.01 -1.68 nes I> S.Korea 11> Singapor +0.38 +4.55 <.ST 0.29 1.48 e I> Taiwan +1.98 +4.42 <.TW 2.22 -10.21 II> Thailand +0.80 +3.18 <.SE 0.25 -14.28 TI> (Reporting by Rishav Chatterjee in Bengaluru; Editing by Kim Coghill)