EMERGING MARKETS-Asian currencies fall as dollar rebounds; stocks mixed ahead of Nvidia results

(Updates for afternoon trade) * Philippine peso leads decline, drops 0.5% to week low * Trump threatens to fire Fed’s Cook; dollar index rises 0.2% * Asian tech stocks climb ahead of Nvidia results By Roushni Nair Aug 27 (Reuters) – Asian currencies fell on Wednesday as the U.S. dollar recovered after declining in the previous session, though concerns persisted over the Federal Reserve’s independence, while regional equities traded mixed ahead of key Nvidia earnings. The Philippine peso led declines, weakening 0.41% as investors positioned ahead of Thursday’s widely expected 25-basis-point interest rate cut by Bangko Sentral ng Pilipinas, with the benchmark stock index surging 2.08% to its best session since late-April on rate cut expectations. If the central bank goes ahead with the cut, it would mark a fourth consecutive quarter-point reduction, bringing borrowing costs to a two-year low of 5.50%. The Indonesian rupiah and the Malaysian ringgit dropped 0.40%. Thailand’s baht declined a modest 0.03%. The U.S. dollar index, which measures the currency against six major peers, rose 0.2% to 98.44, recovering from a 0.24% decline in the previous session. U.S. President Donald Trump said on Monday he would fire Federal Reserve Governor Lisa Cook over alleged mortgage improprieties, though Cook’s lawyer said she will challenge the move in court. The dollar had initially weakened after the development as investors lost confidence in the greenback following the president’s push for greater influence over monetary policy. The key risk is that concerns over Fed independence could lead to uncertainty around inflation and the Fed’s policy credibility, MUFG forex strategist Lloyd Chan said. “This may fuel increased volatility in U.S. interest rate expectations and the U.S. dollar, amplifying currency fluctuations across the Asia region, particularly for economies with high external vulnerabilities or high foreign portfolio exposure.” Traders are also bracing for this week’s U.S. inflation data on Friday. Asian technology stocks rose broadly in lacklustre trade ahead of Nvidia Corp’s second-quarter results, as investors looked to the U.S. chipmaker’s demand outlook for clues about whether the global tech rally since April can continue. The U.S. chipmaker will report after the bell on Wednesday. Cambricon Technologies Corp rose as much as 8.2% to an all-time high after the Chinese artificial intelligence major reported a record profit. Japan’s Nikon Corp surged 21% and chipmaker Samsung Electronics’s shares rose 0.6% in South Korea. Taiwan shares climbed 0.88%, while South Korean equities gained 0.25%. Indonesian stocks advanced 0.34% and Singapore’s benchmark index edged down 0.07%. Economists expect South Korea to hold rates steady on Thursday, while Thailand’s central bank minutes showed monetary policy should remain accommodative. HIGHLIGHTS: ** China’s commerce minister met Saudi Arabia investment minister in Beijing ** Taiwan to name former TSMC board member as new economy minister Asia stock indexes and currenc ies at 0818 GMT COUNTRY FX RIC FX FX INDE STOCK STOCK DAILY YTD X S S YTD % % DAILY % % Japan -0.37 +6.2 <.n2> China 1 EC> India +0.00 -2.3 <.ns ei=””> Indones -0.40 -1.6 <.jk ia=”” se=””> Malaysi -0.40 +5.6 <.kl a=”” se=””> Philipp -0.44 +1.6 <.ps i=”” ines=””> S.Korea 9 11> Singapo -0.33 +5.9 <.st i=”” re=””> Taiwan -0.09 +7.1 <.tw ii=””> Thailan -0.09 +5.6 <.se d=”” ti=””> 4 (Reporting by Roushni Nair in Bengaluru; Editing by Sherry Jacob-Phillips and Rashmi Aich) .ps> .n2>