* Asian FX subdued, equities mixed on Fed nomination wait * Tariffs boosted Asia H1 growth but outlook darkens – analyst * Dollar steady as markets price 90% Fed cut probability (Updates for afternoon trade) By Roushni Nair Aug 6 (Reuters) – Asian currencies were subdued and regional equities traded mixed on Wednesday, as cautious investors awaited President Donald Trump’s Federal Reserve nominations, while evidence mounted that tariffs are constraining U.S. economic growth. Taiwan’s dollar and South Korean won each fell 0.2%, while the Philippine peso, Thai baht and Indonesian rupiah held steady. The dollar index was range-bound as traders priced in over 90% odds of a September Fed rate cut. Regional equities were mixed. Taipei stocks slipped 1%, while Manila shares gained 0.4%, extending advances after Philippine inflation hit near six-year lows, potentially creating room for rate cuts. Bangkok shares rose more than 1% for a third straight session, reaching their highest level since February 20. Trump said on Tuesday that he will decide on a Fed board nominee this week, while narrowing replacements for Fed Chair Jerome Powell to four candidates. The announcement coincided with U.S. services activity stalling in July as input costs surged, highlighting tariffs’ adverse business impact. Thai July headline CPI dropped 0.7% year-over-year, exceeding forecasts. “We expect the Bank of Thailand to remain on hold in next week’s MPC meeting, holding off on further easing in anticipation of the transition to the new BoT Governor in October,” Barclays analysts said. While tariffs dominated first-half sentiment, they paradoxically boosted Asian growth through export front-running, with positive second-quarter GDP surprises from Indonesia, Taiwan, Singapore and Vietnam, said Lin Li, Asia head of global markets research at MUFG. However, the outlook is shifting as ASEAN and India face steep U.S. tariff increases from early August. Markets remain uncertain over China, which faces an August 12 deadline to reach a durable tariff agreement with Washington. Without a deal, global supply chains could face renewed turmoil from U.S. duties snapping back to triple-digit levels equivalent to a bilateral trade embargo. Trump threatened on Monday to impose even higher tariffs on goods from India over New Delhi’s Russian oil purchases and said on Tuesday he will decide on sanctioning countries after a Wednesday meeting with Russian officials. India faces 25% tariffs, the steepest rate among major Asian economies after China. The Indian rupee was largely unchanged, while stocks fell 0.2% after the country’s central bank expectedly held rates steady. MUFG’s Li favoured Asian currencies of countries with less U.S. and China exposures, such as the Indonesian rupiah, while expecting those with larger exposure such as the Vietnam dong to underperform. HIGHLIGHTS: ** Vietnam July exports up 16% y/y ** China’s export growth likely slowed in July Asian stocks and currenc ies as of 0721 GMT COUNTRY FX RIC FX FX INDE STOCK STOCK DAILY YTD X S S YTD % % DAILY % % Japan -0.03 +6.4 <.N2 0.60 3.79 5 25> China 3 EC> India +0.10 -2.3 <.NS -0.11 4.13 9 EI> Indones +0.05 -1.6 <.JK 0.16 6.32 ia 9 SE> Malaysi -0.05 +5.7 <.KL -0.01 -6.32 a 0 SE> Philipp +0.15 +1.1 <.PS 0.27 -2.42 ines 4 I> S.Korea 4 11> Singapo +0.02 +6.0 <.ST 0.44 11.60 re 7 I> Taiwan -0.18 +9.3 <.TW -0.90 1.79 4 II> Thailan -0.09 +6.0 <.SE 1.50 -9.61 d 3 TI> (Reporting by Roushni Nair in Bengaluru; Editing by Kim Coghill and Rashmi Aich)
