(.) * US dollar rallies * Markets have run into tariff fatigue – Maybank * Thai baht down as much as 0.8% By Rishav Chatterjee and Rajasik Mukherjee Feb 11 (Reuters) – Asian currencies traded in a tight range on Tuesday against a rallying greenback, in a muted reaction after U.S. President Donald Trump kept his pledge to impose tariffs on all steel and aluminium imports. The Indonesian rupiah fell 0.2% against the U.S. dollar while the South Korean won and Singapore dollar traded down 0.2% and 0.1% respectively. Stock markets in the region were mostly mixed, with some recording heavy losses and others gaining a bit while investors keenly await this week’s U.S. inflation data and Federal Reserve Chair Jerome Powell’s testimony before Congress. The moves came after Trump set tariffs on steel and aluminium imports from all countries from March, but said he would consider exempting Australia. “Reactions were rather muted and we get the sense that markets have run into tariff fatigue – becoming increasingly desensitized to tariff announcements, even though Trump did warn that the metal tariffs ‘may go higher’,” said analysts at Maybank. Equities in Manila and the Philippine peso were set for four straight days of losses. The local central bank is expected to announce an easing in interest rates on Thursday. The Philippine benchmark index, which has dropped near 9% since the beginning of the year, fell 1.1% during the day on lingering concerns over tariffs and some disappointing local economic growth. The currency dropped 0.2%. Political uncertainty is growing in the Southeast Asian nation where Vice President Sara Duterte’s impeachment trial will start when a new Congress convenes in July. Investors do consider matters like the political situation in the Philippines, but other market forces like potential trade policies that will come out of the White House matter more, said Ruben Carlo O. Asuncion, chief economist at Union Bank of the Philippines. Maybank analysts said they were continuing to keep a close eye on the political developments related to Duterte’s impeachment. Equity markets in South Korea and Taiwan gained 0.7% each, in line with gains on Wall Street overnight. The Indonesian benchmark index slumped 1.2%, set for its fifth-straight session of losses and hit its lowest since late May 2023. Markets in Malaysia were closed for a public holiday. There was also a holiday in Japan, with the yen trading but the stock market closed. The Thai baht dropped as much as 0.8%, reflecting uncertainty related to U.S. data and monetary policy. Stocks in Bangkok added 0.4%. Maybank analysts said they remained cautious on the baht given the global uncertainties. HIGHLIGHTS: ** Philippine central bank to cut rates on Thursday ** Asian buyers look to step up US LNG imports to fend off Trump tariffs Asian stocks and currencies as of 0349 GMT COUNTRY FX RIC FX FX INDE STOCK STOCK DAILY YTD % X S S YTD % DAILY % % Japan +0.02 +3.44 <.N2 – -1.29 25> China EC> India +0.21 -1.92 <.NS 0.00 -1.11 EI> Indones -0.20 -1.73 <.JK -1.15 -7.18 ia SE> Malaysi – +0.02 <.KL – -3.19 a SE> Philipp -0.19 -0.25 <.PS -1.06 -8.51 ines I> S.Korea 11> Singapo -0.07 +0.66 <.ST -0.43 1.87 re I> Taiwan +0.00 -0.18 <.TW 0.47 1.42 II> Thailan -0.69 +0.63 <.SE 0.43 -8.87 d TI> (Reporting by Rishav Chatterjee and Rajasik Mukherjee in Bengaluru; Editing by Jamie Freed)
