(Updates for afternoon trade) * Taiwan and Indonesia stocks down over 1.5% * Asian FX firm as dollar weakness persists * Trump threatens to double tariffs on steel imports By Roshan Thomas June 2 (Reuters) – Asian equities fell on Monday, dragged by losses in South Korean and Vietnamese steelmakers, after U.S. President Donald Trump threatened to double tariffs on imported steel and aluminium, while regional currencies held firm against a softer dollar. Trading volumes were thin overall due to a public holiday in the region, with markets in China, Thailand and Malaysia remaining closed. Trump’s announcement late on Friday to double tariffs on imported steel and aluminium to 50% intensified a global trade war and came just hours after he accused China of violating an agreement to mutually roll back tariffs on critical minerals. Shares in South Korea fell 0.5% on Monday, with steelmakers POSCO and Hyundai Steel falling 3% and SeAH Steel Corp down as much as 12.6%. In Vietnam, major steelmaker Hoa Sen Group fell 5.8%. Investors were cautious as markets digested tariff uncertainty and geopolitical risk, including from the latest developments in Ukraine and Russia, said Junvum Kim, a sales trader at Saxo Capital Markets. Ukraine’s overnight drone strikes hit Russia’s Kursk and Voronezh regions triggering residential fires and disrupting traffic. Shares in Taiwan and Indonesia fell more than 1.5% each, while those in Singapore and India slipped 0.5%, each. The Indonesian benchmark index emerged as the best performer regionally in May, adding more than 6%, and Monday’s trading could be due to profit-taking, said Fakhrul Fulvian, an economist at Trimegah Securities. Data showed Indonesia’s annual inflation rate at 1.60% in May, slowing more sharply than expected. Currencies in the region were largely steady, with the South Korean won advancing 0.7%. The Indian rupee, and Singapore dollar advanced 0.2%. The Taiwanese dollar , however, lost 0.2%. The U.S. dollar declined 0.5% as mounting fiscal concerns and a broad “Sell America” wave continued to weigh on U.S. assets from stocks to Treasuries. “In the ASEAN region, we expect the currencies to further appreciate this year as global investors spread their holdings more widely after years of heavy U.S. positioning,” Maybank analysts said in a research note. On Tuesday, South Koreans go to the polls in a snap presidential election to replace Yoon Suk Yeol, who was ousted from office in April after his brief martial law attempt sent shockwaves through the country. Investors are also awaiting inflation figures from Taiwan, South Korea and the Philippines later this week. HIGHLIGHTS: ** Indonesia’s trade surplus shrinks to lowest in 5 years ** Trump, Xi likely to speak soon on minerals trade dispute, aides say Asia stock indexes and currenc ies at 0709 GMT COUNTRY FX RIC FX FX INDE STOCK STOCK DAILY YTD X S S YTD % % DAILY % % Japan +0.59 +9.7 <.N2 -1.30 -4.67 7 25> China 4 EC> India +0.15 +0.1 <.NS -0.30 4.36 9 EI> Indones +0.06 -1.1 <.JK -1.45 -0.12 ia 4 SE> Malaysi – +5.0 <.KL – -8.16 a 6 SE> Philipp +0.16 +4.2 <.PS 0.18 -2.70 ines 9 I> S.Korea 9 11> Singapo +0.25 +6.0 <.ST -0.45 2.36 re 3 I> Taiwan -0.20 +9.3 <.TW -1.61 -8.82 1 II> Thailan – +5.3 <.SE – -17.9 d 1 TI> 3 (Reporting by Roshan Thomas and Roushni Nair in Bengaluru; Editing by Rachna Uppal and Rashmi Aich)
