* Indonesia stocks hit record high for second day * Taiwan dollar slips to lowest level since May 23 * Bank Indonesia policy decision due next week (Updates for afternoon trade) By Roshan Thomas Aug 15 (Reuters) – Asian stocks slipped on Friday after stronger-than-expected U.S. producer price data dampened prospects for a big Federal Reserve interest rate cut next month, lifting the dollar and pressuring regional currencies. Equities in Malaysia fell 0.3%, but logged their second straight weekly gain. Singapore stocks slumped more than 1% on the day. The MSCI gauge of Asian emerging market equities dropped 0.3%. “ASEAN markets are unlikely to sustain their recent advances because lower inflation and interest rates, U.S. dollar weakness have yet to translate to an improving growth outlook,” said Alan Richardson, senior portfolio manager at Samsung Asset Management. U.S. producer prices rose more than expected in July, data released overnight showed, dampening hopes for a jumbo Fed rate cut in September and denting risk appetite in regional markets. Mild consumer inflation data earlier this week had boosted expectations for policy easing next month in the world’s largest economy and lifted risk assets across the board. The dollar index held onto the previous session’s gains, keeping Asian currencies under pressure. The Philippine peso slipped 0.1% and Taiwan’s dollar dipped 0.3% to its lowest level since late May, while most other regional currencies were little changed. “EM Asian currencies could be under pressure somewhat in the near-term, but will likely regain some strength going forward, especially in the fourth quarter of 2025 and first quarter of 2026,” said Poon Panichpibool, markets strategist at Krung Thai Bank, pointing to potential dollar weakness after the Fed’s policy path becomes clearer. This week, Thailand’s central bank cut interest rates by 25 basis points, its fourth reduction in 10 months. Stocks fell 0.8% on Friday, while the baht was flat. In Indonesia, the rupiah lost 0.3%. Equities hit a record high for a second straight session, boosted by hopes of U.S. rate cuts this year and greater clarity over regional tariffs. The next two weeks are packed with catalysts for Indonesia, said Mohit Mirpuri, equity fund manager at SGMC Capital, pointing to the Bank Indonesia policy meeting on August 20 and the likelihood of passive inflows due to some Indonesian firms being added to the MSCI emerging markets index. “Market participation remains broad-based, so we’re more focused on positioning ahead of these events rather than the day-to-day noise on profit-taking,” Mirpuri said. Markets in India and South Korea were closed for public holidays. HIGHLIGHTS: ** Malaysia growth near forecast in second quarter, but central bank flags tariff uncertainty ** Thailand economy likely lost steam in second quarter on weak domestic demand Asia stock indexes and currencies at 0727 GMT COUNTRY FX RIC FX DAILY FX YTD % INDEX STOCKS STOCKS % DAILY YTD % % Japan +0.44 +6.84 1.71 8.73 China India – -2.21 – 4.17 Indones -0.33 -0.43 0.01 12.04 ia Malaysi -0.12 +6.00 -0.30 -4.02 a Philipp -0.11 +1.74 0.38 -3.26 ines S.Korea Singapo +0.15 +6.45 -0.94 11.33 re Taiwan -0.05 +9.26 0.40 5.64 Thailan +0.02 +5.82 -0.78 -10.24 d (Reporting by Roshan Thomas in Bengaluru and Ankur Banerjee in Singapore; Editing by Sonali Paul and Subhranshu Sahu)
