Stocks in Indonesia hit a near four-week high on Monday, driven by conglomerate Barito Pacific-related firms after index provider MSCI removed them from a watch list, while Singapore's benchmark touched an all-time high for a ninth straight session.
Jakarta's equity benchmark index gained for the sixth consecutive session to touch its highest since June 18. Barito Pacific jumped 16% after MSCI said the conglomerate's associate companies - Barito Renewables, Petrindo Kreasi Jaya and Petrosea - would be eligible for future inclusions to its list.
All the firms soared up to 19%. Investors in Indonesia are also focusing on the central bank policy decision due on Wednesday. Analysts widely expect Bank Indonesia to deliver a rate cut.
Singapore's FTSE Straits Times index hit a record high for the ninth consecutive session, led by strong inflows into industrials, telecoms, and real-estate stocks.
Data showed the city-state's economy grew 1.4% in the second quarter of 2025, rebounding from a 0.5% contraction in the previous quarter and narrowly avoiding a technical recession, ahead of a policy review by the Monetary Authority of Singapore later this month.
"The MAS monetary policy review due later this month may adopt a 'wait-and-see' mode barring downside core CPI risks...," said analysts at OCBC.
Technology-linked stocks led the decline on the Taiwan bourse. The benchmark index fell 0.6%, tracking a dip in U.S. equity futures, as investors assessed latest developments on tariffs by U.S. President Donald Trump.
"The 32% tariff heading Taiwan's way in conjunction with the spate of other tariff measures...has raised a few more questions about how well the economy can handle potential tariff-related disruptions," said Tim Waterer, a market analyst at KCM Trade.
Currencies across emerging Asia slipped marginally against the U.S. dollar, as markets continued to weigh Trump's tariff threats against Mexico and the European Union.
The Mexican peso and the euro both weakened overnight, with the latter slipping to a three-week low. Thailand's baht was steady, while the Taiwan dollar and Philippine peso traded 0.3% lower each.
"We suspect the recent tariff developments are likely to further erode policymakers' confidence that deals would put an end to uncertainty over U.S. trade policy," said analysts at Barclays.
Investors will also look out for the U.S. inflation report, due Tuesday, which would be crucial for the Federal Reserve to consider the next rate cut.
HIGHLIGHTS:
** Singapore economy grows 4.3% in second quarter, advance estimate shows
** Data centre NTT DC REIT makes tepid debut after Singapore's biggest IPO in 4 years - Reuters
