Most Asian currencies and equities edged higher on Thursday, led by the South Korean won and Seoul stocks, as a softer dollar and buoyant tech sentiment offset lingering uncertainty over Washington's latest tariff plans.
The won rose as much as 0.6% to 1,419.4 per U.S. dollar, while the benchmark KOSPI climbed for a sixth straight session to a record 6,221.92 points.
The Bank of Korea held interest rates for a sixth consecutive meeting, as expected, and signalled policy was likely to stay on hold over the next six months, citing a chip-led export boom and steady inflation. The won is up more than 1% so far this year, supported by tech-related inflows.
Risk appetite was also buoyed by better-than-expected earnings from Nvidia, lifting regional equity benchmarks and easing fears that higher trade barriers could crimp global demand.
Still, uncertainty over U.S. trade policy following the February 20 Supreme Court ruling that struck down the Trump administration's emergency tariffs kept investors cautious.
U.S. Trade Representative Jamieson Greer said some countries would face tariffs of 15% or more, up from the newly imposed 10% rate, but did not name trading partners or explain how higher duties would apply where they conflict with existing U.S. trade agreements.
That leaves Asian economies that struck bilateral trade and investment deals with the U.S. last year to secure lower rates facing renewed risk, said Chi Lo, senior market strategist at BNP Paribas Asset Management.
If new tariffs exceed last year's negotiated reciprocal rates, he said, countries may have to renegotiate.
Elsewhere, Thailand's central bank surprised markets on Wednesday with a quarter-point rate cut. Maybank economists said they do not expect further moves until late 2027.
The Thai baht was little changed on Thursday, while Bangkok stocks rose more than 1% for a fourth straight session to their highest level in 29 months, though Maybank warned the baht could lag peers following the rate cut, despite support from dollar softness and elevated gold prices.
The Malaysian ringgit was steady on the day but remained the region's top performer, up more than 4% so far this year.
MUFG currency analyst Lloyd Chan cited a stronger growth outlook, improving trade dynamics and favourable foreign exchange flows as supportive of further ringgit gains.
In other markets, stocks in Manila added 0.6%, while India's and Taiwan's were up about 0.2%.
The Indonesian rupiah and Indian rupee rose around 0.2%, while the Singapore dollar and Philippine peso were little changed.
HIGHLIGHTS:
** Indian equities set for another lacklustre year - POLL
** Hawkish BOJ board member calls for focus on inflation overshoot risk
** BOJ to keep raising rates if forecasts materialise, Governor Ueda says - Reuters
