* Rupiah up 0.5% to 16,090 per dollar
* Bank Indonesia leaves interest rates unchanged
* Malaysian stocks touch over 3-year high
* TSMC drops over 3% after Trump comment
* Yen at an over one-month high
By Shivangi Lahiri
July 17 (Reuters) - The Indonesian rupiah strengthened
after the central bank kept its interest rate unchanged as
widely expected on Wednesday, while equities in emerging Asia
were a mixed bag with South Korea and Taiwan leading the losses.
The MSCI Emerging Market Asia index fell as
much as 0.6% to its lowest in over a week. Shares in Taiwan
lost around 1% as chipmaking giant TSMC weighed on the
index, while those in South Korea ended 0.8% lower.
Equities in Malaysia touched their highest level in
more than three years, helped by a broad-based rally across most
sectors.
The rupiah crept higher to 16,090 per dollar after
the interest rate decision, a few pips ahead of where it
lingered most of the session. It has gained 0.5% for the day,
and is hovering around its highest level since late May.
Bank Indonesia held its key interest rate at 6.25% as widely
expected, saying the current level remained consistent with
efforts to anchor inflation and manage the currency.
The rupiah, which languished around four-year lows in late
June, has seen some relief over the past couple of weeks as
rising U.S. rate cut bets softened the dollar.
A U.S. interest rate cut would widen yield differentials
compared to Indonesia, making local bonds more attractive and
increasing inflows.
"The rupiah outlook will be key for the monetary policy
going forward," Lloyd Chan, senior currency analyst at MUFG,
said.
"In the second half, we think BI will likely have to stay
patient for a while longer, keeping interest rates high for
longer," Chan said, further warning that the currency will
remain vulnerable to cross currents, including fiscal
uncertainty, monetary policy, and U.S. elections.
Elsewhere, the Singapore dollar and Thailand's baht
advanced 0.2% and 0.4%, respectively, while the South
Korean won was up 0.4%.
The yen rose broadly, advancing up to 1% to
156.690 per dollar, a level last seen over a month ago, although
traders and analysts were unsure of the reason behind the move.
Among equities, the Malaysian benchmark rose as much
as 0.7% to the highest level since mid-March 2021. Stocks in
Thailand rose around 0.2%, while South Korean equities
were down around 0.8%.
Stocks in Taiwan lost up to 1%, weighed by chipmaker
TSMC's more-than-3% fall after U.S. presidential
candidate Donald Trump said Taiwan should pay the United States
for its defence.
HIGHLIGHTS:
** Singapore's June exports fall steeper than forecast
** Philippine central bank amends foreign exchange reporting
rules
** Thai PM seeks extra $3.4 bln for stimulus as lawmakers
criticise handout plan
** Markets in India closed for a public holiday on Wednesday
Asia stock
indexes and
currencies
at 0801 GMT
COUNTRY FX FX FX INDEX STOCKS STOCKS
RIC DAILY % YTD % DAILY % YTD %
Japan +0.85 -10.15 -0.43 22.81
China +0.03 -2.31 -0.45 -0.41
India - -0.45 - 13.26
Indonesia +0.50 -4.35 0.01 -0.65
Malaysia +0.13 -1.67 0.51 12.35
Philippines +0.14 -5.00 0.31 3.68
S.Korea +0.36 -6.67 -0.80 7.08
Singapore +0.22 -1.63 -0.02 7.62
Taiwan +0.03 -5.77 -0.95 32.56
Thailand +0.37 -4.75 0.10 -6.59
(Reporting by Shivangi Lahiri in Bengaluru; Editing by Kim
Coghill)