(.) * Taiwan, Singapore and Indonesia stocks reach record levels * Most currencies muted; Thai baht falls up to 0.5% * Bank of Thailand rate decision due on Wednesday * Philippine cbank policy decision due on Thursday By Himanshi Akhand Oct 7 (Reuters) – Emerging Asian stocks hit a multi-year peak on Tuesday as an AI-driven rally propelled shares in Taiwan to record high, while investors also watched for upcoming regional central banks' decisions. The MSCI index of Asian emerging market equities climbed 0.5% to its highest point since early March 2021. Taiwan shares rose 1.7%, driven by chip giant TSMC . Overnight, the S&P 500 and the Nasdaq hit record closing highs as semiconductor stocks gained after AMD said it would supply chips to OpenAI in a multi-year deal. Benchmark indexes in Singapore and Indonesia reached all-time highs. Meanwhile, trading volume in most emerging markets remained subdued as China and South Korea markets were closed for public holidays. Currency trading was also tepid. The MSCI index of emerging market currencies edged lower as the U.S. dollar strengthened, helped in part by yen's weakness. The yen sank to a two-month low after fiscal and monetary dove Sanae Takaichi was elected leader of Japan's ruling party. Other regional currencies struggled for direction, with the Indonesian rupiah, the Malaysian ringgit and the Indian rupee largely flat. The Thai baht fell as much as 0.5% to its lowest level in nearly six weeks. It has been on a depreciating path since authorities acted to contain its gains. A stronger baht, seen as a tourism and export risk, along with a slowing economy is expected to prompt the Bank of Thailand (BOT) to trim its key policy rate on Wednesday. Thailand's annual headline inflation rate fell for a sixth straight month in September, and the commerce ministry has lowered its full-year forecast to 0%. Nomura analysts see a 65% probability of a 25-basis-point cut, and expect the BOT to pause in December before cutting again in the first quarter of 2026. "While we think the BOT will increasingly focus on targeted credit measures to complement rate cuts, worsening credit conditions are likely supportive of more cuts in the near term," they said in a note. Meanwhile, Philippine annual inflation quickened for a second month, but was still below its central bank's 2% to 4% comfort range for the year. It reinforced expectations that Bangko Sentral ng Pilipinas' (BSP) policy decision on Thursday will be a close call between cutting and pausing rates. "While a close call, our base case remains for BSP to take advantage of still below-target inflation to deliver another 25bp easing before the window closes," Barclays analysts said in a note. The peso inched up 0.1% and stocks in Manila gained 1.4%. HIGHLIGHTS: ** Thai cabinet approves $1.36 stimulus programme to boost growth ** Vietnam braces for FTSE decision on market upgrade ** Japan's Takaichi picks ex-premier Aso as party vice president Asia stock indexes and currencies at 0736 GMT Japan -0.14 +4.40 0.01 20.19 China – – India +0.03 -3.54 0.34 6.42 Indonesi +0.09 -2.66 0.40 15.43 a Malaysia +0.00 +6.05 -0.69 -0.94 Philippi +0.14 -0.09 1.39 -6.82 nes S.Korea – Singapor -0.02 +5.68 0.89 17.78 e Taiwan -0.31 +7.43 1.68 18.13 Thailand -0.32 +5.52 1.46 -6.84 (Reporting by Himanshi Akhand in Bengaluru; Editing by Neil Fullick and Harikrishnan Nair)
(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)
