BY COMFORT OGBONNA
Asian currencies moved within narrow bands on Monday as trading activity remained subdued due to multiple public holidays across major markets. With financial centres in China, South Korea, Taiwan, Indonesia, and the United States closed, the lack of participation kept regional foreign exchange and equity markets largely directionless.
In the absence of strong global cues, most currencies across emerging Asia held steady. Among the few actively traded units, the Malaysian ringgit and the Thai baht each edged up about 0.2%, outperforming their regional peers in a quiet session.
The ringgit has emerged as the region’s best-performing currency so far this year, strengthening in four of the past five trading sessions. The currency’s resilience has been supported by renewed foreign inflows into Malaysian assets. Investors have been drawn by a softer U.S. dollar environment and growing geopolitical uncertainties, which have encouraged portfolio diversification into select Southeast Asian markets. Malaysia’s relatively stable macroeconomic backdrop and improved investor sentiment have also contributed to the ringgit’s steady climb.
Other regional currencies remained largely flat, reflecting the muted tone that characterized the day’s trading. Market participants largely refrained from taking significant positions, awaiting clearer direction from upcoming economic data releases and central bank decisions later in the week.
On the equities front, Thailand stood out as a rare bright spot. Thai stocks rose as much as 1.2% during the session, reaching their highest level since December 2024 before trimming some gains to trade about 0.5% higher. The benchmark index has been building on its strongest weekly performance since mid-2025, buoyed by a decisive election outcome that has helped restore investor confidence.
Market strategists noted that the rally in Thai equities was underpinned by renewed foreign buying, as clarity over the political landscape improved sentiment. Investors are increasingly optimistic that a more stable political environment could pave the way for fresh economic stimulus measures aimed at supporting growth and domestic demand. This shift in outlook has helped offset broader regional caution.
Earlier economic data further supported Thai assets. Figures released showed that Thailand’s economy expanded at a faster-than-expected pace in the fourth quarter of 2025 compared with a year earlier. The stronger growth print reinforced hopes that the economy had gained traction heading into the new year, particularly in tourism and domestic consumption.
However, some analysts urged caution despite the recent momentum. Economists noted that while the election outcome may reduce short-term political risk, structural challenges remain. Questions linger over the sustainability of growth, especially as global demand conditions remain uncertain and export-driven sectors face headwinds. The outlook for 2026, in particular, could prove more challenging if external demand softens or domestic stimulus measures fall short of expectations.
Elsewhere in the region, Philippine equities came under pressure. The benchmark index fell nearly 1% at one point, touching its lowest level since early February as declines in major index components weighed on sentiment. Shares of renewable energy firm Alternergy Holdings slid as much as 2.5%, falling to their lowest level since mid-November after the company released its latest earnings report. Investors appeared cautious in assessing the firm’s financial performance and forward guidance.
Malaysian stocks also retreated, with the benchmark index dipping as much as 0.4% to its weakest level since early February. The decline was largely attributed to weakness in 99 Speed Mart Retail, a key index constituent, which came under selling pressure following the release of its quarterly results late last week. The earnings update prompted some investors to lock in gains or reassess valuations amid broader market uncertainty.
Looking ahead, investor attention is likely to shift toward key policy events and economic data scheduled for later in the week. Two central bank meetings are set to take place on Thursday, with Bank Indonesia and the Bangko Sentral ng Pilipinas expected to announce their latest monetary policy decisions on February 19. Market participants will be closely watching for signals on interest rate direction, inflation management, and broader economic guidance.
Additional global developments are also on investors’ radar, including Japan’s fragile fourth-quarter recovery, ongoing diplomatic discussions between Iran and the United States regarding potential energy and aviation agreements, and recent U.S. inflation data showing modest price increases but persistent underlying pressures. These factors could provide clearer direction for Asian markets once normal trading volumes resume.
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