Asian Currencies Steady as Fed Delivers Hawkish Rate Cut; Aussie and Rupee Under Pressure 
Gold Prices Slip Slightly in Asia as Silver Nears Record Highs on Dovish Fed Outlook 
Fed’s Dovish Tone Sends Dollar Lower as Markets Price In More Rate Cuts 
U.S. Dollar Slides for Third Straight Week as Rate Cut Expectations Boost Euro and Pound 
Japan Weighs New Tax Breaks to Boost Corporate Investment Amid Spending Debate 
Oil Prices Rebound in Asia as Venezuela Sanctions Risks Offset Ukraine Peace Hopes 
US Signals Openness to New Trade Deal as Brazil Shows Willingness, Says USTR Greer 
S&P 500 Slides as AI Chip Stocks Tumble, Cooling Tech Rally 
Brazil Holds Selic Rate at 15% as Inflation Expectations Stay Elevated 
Modi and Trump Hold Phone Call as India Seeks Relief From U.S. Tariffs Over Russian Oil Trade 
Indonesia–U.S. Tariff Talks Near Completion as Both Sides Push for Year-End Deal 
Asian Stocks Slip as Oracle Earnings Miss Sparks AI Profitability Concerns 
Hong Kong Cuts Base Rate as HKMA Follows U.S. Federal Reserve Move 
Australia’s Labour Market Weakens as November Employment Drops Sharply 
Global Markets Slide as Tech Stocks Sink, Yields Rise, and AI Concerns Deepen 
Wall Street Futures Dip as Broadcom Slides, Tech Weighed Down Despite Dovish Fed Signals 
Emerging markets are under pressure as U.S. President Donald Trump’s new tariffs—some reaching 50%—push levies to century-high levels, sparking fears of a global trade war and worsening credit outlooks. The move hits Asia and the world’s poorest economies hardest, threatening capital flows and development.
The sweeping tariffs impact a wide range of exports, from Madagascar’s vanilla (47%) to Sri Lanka’s textiles (44%). Six Southeast Asian nations face levies between 32% and 49%, heavily affecting “Factory Asia.” U.S. banks like JPMorgan and Goldman Sachs have responded by downgrading emerging market currencies and projecting economic slowdowns—Goldman predicts a 1% GDP drag for China, with ripple effects across emerging economies.
John Denton of the International Chamber of Commerce warned the tariffs could trigger sovereign credit downgrades and likened the shock to the 1970s energy crisis. Investor sentiment has already turned, with some questioning the long-term viability of export-driven growth in emerging markets.
Financial markets reacted sharply. Vietnam’s stock index dropped nearly 7%, while its currency hit a record low. Sri Lanka’s sovereign bonds fell over 3 cents, and Thailand’s baht hit a multi-month low. HSBC’s Fred Neumann expects Asian central banks to prioritize growth through rate cuts, as inflation concerns take a backseat.
While countries like Kenya hope to benefit from lower tariffs, others like Cambodia and Bangladesh—facing 49% and 37% tariffs respectively—face major setbacks, especially given their heavy U.S. export reliance. IMF Chief Kristalina Georgieva noted many countries are already burdened by post-COVID debt and lack policy tools to weather new shocks.
As markets adjust to this dramatic shift, investors remain cautious, questioning how long these aggressive trade measures will last and what their long-term impact on global trade will be.
