(Aug 17): Emerging Asian currencies rose against a softer dollar on Monday, while Thai shares outperformed regional peers after stronger-than-expected second-quarter growth.

The MSCI EM currency index rose 0.3% to a record high, helped by a 0.7% gain in the Taiwan dollar to its highest in more than six weeks.

HSBC analysts said the Taiwan dollar could recover as dividend-related outflows ease.

The MSCI EM Asia equities index rose 0.7% to its highest since July 10, helped by gains in heavyweight Taiwan.

Taiwan stocks edged up 0.1%, taking their 2026 gain to 58.3%, as foreign demand for AI-linked chipmakers persisted.

South Korea's Kospi, up 65.6% this year, was closed for a public holiday, while the won gained 0.2%, taking its 2026 rise to 1.9%.

HSBC also expects support from foreign investors selling more South Korean equities than Taiwanese shares, and from South Korean retail investors continuing to buy US stocks.

Singapore's shares reversed early losses to rise as much as 0.1%.

The Thailand's benchmark SET index rose more than 1%, outperforming regional peers after data showed the economy expanded 1.9% in the second quarter. The state planning agency also raised its full-year growth forecast. The baht was up 0.3%.

Among currencies, a softer dollar index lent support, with the dollar hovering near a two-month low after soft US economic data prompted markets to scale back expectations of a Federal Reserve rate hike next month. Soft US payrolls and inflation data earlier in the month had already led investors to pare expectations for further policy tightening.

Oil prices were mixed after rallying more than 5% last week on concerns over Middle East supply disruptions. Brent crude was up about 0.2%, while US crude slipped 0.2%.

Malaysia's ringgit edged 0.4% higher after data showed the consumer price index rose 1.8% in July from a year earlier, slightly below forecasts.

Data showed Japan's economy grew at a slower-than-expected pace in April-June due to lacklustre household spending and business investment. The yen was up 0.2%, while the Nikkei index added 0.3%.

Indonesia's markets were shut for a holiday, with investors awaiting Bank Indonesia's policy decision on Wednesday. The central bank is expected to keep its benchmark interest rate at 5.75%, after surprising markets last month by leaving rates unchanged and introducing new incentives to attract capital inflows and support the rupiah.

Uploaded by Magessan Varatharaja