* Philippine peso snaps four-day winning streak * Malaysia's ringgit hits nearly three-week high * Trump mulls 25% tariffs on Mexico and Canada as soon as Feb 1 (Updates at 0658 GMT) By Sneha Kumar Jan 21 (Reuters) - Emerging Asian currencies nudged higher on Tuesday, while the Mexican peso slipped after U.S. President Donald Trump refrained from imposing tariffs on his first day in office but signalled potential policy moves in the coming days. Just as market players cheered the possibility of a delay in tariff implementation following a brief mention of the topic in Trump's inauguration speech, the U.S. president said that he was mulling imposing 25% tariffs on Mexico and Canada as soon as Feb. 1. That sent the Mexican peso down 1.5%, while a lack of clarity on immediate tariffs on China supported Asian currencies, although investors remained wary. Trump's inaugural policies suggested he will negotiate rather than immediately impose hefty tariffs on trading partners. "The developments suggest that Trump is indeed serious about raising tariffs, but will take a more considered approach to them," said Alvin Tan, head of Asia FX strategy at RBC Capital Markets. "The delay should thereby power a further near-term pullback in the U.S. dollar." The ringgit rose 0.3% to its strongest level in nearly three weeks ahead of Bank Negara Malaysia's (BNM) monetary policy decision on Wednesday. Markets expect the central bank to keep interest rates unchanged at 3.00%. While the Malaysian economy is expected to post strong growth of 5.1% last year, inflation - 1.8% in November - has remained largely subdued, suggesting BNM will be in no rush to cut rates as it aims to avoid further weakening of the ringgit. The Kuala Lumpur benchmark stock index <.KLSE> advanced 0.3% in its third consecutive session of gains. Both Chinese stocks <.SSEC> and the yuan were largely flat. Meanwhile, the Philippine peso snapped a four-session winning streak, slipping 0.5%, while equities <.PSI> inched lower. Philippine Finance Secretary Ralph Recto said interest rate cuts by the central bank may be fewer and more spaced out in 2025 compared to last year due to geopolitical tensions and U.S. policy uncertainties. The Philippine central bank cut borrowing costs in December for the third straight meeting. Elsewhere, equities in Jakarta <.JKSE> rose 0.6% in their fifth straight session of gains, while those in Bangkok <.SETI> added 1.1%. Singapore's dollar and stocks <.STI> declined about 0.2% each. The Monetary Authority of Singapore (MAS) will announce its first policy decision of 2025 later this week. Economists are split on whether the central bank will loosen monetary policy this week or leave its settings unchanged to see the impact of policies introduced by the new U.S. president in his second term. HIGHLIGHTS: ** Malaysia and EU resume free trade negotiations ** Taiwan fourth-quarter economic growth seen slowing to 2% ** Thai economy to grow more than 3% this year, official says Asian stocks and currencies at 0658 GMT COUNTRY FX RIC FX FX INDEX STOCK STOCK DAILY YTD % S S YTD % DAILY % % Japan +0.05 +1.07 <.N225> 0.32 -2.17 China 0.00 +0.28 <.SSEC> -0.08 -3.28 India +0.05 -1.05 <.NSEI> -0.13 -1.39 Indonesia +0.09 -1.53 <.JKSE> 0.56 1.85 Malaysia +0.31 -0.18 <.KLSE> 0.30 -3.98 Philippines -0.48 -0.67 <.PSI> -0.17 -2.91 S.Korea +0.03 +2.28 <.KS11> -0.08 4.94 Singapore -0.23 +0.45 <.STI> -0.22 0.31 Taiwan +0.17 +0.09 <.TWII> 0.14 1.15 Thailand +0.15 +0.76 <.SETI> 1.08 -3.23 <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Graphic: World FX rates https://tmsnrt.rs/2RBWI5E Asian stock markets https://tmsnrt.rs/2zpUAr4 ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reportingby Sneha Kumar in Bengaluru; additional reporting by Ankur Bannerjee in Singapore; Editing by Sherry Jacob-Phillips and Subhranshu Sahu) ((Sneha.kumar@thomsonreuters.com)) Keywords: EMERGING MARKETS/ASIA
