(March 13): Most Asian equities and currencies declined for a second straight session on Friday as renewed attacks in Gulf waters kept crude oil near US$100 a barrel, driving inflation worries and pushing investors to seek refuge in the safety of the US dollar.

MSCI's emerging market stock index fell 1.4% on Friday and is down nearly 8% since late February when the war broke out, while the EM currency gauge slipped 0.6%, down about 2% over the same period.

The dollar index reached its highest level since late November, bolstered by safe-haven appeal and because the US is a major fossil fuel exporter.

Iran's new supreme leader, Mojtaba Khamenei, vowed to keep the Strait of Hormuz — the route for a fifth of global oil supply — closed, even as Washington tried to ease supply constraints with a 30‑day waiver on Russian crude stranded on shadow fleet tankers.

The war's fallout is spreading globally, from airline fuel worries and flight disruptions to higher energy bills and supply‑chain snags hitting households and businesses.

Stocks in Indonesia fell more than 2% on Friday, marking a third straight session of declines. Year‑to‑date losses were at nearly 16.4%, the most in the region.

Indonesia has been hit by worries over policy credibility after rating agencies Moody's and Fitch both cut the sovereign outlook to negative, though some of those concerns eased after cabinet appointments on Thursday.

Thai stocks fell 1.5% and South Korean shares extended losses to 1.7%, while Taiwan and Malaysia both lost more than 0.5%. The Philippines and India lost 0.9% and 1.4%, respectively. 

South Korea and Taiwan are among the worst-hit equity markets in emerging Asia as investors cut exposure to artificial intelligence and other tech-cyclicals after a powerful early-year run left valuations stretched.

South Korea hit lower circuit breakers twice in the past two weeks, and has also activated sidecar measures — brief trading pauses used to cool sudden moves in index‑futures or programme trades.

In currencies, the Indian rupee fell to a record low on Friday while China's yuan strengthened to its strongest in a year against its major trading partners.

MUFG's Lloyd Chan said investors were increasingly expecting tighter stances from several regional central banks, while any delay in easing of rates in the US would support the dollar and keep Asian currencies under pressure.

Uploaded by Magessan Varatharaja