SynopsisEmerging Asian currencies gained on Monday as a weaker US dollar supported regional markets, with Taiwan and Thailand leading gains. Investors also assessed Japan’s slower growth, Malaysia’s inflation data and upcoming Bank Indonesia policy decision, while Middle East tensions and shifting US rate expectations remained key factors for regional markets.

S. dollar on Monday, while regional stock markets were largely steady as investors awaited fresh catalysts for direction.

2% to a record high, led by gains in the Taiwan dollar, Reuters reported. 5% to its strongest level in more than six weeks, supported by improved sentiment toward the island's technology-heavy economy.

7% so far this year. According to Reuters, continued foreign investor demand for artificial-intelligence-related chipmakers has been a key driver of Taiwan's equity market.

HSBC analysts also expect the Taiwan dollar to rec over further as dividend-related capital outflows from Taiwan ease. 7% to reach its highest level since July 10, with Taiwan among the main contributors.

S. stocks.

9% in the second quarter, beating market expectations. The government's state planning agency also raised its full-year growth forecast.

2%, while Thailand's benchmark stock index gained more than 1%, adding to a generally positive tone in the country's financial markets. Elsewhere in the region, uncertainty surrounding the Middle East conflict kept several stock markets confined to narrow ranges.

A weaker dollar provided broader support for Asian currencies, with the dollar index hovering near its lowest level of the month. S.

monetary policy following softer payroll and inflation data earlier this month, reducing pressure on emerging-market currencies. 8% in July from a year earlier, slightly below expectations.

The figures reinforced expectations that inflationary pressures remain relatively contained. Japan's economy, meanwhile, expanded at a slower-than-expected pace in the April-June quarter, with weak household spending and business investment weighing on growth.

According to Reuters, the Japanese growth figures added to uncertainty over the outlook for domestic demand as investors continued to assess the impact of external geopolitical risks on the economy. Indonesia Awaits Central Bank DecisionIndonesia's financial markets remained closed for a public holiday, with investors turning their attention to Bank Indonesia's monetary policy decision due on Wednesday.