(March 17): Asian stocks jumped on Monday on Beijing's fresh stimulus measures aimed at boosting consumer spending, while regional currencies traded cautiously as investors weighed mounting trade frictions that threaten global economic growth.

Seoul's benchmark climbed 1.6% to their highest since February 27, while stocks in Kuala Lumpur gained 1.1% in its third consecutive winning session. Shares in Taipei added 0.7% after advancing as much as 1.5% earlier in the session.

On Sunday, China unveiled sweeping measures to boost domestic consumption, including income hikes and childcare subsidies, just days after financial regulators urged an easing of credit restrictions — moves analysts say could revitalise Southeast Asia's biggest trading partner.

The positive sentiment helped offset concerns about widening trade disputes after US President Donald Trump threatened 200% tariffs on European alcohol imports last week.

Malaysian shares, which confirmed a correction last week, found support from the China news. Indonesia's benchmark, however, dropped 1%. The index is now down 18.4% from its September 19 peak, not far from the 20% mark which would confirm bear territory.

Stock market corrections are fairly common, with the S&P 500 logging 56 such pullbacks since 1929, and typically cause limited damage unless they deteriorate into more severe bear markets.

"We remain cautious about emerging market equities, as we expect larger and more pervasive tariff actions from the US on 2 April," MUFG Bank's senior currency analyst Lloyd Chan said.

US Commerce Secretary Howard Lutnick's recent confirmation of imminent additional tariff actions suggests the current Asian market rally may be short-lived, Chan said.

Among regional currencies, the South Korean won advanced 0.4%, while the Indonesia rupiah slipped 0.2%. Thai baht, Singapore dollar and Malaysian ringgit were flat.

The dollar index held steady near five-month lows, having shed nearly 6% since January's two-year peak as initial Trump-related growth optimism gave way to recession fears.

Focus is now on policy decisions from the US Federal Reserve and Bank Indonesia on Wednesday, followed by Taiwan's central bank on Thursday, with all three expected to stand pat on rates.

Analysts at Barclays expect the Fed to cut rates twice this year amid tariff-induced growth concerns, potentially giving Asian central banks more room to ease monetary policy despite inflation pressures.

Indonesia reported a 14% rise in February exports, a positive development for its economy, but with the rupiah down about 2% this year despite regular intervention, the central bank is likely to maintain its focus on currency stability.

Uploaded by Lam Seng Fatt