EMERGING MARKETS-Singapore stocks scale record peak; baht, ringgit climb multi-year highs

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By Rajasik Mukherjee

Dec 23 (Reuters) - Singapore stocks notched a record high on Tuesday, continuing this year's stellar run, while the Malaysian ringgit and the Thai baht climbed to multi-year peaks against a frail U.S. dollar.

Singapore's FTSE Straits Times index .STI scaled a peak of 4,637.42 points - its fourth new all-time high this month - led by major lenders DBS Group DBSM.SI and OCBC OCBC.SI that also hit record highs.

The benchmark index advanced 22% through 2025, driven by banks and real estate stocks, on route for its best year since 2009. Also contributing were gains in industrial stocks, such as defence firm ST Engineering STEG.SI, which has surged 80%.

"The Singapore equity market provides a compelling mix of income, growth, and diversification," said JPMorgan. "It continues to deliver a stable dividend yield across the index...there has been an improvement in capital allocation and shareholder returns from some companies over the last 18 months."

Elsewhere, equities were largely mixed, with volumes thinning out as investors refrained from making large bets during the holiday-curtailed week.

Indonesia .JKSE slipped 0.6%, Malaysia was slightly lower .KLSE. Tech-heavy equity benchmarks in South Korea .KS11 and Taiwan .TWII gained up to 0.5%.

Thai stocks .SETI also rose 0.5% and the Thai baht THB=TH briefly breached the 31.100 mark in early Asia hours and traded at 31.055 a dollar, its highest point since early June 2021.

Although it pared early gains to trade around 31.160 a dollar by 0653 GMT, the currency remained around its multi-year highs.

Surging gold prices have driven large foreign-exchange inflows from "huge" gold trading, boosting demand for the baht, with dollar weakness and tourism-linked inflows further strengthening the unit more than 10% this year.

The Bank of Thailand has described the baht's strength as "not in line with fundamentals" and is weighing a range of measures to rein in gains.

"This year has seen a relatively high correlation between the THB and gold prices, as reflected by their movements in the same direction and with similar magnitude," said Ratasak Piriyanont, senior vice-president, investment strategy at Bangkok-based Kasikorn Securities.

The Malaysian ringgit MYR= firmed slightly on Tuesday to touch its highest level since early March 2021. It is the second-best performing Asian currency of this year, with a near 10% gain.

MUFG expects the ringgit to continue its positive run in 2026, aided by fiscal reforms and strong domestic demand, among others.

Singapore's dollar SGD= inched higher to its highest level since October 2, while the Philippine peso PHP= was flat. The Indonesian rupiah IDR= depreciated to 16,795 per U.S. dollar, its lowest point since April 29.

HIGHLIGHTS:

** Japan issues sternest intervention warning, says yen deviating from fundamentals

** Singapore core inflation at 1.2% y/y in November, lower than expected

** Indonesia eyes US tariff deal signing in January, says all issues settled

(Reporting by Rajasik Mukherjee in Bengaluru; Editing by Subhranshu Sahu and Janane Venkatraman)

((Rajasik.Mukherjee@thomsonreuters.com))