EM stocks rally; Manila, Bangkok up on rate-cut bets
Singapore stocks hit highest level since Nov 2007
Ringgit rises 0.3%, Taiwan dollar gains 0.4%
BSP on course for more rate cuts, says governor
Updates at 0638 GMT
By Sneha Kumar
Nov 19 (Reuters) -Emerging Asian stock markets rallied on Tuesday, with Bangkok and Manila trading higher on expectations of rate cuts in the near future, while Singapore stocks hit a 17-year high.
Thailand stocks .SETI gained as much as 1.3% to hit their highest since Nov. 8, after third-quarter economic growth data highlighted slowing private consumption, ramping up pressure on the central bank to lower interest rates.
Analysts at TISCO Securities expect the Bank of Thailand to stay pat on rates in December. However, they see a high chance of a 25-basis-point rate cut in the first quarter of next year.
Philippine stocks .PSI rose as much as 1.1% to hit their highest since Nov. 12, after the central bank governor said Bangko Sentral ng Pilipinas (BSP) was on course for more rate cuts. The peso PHP= was trading flat.
BSP Governor Eli Remolona told reporters that a third rate cut was likely either at the central bank's December meeting or at its first meeting next year, and further reductions beyond that could be expected in 2025.
Citi analysts expect a 25-bp easing in borrowing costs in December and a total of 75 bps of rate cuts over the course of next year.
Losses in stocks .MSCIEF and currencies .MIEM00000CUS in developing nations around the world, and especially in emerging Asia, had widened since Donald Trump won the U.S. presidential election, as traders weighed his touted policies of tariffs and the dollar rallied on expectation of slow interest rate cuts.
Singapore shares .STI hit their highest in 17 years, led by financials. Analysts expect Southeast Asia's top performing stock market in 2024 to continue its momentum next year as the central bank unveils stimulus measures to further boost the market.
The city-state's Straits Times Index rose as much as 0.9%, while the Singapore dollar SGD= was trading unchanged.
"New measures to strengthen Singapore's equities market will be announced in phases through 2025, likely delivering a much needed boost to trading liquidity and valuation multiples," Morgan Stanley analysts said in a note.
Among other stock markets, Taipei .TWII recouped Monday's losses and was trading 1.3% higher, while Jakarta .JKSE and Mumbai .NSEI gained 1.1% and 1.3%, respectively.
Currencies in developing nations were mostly upbeat, with the Malaysian ringgit MYR=, Indonesian rupiah IDR= and South Korean won KRW=KFTC gaining 0.3%, 0.2% and 0.2%, respectively.
HIGHLIGHTS:
** Beijing, Shanghai announce tax breaks to boost ailing property markets
** Thai PM speaks to U.S. President-elect Trump, both parties pledge support to each others' administrations
** Indonesia considering another tax amnesty programme, lawmaker says
Asian stocks and currencies as of 0638 GMT | ||||||
COUNTRY | FX RIC | FX DAILY % | FX YTD % | INDEX | STOCKS DAILY % | STOCKS YTD % |
Japan | JPY= | +0.09 | -8.70 | .N225 | 0.43 | 15.31 |
China | CNY=CFXS | -0.05 | -1.89 | .SSEC | 0.25 | 12.01 |
India | INR=IN | -0.02 | -1.42 | .NSEI | 1.33 | 9.36 |
Indonesia | IDR= | +0.22 | -2.62 | .JKSE | 1.10 | -0.83 |
Malaysia | MYR= | +0.25 | +2.75 | .KLSE | 0.15 | 10.44 |
Philippines | PHP= | 0.00 | -5.63 | .PSI | 0.70 | 5.56 |
S.Korea | KRW=KFTC | +0.19 | -7.40 | .KS11 | 0.12 | -6.90 |
Singapore | SGD= | +0.01 | -1.44 | .STI | 0.74 | 16.05 |
Taiwan | TWD=TP | +0.37 | -5.17 | .TWII | 1.34 | 27.43 |
Thailand | THB=TH | -0.09 | -1.21 | .SETI | 1.03 | 3.67 |
Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
Asian stock markets https://tmsnrt.rs/2zpUAr4
Reporting by Sneha Kumar in Bengaluru; Editing by Subhranshu Sahu
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