Indonesia rupiah gets election push among muted FX, EM equities fall
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Rupiah gains up to 0.5%
Manila stocks hit 2-week low
Bank of Korea surprises with rate cut
By Adwitiya Srivastava
Nov 28 (Reuters) -The Indonesian rupiah advanced on Thursday as results of local elections eased worries about political uncertainty, while the Malaysian ringgit fell after data showed the country's producer prices continued a downward trend.
Malaysia's currency MYR=, which has been the only gainer among its Southeast Asian peers this year, fell about 0.1% against the dollar for the day, while equities in Kuala Lumpur .KLSE inched 0.1% lower.
The country's producer price index (PPI), a metric which measures prices of goods at the producer level, fell by 2.4% October, its steepest decline since June 2023, after easing 2.1% in the last month.
The rupiah IDR= added as much as 0.5% against a weaker U.S. dollar, although equities in Jakarta .JKSE dropped 0.4%.
Candidates backed by new Indonesian President Prabowo Subianto look set to secure victories in key regional elections, with the exception of Jakarta, which analysts said should make it easier to implement and reinforce his political moves and agendas.
"The rupiah is up because of expectations on the election to be settled without significant turbulence," said Fakhrul Fulvian, economist at Trigmeah Securities.
Earlier this month, Bank Indonesia earlier flagged there was less room for it to further ease interest rates and that it would work to support the rupiah.
"BI's intervention actions are largely geared towards keeping Indonesian assets attractive for investors and anchor stability," said Citi analysts.
Meanwhile, the Bank of Korea unexpectedly lowered benchmark interest rates for the second consecutive meeting as the economy stagnated and inflation slowed more than policymakers had anticipated.
Analysts at ING now expect the BoK to deliver four rate cuts of 25 bps each per quarter in 2025.
The South Korean won KRW=KFTC was down 0.2%, while stocks .KS11 were flat.
Among other currencies, the Thai baht THB=TH rose 0.1%,while the Singapore dollar SGD= dropped 0.2%.
Equity markets in developing Asian nations were largely downbeat, with stocks in Manila .PSI dropping 1% to their lowest in two weeks.
Elsewhere, among Latin American currencies, Brazil's real BRL= fell to its lowest level since mid-May 2020 as investors awaited the release of a fiscal package with spending cuts this week.
The Mexican peso MXN= was last down 0.8%, struggling through a difficult week wherein it fell to multi-year lows after U.S. President-elect Donald Trump said he would impose a 25% tariff on imports from Canada and Mexico.
HIGHLIGHTS:
** Thai factory output down 0.91% y/y in October, seen rising in 2025
** Philippine police files formal complaint against Vice President Duterte
Asian stocks and currencies as at 0808 GMT | ||||||
COUNTRY | FX RIC | FX DAILY % | FX YTD % | INDEX | STOCKS DAILY % | STOCKS YTD % |
Japan | JPY= | -0.47 | -7.08 | .N225 | 0.56 | 15.20 |
China | CNY=CFXS | -0.08 | -2.13 | .SSEC | -0.43 | 10.78 |
India | INR=IN | -0.05 | -1.52 | .NSEI | -1.16 | 10.41 |
Indonesia | IDR= | +0.38 | -2.96 | .JKSE | -0.52 | -0.88 |
Malaysia | MYR= | -0.11 | +3.26 | .KLSE | -0.18 | 10.09 |
Philippines | PHP= | +0.04 | -5.58 | .PSI | -0.96 | 2.92 |
S.Korea | KRW=KFTC | -0.19 | -7.70 | .KS11 | 0.06 | -5.67 |
Singapore | SGD= | -0.22 | -1.79 | .STI | 0.39 | 14.89 |
Taiwan | TWD=TP | +0.04 | -5.49 | .TWII | -0.16 | 24.36 |
Thailand | THB=TH | +0.09 | -0.86 | .SETI | -0.27 | 0.76 |
Reporting by Adwitiya Srivastava in Bengaluru; Editing by Kim Coghill and Varun H K
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