Indonesian rupiah, stocks steady after cenbank holds rates; other Asian assets muted
Updates at 0737 GMT
Bank Indonesia holds benchmark rate at 6.00%
S.Korean stocks gain, Taiwan shares down
Stocks in Singapore, Malaysia, Thailand down
By Sneha Kumar
Nov 20 (Reuters) -Indonesian assets were steady on Wednesday after the country's central bank stayed pat on monetary policy as expected, while investors across emerging Asia exercised caution ahead of artificial intelligence major Nvidia's quarterly results.
The Indonesian rupiah IDR= and stocks .JKSE were last down 0.3% and 0.2%, respectively.
Bank Indonesia held interest rates unchanged, saying changed global dynamics after the U.S. election meant it had to focus on stabilising the local currency.
"Until we see the U.S. dollar starting to look softer again and Indonesian rupiah showing a few signs of strength, I don't expect them to do much in the way of easing," said Robert Carnell, Asia regional head of research at ING.
Bank Indonesia's move is expected to support the rupiah IDR= from further depreciation. The currency has lost 1.1% this month and nearly 3% over the year.
Meanwhile, the Jakarta stock index has underperformed its peers, down 1.3% this year. In comparison, indexes in Malaysia .KLSE and Singapore .STI have gained roughly 10% and 16%, respectively.
Sentiment in the region was subdued in the run-up to Nvidia's NVDA.O third-quarter results after Tuesday's escalation in the Ukraine-Russia conflict .
MSCI's gauge of Asian emerging market equities .MIMS00000PUS was largely unchanged, while an index of Asian equities including Japan .MIAP00000PUS was down 0.5%.
Ukraine's use of U.S. missiles on Tuesday to strike inside Russia prompted Moscow to lower the threshold for a possible nuclear strike, driving investors away from risky emerging assets toward safe havens such as gold.
Shares in Malaysia .KLSE and Thailand .SETI declined 0.2% and 0.3%, respectively. Southeast Asia's top-performing stock market in 2024, Singapore .STI, eased from its 17-year high touched on Tuesday.
Junvum Kim, sales trader at Saxo Capital Markets, said once the Nvidia results are released, it will become clearer how escalations in Russia's war in Ukraine are impacting the market.
Positive results from Nvidia will spur Wall Street, which could potentially slow down a strengthening U.S. dollar, if not reverse it, Kim said.
A slowdown in the greenback would help Asian equities and currencies, while a favourable outcome from the chipmaker would be a boon for its suppliers from South Korea and Taiwan.
Regional currencies were rangebound with the Malaysianringgit MYR= rising 0.2%, while the Taiwan dollar TWD=TP easing 0.2%.
Shares in Taipei .TWII fell 0.7% whereas the benchmark in Seoul .KS11 added 0.4%.
Meanwhile, Philippine stocks .PSI extended gains, rising as much as 2.5% in their fourth consecutive winning session, with the peso PHP= trading flat.
The Philippine central bank governor said a third rate cut could be expected at the December meeting as Bangko Sentral ng Pilipinas was still in its easing cycle.
Markets in India .NSEI, INR=IN were closed for a public holiday.
HIGHLIGHTS:
** Malaysia reclaims 2nd spot in China's October crude oil imports, data shows
** Thailandexpects to distribute $4 bln in handouts in Q2 next year
** Conflict in Myanmarsparks surge in Thai property purchases
Asian stocks and currencies at 0737 GMT | ||||||
COUNTRY | FX RIC | FX DAILY % | FX YTD % | INDEX | STOCKS DAILY % | STOCKS YTD % |
Japan | JPY= | -0.55 | -9.29 | .N225 | -0.16 | 14.61 |
China | CNY=CFXS | -0.03 | -1.98 | .SSEC | 0.66 | 13.21 |
India | INR=IN | - | -1.43 | .NSEI | - | 8.22 |
Indonesia | IDR= | -0.25 | -2.96 | .JKSE | -0.21 | -1.27 |
Malaysia | MYR= | +0.18 | +2.85 | .KLSE | -0.21 | 9.92 |
Philippines | PHP= | -0.03 | -5.93 | .PSI | 2.53 | 8.15 |
S.Korea | KRW=KFTC | +0.04 | -7.50 | .KS11 | 0.42 | -6.51 |
Singapore | SGD= | -0.13 | -1.49 | .STI | -0.15 | 15.80 |
Taiwan | TWD=TP | -0.23 | -5.42 | .TWII | -0.70 | 26.53 |
Thailand | THB=TH | -0.19 | -1.20 | .SETI | -0.30 | 2.82 |
Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
Asian stock markets https://tmsnrt.rs/2zpUAr4
Reporting by Sneha Kumar in Bengaluru; Editing by Eileen Soreng
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
