Thai baht gains as GDP growth beats estimates; Asia FX off to muted start
Indonesia central bank seen holding rates
South Korean stocks rise as much as 2.6%
Thai baht lost about 7% this quarter
By Rishav Chatterjee and Sneha Kumar
Nov 18 (Reuters) -The Thai baht inched higher on Monday, outperforming most other emerging market currencies in Asia, after the country posted better-than-expected economic growth data, reflecting a rebound in tourism and exports.
The baht THB=TH gained as much as 0.23% against the U.S. dollar, while stocks .SETI were trading 0.6% higher.
Growth in Southeast Asia's second-largest economy beat market forecasts for the July-September quarter, helped by a recovery in exports, government investment and tourism-related activities, the National Economic and Social Development Council said.
The baht has declined about 7% so far this quarter, making it Asia's worst performing currency.
"It remains to be seen how government stimulus like the cash handout measures would support private consumption amid headwind from hefty household debts," said Poon Panichpibool, a markets strategist at Krung Thai Bank.
The overall Thai economy would recover further but at a gradual pace, said Panichpibool.
In other news, Mexico, Latin America's second-largest economy, is seen expanding between 2% and 3% in 2025, according to the country's proposed budget on Friday, higher than the IMF forecast of 1.3%. The Mexican peso MXN= was down 0.3%.
Investors in emerging Asia are now keenly awaiting the Indonesian central bank's monetary policy decision due on Wednesday. Bank Indonesia is expected to keep borrowing costs unchanged this month.
Gains in the U.S. dollar and Treasury yields have weighed on fund inflows and emerging-market currencies, DBS analysts said, adding that the rupiah had not been immune from this selling pressure.
"Against this backdrop, the bias for policymakers will be to preserve rate differentials and keep rates on hold," DBS said in reference to Bank Indonesia's policy meeting.
Asian shares were mostly upbeat, although investors weighed chances of slow interest rate cuts in the United States.
Samsung Electronics 005930.KS stood out, gaining up to 7.5% after South Korea's biggest firm announced a surprise stock buyback plan late on Friday. The country's stock market .KS11 gained as much as 2.6%.
Equity markets in Malaysia .KLSE and the Philippines .PSI climbed 0.7% and 0.9%, respectively, taking a lead from the broad moves in South Korea.
HIGHLIGHTS:
** Thai Q3 GDP grows 3.0% y/y, fastest pace in two years
** Philippines launches interest rate swaps market to boost bond liquidity
** Indonesia's exports, imports beat forecasts
Asian stocks and currencies as of 0334 GMT | ||||||
COUNTRY | FX RIC | FX DAILY % | FX YTD % | INDEX | STOCKS DAILY % | STOCKS YTD % |
Japan | JPY= | -0.32 | -8.90 | .N225 | -0.91 | 14.43 |
China | CNY=CFXS | -0.09 | -1.90 | .SSEC | 0.92 | 12.99 |
India | INR=IN | 0.00 | -1.41 | .NSEI | 0.00 | 8.29 |
Indonesia | IDR= | +0.06 | -2.81 | .JKSE | -0.10 | -1.63 |
Malaysia | MYR= | +0.07 | +2.80 | .KLSE | 0.71 | 10.25 |
Philippines | PHP= | -0.02 | -5.71 | .PSI | 0.88 | 4.42 |
S.Korea | KRW=KFTC | +0.41 | -7.59 | .KS11 | 1.92 | -7.23 |
Singapore | SGD= | +0.00 | -1.75 | .STI | 0.01 | 15.58 |
Taiwan | TWD=TP | -0.20 | -5.52 | .TWII | -0.58 | 26.10 |
Thailand | THB=TH | +0.19 | -1.66 | .SETI | 0.39 | 2.29 |
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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