Asian stocks, FX up after Fed's bumper cut; Indonesian equities hit record high

Reuters

Asian stocks, FX up after Fed's bumper cut; Indonesian equities hit record high

19. Sep. 2024 um 8:36 vorm. GMT

<html xmlns="http://www.w3.org/1999/xhtml"><head><title>EMERGING MARKETS-Asian stocks, FX up after Fed's bumper cut; Indonesian equities hit record high</title></head><body>

Updates as of 0731 GMT

Fed delivers 50-bp interest rate cut

Singapore stocks at over 6-yr high

Philippine stocks at highest since March 2022

By Roshan Thomas and Himanshi Akhand

Sept 19 (Reuters) - Emerging Asian markets gained on Thursday following the U.S. Federal Reserve's oversized rate cut, while Indonesian stocks hit a record high and the rupiah strengthened a day after the country's central bank trimmed the benchmark interest rate.

Indonesia's benchmark index .JKSE climbed as much as 1% to an all-time peak of 7,903.325 points, while the rupiah IDR= advanced 0.6% to its highest level since September 2023.

The Bank Indonesia (BI) unexpectedly cut interest rateon Wednesday by 25 basis points to 6.00%, just hours ahead of the Fed rate decision as it moved to bolster economic growth amid rupiah stability. "The surprise cut looks to have sent a positive signal to markets that BI may be increasingly confident that the global macro environment is becoming more supportive of the IDR," Maybank analysts said in a note.

Maybank said thatthe positive signal of a cut from the BI was counteracting the Fed's "less than dovish easing" and lending support to the rupiah.

Bank Indonesia joins the Philippine central bank in easing policy settings before the Fed, whichlowered its benchmark policy rate by larger-than-usual 50 basis points on Wednesday.

"With the Fed now moving quite aggressively, the other Asian central banks will feel that they don't have that kind of worry of high U.S.interest rates to contend with," Jeff Ng, head of Asia Macro Strategy at Sumitomo Mitsui Banking Corporation said.

Equities in Manila .PSI rose as much as 1.3% to their highest level in two and a half years, and those in Singapore .STI climbed 1.1% to a more than six-year peak.

The Malaysian ringgit MYR= appreciated 0.5% to hover at its highest level since February 2023 and the Philippine peso PHP= edged up 0.2%.

Thailand's baht THB=TH rose 0.5% and stocks .SETI added 0.6% after the country's deputy finance minister said interest rates in Southeast Asia's second-largest economy should follow the downward trend in global rates.

Thailand's key interest rate has been at a decade-high of 2.50% for a year, and the Bank of Thailand (BOT) has resisted repeated government calls for a cut.

Meanwhile, China is widely expected to trim its main policy and benchmark lending rates on Friday, according to a Reuters poll.

The yuan CNY=CFXS strengthened against the dollar to its highest level since June 2023, and stocks in Shanghai .SSEC rose 0.7%.

HIGHLIGHTS:

** Indonesia's parliament passes Prabowo's maiden budget

** China toramp up policy steps to revive economy but no 'bazooka' stimulus seen

** Hong Kong central bankcuts interest rate, tracks Fed move

Asian stocks and currencies at 0731 GMT
COUNTRY	FX RIC	FX DAILY %	FX YTD %	INDEX	STOCKS DAILY %	STOCKS YTD %
Japan	JPY=	+0.01	-0.84	.N225	2.13	11.03
China	CNY=CFXS	+0.14	+0.42	.SSEC	0.69	-8.03
India	INR=IN	+0.17	-0.48	.NSEI	0.33	17.17
Indonesia	IDR=	+0.64	+1.06	.JKSE	0.72	8.43
Malaysia	MYR=	+0.52	+8.77	.KLSE	0.07	14.24
Philippines	PHP=	+0.24	-0.35	.PSI	0.65	11.66
S.Korea	KRW=KFTC	+0.08	-3.05	.KS11	0.21	-2.80
Singapore	SGD=	+0.24	+2.11	.STI	1.01	11.99
Taiwan	TWD=TP	+0.06	-3.71	.TWII	1.68	22.93
Thailand	THB=TH	+0.50	+3.03	.SETI	0.62	2.04