Asian stocks rally after strong US jobs data; currencies fall

Reuters

Asian stocks rally after strong US jobs data; currencies fall

7. Okt. 2024 um 7:54 vorm. GMT

<html xmlns="http://www.w3.org/1999/xhtml"><head><title>EMERGING MARKETS-Asian stocks rally after strong US jobs data; currencies fall</title></head><body>

MSCI's gauge of emerging market currencies hits 3-week low

Philippine stocks hit over 4-year high

Malaysian ringgit slips to 3-week low

Updates at 0703 GMT

By Shivangi Lahiri and Echha Jain

Oct 7 (Reuters) - Equities in emerging Asian markets rose on Monday after a stronger-than-expected U.S. jobs report reinforced bets that the world's largest economy is headed for a soft landing, while currencies in the region weakened.

The MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS advanced 0.3%.

Taipei stocks .TWII jumped 1.8% to lead gains in Southeast Asia. They were closelyfollowed by equities in Manila .PSI which was up 1.7% after hittingtheir highest level in more than four-and-a-halfyears earlier in the session.

The U.S. jobs report on Friday pointed to a resilient economy and spurred markets to reduce bets ofoutsized Federal Reserve rate cuts.

Bets for a hefty50-basis-point cut at the Fed's November policy meeting- which had been above 50% a week ago - were completely erased after the report.

Easing fears of a U.S. hard landing should help contribute towards better performing equities, Khoon Goh, head of Asia research at ANZ said, adding that stronger emerging Asian equities would attract foreign inflows, helping currencies recover.

"The sellout we are seeing today might extend later into the week."

Reduced pricing for the Fed'snext rate cut strengthened the U.S. dollar, in turn weighing on Asiancurrencies. The MSCI's gauge of emerging market currencies .MIEM00000CUS was down 0.4%, hovering close to a three-week low.

The Malaysian ringgit MYR= weakened as much as 1.6% to 4.282 per U.S. dollar, its lowest since Sept. 17.

The Indonesian rupiah IDR= slipped 1.4% to levels lastseen in mid-August.

Investors also braced fora data-heavy week, kicked off by Thailand's annual headline inflation, whichquickened in September but wasbelow the central bank's target range of 1% to 3%.

Thailand's baht THB=TH weakened 1.2%, while local stocks .SETI edged 0.4% higher.

Also due this week are Taiwan's September inflation dataand central bank decisions in South Korea and India on their base rate and repurchase rate, respectively.

The focus will also beon the key National Development and Reform Commission (NDRC) press conference in China on Tuesday, when the markets reopen after a week-long holiday.

NDRC officials will brief reporters on steps to implement policies to promote economic growth.

Their comments could determine whether the rally in Chinese stocks before the Golden Week holiday will continue, "with a possible impact on emerging Asian assets," Khoon said.

HIGHLIGHTS:

** Thai PM says ASEAN mustplay key role in resolving Myanmar crisis

** Philippines, South Koreaboost defence cooperation, upgrades ties to strategic partnership

** Thai cbank seencutting key rate by 25 bps in December, bond market group says

** Indonesia's Prabowo wants gradual increase in debt-to-GDP, adviser says

Asian currencies and stocks at 0703 GMT
COUNTRY	FX RIC	FX DAILY %	FX YTD %	INDEX	STOCKS DAILY %	STOCKS YTD %
Japan	JPY=	+0.22	-4.93	.N225	1.80	28.85
China	CNY=CFXS	-	+1.14	.SSEC	-	12.15
India	INR=IN	+0.01	-0.91	.NSEI	-0.41	14.63
Indonesia	IDR=	-1.37	-1.91	.JKSE	0.26	3.34
Malaysia	MYR=	-1.47	+7.29	.KLSE	0.21	12.28
Philippines	PHP=	-0.87	-2.48	.PSI	1.67	17.72
S.Korea	KRW=KFTC	+0.17	-4.38	.KS11	1.58	-1.69
Singapore	SGD=	+0.07	+1.18	.STI	0.16	10.94
Taiwan	TWD=TP	-0.58	-4.40	.TWII	1.79	26.61
Thailand	THB=TH	-1.2	+2.14	.SETI	0.39	2.40