Most Asian FX, stocks rise as Fed rate cut bets persist
South Korean won among top gainers in Asian FX
Indonesia rupiah slips more than 1% for week
Chinese stocks set for weekly loss
By Archishma Iyer and Shivangi Lahiri
Oct 11 (Reuters) -Emerging Asian currencies were heading toward weekly losses but they pushed higher on Friday as the buoyant dollar took a breather, while stocks in the region rose after slightly weaker U.S. labour data bolstered rate cut hopes.
The higher weekly jobless claims report from the world's largest economy overshadowed a slightly hotter inflation print, leaving traders firm in their view the Federal Reserve will reduce rates in November.
The South Korean won KRW=KFTC was among the lead gainers, rising about 0.6%, while shares in Seoul .KS11 gained 0.4% after the Bank of Korea kick-started its policy easing cycle with a 25 basis point cut. It became the latest regional central bank to join the bandwagon alongside Indonesia and the Philippines.
Other currencies such as the Indonesian rupiah IDR=, Philippine peso PHP=, Thai baht THB=TH and the Malaysian ringgit MYR= were flat to 0.5% higher.
However, the dollar =USD was set for its second straight weekly gain after a stronger jobs report last week reinforced bets on a smaller rate cut from the Fed, leading to outflows from riskier Asian assets.
On a weekly basis, the rupiah has lost more than 1% and is hovering near a two-month low, while the baht and ringgit were also poised for weekly losses.
"The broad dollar has rebounded from the past few weeks’ decline, which makes us more cautious that the previous out-performance in MYR and THB may have room to retrace," Citi analysts said in a note.
"We are also turning more selective in high yielders because the mutual reinforcement of lower rates and portfolio inflows may be also coming to a pause," they added.
Citi analysts estimated outflows from Indonesia and Thailand totalled $329 million and $221 million respectively, while India saw large foreign selling of about $5.2 billion last week.
Asian central bank meetings are set to take centre-stage next week, while economic growth data and inflation prints in the region could dictate the outlook for interest rates.
Analysts predict the Philippines to move forward with a 25 bps rate cut, while the others such as Thailand, Indonesia and Singapore may stand pat on rates.
The Reserve Bank of India held rates this week, but kept the doors open for a rate reduction as early as December.
Among Asian equities, the markets in Jakarta .JKSE, Bangkok .SETI, and Taipei .TWII rose between 0.5% and 1.2%, while Manila shares .PSI fell about 1.4%.
Shanghai shares .SSEC fell 1.6%, bringing weekly losses to 2.6% after initial euphoria about its stimulus measures faded as trading resumed after a week-long holiday break.
HIGHLIGHTS:
** Japan finance minister to attend G7, G20, IMF, World Bank gatherings this month
** Chinese premier hopes Japan, China can meet halfway, keep relations on right track
** Luxury goods unlikely to be next target of China's EU trade retaliation, analysts say
Asian currencies and stocks at 0355 GMT | ||||||
COUNTRY | FX RIC | FX DAILY % | FX YTD % | INDEX | STOCKS DAILY % | STOCKS YTD % |
Japan | JPY= | -0.09 | -5.13 | .N225 | 0.39 | 18.72 |
China | CNY=CFXS | +0.07 | +0.37 | .SSEC | -1.60 | 9.22 |
India | INR=IN | +0.01 | -0.90 | .NSEI | 0.00 | 15.03 |
Indonesia | IDR= | +0.38 | -1.31 | .JKSE | 0.83 | 3.70 |
Malaysia | MYR= | +0.07 | +7.12 | .KLSE | -0.23 | 12.54 |
Philippines | PHP= | +0.53 | -3.14 | .PSI | -1.43 | 13.26 |
S.Korea | KRW=KFTC | +0.62 | -4.37 | .KS11 | 0.42 | -1.70 |
Singapore | SGD= | +0.03 | +1.07 | .STI | 0.03 | 10.68 |
Taiwan | TWD=TP | -0.05 | -4.48 | .TWII | 1.24 | 27.93 |
Thailand | THB=TH | +0.36 | +2.57 | .SETI | 0.51 | 4.25 |
Reporting by Archishma Iyer and Shivangi Lahiri in Bengaluru; Editing by Jamie Freed
Activos relacionados
Últimas noticias
Descargo de responsabilidades: Cada una de las entidades de XM Group proporciona un servicio de solo ejecución y acceso a nuestra plataforma de trading online, permitiendo a una persona ver o usar el contenido disponible en o a través del sitio web, sin intención de cambiarlo ni ampliarlo. Dicho acceso y uso están sujetos en todo momento a: (i) Términos y Condiciones; (ii) Advertencias de riesgo; y (iii) Descargo completo de responsabilidades. Por lo tanto, dicho contenido se proporciona exclusivamente como información general. En particular, por favor tenga en cuenta que, los contenidos de nuestra plataforma de trading online no son ni solicitud ni una oferta para entrar a realizar transacciones en los mercados financieros. Operar en cualquier mercado financiero implica un nivel de riesgo significativo para su capital.
Todo el material publicado en nuestra plataforma de trading online tiene únicamente fines educativos/informativos y no contiene –y no debe considerarse que contenga– asesoramiento ni recomendaciones financieras, tributarias o de inversión, ni un registro de nuestros precios de trading, ni una oferta ni solicitud de transacción con instrumentos financieros ni promociones financieras no solicitadas.
Cualquier contenido de terceros, así como el contenido preparado por XM, como por ejemplo opiniones, noticias, investigaciones, análisis, precios, otras informaciones o enlaces a sitios de terceros que figuran en este sitio web se proporcionan “tal cual”, como comentarios generales del mercado y no constituyen un asesoramiento en materia de inversión. En la medida en que cualquier contenido se interprete como investigación de inversión, usted debe tener en cuenta y aceptar que dicho contenido no fue concebido ni elaborado de acuerdo con los requisitos legales diseñados para promover la independencia en materia de investigación de inversiones y, por tanto, se considera como una comunicación comercial en virtud de las leyes y regulaciones pertinentes. Por favor, asegúrese de haber leído y comprendido nuestro Aviso sobre investigación de inversión no independiente y advertencia de riesgo en relación con la información anterior, al que se puede acceder aquí.
