Asian currencies fall on US election bets; stocks wobble
'Trump trade' driving US dollar higher
Malaysia and Singapore Sept CPI due later in the week
Indonesia President Prabowo officially swears in cabinet
Updates at 0639 GMT
By Ayushman Ojha and Adwitiya Srivastava
Oct 21 (Reuters) -Asian stocks struggled for direction on Monday, while currencies continued to face downward pressure as mounting expectations of Republican candidate Donald Trump winning the U.S. election next month pushed the dollar higher.
Election polls show rising odds of former President Trump winning the Nov. 5 election and are boosting the dollar, since his proposed tariff and tax policies are seen as likely to keep U.S. interest rates high and undermine currencies of trading partners.
The Thai baht THB=TH fell 0.7%, on track for its worst drop in two weeks and the first monthly decline in six months, while the Philippine peso PHP= inched up marginally on Monday but was heading for its first monthly fall since May.
The South Korean won KRW=KFTC fell 0.4%, and the Malaysian ringgit MYR= was largely flat. They were also on track for monthly declines, and have fallen nearly 4% so far in October.
Most Asian central banks have started their easing cycle. The Bank of Thailand last week surprisingly cut its key interest rate, while the Philippine central bank lowered rates and Bank Indonesia maintained the status quo as expected.
"Bank Negara Malaysia (BNM) is now the only Emerging Asia central bank that we do not expect to ease policy through 2025," Barclays analysts wrote.
Meanwhile, Indonesia's newly minted leader, President Prabowo Subianto officially swore in his cabinet on Monday, including the reappointment of the country's highly-regarded Finance Minister Sri Mulyani Indrawati.
The impact of Prabowo's election as Indonesia's new president should be positive for bonds and the rupiah, as Sri Mulyani has been reappointed as the finance minister, while the impact on the stock market is to be mixed as details on policies are still awaited, said Fakhrul Fulvian, an economist at Trimegah Securities.
Shares in Jakarta .JKSE inched 0.3% higher, while the rupiah IDR= fell 0.2%.
In other parts of Asia, stock markets were wobbly, as investors looked for further details of more fiscal support from policymakers in China despite its slew of stimulus measures.
Stocks in Singapore .STI were down 0.7%, while Thai shares .SETI lost 0.2%.
Elsewhere, South Korean stocks .KS11 rose 0.4%, while Taiwan shares .TWII edged 0.2% higher.
Investors now await monthly inflation data from Singapore and Malaysia due later in the week.
HIGHLIGHTS:
** Thailand says investment pledges at 10-year high in Jan-Sept
** Vietnam PM says aiming to lift 2024 growth above 7%
Asian currencies and stocks at 0639 GMT | ||||||
COUNTRY | FX RIC | FX DAILY % | FX YTD % | INDEX | STOCKS DAILY % | STOCKS YTD % |
Japan | JPY= | -0.03 | -5.68 | .N225 | -0.07 | 16.41 |
China | CNY=CFXS | -0.14 | -0.21 | .SSEC | -0.05 | 9.58 |
India | INR=IN | -0.00 | -1.02 | .NSEI | -0.37 | 13.95 |
Indonesia | IDR= | -0.23 | -0.65 | .JKSE | 0.27 | 6.98 |
Malaysia | MYR= | +0.02 | +6.72 | .KLSE | -0.07 | 13.07 |
Philippines | PHP= | +0.00 | -3.64 | .PSI | -0.29 | 14.64 |
S.Korea | KRW=KFTC | -0.43 | -6.34 | .KS11 | 0.43 | -1.90 |
Singapore | SGD= | -0.18 | +0.50 | .STI | -0.66 | 11.60 |
Taiwan | TWD=TP | +0.35 | -3.86 | .TWII | 0.24 | 31.30 |
Thailand | THB=TH | -0.63 | +2.47 | .SETI | -0.20 | 5.01 |
Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
Asian stock markets https://tmsnrt.rs/2zpUAr4
Reporting by Ayushman Ojha in Bengaluru; Editing by Jamie Freed and Mrigank Dhaniwala
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.
