Most Asian shares jump ahead of key US, regional economic data

Reuters

Most Asian shares jump ahead of key US, regional economic data

12 août 2024 à 7h26 GMT

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Updates at 0648 GMT

Taiwan stocks lead regional gains

South Korea stocks up 1.2%

U.S. CPI, China retail sales data in focus this week

Thai markets closed for a holiday

By Echha Jain

Aug 12 (Reuters) -Shares in major Asian emerging economies gained on Monday, while currencies were mostly lower, as markets switched focus to key U.S. and regional data expected this week, seeking further clues to prospects for global economic growth.

Taiwan's benchmark stock index .TWII led regional gains and was last up 1.4%, followed by South Korean shares .KS11, which jumped 1.2%.

MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS edged up 0.4%.

Currencies, on the other hand, were tepid, with the Malaysian ringgit MYR= and the South Korean won KRW=KFTC depreciating 0.5% and 0.6%, respectively, against the U.S. dollar.

China is set to issue retail sales and industrial production figures on Thursday that are expected to show the economy continuing to underperform, underlining the need for more stimulus.

The Chinese yuan CNY=CFXS and Shanghai stocks .SSEC were down about 0.2%, each.

Traders will also look forward to the Philippine central bank's key policy rate decision on Thursday and Malaysia's second-quarter gross domestic product data on Friday.

Bank of America analysts expect Malaysia's second-quarter final GDP to be revised upwards by 30 basis points to 6.1% on a year-on-year basis, largely reflecting upward revisions for the services sector. They also see 2024 GDP closer to the upper end of the official 4%-5% forecast range.

The Philippine peso PHP= weakened 0.1%, while shares .PSI slipped 0.5%.

The Indian rupee INR=IN was flat and stocks .NSEI gained 0.2% ahead of key inflation data due later in the day.

Indonesian rupiah IDR= edged 0.3% lower and stocks in Jakarta .JKSE were flat.

Markets in Thailand were closed for a public holiday.

Investors await readings on U.S. consumer prices and retail sales for July, due later in the week, which could provide fresh evidence on the chances of a soft landing for the world's top economy and further clues to the Federal Reserve's monetary policy stance.

Markets are pricing in a 53.5% chance of a 25 bps cut and a 46.5% probability of a 50 bps interest rate cut at the Fed's September meeting, the CME Fedwatch tool shows.

"Given a still resilient U.S. economy, as reflected by the recent pickup in the U.S. ISM services index, and ongoing uncertainty over the upcoming U.S. elections in November, there could still be further repricing of rate-cut expectations," MUFG analysts wrote in a note.

Data on U.S. industrial output, along with surveys of regional manufacturing and consumer sentiment, are also expected later this week.

HIGHLIGHTS:

** China's bond market rattled as central bank squares off with bond bulls

** Dismissal case against Thai PM likely to fail, says chief of staff

** Malaysia's palm oil stocks hit 4-month low in July as exports surge

** Vietnam plans electricity subsidies for EV charging stations

Asia stock indexes and currencies as of 0648 GMT
COUNTRY	FX RIC	FX DAILY %	FX YTD %	INDEX	STOCKS DAILY %	STOCKS YTD %
Japan	JPY=	-0.41	-4.18	.N225	-	4.66
China	CNY=CFXS	-0.19	-1.18	.SSEC	-0.22	-4.00
India	INR=IN	-0.01	-0.90	.NSEI	0.20	12.35
Indonesia	IDR=	-0.31	-3.60	.JKSE	-0.01	-0.22
Malaysia	MYR=	-0.52	+3.42	.KLSE	0.53	10.30
Philippines	PHP=	-0.10	-3.37	.PSI	-0.49	2.56
S.Korea	KRW=KFTC	-0.55	-6.12	.KS11	1.15	-1.39
Singapore	SGD=	-0.03	-0.41	.STI	-0.82	-0.16
Taiwan	TWD=TP	-0.08	-5.33	.TWII	1.42	21.43
Thailand	THB=TH	-	-3.04	.SETI	-	-8.39