Most Asian equities jump ahead of key US economic data

Reuters

Most Asian equities jump ahead of key US economic data

12 ago. 2024, ore 4:54 GMT

<html xmlns="http://www.w3.org/1999/xhtml"><head><title>EMERGING MARKETS-Most Asian equities jump ahead of key US economic data</title></head><body>

Taiwan stocks lead regional gains

South Korea stocks up 1.1%

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

Thai markets closed for 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 index .TWII led regional gains, advancing 1.6%, closely followed by equities in South Korea .KS11, which jumped 1.1%.

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

Currencies, on the other hand, were tepid, on the back of a strengthening U.S. dollar.

The Malaysian ringgit MYR= depreciated 0.6% against the U.S. dollar while the South Korean won KRW=KFTC slipped 0.4%.

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

The Chinese yuan CNY=CFXS depreciated 0.2%, while Shanghai stocks .SSEC were flat.

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

The Philippine peso PHP= weakened 0.2% while equities in Manila .PSI slipped 0.7%.

The Indian rupee INR=IN was flat and equities in Mumbai .NSEI slipped 0.3% ahead of key inflation data due later in the day.

Indonesian rupiah IDR= edged 0.3% lower and stocks in Jakarta .JKSE shed 0.1%.

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 American economy and further clues to the Federal Reserve's monetary policy stance.

Markets are pricing in a 53.5% chance of a 25-basis-point (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 wrote.

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

** Hindenburg alleges India market regulator chief held stake in offshore funds used by Adani Group

** China's new yuan loans likely fell sharply in July from the previous month, a Reuters poll showed

Asia stock indexes and currencies as of 0401 GMT
COUNTRY	FX RIC	FX DAILY %	FX YTD %	INDEX	STOCKS DAILY %	STOCKS YTD %
Japan	JPY=	-0.37	-4.15	.N225	-	-
China	CNY=CFXS	-0.18	-1.16	.SSEC	-0.03	-3.82
India	INR=IN	+0.00	-0.89	.NSEI	-0.30	11.80
Indonesia	IDR=	-0.31	-3.60	.JKSE	-0.06	-0.28
Malaysia	MYR=	-0.56	+3.38	.KLSE	0.55	10.32
Philippines	PHP=	-0.23	-3.49	.PSI	-0.69	2.35
S.Korea	KRW=KFTC	-0.38	-5.96	.KS11	1.07	-1.48
Singapore	SGD=	-0.04	-0.42	.STI	-0.78	-0.12
Taiwan	TWD=TP	-0.02	-5.27	.TWII	1.56	21.60
Thailand	THB=TH	-	-3.04	.SETI	-	-8.39