Asian stocks, FX subdued as geopolitical risks widen
Indonesian rupiah at two-week low
U.S. dollar firms on Middle East tensions
Indonesia, Malaysia stocks down 1% each
.
By Roushni Nair
Oct 2 (Reuters) -Emerging Asian stocks and currencies were largely subdued on Wednesday after escalating tensions in the Middle East fuelled concerns of a broader regional conflict, prompting investors to seek refuge in safe-haven assets, including the U.S. dollar.
The Indonesian rupiah IDR= declined as much as 0.5% to its lowest level since Sept. 19, while Thailand's baht THB=TH slipped as much as 0.4%.
Equities in Jakarta .JKSE, Seoul .KS11, and Kuala Lumpur .KLSE lost more than 1% each, while shares in Singapore .STI and Manila .PSI rose marginally by 0.2% and 0.3%, respectively.
In response to Israel's actions against Tehran's Hezbollah allies in Lebanon, Iran launched a series of ballistic missiles at Israel, who in turn promised a "severe retaliation" against its adversary.
The escalation of geopolitical unrest can trigger swift downturns, especially in susceptible emerging markets, while traditionally secure assets such as the U.S. dollar often see a boost in investments.
The dollar index =USD, which measures the currency against six major peers, strengthened about 0.5% to 101.2 overnight, its largest rise since Sept. 25. A stronger-than-expected reading on U.S. job openings also supported the greenback. USD/
Other regional currencies such as the Malaysian ringgit MYR= and the Philippine peso PHP= were largely flat, last down 0.1% each. The Japanese yen JPY= lost as much as 0.4%.
"Our view is that Asian currencies will broadly rise gradually, as we anticipate the U.S. employment rate will not go up significantly and as China's stimulus impacts on markets will remain positive," Ryota ABE, an economist at SMBC said.
Following China's weekend stimulus measures, Shanghai .SSEC shares had their strongest trading day in 16 years on Monday, as global investors flocked to invest in previously downtrodden Chinese stocks.
Investors are now awaiting inflation figures from the Philippines on Friday, expecting it to determine the pace of future interest rate cuts by the Bangko Sentral ng Pilipinas (BSP).
As inflation is forecast to continue its downward trend, market expectations are mounting the BSP could further lower rates at its two remaining policy meetings this year, in October and December.
Financial markets in Taipei were shut ahead of the arrival of a weakening Typhoon Krathon. Onshore financial markets in China are closed for the rest for the week due to public holidays.
HIGHLIGHTS:
** Markets in India are closed for a public holiday
** South Korea inflation cools more than expected as rate cut talk grows
Asian currencies and stocks at 0723 GMT | ||||||
COUNTRY | FX RIC | FX DAILY % | FX YTD % | INDEX | STOCKS DAILY % | STOCKS YTD % |
Japan | JPY= | -0.33 | -2.07 | .N225 | -2.18 | 13.58 |
China | CNY=CFXS | - | +1.14 | .SSEC | - | 12.15 |
India | INR=IN | - | -0.73 | .NSEI | - | 18.71 |
Indonesia | IDR= | -0.56 | +0.75 | .JKSE | -1.42 | 3.59 |
Malaysia | MYR= | -0.14 | +10.15 | .KLSE | -1.27 | 12.42 |
Philippines | PHP= | -0.02 | -1.41 | .PSI | 0.30 | 14.77 |
S.Korea | KRW=KFTC | -0.15 | -2.34 | .KS11 | -1.22 | -3.52 |
Singapore | SGD= | +0.00 | +2.41 | .STI | 0.12 | 10.64 |
Taiwan | TWD=TP | - | -3.46 | .TWII | - | 24.87 |
Thailand | THB=TH | -0.27 | +4.60 | .SETI | -0.84 | 2.58 |
Graphic: World FX rates https://tmsnrt.rs/2RBWI5E
Asian stock markets https://tmsnrt.rs/2zpUAr4
Reporting by Roushni Nair, Additional reporting by Sherin Sunny in Bengaluru; Editing by Jacqueline Wong and Sherry Jacob-Phillips
Asset collegati
Ultime news
Disclaimer: le entità di XM Group forniscono servizi di sola esecuzione e accesso al nostro servizio di trading online, che permette all'individuo di visualizzare e/o utilizzare i contenuti disponibili sul sito o attraverso di esso; non ha il proposito di modificare o espandere le proprie funzioni, né le modifica o espande. L'accesso e l'utilizzo sono sempre soggetti a: (i) Termini e condizioni; (ii) Avvertenza sui rischi e (iii) Disclaimer completo. Tali contenuti sono perciò forniti a scopo puramente informativo. Nello specifico, ti preghiamo di considerare che i contenuti del nostro servizio di trading online non rappresentano un sollecito né un'offerta ad operare sui mercati finanziari. Il trading su qualsiasi mercato finanziario comporta un notevole livello di rischio per il tuo capitale.
Tutto il materiale pubblicato sul nostro servizio di trading online è unicamente a scopo educativo e informativo, e non contiene (e non dovrebbe essere considerato come contenente) consigli e raccomandazioni di carattere finanziario, di trading o fiscale, né informazioni riguardanti i nostri prezzi di trading, offerte o solleciti riguardanti transazioni che possano coinvolgere strumenti finanziari, oppure promozioni finanziarie da te non richieste.
Tutti i contenuti di terze parti, oltre ai contenuti offerti da XM, siano essi opinioni, news, ricerca, analisi, prezzi, altre informazioni o link a siti di terzi presenti su questo sito, sono forniti "così com'è", e vanno considerati come commenti generali sui mercati; per questo motivo, non possono essere visti come consigli di investimento. Dato che tutti i contenuti sono intesi come ricerche di investimento, devi considerare e accettare che non sono stati preparati né creati seguendo i requisiti normativi pensati per promuovere l'indipendenza delle ricerche di investimento; per questo motivo, questi contenuti devono essere considerati come comunicazioni di marketing in base alle leggi e normative vigenti. Assicurati di avere letto e compreso pienamente la nostra Notifica sulla ricerca di investimento non indipendente e la nostra Informativa sul rischio riguardante le informazioni sopra citate; tali documenti sono consultabili qui.
