Asian FX, stocks weaken on slower Fed cut hopes, potential Trump win

Reuters

Asian FX, stocks weaken on slower Fed cut hopes, potential Trump win

2024 10월 24 일, 오전 8:36 GMT

<html xmlns="http://www.w3.org/1999/xhtml"><head><title>EMERGING MARKETS-Asian FX, stocks weaken on slower Fed cut hopes, potential Trump win</title></head><body>

Thai baht hits 6-week low, down 1%

Asian stocks largely trade lower

EM FX set to log worst month in over one year

Updates at 0634 GMT

By Roushni Nair and Aaditya GovindRao

Oct 24 (Reuters) -The Thai baht sank to a six-week low on Thursday, while most Asian currencies seesawed in a narrow range and regional equities edged lower as traders tempered bets of aggressive U.S. rate cuts and considered the possibility of a second Trump presidency.

The baht THB=TH dropped as much as 1% to 33.83 per U.S. dollar, its lowest since Sept. 10, seemingly looking tocatch up with the decline in its peers in the previous session as the currency resumed trading after a holiday.

The Singapore dollar SGD= and Philippine peso PHP= were last up 0.2% each, while the South Korean won KRW=KFTC ticked 0.1% higher.

The dollar index =USD, which measures the currency against six rivals, held close to athree-month high, getting a boost asinvestors no longer expect an outsized 50-basis-point rate cut from the Federal Reserve, a view that is reflected in rising Treasury yields. USD/

The greenback is also getting a boost from the anticipation that Donald Trump will win a second term as U.S. president, as his tax and tariff policies are considered inflationary, which would keep U.S. rates high and hit trading partner currencies.

In Indonesia, the rupiah, which has slid more than 3% from its September peak, despite central bank intervention, is at the forefront of policymakers' thinking.

The newly sworn-in cabinet, which includes the highly regarded Finance Minister Sri Mulyani Indrawati, indicates a continuation of existing policies, helping boost investor confidence and supporting the currency, said Christopher Wong, a currency strategist with OCBC said.

The rupiah IDR= rose 0.2%, while equities in Jakarta .JKSE slipped 0.4%.

In Malaysia, annual inflation came in at 1.8% in September, slightly below expectations. The Malaysian central bank remains the only one in Emerging Asia that analysts anticipate will maintain its policy stance through 2025.

Last week, the Philippine central bank reduced its key interest rate, while Bank Indonesia kept rates unchanged. Bank of Thailand surprised markets with a cut but indicated it was not the beginning of an easing cycle.

Equities in Manila .PSI, Kuala Lumpur .KLSE, Shanghai .SSEC and Bangkok .SETI retreated between 0.2% and 0.9%. Shares in Singapore .STI however, inched up 0.4%.

HIGHLIGHTS:

** South Korea's Q3 economic growth misses expectations

** Thailand's car production slides over 25% in September

Asian stocks and currencies as at 0634 GMT
COUNTRY	FX RIC	FX DAILY %	FX YTD %	INDEX	STOCKS DAILY %	STOCKS YTD %
Japan	JPY=	+0.40	-7.28	.N225	0.10	14.58
China	CNY=CFXS	+0.26	-0.23	.SSEC	-0.75	10.19
India	INR=IN	+0.01	-1.03	.NSEI	-0.09	12.34
Indonesia	IDR=	+0.13	-1.28	.JKSE	-0.39	6.66
Malaysia	MYR=	-0.07	+5.52	.KLSE	-0.42	12.37
Philippines	PHP=	+0.22	-4.42	.PSI	-0.91	13.19
S.Korea	KRW=KFTC	+0.10	-6.68	.KS11	-0.72	-2.80
Singapore	SGD=	+0.20	-0.08	.STI	0.40	11.57
Taiwan	TWD=TP	+0.07	-4.15	.TWII	-0.61	29.34
Thailand	THB=TH	-0.73	+1.26	.SETI	-0.19	3.65