Asian FX inch lower, stocks fall ahead of close-run US election, jobs data
.
Ringgit set for fifth straight week of falls
Indonesia October core inflation rises
Singapore stocks hit lowest level since Sept. 11
By Adwitiya Srivastava and Ayushman Ojha
Nov 1 (Reuters) -Trading was cautious in most Asian currencies on Friday, while equities fell, ahead of a closely contested U.S. election and a jobs report due later in the day for a view on the outlook for rates before the Federal Reserve meets next week.
Republican candidate Donald Trump and Democratic Vice President Kamala Harris remain neck and neck in several polls, but some investors have been positioning for a Trump win, which has lifted the dollar and U.S. Treasury yields and, in turn, pressured Asian currencies.
"A victory for Trump would likely hurt the outlook for Asian economies and FX via lower trade and investment, as well as the Fed potentially slowing the pace of rate cuts due to the inflationary consequences of Trump’s proposed economic policies (tariffs plus wider fiscal deficits)," analysts at MUFG wrote.
The Indonesian rupiah IDR= and Singapore dollar SGD= fell 0.3% each, while the Malaysian ringgit MYR= slipped 0.1% and was headed for its fifth straight weekly fall, its longest falling streak in a year.
Investors were awaiting U.S. non-farm payrolls data due later in the day, a crucial metric to see how well the economy is performing ahead of the Fed's monetary policy meeting next week, for which a 25-basis-point cut is priced in.
The Fed is expected to further ease rates with two more quarter-percentage point reductions by end-year, providing some leeway to Asian central banks to cut rates. However, most Asian central banks will ease more slowly than the Fed over the coming year as their inflation remains broadly within targets and growth is still resilient, a Reuters poll showed.
Last month, the Bank of Korea, Bank of Thailand and Bank Indonesia cut rates by 25 basis points while the Philippine central bank reduced them by 50 basis points.
In stock markets, the broader MSCI index of international emerging markets equities .MSCIEF was at a more than one-month low, in line with rest of Asia as Microsoft and Meta Platforms fell overnight after highlighting that growing artificial intelligence costs could hit their earnings.
Stocks in Taiwan .TWII fell as much as 2.6%, and were last down 0.2%, while South Korean shares .KS11 dipped as much as 0.8%.
Shares in Jakarta .JKSE were down 0.8% to their lowest level since Oct. 11. The country reported its inflation data for October, which showed core inflation had risen to its highest in over a year.
Elsewhere, stocks in Singapore .STI dropped as much as 1% to hit their lowest since Sept. 11, while financial markets in the Philippines were closed for a holiday.
HIGHLIGHTS:
** China's Oct factory activity returns to expansion, Caixin PMI shows
** Japan's factory declines accelerate as demand sags, PMI shows
Asian stocks and currencies as at 0720 GMT | ||||||
COUNTRY | FX RIC | FX DAILY % | FX YTD % | INDEX | STOCKS DAILY % | STOCKS YTD % |
Japan | JPY= | -0.18 | -7.39 | .N225 | -2.63 | 14.32 |
China | CNY=CFXS | -0.08 | -0.36 | .SSEC | -0.24 | 9.99 |
India | INR=IN | +0.00 | -1.03 | .NSEI | -100.00 | -100.00 |
Indonesia | IDR= | -0.25 | -2.13 | .JKSE | -0.84 | 3.27 |
Malaysia | MYR= | -0.14 | +4.77 | .KLSE | 0.05 | 10.18 |
Philippines | PHP= | - | -5.14 | .PSI | - | 10.74 |
S.Korea | KRW=KFTC | -0.09 | -6.54 | .KS11 | -0.54 | -4.25 |
Singapore | SGD= | -0.29 | -0.32 | .STI | -0.21 | 9.60 |
Taiwan | TWD=TP | +0.22 | -3.83 | .TWII | -0.18 | 27.04 |
Thailand | THB=TH | -0.31 | +0.86 | .SETI | -0.14 | 3.40 |
Reporting by Adwitiya Srivastava in Bengaluru; Editing by Sonali Paul and Subhranshu Sahu
Mga Kaugnay na Asset
Pinakabagong Balita
Disclaimer: Ang mga kabilang sa XM Group ay nagbibigay lang ng serbisyo sa pagpapatupad at pag-access sa aming Online Trading Facility, kung saan pinapahintulutan nito ang pagtingin at/o paggamit sa nilalaman na makikita sa website o sa pamamagitan nito, at walang layuning palitan o palawigin ito, at hindi din ito papalitan o papalawigin. Ang naturang pag-access at paggamit ay palaging alinsunod sa: (i) Mga Tuntunin at Kundisyon; (ii) Mga Babala sa Risk; at (iii) Kabuuang Disclaimer. Kaya naman ang naturang nilalaman ay ituturing na pangkalahatang impormasyon lamang. Mangyaring isaalang-alang na ang mga nilalaman ng aming Online Trading Facility ay hindi paglikom, o alok, para magsagawa ng anumang transaksyon sa mga pinansyal na market. Ang pag-trade sa alinmang pinansyal na market ay nagtataglay ng mataas na lebel ng risk sa iyong kapital.
Lahat ng materyales na nakalathala sa aming Online Trading Facility ay nakalaan para sa layuning edukasyonal/pang-impormasyon lamang at hindi naglalaman – at hindi dapat ituring bilang naglalaman – ng payo at rekomendasyon na pangpinansyal, tungkol sa buwis sa pag-i-invest, o pang-trade, o tala ng aming presyo sa pag-trade, o alok para sa, o paglikom ng, transaksyon sa alinmang pinansyal na instrument o hindi ginustong pinansyal na promosyon.
Sa anumang nilalaman na galing sa ikatlong partido, pati na ang mga nilalaman na inihanda ng XM, ang mga naturang opinyon, balita, pananaliksik, pag-analisa, presyo, ibang impormasyon o link sa ibang mga site na makikita sa website na ito ay ibibigay tulad ng nandoon, bilang pangkalahatang komentaryo sa market at hindi ito nagtataglay ng payo sa pag-i-invest. Kung ang alinmang nilalaman nito ay itinuring bilang pananaliksik sa pag-i-invest, kailangan mong isaalang-alang at tanggapin na hindi ito inilaan at inihanda alinsunod sa mga legal na pangangailangan na idinisenyo para maisulong ang pagsasarili ng pananaliksik sa pag-i-invest, at dahil dito ituturing ito na komunikasyon sa marketing sa ilalim ng mga kaugnay na batas at regulasyon. Mangyaring siguruhin na nabasa at naintindihan mo ang aming Notipikasyon sa Hindi Independyenteng Pananaliksik sa Pag-i-invest at Babala sa Risk na may kinalaman sa impormasyong nakalagay sa itaas, na maa-access dito.
