Malaysian ringgit, Thai baht lead falls in Asia FX on buoyant dollar
China markets closed for rest of the week
Malaysian ringgit slips from 3-1/2 year high
Tokyo shares recoup losses
By Archishma Iyer
Oct 1, (Reuters) -The Malaysian ringgit and the Thailand baht led declines among emerging Asian currencies after the dollar rose overnight on Federal Reserve Chair Jerome Powell's signal another outsized rate cut was unlikely at its next meeting in November.
The ringgit MYR= took a breather from a 3-1/2 year high to trade more than 1% lower while the baht THB=TH fell in tandem, slipping from its early 2022 highs.
Both currencies have outperformed in the ASEAN region driven by a slew of factors including improved political stability, foreign inflows and stable growth outlooks.
Other currencies such as the Taiwan dollar TWD=TP, Indonesian rupiah IDR=, the Philippines peso PHP= and the Singapore dollar SGD= traded between flat and 0.6% lower.
Onshore financial markets in China are closed for the rest for the week due to public holidays.
Shares in Shanghai .SSEC had recorded their best session in 16 years on Monday after weekend stimulus measures led to global investors pouring their money into previously beaten-down Chinese stocks.
In the U.S., Powell pushed back on aggressive policy cutting bets on Monday, forecasting the central bank was likely to stick with quarter-percentage-point interest rate cuts moving forward.
Falling U.S. interest rates boosts the attraction of riskier assets and have driven cash into emerging markets, particularly in Southeast Asia where investors have held very low exposures for years.
Investors will this week monitor inflation prints from South Korea, Indonesia and the Philippines to gauge the trajectory of their respective central banks, while a key jobs report from U.S will decide the Fed's rate cut trajectory.
While Indonesia and Philippines have starting easing monetary policy, pressure is mounting on the Bank of Korea to cut rates at its upcoming meeting as growth concerns continue to overshadow inflation worries.
The Philippines central bank governor flagged on Monday that the central bank has room for a 50 basis point cut, although 25 bps will be the norm.
"Not only have the Fed's rate cut and China's stimulus measures boosted the region's risk assets, but their actions could also embolden other central banks to opt for more aggressive rate cuts than our prevailing forecasts," Juliana Lee, Deutsche Bank's chief economist for Asia wrote in a client note.
Most Asian shares rose, with stocks in Manila .PSI recovering their previous losses to trade 1.2% higher. Markets in Jakarta .JKSE, Kuala Lumpur .KLSE and Taipei .TWII rose between 0.1% and 0.7%.
Tokyo shares .N225 recouped the previous session's losses to trade about 2% higher, led by defence stocks. .T
Markets in Seoul and Hong Kong were closed due to public holidays.
HIGHLIGHTS:
** Malaysia plans national cloud policy, AI regulations
** China new home prices manage tiny uptick again in September, private survey shows
** Asia's factory activity hit by global uncertainty, focus on China stimulus
Asian currencies and stocks at 0405 GMT | ||||||
COUNTRY | FX RIC | FX DAILY % | FX YTD % | INDEX | STOCKS DAILY % | STOCKS YTD % |
Japan | JPY= | -0.44 | -2.22 | .N225 | 1.99 | 15.55 |
China | CNY=CFXS | - | +1.14 | .SSEC | - | 12.15 |
India | INR=IN | -0.02 | -0.72 | .NSEI | 0.31 | 19.14 |
Indonesia | IDR= | -0.39 | +1.32 | .JKSE | 0.68 | 4.21 |
Malaysia | MYR= | -1.06 | +10.20 | .KLSE | 0.11 | 13.47 |
Philippines | PHP= | -0.36 | -1.41 | .PSI | 1.22 | 14.13 |
S.Korea | KRW=KFTC | - | -2.19 | .KS11 | - | -2.34 |
Singapore | SGD= | -0.09 | +2.57 | .STI | -0.10 | 10.54 |
Taiwan | TWD=TP | -0.58 | -3.46 | .TWII | 0.73 | 24.85 |
Thailand | THB=TH | -0.70 | +5.43 | .SETI | 0.90 | 3.25 |
Reporting by Archishma Iyer in Bengaluru; Editing by Jamie Freed
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.
